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Treasurer Fitzpatrick Applauds MHDC for Unanimously Approving Qualified Allocation Plan Including Expanded Accelerated Redemption Program

Thursday, September 02, 2021
Treasurer's name


Jefferson City, MO –Missouri State Treasurer Scott Fitzpatrick today applauded the Missouri Housing Development Commission (MHDC) for unanimously passing this year’s Qualified Allocation Plan (QAP) and expanding the availability of accelerated redemption for low-income housing tax credits (LIHTC) to up to 50% of state LIHTC. This is an increase from 20% of total projects in the pilot program.

 

This expansion followed the recommendation of a study committee, chaired by Treasurer Fitzpatrick, which evaluated the impact of accelerated redemption on pricing for LIHTC. The committee found accelerated redemption increased the pricing of state LIHTC over $0.10 per tax credit dollar from the 2017 standard pricing, representing an increase of 18%. This increase means up to 86 additional units of low-income housing could be built with no increase in spending.

 

                “This vote by the Commission is an important step forward for the LIHTC program and helps ensure that Missouri tax dollars are being used to better serve the citizens of this state. Increasing accelerated redemption means that more low-income housing can be built without increasing spending. That is a win for all Missourians,” Treasurer Fitzpatrick said. “My commitment as Treasurer to protecting your tax dollars is one I take seriously. Fighting to improve the efficiency and transparency of the state LIHTC program is a reflection of that commitment.”

 

In 2020, at the Treasurer’s request, the MHDC board implemented an Accelerated Redemption Pilot Program for state LIHTC. This program was designed to increase the efficiency of the LIHTC program by improving pricing for state LIHTC credits, meaning more low-income housing would be built per state tax credit dollar. The Pilot Program was limited to 20% of the total approved developments.

 

Treasurer Fitzpatrick chaired the Study Committee. Other members included Commission Chairman Lt. Governor Mike Kehoe and Commissioners Mark Elliff, Garrick Hamilton, Tracey Lewis, and Rick McDowell.

 

MHDC was created by the General Assembly in 1969 and administers and provides financing for the construction of affordable housing in the state. 

 

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