PRESS RELEASE
Reforms Championed by Treasurer Fitzpatrick Result in Improved Efficiency of Low-Income Housing Tax Credit Program
Jefferson City, MO – Missouri State Treasurer Scott Fitzpatrick
today announced that because of reforms he championed with other members of the
Missouri Housing Development Commission, the efficiency of the Low-Income Housing
Tax Credit program (LIHTC) improved significantly when compared to last year. Because
of these reforms, the value of the credits continues to increase which is
resulting in more low-income housing being built with no increase in state
spending. The average price per tax credit
with standard pricing improved to $0.634 this year versus $0.58 last year, an
increase of more than $0.05. For the first time in the history of the LIHTC program
all projects which received an award included pricing of state tax credits of
at least $0.60. Additionally, under the accelerated redemption program some
credits were priced over $0.70 for the first time ever. “Over the past three years I
have worked alongside the other members of the commission to improve the
efficiency and transparency of the LIHTC program and it is great to see the
impact of this work,” Treasurer Fitzpatrick said. “Increasing competition for
credits, like any marketplace, drives the efficiency of the program up. The
accelerated redemption model I championed has no doubt led to increased
competition for these tax credits and I am gratified to see the first
significant price increase in years. I remain committed to protecting Missouri
tax dollars and maximizing their impact.” At yesterday’s MHDC meeting, the
Commission voted to approve the Rental Production Recommendations for
Funding. In September, the
Commission unanimously expanded the availability of accelerated redemption for
LIHTC to up to 50% of state LIHTC, an increase from 20% of total projects
in the 2020 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 value of state LIHTC over $0.10 per tax credit dollar
from the 2017 standard pricing, representing an increase of 18%. MHDC was created by the General
Assembly in 1969 and administers and provides financing for the construction of
affordable housing in the state. ### Follow the Treasurer’s Office on Twitter,
Facebook, and Instagram @motreasurer.
