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Missouri Approves Over $40 Million In Low-Income Housing Tax Credits

Missouri Approves Over $40 Million In Low-Income Housing Tax Credits

The state of Missouri has approved the disbursement of over $40 million in low-income housing credits to help developers construct residences for underprivileged families.

Credit: Steve Geer/Getty Images

The funds are expected to be used to build 1,791 houses throughout the state. 

Last week, the Missouri Housing Development Commission agreed to issue half the credits on an accelerated basis. This is the second year for this approach, which proponents believe is the most efficient method.

A report from the Missouri Independent notes that the Show Me State has two types of low-income housing credits, with the more sought-after option being awarded together with federal tax credits. 

The article also explains that Missouri is among 25 states operating a state-funded version of the federal government's low-income housing tax credit program.

Specifically, Missouri matches up to 70% of the federal credits for the most popular types of tax credits.

There are qualifications that must be met, however. For example, property developers must agree to reserve a portion of rent-restricted units for tenants who meet income thresholds. 

Furthermore, each project that is granted a credit must remain low-income housing for a minimum of 30 years. 

Credit: Joe Daniel Price/Getty Images

Additional details about compliance can be found on the MHDC's official website.

What do you think about Missouri approving $40 million for low-income housing tax credits?

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Feature Image Credit: Denis Tangney, Jr.

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Rebekah Barton

Rebekah Barton

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