Washington County OK’s housing tax credits

The Washington County Board on April 24 approved the allocation for housing tax credits which allocates tax credits throughout the county to encourage affordable housing. The housing tax credit program was created by the Tax Reform Act of 1986 to stimulate private investment in developing affordable housing. The program has become the principal federal subsidy to construct new affordable housing, as well as substantially rehabilitating and/or preserving affordable housing. Since the program’s inception, housing tax credits have been used to produce, preserve or rehabilitate 1,377 units of affordable housing in 27 developments across the county.  The Washington County Housing and Redevelopment Authority is designated under state law as the tax credit allocating agency. The 2013 allocation is estimated to be $510,470. The tax code requires allocating agencies develop a qualified allocation plan which sets forth the selection priorities and process for distribution of tax credits within their jurisdiction. Tax credits are awarded to projects through a competitive process. The HRA will receive applications for 2013 Housing Tax Credits by June 12, 2012. The plan includes point categories to reflect specific local priorities, such as elderly housing, transit-oriented development and financially feasible developments.