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November 19, 2009

Tax credits reserved for downtown project

The Oklahoma Housing Finance Agency has reserved $600,000 in tax credits for the development of 42 apartments for low-income senior citizens in the Manhattan Building at Fourth Street and Broadway.

The award was made at the OHFA board of trustees’ meeting this month.

The award was made to Garrison Development Co., of Kansas City, the same firm that turned the Surety Building into apartments for seniors.

According to a OHFA media release, the sale of a project’s housing tax credits and other tax benefits provides a source of capital for the development of affordable rental housing. This equity investment reduces the need for financing, thereby reducing operating costs, which is passed along in the form of reduced rents. To qualify for tax credits, a project must both restrict rents on its rental units and rent to tenants whose incomes do not exceed income limits.

A $500,000 reservation results in a total tax credit award of $5 million, the release states.

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