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Two tax subsidized housing projects approved for Blakely The Georgia Department of Community Affairs announced last week that $16.2 million in federal housing tax credits has been awarded to 30 affordable rental housing developments across the state, including two in Blakely. "Promoting affordable housing options is one of DCA's core objectives," said DCA Commissioner Mike Beatty. "Through the award of federal and state tax credits, DCA is able to provide a valuable financing tool that supports developers efforts to build affordable housing in communities where housing needs are greatest, without sacrificing their business objectives." The "Low Income Housing Tax Credit Program" provides opportunities for developers to build mixed income communities, providing more access to affordable rental housing for citizens with limited income, using tax credits as a financing tool, according to Beatty. The Georgia Housing Finance Authority, administratively operated by DCA, serves as Georgia's allocating agency for federal housing tax credits. Of the $16.2 million, $732,710 in tax credits were approved for Blakely Commons, a 62-unit rental housing development planned for a 30-acre tract of land located between North Church Street and Deal Avenue. The development company is RHA/Housing, Inc. of Atlanta. In addition, another $268,315 in tax credits were approved for J.T. Development, Inc. of Valdosta for the acquisition and rehabilitation of the 32 rental units at Country Lane Apartments on South Main Street. How the Low Income Housing Tax Credit Program works is confusing at best to most readers, but best described in a chart called Follow the Money used in testimony before congress.
The chart illustrates how the tax credits are issued by the IRS to the state housing agencies (Georgia's DCA). The state housing agencies screen housing project proposals and award the tax credits to the developer of the project. In return for additional equity financing, the tax credits pass from the developer through an investment entity to corporate and personal investors.
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