First Initiative Aimed at Rapidly Building More Affordable Homes in Arizona
Phoenix, Arizona – The Arizona Department of Housing (ADOH) today announced it has allocated more than $22 million in 2023 of the 2024 federal Low Income Housing Tax Credit (LIHTC). The state is taking this unusual step to encourage affordable housing development to meet the following conditions: Our state’s current housing shortage.
“Because this crisis needs to be addressed immediately, we are allocating all of our much-needed 2024 federal tax credit to address the state’s critical housing needs,” said Gov. Katie Hobbs. . “I am taking this historic step to ensure that all Arizonans have access to safe, affordable housing.”
Based on Arizona’s population, Arizona receives just over $22 million annually in LIHTC from the federal government. Federal law allows states to roll up tax credits from year to year, meaning Arizona will be able to allocate her 2025 LIHTC as a benefit next year. For the past few years, ADOH has front-loaded part of the next year’s tax credit. It will be the first time in state history that Arizona will use his 100% of next year’s credits for development funds this year.
“We are getting these credits each year to drive development, and in 2023 the flexibility to use all of next year’s batches will allow us to build more affordable housing communities in a shorter period of time. We will be revitalized,” said ADOH Director Joanne Service.
ADOH is also announcing the award today. 15 new affordable housing projects 2023 includes seven in rural areas, tying the agency’s record for local awards set last year. Today’s award will create 1,049 new homes for him throughout Arizona.
“By awarding these new projects and leveraging tax credit resources plus historic donations to the State Housing Trust Fund, we expect to have a significant impact on housing across Arizona in 2023. “I’m sorry,” said Governor Hobbs.
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