Salmon to Gain More Affordable Housing for Families

BOISE - Thirty-six new affordable apartments will soon be available in Salmon thanks to a recent distribution from the Idaho Housing and Finance Association. Housing Tax Credits totaling $177,171 and $375,000 in HOME Program funds have been reserved for Boise’s Hope Investments who plans to build near the intersection of Shoup and Margaret Streets. Once completed, Sungate Apartments will add 36 new apartments to the community, 35 of which will provide affordable housing for low-income families.

In all, $742,109 in Housing Tax Credits and $1,550,115 in HOME funds were disbursed during IHFA’s allocation round. The Salmon development is one of three cities planned for affordable housing construction. Other multifamily developments will be built in Boise, Emmett and Lewiston.

"We’re pleased with the quality of the developments to be built from this allocation round," said IHFA President and Executive Director Gerald Hunter. "These programs provide an incentive for developers to build affordable rental housing. It’s a win-win situation for everyone involved, especially the families."

The Housing Tax Credit and HOME programs are resources for the development of rental housing complexes with a portion of the rental units reserved for limited-income Idahoans. HOME funds can also be used to provide financing for home rehabilitation and home ownership assistance to income-eligible families.

Eligible applicants for Housing Tax Credits include for-profit and nonprofit housing developers willing to designate a percentage of units in their housing development for lower-income Idahoans. In 1999, Low-Income Housing Tax Credits awarded in the state of Idaho totaled $1,550,115, financing 395 affordable units statewide.

The Housing Tax Credit program offers direct federal income tax savings to rental housing owners. Participating owners receive credit annually over a 10-year period when they comply with program regulations, including restricting the amount of rent charged to limited-income families.

HOME funds are distributed in a competitive application process to local government, housing authorities and both nonprofit and for-profit developers. To receive HOME funds, developers must secure non-federal, permanent matching funds that can include cash or land donations, in-kind services or tax waivers.