BOISE - Rental housing developers have until Sept. 10 to submit competitive applications to Idaho Housing and Finance Association for over $1.8 million in tax credits for projects throughout the state. More than 6,700 units of affordable rental housing for Idaho's lower-income families have been added statewide through IHFA's Housing Tax Credits in the last 17 years.

Housing Tax Credits provide an incentive to developers, creating a dollar-for-dollar federal tax liability reduction for owners of newly constructed or substantially rehabilitated rental housing. Tax credits benefit the development by reducing debt and bringing rents within the reach of more families, and tax credit recipients may claim the annual credit each year for 10 years.

"This is the first round for 2005 tax credit applications," said IHFA Multifamily Finance Manager Ernie Watkins. "Additional funds will be available after the first of the year in the next round of applications.

In Fiscal Year 2004, IHFA allocated more than $2.9 million in annual Housing Tax Credits, generating nearly $23.3 million in equity. A total of 472 units of rental housing were placed in service during the fiscal year. Of those, 421 (more than 89 percent) were designated for affordable housing.

Developers compete for credits under IHFA's Selection Criteria Point System described in the Allocation Plan. To receive a copy of the plan or an application, contact IHFA's Multifamily Financing Department at P.O. Box 7899, Boise, ID 83707-1899; call 1-877-219-2285, TDD 1-800-545-1833, or fax 208-424-7092. A copy is also available on IHFA's Web site at multifamily_taxcredit.asp.

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The Idaho Housing and Finance Association, a financial services and housing organization, provides funding for affordable housing in Idaho communities where they are most needed and when it is economically feasible. IHFA uses no state funds or state employees to support its operations. For more information, visit our Web site at www.ihfa.org.