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                                                DSHA ANNOUNCES PRELIMINARY LOW-INCOME HOUSING TAX CREDIT ALLOCATION      

                                                  Approximately $3 Million To Build and Restore Affordable Rental Housing in Delaware

The Delaware State Housing Authority (DSHA) announced its preliminary project award rankings for the 2023 Low-Income Housing Tax Credit (LIHTC) allocation last week.

The LIHTC was created in 1986 to encourage private/public investment to preserve and construct affordable rental housing nationwide. Alone and combined with tax-exempt private activity bonds, the LIHTC has been the most productive source of affordable housing financing in the nation's history. 

Three development projects were awarded $3 million in 10-year federal LIHTCs this year. Recipients were selected based on criteria outlined in DSHA's Qualified Allocation Plan , which include rent price, location, accessibility, and more. All projects must meet program requirements by the end of the year to receive a formal reservation of tax credit investments.

Project Name                         Project Type                               Project County         # of Units        

Chapel Branch Apartments     New Construction – Family           Sussex                          35 LIHTC    

                                                                                                                                                      7 Market        

Cheer Gateway East                  New Construction – Senior           Sussex                         59 LIHTC        

George Read Village                 Preservation – Family/Senior       New Castle                  72 LIHTC       

Developers claim tax credits over ten years, which allows them to balance the construction or rehabilitation costs incurred during the rental housing development. All buildings financed with the LIHTC must remain affordable and in compliance with other program policies for a minimum of 30 years.

DSHA receives an annual tax credit amount and awards credits annually through a competitive process. The equity raised through the tax credit investment allows developers to attract the additional financing needed to create or restore low-income rental housing.

“DSHA is consistently and aggressively adding new affordable rental units to Delaware’s housing stock,” said Eugene Young, Jr., Director of DSHA. “The development of these communities will transform the lives of families and seniors and bring us one step closer to solving the housing crisis in our state.”

DSHA has administered LIHTC since 1987, adding more than 10,000 affordable units to the state's housing inventory. For more information please visit: http://destatehousing.com/Developers/dv_lihtc.php.

About the Delaware State Housing Authority

The Delaware State Housing Authority (DSHA), formed in 1968, provides quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State's Housing Finance Agency, DSHA is unique because it serves as a Public Housing Authority in Kent and Sussex County and a Community Development and Planning Agency. For more information about the Delaware State Housing Authority, please call: (302) 739-4263 or visit our website at www.destatehousing.com .