Affordable Housing Info
With the support of the Iowa Finance Authority, Conlin Properties has developed 15 projects across Central Iowa, creating hundreds of jobs and most importantly, providing clean, safe and affordable housing for thousands of Iowans.
What is Section 42 affordable housing?
Section 42 refers to that section of the IRS tax code, which provides tax credits to investors who build affordable housing. Investors receive a reduction in their tax liability in return for providing affordable housing to persons with fixed or lower incomes. In return for this tax credit, investors provide important equity to insure that quality housing can be constructed with rents that remain affordable. This program has proven to be very successful nationwide, and is quoted to be driving 70% of the new construction of multi-family housing nationwide. This program is administered in the state of Iowa by the Iowa Finance Authority. (ifahome.com)
Why is Section 42 affordable housing important in Iowa communities?
Affordable housing is critical to the economic development of Iowa's communities. Without affordable housing, the work force has no place in the local community to live, which in turn, makes it harder for local businesses to find employees and expand their businesses. Without business expansion, the local tax base also cannot increase.
Who lives in Section 42 affordable housing?
The residents who live in Section 42 housing must be income and program eligible, similar to residents who live in rental assistance developments. However, the programs differ in that the rent a Section 42 resident will pay is capped at a fixed amount and there are full-time student restrictions. In contrast, under other rental assistance programs such as Section 8, the rent amount paid by the resident is based on 30 percent of his/her adjusted income and the federal government funds the remaining portion. The Section 42 Program is not a government-subsidized rental program.
What does a Section 42 affordable housing project look like?
We are glad you asked! Many times affordable housing has a negative perception in communities, and erroneous perceptions lead to opposition to affordable housing. However, given the income levels and rental ranges shown above, you can see that they are typical of the community as a whole. Conlin Properties takes great pride in the QUALITY of the construction of their affordable housing properties and the amenities and services offered to their residents. Our current Section 42 properties include:
Conlin Properties has successfully developed in many areas of the Greater Des Moines market. We take these projects from inception, through land acquisition, through the entire application for tax credits, construction financing, construction of the property, rent-up, permanent loan placement, credit certification, and placed-in-service verifications. Our property management professionals then take the property into inventory for long-term management.
Certified Compliance Professionals
Conlin Properties has an extensive staff of nationally certified compliance professionals to manage tax credit properties. Our staff is nationally certified by NAHMA through their HCCP (Housing Credit Certified Professional), Elizabeth Moreland Consulting, a nationally recognized trainer in affordable housing, through the NCP (National Compliance Professional) program, as well as through Spectrum Companies, also a nationally recognized trainer, through the C3P (Certified Credit Compliance Professional). Our staff has the training and expertise to insure that the compliance requirements of Section 42 affordable housing are followed to insure that credits are protected for the property owners. These certifications are currently held through The National Association of Home Builders, NAHMA www.nahma.org, Elizabeth Moreland Consulting and the Housing Tax Credit College, www.taxcredit.com, and Spectrum www.spectrumseminars.com .
Conlin Properties offers a full array of consulting services in connection with the development and management of affordable housing units including financial review, development services and syndication assistance. Please use the contact below for more information, a quote and references.
For additional information on the development or management of Section 42 affordable housing, please contact:
Beth Ehlers, Vice President
Conlin Properties, Inc.