Affordable Housing Program (AHP) funds continue to be an excellent leveraging tool for tribal LIHTC projects
It’s no secret that soft money is drying up for affordable housing projects. There are more developers chasing fewer resources, thereby increasing competition. And said competition will continue to rise as the market braces for increasing interest rates, and developers try to figure out how to pencil out their projects (a.k.a. demonstrate financial feasibility).
These topics, however, are for another blog…today’s entry is to celebrate the success of the Red Lake Reservation Housing Authority, the Eastern Shoshone Housing Authority and Dakota Nation Development Corporation for their recent Affordable Housing Program (AHP) awards! The AHP is a competitive program through the Federal Home Loan Bank system that provides grants and subsidized loans to support affordable rental housing and homeownership opportunities.
With the support of the First National Bank of Bemidji, the Red Lake Reservation Housing Authority in Minnesota received $400,000 from the FHLB of Des Moines for Red Lake Homes XII — a 40-unit rehabilitation project primarily financed with a 2014 allocation of tax credits from Minnesota Housing and an equity investment from Raymond James Tax Credit Funds.
This development will substantially rehabilitate 40 housing units that are presently in substandard condition and at risk of losing their federal assistance operating funding through NAHASDA.
While the majority of Red Lake’s prior LIHTC projects have focused on new construction, this project will specifically target rehabilitation in order to address the tribe’s units that require renovation. Scattered among four tribal communities — Red Lake, LiMle Rock (within Red Lake), Redby, and Ponemah — the 40 units selected for rehabilitation are all single-family homes and will consist of 14 two‐bedroom units, 17 three‐bedroom units, and nine four‐bedroom units.
All 40 housing units will be targeted toward households with annual incomes of up to 60 percent Area Median Income (AMI). Twenty-eight units will be set aside for households at or below the 50 percent AMI rent limit, while 12 units will be set aside for households at the 30 percent AMI rent limit.
In Wyoming, the Eastern Shoshone Housing Authority received $526,940 for its Tigee Village project, supported by Central Bank & Trust. Tigee Village is the reconstruction of a subdivision that was demolished in 2014 due to the extremely poor condition of the homes. Twenty new units — a mix of duplexes and fourplexes — are presently being constructed after receiving a 2014 LIHTC allocation from the Wyoming Community Development Authority and an equity investment from RBC Capital Markets.
Last but not least, the Dakota Nation Development Corporation received $480,000 for its upcoming SWO Elderly Village project. This project, which was supported by Dacotah Bank, is targeted for a future LIHTC allocation from South Dakota Housing Development Authority and will construct a residential complex for elders consisting of 32 two-bedroom units, one manager unit and communal gathering areas. Several supportive and empowerment services will be offered to the residents and coordinated by the on-site manager.
Over the last 20 years Travois has helped 34 tribes in receiving 60 allocations of AHP funds for a total of $23,442,746 in soft money. If you are interested in applying for AHP funds, whether for a LIHTC project or a non-LIHTC project, or a homeownership project or a rental project, please contact us, and we can review with you the opportunity for accessing this resource.