Arizona sets record for home loan awards | Housing Finance Magazine

The Arizona Department of Housing (ADOH) has awarded $30.1 million in 9% Federal Low-Income Housing Tax Credits (LIHTC) to 16 affordable housing projects, including seven in rural communities . The record amount comes after a revamped process for awarding tax credits and the implementation of a new state tax credit program, according to the DOH.

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“This new process has reduced the burdensome regulatory framework for awarding these coveted tax credits and has led to increased developer interest in building affordable housing in Arizona,” said Tom Simplot, director of the ADOH. “The state’s tax credit program is achieving its goal of spurring the construction of new affordable housing in our state.”

The department received a record 33 LIHTC applications, and the seven rural projects awarded are the most in state history. Two of them, one in Yavapai County and one in Gila County, are the first rural projects to receive a state tax credit ($1 million each, in addition to 30, $1 million from the LIHTC). Combined with the nine prizes for the subway project, the funding will lead to 1,142 additional housing units in Arizona. These numbers are the result of a complete rewrite of the state’s Qualified Allocation Plan (QAP), which details all policies and procedures for LIHTC awards.

“We held bespoke focus groups to solicit feedback from affordable housing stakeholders on the rewording of our QIP and received over 600 comments before drafting the final government-signed version. [Doug] Ducey,” Simplot said. “We reduced the length of the document from over 300 pages to less than 50, and, along with many other rating and review changes, we received inquiries from the affordable housing community like never before.”

Here are the complete lists of 2022 LIHTC 9% and 2022 State Tax Credit winners.

“By the end of 2022, we expect all ADOH funding programs under our new QAP process to help deliver 8,574 new affordable housing units; a 330% increase from 2021,” Simplot added.