Advertisements

The St Louis Contrarian

Providing Independent and Intelligent Insight on St. Louis Public Policy Issues

State of Missouri Low Income Housing Tax Credits

Well the hammer has dropped. The Missouri Housing Development Commission. (MHDC) board voted today to eliminate the State Affordable Housing Tax Credits. These credits have been used in conjunction with federal affordable credits, historic credits, and other forms of subsidy and equity to build and rehabilitate affordable housing in Missouri. Governor Grietens has been pushing to eliminate these credits since he has taken office.

This action will make affordable housing in Missouri more difficult to accomplish. There will be fewer deals and less affordable rents. The state credit appears expensive in a simplistic way, but in terms of jobs creation and long term housing affordability it is critical.

There has been significant criticism of the multitude of state tax credits in Missouri. The reason for this is the unreliability of the state legislative process an the subsequent uncertainty to housing investors. My mild criticism of the industry for a long time has been that we are too reliant on tax credits and need to develop alternative sources of funding. Written by Paul Dribin

Advertisements

Single Post Navigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: