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The St Louis Contrarian

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

Archive for the category “missouri”

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

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HUD to Defund Fair Housing Grants in Missouri

Missouri passed a law about six months ago which made filing a discrimination or fair housing complaint more difficult. Many in the know advised against it primarily for moral reasons, but also because of the potential for lawsuits and possibility of listing federal funding. Well, the predictions have come true. HUD has written that if the law is not changed by March 2018 federal funding for fair housing enforcement will be terminated. That is because the state law is no longer “substantially equivalent” to the federal law. It would be just deserts if Amazon opted not to come here due to our redneck ways. Written by Paul Dribin

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