Colorado Project Among the First to Receive TCAP Funding
Denver Gardens, an affordable housing complex, is one of the first projects in Colorado and among the first nationwide to receive financing through the Tax Credit Assistance Program (TCAP). The project was awarded $1.7 million in TCAP funds by the Colorado Housing and Finance Authority, which helped close the gap it was facing due to the recent decline in tax credit market values. With this award, Denver Gardens was able to close the $14 million purchase and renovation transaction that will house more than 100 low-income seniors.
The renovation plan for Denver Gardens, totaling $3 million, includes nearly $1 million of sustainable features—such as energy-efficient appliances, windows, and lighting—to lower the project’s energy costs.
The bond that helped fund the project was issued by Fannie Mae and purchased by the CRA Qualified Investment Fund. “The recent economic decline has significantly impacted the ability of low-income housing tax credits (LIHTC) to fund critical affordable housing projects nationwide,” said Barbara VanScoy, senior portfolio manager at CRA. “The TCAP has been vital in spurring the completion of these projects.”
The failure of LIHTC to fund affordable housing projects began in early 2008. This spurred Congress to create the TCAP as part of the American Recovery and Reinvestment Act. The program was funded with $2.25 billion nationwide, and enabled LIHTC allocating agencies to use the funds to provide grants or loans to affordable housing developers.