Missouri to Audit State's LIHTC Program
Recently, the Missouri state auditor announced plans to review the state’s low-income housing tax credit program as the state's General Assembly looks at tax credits this session. Currently, the program is administered by the Missouri Housing Development Commission. And the program provides federal and state tax credit to investors in affordable housing.
The program has been part of a focus in the Missouri General Assembly on reforming tax credit programs. A 2008 audit by then-auditor Susan Montee found that the program was costly and inefficient. The report also had found that for fiscal year 2007, Missouri ranked second among all states in per-capita funding of state low-income housing tax credit programs.
During the 2012 fiscal year, Missouri waived $629 million in revenues through tax credits, including $164 million for low-income housing development and $134 million through the historic preservation program. Over a month ago, the Missouri Senate passed a bill to reform the program. That bill caps low-income housing credits to $55 million from its current $190 million. The bill is now in committee in the House.
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