Missouri Senate Gives Initial Approval to Restore State LIHTC
More than a year after the Missouri Housing Development Commission voted to freeze the state’s LIHTC program, the Missouri State Senate recently signaled initial approval to bring it back with a few changes. Senate Bill 28 would set the state’s cap on spending to a 72.5 percent match of the funding from the federal LIHTC program. Prior to the program’s freeze, the state tax credits were issued at a matching rate with the federal funds.
The low-income housing program, which is the state’s largest tax credit program, provides incentives for developers and housing authorities to construct housing complexes that offer a defined number of spots to people whose income falls below a certain threshold—usually 50 or 60 percent of the area’s median income.
Debate centered on how much the state should spend on the program. Between 2012 and 2016, Missouri provided developers with an average of $152 million per year in credits. If Senate Bill 28 is adopted, the state would offer around $110 million yearly if federal money holds steady.