Lautenberg Announces $61 Million to Increase Affordable Housing In New Jersey
WASHINGTON, DC – July 6, 2009 – (RealEstateRama) – Sen. Frank R. Lautenberg (D-NJ) today announced New Jersey will receive $61,243,670 in funding to jump start affordable rental housing developments and create construction-related jobs in the state. The money is being distributed by the U.S. Department of Housing and Urban Development (HUD) through the Tax Credit Assistance Program (TCAP), which received funding under the Economic Recovery Law signed by President Obama in February. TCAP is a grant program that provides capital investment funding for stalled low income housing tax credit developments.
“In these tough economic times, we need to do all we can to create jobs and increase affordable housing in New Jersey,” Sen. Lautenberg said. “These funds will put people to work and help ensure families across our state have a place to call home.”
The current economic and financial crises present significant challenges for the construction industry, particularly residential construction. One of the by-products of this crisis has been the freezing of investments in the low income housing tax credit (LIHTC) market. These tax credits create an incentive for investors to provide capital to developers to build multi-family rental housing for moderate and low-income families across New Jersey and the country. Since the contraction of the credit market, and as traditional investors remain on the sidelines, the value of tax credits has plummeted. Consequently, as many as 1,000 projects (containing nearly 150,000 units of housing) are on hold across America.
In response, the Recovery Act provides $2.25 billion for TCAP, a grant program to provide capital investments in these stalled LIHTC developments. HUD is awarding these TCAP grants by formula to 26 state housing credit agencies to complete construction of qualified housing projects that will ultimately provide affordable housing to an estimated 35,000 households nationwide.
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Contact: Lautenberg Press Office (202) 224-3224
