Missouri State Treasurer Scott Fitzpatrick announced that the Missouri Housing Development Commission (MHDC) Accelerated Redemption Study Committee will recommend accelerated redemption be made available for up to 50 percent of state low-income housing tax credits, an increase from 20 percent of total projects in the pilot program. The Study Committee was formed in 2020 to evaluate the impact of accelerated redemption on pricing for low-income housing tax credits (LIHTC).
In its report, the Study Committee found accelerated redemption increased the pricing of state LIHTC over 10 cents per tax-credit dollar from the 2017 standard pricing, representing an increase of 18 percent. This increase means up to 86 additional units of low-income housing could be built with no increase in spending.
In 2020, at the Treasurer’s request, the MHDC board implemented an Accelerated Redemption Pilot Program for state LIHTC. This program was designed to increase the efficiency of the LIHTC program by improving pricing for state LIHTC credits, meaning more low-income housing would be built per state tax credit dollar. The Pilot Program was limited to 20 percent of the total approved developments.
The recommendation of the Committee will be considered by the full MHDC board at a future board meeting.
Treasurer Fitzpatrick chaired the Study Committee. Other members included Lt. Governor Mike Kehoe and Commissioners Mark Elliff, Garrick Hamilton, Tracey Lewis and Rick McDowell.
MHDC was created by the General Assembly in 1969 and administers and provides financing for the construction of affordable housing in the state.
A full copy of the Missouri Accelerated Redemption Study Committee Report can be found at <https://treasurer.mo.gov/pdf/PilotProgramReport.pdf>.