Funding Allocation Summary: $413,000,000.00
The Government of Puerto Rico and the Puerto Rico Department of Housing (PRDOH) is proud to present the CDBG-DR Gap for Low Income Housing Tax Credits Program (LIHTC), financed with funds allocated by the United States Department of Housing and Urban Development (HUD).
Puerto Rico faces an increased need for affordable rental housing stock in the aftermath of hurricanes Irma and María. The substantial reduction in available housing units caused by the storms’ destruction, combined with a surge of displaced residents in need of housing, represents a major hindrance to long-term recovery. The Puerto Rico Housing Finance Authority (PRHFA) has participated in the construction of affordable rental housing projects through the Island. One of its Program, the Low Income Housing Tax Credits (LIHTC), established in 1986, has been instrumental in the creation of thousands of units.
As the allocating agency, PRHFA, has been designated as the subrecipient for the LIHTC Program, and accordingly, will administer the CDBG-DR funds to encourage the construction and/or rehabilitation of multifamily and/or elderly affordable rental housing by providing gap funding to augment other public and/or private financing for the affordable rental housing units under the LIHTC Program administered by PRHFA.
For detailed Program Overview and Eligibility Requirements, please access the Program Guidelines published on the website here.
For Information regarding PRHFA’s Notice of Public Hearing on the 2020 Qualified Allocation Plan, please click here.
What is the purpose of the program?
- Benefit Low to Moderate Income (LMI) populations below eighty percent (80%) Area Median Family Income (AMFI) according to HUD Modified Income Limits for Puerto Rico, by increasing the existence of multifamily and elderly housing.
- Increase the affordable housing stock with new construction and rehabilitation.
- Respond the need for housing, by providing gap financing to leverage LIHTCs and make projects financially feasible.
- Promote economic development and provide quality rental housing for households.
How does it work?
- Puerto Rico receives millions of dollars each year in low-income housing tax credits (LIHTC).
- PRHFA will select the projects proposed by qualified Developers to use LIHTCs.
- The Program will provide gap funding with CDBG-DR funds, to Developers with pre-approved LIHTC Projects.
- The CBDG-DR Gap to LIHTC Program will consist of $413M for the financing of multiple Projects; the Projects will be financed as funds become available.
- This financing will accelerate the pace of new and qualified construction and/or rehabilitation projects that are ready to be built.
Who can participate?
- Developers who propose Projects under this Program must be eligible for funding under the federal LIHTC Program.
- In addition, homes created or rehabilitated under this Program will benefit any LMI, resident of Puerto Rico, by having inventory of affordable and resilient rental housing.
- Similarly, Developers, Individuals or legally established entities that provide rental housing may benefit.
Importance of the Program
- The CDBG-DR Gap to LIHTC Program maximizes LIHTCs and thus extends the Impact of the CDBG-DR Grant, while creating affordable rental housing units that are very necessary.
- The LIHTC Program, was described by HUD as “the most important resource for creating affordable housing In the United States today”; allows individuals and legal entities to claim federal tax credits on Income exchange for providing affordable rental housing.
- The proposed developments take into consideration the use of environmentally friendly methods and materials, in order to protect It, In addition, they have resistance and energy conservation measures; Energy Star equipment, photovoltaic panels, emergency power generators and windows with storm proof protection.
- In addition, the Developments will include the installation of broadband infrastructure, in order to reduce the digital divide in mixed income communities and provide a platform for people and their families to participate in the digital economy and increase their access to economic opportunities.
- The urban location of these Developments, which includes reasonable distance businesses, seeks to benefit the regional economy. It includes nearby places such as medical facilities, pharmacies, post offices, supermarkets, public transport and recreational areas of the municipalities.
|Eligible Projects||Phase 1: 9% LIHTCs (pre-approved, NOFA 2016)
Phase 2: 4% LIHTCs (to be awarded, NOFA 2020
|Project Name||Location||Project Type||Total Number of Units||Target Population||Estimated Construction Cost||Estimated CDBG-DR Award Amount|
|José Gautier Benítez – Elderly||Caguas||Elderly||200||Elderly||$53,077,000.00||$14,479,390.00|
|José Gautier Benítez – Multifamily||Caguas||Multifamily||238||Low Income Populations||$82,341,000.00||$31,715,900.00|
|De Diego Village||San Juan||Multifamily||94||Single Headed Households||$33,811,005.00||$18,127,253.00|
|Hogar Manuel Mediavilla Negrón II||Humacao||Elderly||90||Elderly and Disabled||$25,622,726.00||To be Announced|
|San Blas Apartments||Coamo||Elderly||69||Elderly and Disabled||$21,128,774.00||$7,969,563.00|
|Sabana Village Apartments||San Juan||Multifamily||160||Low Income Populations, AIDS/HIV, and Homeless||$26,109,567.00||To be Announced|
|ViewPoint at Roosevelt||San Juan||Multifamily||130||Low Income Populations, Disabled, and Single Headed Households||$37,006,279.00||To be Announced|