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DMA is versed in favorable financing available at the local, state and federal levels of government, as well as private resources.  Brief descriptions of some of our financing sources are as follows:

Low Income Housing Tax Credit Program — 9% Tax Credits or 4% Tax Credits with Private Activity Bonds 

Under Section 42 of the Internal Revenue Code, tax credits can be earned for investing in affordable housing.  Credits are used by investors in these affordable housing projects to reduce – dollar for dollar – their federal income tax obligations.  Credits are allocated to developers by state housing finance agencies.  The amount of credit awarded to a housing development is based on both the cost of the development and the percentage of low-income units in the development.  Program criteria are governed by a State’s Qualified Allocation Plan.

Housing Investment Program (HOME)

HOME is a federally-funded program for housing enacted in 1990 as part of the National Affordable Housing Act (NAHA).  The HOME program is intended to foster partnerships among federal, state, and local governments and the private sector, including both for-profit and nonprofit developers of affordable housing.  Funds are allocated annually to states and local governments on a needs-based formula. Larger cities (called Participating Jurisdictions) receive allocations directly from HUD, whereas smaller cities and rural communities must apply through a state agency.

Community Development Block Grant (CDBG)

Enacted by the Housing and Community Development Act of 1974, the Community Development Block Grant (CDBG) Program provides a flexible source of annual grant funds for local governments to address their own particular development priorities.  Funds are allocated annual to states and local governments on a needs-based formula.

Affordable Housing Program (AHP), Federal Home Loan Bank 

The Affordable Housing Program is administered by the Federal Home Loan Bank system and provides direct subsidies or low interest loans for the purpose of developing affordable housing.  AHP funds may be used to 1) finance the purchase, construction, and/or rehabilitation of owner-occupied housing for families with incomes at or below 80 percent of median income, or 2) finance the purchase, construction, or rehabilitation of rental housing in which at least 20 percent of the units are occupied by and affordable to households with incomes at or below 50 percent of the median income.  Applicants apply through member banks.

HUD Mortgage Insurance Programs

The Department of Housing and Urban Development (HUD) offers mortgage insurance for rental and cooperative housing under a variety of programs pursuant to the Housing Acts of 1954 and 1959.  Sections 221(d)(3) and 221(d)(4) of the Housing Act provide insurance for the construction or rehabilitation of housing for low-income and moderate-income families and seniors.  Section 232 provides insurance for nursing homes, intermediate care facilities, board and care homes, assisted living facilities, and projects combining two or more of those types.  The regulations governing all three of the programs are quite similar.