JEFFERSON CITY, Mo. – At yesterday’s meeting of the Missouri Housing Development Commission (MHDC), Commissioners unanimously approved the Qualified Allocation Plan (QAP) for the upcoming year. This year’s plan again includes reforms that were championed by Missouri State Treasurer Scott Fitzpatrick throughout his tenure on the Commission to increase the efficiency and transparency of low-income housing tax credits (LIHTC).
The 2022 QAP includes the availability of accelerated redemption for LIHTC for up to 50% of state LIHTC. It also includes the scoring rubric which was implemented in 2019 at the Treasurer’s request.
“When I joined the Commission in 2019, I was determined to ask questions and make reforms that would help this program serve its purpose to incentivize the development of low-income housing for Missourians,” Treasurer Fitzpatrick said. “The work of the Commission over the past several years is an important step forward for the LIHTC program and helps ensure Missouri tax dollars are being used to better serve the citizens of this state. My commitment as Treasurer to protecting your tax dollars is one I take seriously. Fighting to improve the efficiency and transparency of the state LIHTC program is a reflection of that commitment.”
“I would like to thank Treasurer Fitzpatrick for his dedicated work to improve the efficiency and transparency of the LIHTC program,” Lieutenant Governor Mike Kehoe, MHDC Chairman, said. “The Treasurer’s efforts on the Missouri Housing Development Commission reflect his commitment to making sure that Missouri tax dollars are spent wisely and effectively.”
In 2020, Treasurer Fitzpatrick called for a study committee to evaluate the impact of accelerated redemption on pricing for LIHTC. The committee found accelerated redemption increased the pricing of state LIHTC over $0.10 per tax credit dollar from the 2017 standard pricing, representing an increase of 18%. This increase means up to 86 additional units of low-income housing could be built with no increase in spending.
MHDC was created by the General Assembly in 1969 and administers and provides financing for the construction of affordable housing in the state.