The Growing Demand for Affordable Housing in Mississippi
Over the past 30 years, Developers in Mississippi have advanced and preserved more than 53,000 homes and served more than 124,000 low-income families. This movement has generated $3 billion in tax revenue and $8.8 billion in business income and wages, further developing Mississippi’s economy. Although these numbers are large, affordable housing is still needed and cannot keep up with the growing demands. Currently, more than 83,000 renters in Mississippi pay more than half of their monthly income on rent. This does not leave much of their income left for other necessities such as healthcare, food, and transportation. To put this into perspective, for someone to rent a modest 1-bedroom apartment, making minimum wage, they would need to work 68 hours a week.
To help combat this issue, bills such as The Affordable Housing Credit Improvement Act are being introduced to the Senate floor in hopes of becoming law. If passed, this act could help to finance around 7,120 additional affordable housing units and homes over the next 10 years. When it comes to incentivizing the development of affordable housing, low-income housing tax credit (LIHTC) is proven to be the most successful tool for encouraging private developers. Based on information from A.C.T.I.O.N, LIHTC has financed 3.5 million homes for families and individuals since its founding in 1986.
The Importance of Acquiring Low-Income Housing Tax Credits (LIHTC).
Affordable housing construction in Mississippi is a strong and growing market. The Biden Administration has recently made changes that will further boost the availability of affordable housing and will increase the LIHTC cap for Freddie Mac and Fannie Mae. With the steadily increasing housing needs, developers look to LIHTC to secure and finance their development plans. However, to receive these credits, you must meet requirements put together by the federal government. If you have never been through this process before, it may seem daunting. With an experienced construction consultant to guide you through the process, you can feel confident knowing that you are meeting all requirements to obtain your credits.
How Moran Construction Consultants Can Help Your Next Affordable Housing Project.
Moran Construction Consultants has long-standing expertise in assisting lenders, syndicators, and investors in mitigating risks associated with affordable housing projects (both renovations and new construction) not only in Mississippi but across the country. We tailor our reporting to provide extra oversight regarding the LIHTC qualifying conditions and verify that the required features and amenities are included in the Contract Documents. Once construction commences, we will monitor those features and amenities to make sure they are completed to ensure the appropriate tax credits are gained.
Our existing relationships with multiple developers and contractors in the Mississippi market allow us to proactively address any LIHTC related issues during due diligence as well as throughout construction. Call us at 225-351-2003 or contact us online to learn more about our construction loan monitoring services. Experience peace of mind knowing that your investment is protected.