2019 Federal Housing Tax Credit Program Results Overview
In 2019, the Federal Housing Tax Credit program awarded credits totaling $19.89 million to properties in Wisconsin communities. A total of 54 applications were submitted across 35 communities, leading to 27 awards for the development or rehabilitation of 1,666 residential units, including 1,429 affordable units. The awards will support projects amounting to over $337 million in construction and related costs. Various set-asides were designated, with awards distributed based on project type and location.
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2019 Housing Tax Credit Results Federal 9% Program September 2019
2019 Credit Set-Asides Set-Aside % of Total Available Credit General 50% $9,947,411 Preservation 20% $3,978,964 Nonprofit 10% $1,989,482 Rural 10% $1,989,482 $1,989,482 Supportive 10% Total 100% $19,894,821 Note: These credit figures include returned credits from prior cycles. 2
2019 Sources of Available Credit Approximately $19.89 million of competitive credit was available in the 2019 HTC cycle Through the competitive scoring process, WHEDA incents developers to maximize financial leverage points. This creates a condition where developments request less HTC than they would be entitled to by the eligible basis calculation. The amount of HTC leverage created through this mechanism was approximately an additional $2.15 million or 11%. Note: Additional Credit Applications were excluded from this leverage calculation. 3
2019 HTC Applications 54 applications in total, including 1 for additional credit, were submitted for developments in 35 Wisconsin communities, including: Milwaukee (13) Racine (4) Madison (3) River Falls (2) LaCrosse (2) 4
2019 HTC Awards During the competitive 9% 2019 cycle, HTC awards were made to properties in 21 Wisconsin communities, including Milwaukee (5), and Madison (3) The 27 HTC awards will assist in the development or rehabilitation of 1,666 residential units including 1,429 affordable units The 27 projects represent more than $337 million of construction, rehabilitation and related soft costs 5
2019 Applications & Awards Credit Available Credit Requested Credit Awarded Set-Aside Appl. Awards General $9,947,411 24 $23,222,338 8 $9,333,353 Preservation $3,978,964 8 $3,778,959 7 $3,565,955 Nonprofit $1,989,482 12 $7,305,970 5 $3,188,191 Rural $1,989,482 10 $4,911,013 7 $3,768,785 Supportive $1,989,482 - - - - Total $19,894,821 54 $39,218,280 27 $19,856,284 6
Average 2019 HTC Requests & Awards Average Credit Request Average Credit Award Set-Aside Total Per- LI Unit Total Per- LI Unit General $1,005,497 $17,627 $1,166,669 $17,478 Preservation $472,370 $9,790 $509,422 $9,851 Nonprofit $657,361 $14,462 $637,638 $11,510 Rural $599,699 $16,893 $617,133 $16,831 Supportive - - - - Total $778,679 $15,687 $761,165 $14,207 Note: Additional Credit Applications were excluded from these calculations. 7
Household Type - 2019 Average Credit Request Average Credit Award Household Type Appl Total Per-LI Unit Awards Total Per-LI Unit Family 38 $814,796 $17,906 17 $820,014 $17,382 Elderly 11 $700,795 $11,698 9 $650,006 $9,899 Single Room Occupancy 1 $262,975 $4,870 - - - Total 50 $778,679 $15,687 26 $761,165 $14,207 Note: Additional Credit Applications were excluded from these calculations. 8
Construction Type - 2019 Average Credit Request Average Credit Award Construction Type Appl Total Per-LI Unit Awards Total Per-LI Unit New Construction 26 $881,467 $17,495 10 $885,562 $16,279 Adaptive Reuse 10 $750,991 $17,881 4 $726,188 $16,599 Acquisition & Rehab 10 $469,180 $8,689 8 $526,978 $9,125 Mixed 4 $953,527 $17,991 4 $953,527 $17,991 Total 50 $778,679 $15,687 26 $761,165 $14,207 Note: Additional Credit Applications were excluded from these calculations. Mixed = New Construction and Adaptive Reuse. 9
Average Project Size (# units) Set-Aside All Applications HTC Awards General 69 83 Preservation 52 56 Nonprofit 53 66 Rural 39 41 Supportive - - Total 58 63 10
Average, Per-Low Income Unit Development Budgets All Applications HTC Awards Overall $242,140 $231,834 Acquisition & Rehab $135,943 $143,315 Adaptive Reuse $302,209 $275,411 New Construction $258,096 $268,359 Mixed $295,039 295,309 Note: Additional Credit Applications were excluded from these calculations. Mixed = New Construction and Adaptive Reuse. 11
2019 9% HTC Scoring Results
Scoring Summary Scoring Categories: 14 Maximum Score: 277 Minimum Eligible Score: 120 Average Scores All Applications: 196 Applications Receiving Awards: 193 Applications Not Receiving Awards: 199 Note: awarded projects downward. Also several projects applied 9% round. If a project was feasible in even if it scored competitively which skewed the average of the awarded projects There were 7 Preservation SetAside projects awarded in 2019 which skews the average of the in both the State 4% round and the Federal the State 4% round, the project was deemed ineligible in the 9% round downward. 13
Differences: Those that Did, or Didnt Receive an Award Categories in which awarded applications scored notably more points: Financial Leverage (+7.4 points) Development Team (+1.6 points) Rural Areas Without Recent HTC Awards (+1.3 points) Supportive Housing (+1.04 points) Areas of Economic Opportunity (+1.0 points) 14
Differences: Those that Did, or Didnt Receive an Award (Continued) WHEDA restricts certain projects from being able to score in certain point categories for the following: Applying in the Preservation Set-Aside Applying in the Supportive Housing Set-Aside Maintaining federal operating subsidies Scoring points in other point categories Geographical Preference This can skew point averages in certain categories year over year depending on how many applications subject to the restrictions are received. 15
2019 Scoring Cut-Offs General 219 Preservation Nonprofit Rural 218 121 193 16
Category 1 Lower Income Areas Points Available: 0 or 5 Applications Receiving Points: 23 (43%) Average Score All Applications(54): 2.1 Applications-Receiving points (23): 5.0 Applications Receiving Awards (27): 1.9 Applications Receiving Awards-Receiving points (10): 5.0 Applications Not Receiving Awards (27): 2.4 Applications Not Receiving Awards-Receiving points (13): 5.0 17
Category 2 Energy Efficiency & Sustainability Points Available: Up to 32 Applications Receiving Points: All Average Score All Applications(54): 28.7 Applications Receiving Awards(27): 28.0 Applications Not Receiving Awards(27): 29.5 18
Category 3 Mixed-Income Incentive Points Available: Up to 12 Applications Receiving Points: 36 (67%) Average Score All Applications(54): 7.3 Applications-Receiving points (36): 11.0 Applications Receiving Awards (27): 5.7 Applications Receiving Awards-Receiving points (13): 11.8 Applications Not Receiving Awards (27): 9.0 Applications Not Receiving Awards-Receiving points (23): 10.6 Supportive Housing Set-Aside applications were not allowed to score points in this category 19
Category 4 Serves Large Families Points Available: Up to 5 Applications Receiving Points: 43 (80%) Average Score All Applications(54): 3.8 Applications-Receiving points (43): 4.7 Applications Receiving Awards (27): 3.4 Applications Receiving Awards-Receiving points (19): 4.9 Applications Not Receiving Awards (27): 4.1 Applications Not Receiving Awards-Receiving points (24): 4.6 Supportive Housing Set-Aside applications, and elderly developments, were not allowed to score points in this category 20
Category 5 Serves Lowest-Income Residents Points Available: Up to 60 Applications Receiving Points: 46 (85%) Average Score All Applications(54): 51.0 Applications-Receiving Points (46): 59.8 Applications Receiving Awards (27): 44.4 Applications Receiving Awards-Receiving Points (20): 60.0 Applications Not Receiving Awards (27): 57.5 Applications Not Receiving Awards-Receiving points (26): 59.7 Preservation Set-Aside applications were not allowed to score points in this category 21
Category 6 Supportive Housing Points Available: 0, 15 or 20 Applications Receiving Points: 52 (96%) Average Score All Applications(54): 18.7 Applications-Receiving Points(52): 19.4 Applications Receiving Awards (27): 19.2 Applications Receiving Awards-Receiving Points (27): 19.2 Applications Not Receiving Awards (27): 18.1 Applications Not Receiving Awards-Receiving Points (25): 19.6 Supportive Housing Set-Aside applications, and those receiving points in Category 8, were not allowed to score points in this category 22
Category 7 Rehab/Neighborhood Stabilization Points Available: 0 or 25 Applications Receiving Points: 1 (2%) Average Score All Applications(54): 0.5 Applications Receiving Awards (1): 25 Applications Not Receiving Awards (27): 0 Supportive Housing Set-Aside applications, and those receiving points in Category 13, were not allowed to score points in this category 23
Category 8 Universal Design Points Available: Up to 18 Applications Receiving Points: All Average Score All Applications(54): 17.8 Applications Receiving Awards(27): 17.9 Applications Not Receiving Awards(27): 17.7 24
Category 9 Financial Leverage Points Available: Up to 40 Applications Receiving Points: 51 (94%) Average Score All Applications (54): 26.3 Applications-Receiving Points (51): 27.8 Applications Receiving Awards (27): 30.0 Applications Receiving Awards-Receiving Points (26): 31.2 Applications Not Receiving Awards (27): 22.6 Applications Not Receiving Awards-Receiving Points (25): 24.4 25
Category 10 Eventual Tenant Ownership Points Available: 0 or 3 Applications Receiving Points: None Average Score All Applications(54): N/A Applications Receiving Awards(27): N/A Applications Not Receiving Awards(27): N/A Supportive Housing Set-Aside applications were not allowed to score points in this category 26
Category 11 Development Team Points Available: Up to 12 Applications Receiving Points: All Average Score All Applications(54): 8.4 Applications Receiving Awards(27): 9.1 Applications Not Receiving Awards(27): 7.6 27
Category 12 Readiness to Proceed Points Available: 0 or 12 Applications Receiving Points: 52 (96%) Average Score All Applications (54): 11.6 Applications Receiving Awards (27): 12.0 Applications Not Receiving Awards (27): 11.1 Applications Not Receiving Awards-Receiving Points (25): 12.0 28
Category 13 Areas of Economic Opportunity Points Available: Up to 28 Applications Receiving Points: 54 (100%) Average Score All Applications(54): 17.5 Applications Receiving Awards (27): 18.0 Applications Not Receiving Awards (27): 17.0 29
Category 14 Rural Areas without Recent HTC Awards Points Available: 0 or 5 Applications Receiving Points: 11 (20%) Average Score All Applications(54): 1.0 Applications-Receiving Points(11): 5.0 Applications Receiving Awards (27): 1.7 Applications Receiving Awards-Receiving Points (9): 5.0 Applications Not Receiving Awards (27): 0.4 Applications Not Receiving Awards-Receiving Points (2): 5.0 Projects scoring points in this category must be located in a county that has not received a 9% HTC Award in the previous 3 years. 30
