How Housing Credits Strengthen Montana CommunitiesJarren Godaddy2020-07-15T14:41:06-06:00
How Housing Credits Strengthen Montana Communities
Quality home construction is a large investment that requires lots of funding. Homeword uses a variety of financing to fund our construction projects.
One of our main tools is the Low Income Housing Tax Credit (aka LIHTC). It’s basically an in-kind gift (like a gift of stock, for instance) that organizations must sell to gain funding. Tax credits from the Federal goverment are allocated to the state of Montana, which then allocates to organizations. The Montana Board of Housing accepts applications annually from organizations like Homeword and awards tax credits to those it selects. Those organizations then find private investors (like banks) who buy the tax credits. The investors get tax credits for the next 10 years and the organizations have money to build their homes.
This program brings millions of dollars of private funding into Montana communities each year and creates temporary and permanent jobs. Any legislation, including tax reform, that reduces or eliminates this program will immediately decrease the number of homes built in Montana and jobs created by the construction of those homes.
This infographicshows how Housing Credits Strengthen Montana Communities.