February 26, 2021

2020 round two housing tax credit awards: re-announcement

CHFA is proud to announce revised 2020 Round Two housing tax credit awards. This announcement communicates updated state AHTC and federal 4 percent credit award amounts following the implementation of the newly adopted federal four percent minimum credit rate signed into law by President Trump on December 27, 2020.

CHFA worked in partnership with 2020 round two awardees to implement the new provision, which resulted in approximately 30 percent additional federal credit. Thanks to the partnership of awardees, investors, and gap funders including Colorado Division of Housing and the City and County of Denver, the new 4 percent minimum rate allowed CHFA to reduce demand for Colorado’s limited state AHTC resource, while ensuring financial feasibility for all awardees. The result is the ability to save and redeploy $3.8 million in state AHTC in 2021 and 2022.

Round Two Awards

	November 2020 (pre-4 Percent Minimum Rate)	Revised February 2021 (after 4 Percent Minimum Rate)
Developments supported with state and 4% credit	12	11
Development supported with 4% credit (no state AHTC)	n/a	1
Total units supported	994	995*
4% federal credit awarded	$10.9M	$14.3M
State credit awarded	$10.3M	$6.5M

*Design change allowed an additional unit.

In fall 2020, 24 applications were received in Round Two seeking a total of $21.6 million in state AHTC and $25.7 million in federal 4 percent credit. In November 2020, CHFA awarded $10.3 million in state AHTC and $10.9 million in federal 4 percent credit to 12 developments.

The revised awards include $6.5 million in state AHTC and $12 million in federal 4 percent credit to 11 developments that will support the construction of 853 affordable rental housing units. The minimum rate, allowed one project to be developed with an award of $2.2 million in federal 4 percent credit to support 142 units without state AHTC.

Full descriptions may be found here and narratives here.

For more information about the Housing Tax Credit program, please contact Kathryn Grosscup, Manager, Housing Tax Credit, 303.297.7368 or kgrosscup@chfainfo.com.

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