Vistas at Meadow Grove Housing Development
4 Apr 2018
Housing, Press Release
In 2016, the communities of York County partnered with York County and York County Development Corporation (YCDC) to complete an updated County-wide housing study. The study showed York County housing needs 588 housing units by 2025, with ½ or 294 units needing to be rental units. Armed with this study, along with the projected need per income group, YCDC has been working on several projects with partners to expand housing to meet business growth and workforce needs.
YCDC is pleased to announce Prairie Fire Development Group will build Vistas at Meadow Grove consisting of 24 duplexes (48 rental units), a club-house and playground equipment on East 19th Street in York, Nebraska. This income-restricted development will be an estimated $8.2 million in total development with $6.1 million going towards construction in York County. The project is receiving $599,349 in Low-Income Housing Tax Credits through the Nebraska Investment Finance Authority (NIFA). The developers do not plan on pursuing Tax Increment Financing (TIF) on this project.
The LIHTC program is one of the most successful housing development programs over the last 35 years. The public-private partnership agreement was developed through Section 42 of the IRS tax code and puts the burden of development of affordable units on the private sector. The intent of the program is to provide high quality attainable housing for those who earn a modest wage. Applicants must prove their source of income as well as pass a full criminal background verification. The sale of tax credits allows the developers to underwrite the rents at a lower rate allowing people in the community more disposable income to spend on food, clothing, necessities and extras that would otherwise go towards rent or mortgages.
Federal Low-Income Housing Tax Credits (LIHTC) is a dollar-for-dollar credit against the federal income tax liability of the owner (developer or investor) of a low-income housing development. LIHTCs that are allocated to a development are claimed in equal amounts for a 10-year period. The rental property generating the LIHTC must remain in compliance with the program guidelines and rent restriction requirements for a period of not less than 30 years from the first taxable year of the LIHTC credit period. This project is in partnership with the York Housing Authority. Below are photos of a similar duplex development in Newton Kansas that the York project is passed off of.
YCDC is a public-private not-for-profit organization whose mission is to promote and encourage quality economic growth in York County, Nebraska. YCDC works confidentially and offers unbiased, detail and customized information to clients for no fee. YCDC is the lead economic development organization in York, County Nebraska and utilizes a team approach to ensure access to all agencies and programs that can be of assistance to your project. www.yorkdevco.com
Prairie Fire Development Group is known for developing innovative projects in urban and rural communities including new construction and historic renovation existing structures. They are also the general contractor, Prairie Fire Construction Group, to their own developments which allows them to have better control over the physical development process. Prairie Fire has successfully developed and built over 400 units in the past six years in Kansas and Missouri. They will work with a third-party property management company that specializes in the complex compliance criteria of LIHTC developments. www.prairiefiredg.com
NIFA is an independent quasi-governmental instrumentality that encourages the investment of private capital in Nebraska to stimulate economic growth, thereby creating jobs and building the tax base for communities in the state. Products offered: Single Family Mortgages, Low Income Housing Tax Credits, Beginning Farmer/Rancher Agricultural loans, Industrial Development Bonds, Technical Assistance. Visit www.nifa.org for more information.
York Housing Authority is an organization that provides safe, affordable, decent housing to income-eligible families throughout the York, NE area. Visit https://yorkhousingauthority.org/ for more information.