It’s LIHTC Season!
For most, August represents the start of school and the (hopefully) last few days of unbearably hot weather. However, for DeSales, August is synonymous with the application process for Low-Income Housing Tax Credits (LIHTC).
LIHTC is a federal program designed to incentivize the development and preservation of affordable rental housing for individuals and families with low to moderate incomes. Since its inception, it has become one of the primary tools for encouraging the creation of affordable housing, a tool that DeSales has utilized for 30 years. Thanks to LIHTC, DeSales owns 186 units of affordable housing that are rented out to low and moderate-income households.
This year, we will be submitting FOUR separate LIHTC applications. The first one is for Benton Park Place, a new-construction development proposed in the Benton Park West neighborhood. This development will create 49 new mixed-income apartments for seniors aged 62 and up at the long-vacant southwest corner of Jefferson and Arsenal. An important component of this project is the establishment of a rental assistance fund for residents of Permanent Supportive Housing within the Benton Park Place Apartments. This project has received $150,000 in ARPA funding and $850,000 in HOME funds through the St. Louis Community Development Administration, which along with a LIHTC award, will help fund Benton Park Place Apartments.
Rendering of the Benton Park Place Apartments
The second application is for Virginia Plaza, a mixed-income and mixed-use development poised to invigorate both the Virginia Ave. Commercial Corridor and the historically significant Carondelet, Dutchtown, and Mount Pleasant neighborhoods. Across three newly constructed buildings, a total of 47,000 square feet will be allocated to a blend of affordable housing, live/work apartments, and spaces for commercial tenants. Notably, this development will include 71 units of affordable housing. What’s more, Virginia Plaza was recently awarded $500,000 in CDBG/HOME funding through the St. Louis Community Development Administration.
Site Plan for Virginia Plaza
The third application focuses on the renovation of DeSales Preservation II, encompassing 71 units of affordable rental housing scattered across sites in the Fox Park, Tower Grove East, and Benton Park West neighborhoods. The fourth application is for the Old Frenchtown Apartments, which DeSales is developing in collaboration with the Oakland Group. This project involves the preservation of 148 affordable housing units.
While the creation of new affordable housing units is incredibly important, the preservation of existing affordable housing units holds equal importance in maintaining the safety and comfort of the tenants, as well as the economic vitality of the neighborhood.
Site Plan for 2857-59 Victor and 2645-47 California Ave
Whenever you apply for government funding, the process is incredibly extensive and detail-oriented, demanding significant effort from our staff and collaboration with community partners. Although LIHTC applications can be quite challenging, this is the type of work that DeSales is passionate about, as it holds the potential to create a significant impact on a broad scale.
LIHTC applications are due on September 22, 2023 and the awardees will be announced in December.