We provide a variety of financing options to developers who look to pursue projects in line with our agency’s mission. Here are snapshots of those programs.
Low-Income Housing Tax Credit
The Low Income Housing Tax Credit (LIHTC) program is the key financial tool to raise private equity for the construction or rehabilitation of affordable rental housing. The Washington County CDA is the legal sub-allocator of the tax credits for our county. Credits are awarded based on criteria and procedures set forth in the Qualified Allocation Plan (QAP) and Procedural Manual, which are subject to approval by the Washington County CDA Board of Commissioners.
We are authorized to issue tax-exempt and taxable revenue bonds for multi-family housing and facilities projects.
The CDA acts as a conduit issuer that sells bonds to private or nonprofit developers or a municipality that use the proceeds to finance a community building project.
Because they are exempt from federal taxes and in certain cases state taxes, tax-exempt bonds are usually the lowest interest rate option for real estate projects and new equipment purchases.
Tax-exempt bonds can be sold in the capital markets or directly to your bank or another financial institution. Our conduit housing finance policy and application can be found here.
Update (5/16/18): All GROW funds for 2018 have been allocated.
The GROW Fund is a financing tool to fill remaining funding gaps in rental and owner-occupied housing proposals affordable to modest income households that are in city and township-initiated redevelopment projects in Washington County.
The Washington County CDA approves GROW fund loans on an ongoing basis. Our GROW fund policy can be viewed here.
Tax Increment Financing
The Washington County CDA has the ability and authority to establish site-specific tax increment financing (TIF) districts throughout the county.
If you are interested in creating a TIF district, qualifying projects are typically for housing, redevelopment, infrastructure and other public community improvements.
The CDA uses tax increment financing to accomplish a variety of objectives that align with our mission, from rehabilitating contaminated land and eliminating blight to supporting neighborhood services and achieving local redevelopment objectives.