The Low Income Housing Tax Credit Program Member Spotlight: Anne Arundel County
Tuesday, May 9, 2017
Posted by: Sarah Mullen
The Low Income Housing Tax Credit (LIHTC) program has been one of the most successful tools for boosting private investment in the development and preservation of affordable housing in the United States. The LIHTC program was created by the Tax Reform Act of 1986, and since then has given LIHTC state and local allocating agencies the equivalent of approximately $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation, and new construction of rental housing targeted to lower-income households. With these funds, approximately 6.5 million low-income households have lived in affordable housing apartments financed by LIHTC from 1986 to 2013. The LIHTC program is a critical tool in combating the country's affordable housing crisis and has helped millions of families across the nation.
Oakwood Family Homes
Oakwood Family Homes is a 22-unit affordable housing development consisting of one and two story single family homes serving low income families earning 60 percent of area median income or less. Located in the Glen Burnie community in Anne Arundel County, Maryland, the project is under a Lease Purchase Program, where the homes will be rented for 15 years, after which the resident will have the option to purchase. The project, which was developed by PIRHL, LLC., received a $670,000 low interest HOME loan through Arundel Community Development Services, Inc., which leveraged $1,181,635 in private loans and developer equity, $940,000 in State funds, and $5,531,590 in federal low income housing tax credit equity.
Anne Arundel County, MD
Arundel Community Development Services, Inc.
Elizabeth’s Long Road to Oakwood Family Homes
Elizabeth has had her share of hardships in her 61 years, but they have not made her give up hope. In 1998, she was in a terrible auto accident that left one of her two daughters dead and the other severely disabled. Elizabeth was also disabled herself as a result of the accident. Unable to work, she and her daughter moved in with her elderly father and her younger sister, who had been born with severe developmental disabilities and needed live in care. They resided in a comfortable six-bedroom home in Arnold until her father’s death in 2007. When her father passed away, the reverse mortgage he had on his home required sale of the property and Elizabeth and her family were evicted as they were not able to pay the balance on the mortgage. By 2009, they were homeless and living in a van. In 2010, the family came in contact with Arundel House of Hope, which operates the Winter Relief Program. During the winter, they stayed in a different church each week at night time. During the summer, they lived in a tent in the woods in Glen Burnie. Elizabeth’s sister had suffered a fall and had to be committed to a nursing home/rehabilitation facility. In the meantime, Elizabeth got the family signed up on Housing Choice Voucher Program (formerly known as Section 8) waiting list, although the waiting list was years long. They continued to live in the woods and utilize Winter Relief until 2013, when Elizabeth spotted a Penny Saver ad for affordable rental units at Oakwood Family Homes in Glen Burnie. Not only were the homes affordable, thanks to subsidies through the federal HOME and Low Income Housing Tax Credit Programs, they also had a supply of accessible units specially designed for households with mobility impairments. Finally, in February of 2014, the family was reunited and able to move into their fully accessible unit at Oakwood Family Homes.
When asked her favorite part about her new home, Elizabeth said, “After living in a tent, we now have the space to be away from each other, but a home where we can all live together.” Finally, re-united with her sister, who is in a wheelchair, Elizabeth and her daughter are ecstatic about their housing situation and glad that their family’s perseverance to stay together paid off. “I came from an upper middle class family and I lost everything in a blink of an eye. It just shows that everyone is one crisis away from being in the woods.”
About Arundel Community Development Services, Inc.
ACDS is a nonprofit organization located in Anne Arundel County, Maryland dedicated to serving low and moderate income households through affordable housing and community development.
Contact: Kathleen M. Koch, Executive Director, 410-222-7606, email@example.com.