(Spirit Lake)– The Iowa Finance Authority is providing an additional 199,800-dollars in Low-Income Housing Tax Credits to Spencer-based Community Housing Initiatives…a non-profit organization working to restore the Antlers Hotel in Spirit Lake. CHI plans to rehabilitate the building, creating 14 rental units for families.
In March CHI received an initial allocation of 1.4 million dollars in Low Income Housing Tax Credits.
Through the program, developers of affordable housing are awarded federal tax credits that provide a dollar-for-dollar reduction to an investor’s federal tax liability on ordinary income. The credits are awarded annually on a competitive basis. Tax credit interest is sold to investors to generate equity for the housing developments. The Internal Revenue Service annually allocates tax credits to states based on population.
Higher-than-expected construction costs caused CHI to apply for the additional credits. Doug LaBounty, CHI President, says the poor condition of the Antlers Hotel is a major factor that contributed to the increased construction costs. LaBounty says without the additional tax credits it would not be possible to restore the building to its original character.
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