Report Faults Missouri Housing Donation Tax Credit Program

摘要

The use of Missouri's affordable housing assistance tax credit (AHATC) program to cover funding gaps for low-income housing tax credit projects does little to generate additional affordable housing, and the Missouri Housing Development Commission (MHDC) does not adequately verify the value of donated property and services, according to a state audit report. To induce businesses to contribute cash, equity, professional services, and real or personal property to nonprofit organizations involved in constructing or rehabilitating affordable housing projects, the program provides a state tax credit equal to 55 percent of the value of a donation. The credit may be sold or transferred, and unused credits may be carried forward for 10 years. The state can allocate $11 million in credits each fiscal year, with $10 million to be used for housing projects and $1 million for nonprofits' administrative costs. Contributions must be used for projects that provide housing for households earning no more than 50 percent of area median income or market-rate housing in economic revitalization areas.