Wildflower Terrace provides 180 rental units for senior adults with income less than 60% MFI with portions also for 50% and 30% MFI. The required term for federal tax credit is 15 years. Exceeding this target, the project will ensure affordable availability for 40 years.
Through a pre-development letter of commitment as a “backstop” for a low-interest loan from the Mueller Foundation, DMA Development Company, LLC, was able to secure financing and coveted federal tax credits. This backing provided the margin of difference between winning and losing the competition for qualified tax credit projects, allowing Austin to win a two-point advantage in scoring among a crowded field of projects for a limited number of tax-credit housing developments. (Also notable: Foundation Communities and this project allowed Austin to bring two tax credit developments to market).
These credits are extremely important. Without these credits, and/or other types of subsidies, developers have little incentive to develop affordable living units given the cost and risk inherent with this type of project.