Affordable Housing Plans Hurt By Talk Of Corporate Tax Cuts

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Photo:Affordable Housing sketch
Paris Family Housing, a 39-unit property planned for Aurora, was awarded low-income housing tax credits by Colorado Housing and Finance Authority in 2016. It's being developed by Brothers Redevelopment, and will offer affordable rentals to households earning 30 to 50 percent or less of the median income in Adams County.

Developers of affordable housing are finding it harder to raise the money they need to get new projects off the ground, a challenge that stems from President Trump's proposal to cut the corporate tax rate.

Corporate investors, like banks and insurance companies, often invest in affordable housing to get tax credits. If corporate tax rates go down, so does interest in those credits. Though tax cuts are just a proposal at this point, the market has already softened significantly, says Jerilynn Martinez, marketing and community relations director at the Colorado Housing and Finance Authority, which administers the tax credits in the state. Developers are raising less money from corporate investors and are looking to close construction budget gaps as high as a million dollars, she says. Martinez spoke with Colorado Matters' host Ryan Warner.