There is a great and growing need for affordable housing. But, developing such housing can be difficult and expensive. Developers often face costly and time-consuming barriers. And, most affordable housing development projects need multiple funding sources to be successful.

The multilayered financing of affordable housing projects entails more planning and greater risks than market-rate projects. Make sure you explore all funding sources, federal, state and other, before you begin. And, be sure to understand the barriers you face, and the extent of the planning needed.

Missouri Housing Development Commission:

Low Income Housing Tax Credit Program - federal tax credits that help developers generate equity to construct or acquire and rehabilitate affordable housing

Missouri Affordable Housing Assistance Program - tax credits used as an incentive for Missouri businesses or individuals to participate in affordable housing production.

Rental Housing Production and Preservation Program provides funding to developers for the acquisition and rehabilitation or new construction of rental housing

The Federal HOME Program administered by MHDC is used to finance rental production at a very low interest rate

Missouri Department of Economic Development:

New Markets Tax Credit Program provides supplemental funding through state and federal tax credits for Certified Community Development Entities for projects located in low income census tracks. Contact Missouri Department of Economic Development for information

Historic Preservation Tax Credits - state tax credit program for rehabilitation of commercial or residential historic structures

Neighborhood Assistance Program - state tax credit program to leverage local funds for community development activities

Neighborhood Preservation Tax Credits - available to homeowners or developers for eligible residential rehabilitation and construction costs in distressed communities or defined census blocks