Five developments in Mississippi are the only developments to be awarded funds under the special Opportunity Zone cycle as part of the Low-Income Housing Tax Credit Program offered through the Mississippi Home Corporation (MHC). Included in the developments are four acquisition/rehabs in Richland, Jackson, Tupelo, and Hattiesburg and one new construction in Brookhaven totaling 293 units which will provide affordable housing for Mississippians.
In February 2019, Governor Phil Bryant signed an amendment to create the Opportunity Zone Special Round to harness the power of opportunity funds in conjunction with affordable housing. The Tax Cuts and Jobs Act of 2017 established Opportunity Zones to boost economic development and job creation in distressed communities throughout the country. As part of this effort, Mississippi Home Corporation committed 12.5% of each year’s Annual Credit Authority for 2018, 2019, 2020 and 2021 to applicants participating in the Opportunity Zones Special Allocation Cycle.
“I am proud to see that Mississippi Home Corporation’s Low-Income Housing Tax Credit Program is working in conjunction with developments in designated Opportunity Zones,” said Governor Phil Bryant. “These communities will benefit greatly from Opportunity Funds that will provide an affordable housing option in areas of Mississippi that need it most.”
The economic impact of these developments is substantial: creating 331 jobs stimulated by a projected $46.8 million in total development cost. This special cycle also gave points to developers whose proposed development allowed for mixed-use/mixed-income and incorporated innovative ideas such as unique design and materials, architecture, solar panels, sustainability, among other things into the proposed development. Some of the specific innovations among these developments include solar energy, energy-efficient appliances, community gardens, health services, smart lighting, and onsite community medical and outreach services, among others.
In order to satisfy IRS Section 42 regulations, at least 10% of this special cycle must have been set-aside for Non-Profits to apply with the remainder being available to developers with a proposed development in an identified Opportunity Zone tract in Mississippi. Richland Gardens (54 units) in Richland and Ashton Gardens (40 units) in Jackson make up the non-profit set aside.
“MHC is excited to be one of the first Housing Finance Agencies to demonstrate that Opportunity Funds can be combined with the incentives of the Low-Income Housing Tax Credit program to provide affordable housing to distressed communities,” said Scott Spivey, Executive Director of MHC. “The developments receiving these funds are putting into place innovative housing solutions that will make them more affordable for their residents while providing valuable services that may not have otherwise been possible.”