SUBSIDIES
Formerly there were two types: Subsidy as a capital grant and subsidy for the tenant. Now there is only the subsidy for the tenant in the form of public housing Section 9 or tenant-based or Section 8 project-based assistance. For development of housing, only Section 9 or project-based Section 8 can be utilized since they are tied to the housing unit. Section 8 tenant-based is tied to the individual resident. These programs are very limited, with long waiting lists.
LOw income housing tax credits
Capital grants are no longer available for new project development or acquisition and rehabilitation. But Low Income Housing Tax Credits can be used for financing equity in a project. This is a direct equity source of funds, although not in the form of a grant. This program is highly competitive and can cost more than $100,000 to apply. Local government participation is needed as well. A local Roswell developer created a partnership with the city and the Integral Group to apply for tax credits for the Groveway community. After 2 application cycles, Roswell was approved and the Veranda project was born.
Tax Exempt multi-family
housing bonds
GRANTS
This development financing mechanism is a loan. Various other forms of FHA financing are also loans.
What grants do exist are Community Development Block Grants (CDBG) and the HOME Investment Partnership Program. These can technically be used for development but generally are not available in amounts that would pay for an entire project. Roswell is a CDBG Entitlement City, and generally uses the roughly $400,000 each year for infrastructure work and local community grants to nonprofits. As of spring, 2017, HOME funds were in the application process. Another grant potential is the Federal Home Loan Bank Affordable Housing Program, that maximizes at $500,000 per project.
Current day development involves amortizing loans and there are no indications that tenant based subsidy allocations will expand. Mixed income development is generally necessary to support a project. In the absence of subsidies for tenants, the units covered by bonds are tax credits are in the form of rent control.