Chamberlan Carothers, CCIM, CPM, Managing Director of SVN | Southgate Realty, LLC, is featured in the August 2017 issue of National Apartment Association’s (NAA) Units Magazine discussing how critically important LIHTC is for Mississippi’s low-income residents and continued state-wide economic development.
An important and current topic, lawmakers in Washington have begun considering the overhaul of tax codes, and LIHTC could end up on the chopping block. If this happened it would cause major negative impacts on local residents, the apartment rentals market and commercial real estate firms.
Involved in Mississippi’s apartment rentals sector his entire life, Carothers has seen first hand how LIHTC affects local Gulf South communities. He uses his vast industry expertise to paint a clear picture for the reader on how LIHTC benefits bottom line growth for everyone in Mississippi…and beyond.
What is LIHTC?
The Low-Income Housing Tax Credit (LIHTC), pronounced “lie-tech”, is the federal government’s primary program for encouraging the investment of private equity in the development of affordable apartment rentals through the use of incetivizations.
Created by the Tax Reform Act of 1986, LIHTC gives State and local LIHTC-allocating agencies nearly $8 billion in annual budget authority to issue dollar-for-dollar tax credits for the acquisition, rehabilitation, or new construction of apartment rentals targeted to lower-income households. The program requires that rental rates remain affordable at the developed apartment rentals for a period of 30 years.
Why is LIHTC so crucial for Mississippi communities?
More so than any other state in the country, the benefits of LIHTC are crucial to the livelihood of Mississippi residents and statewide economic development.
Firstly, the poverty rate in Mississippi currently sits at 22%, the highest in the United States. Our low-income residents are the individuals and families who not only need, but also must rely on the affordable apartment rentals that LIHTC incentivizes.
Secondly, a rural state like Mississippi does not have the primary or secondary commercial real estate markets that typically draw in investors. Without a level of exposure, it becomes difficult to create economic opportunities. LIHTC provides those opportunities that otherwise would not have existed.
About SVN | Southgate Realty, LLC
SVN | Southgate Realty, LLC, a full-service commercial real estate brokerage firm based in Hattiesburg, MS, provides sales, leasing, property management and investment services in multifamily, retail and office properties throughout South Mississippi. Established in 1980 for the purpose of multifamily asset management, today’s market-leading firm uses detailed industry research, local market insights, and SVN’s global exposure and reach to create unparalleled value for clients. For more information, visit SouthgateRealtyLLC.com. All SVN® offices are independently owned and operated.