A project to construct new single-family housing in Houston failed Friday to receive the approval of the Missouri Housing Development Commission, a body that awards state tax credits to spur development.
Capstone Development Group, a St. Louis firm, proposed to construct 32 three-bedroom housing units in the Lilly Farm Subdivision near North Industrial and Holder drives. The rent was projected to be $535 monthly. Another project proposed by Cabool Development Foundation Inc. also did not gain approval. That effort included three, three-bed single family units.
In all, four projects from southwest Missouri were approved, including elderly units in West Plains and Lebanon and family housing in Bolivar and Rogersville.
The housing commission approved the use of $7.8 million in tax credits to be spread out over 28 projects. Developers, though, had filed 110 applications for projects.
Executive Director Margaret Lineberry said the projects that were chosen had a lower average cost per unit than past low-income housing projects, increasing the number of units being produced per tax credit dollar spent.
Developers who are awarded the tax credits often sell them on the open market for less than a dollar-for-dollar return. The developers use that money to help finance their projects. The tax credits are later redeemed by investors and reduce the amount of revenue coming to the state.