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Consultant briefs Champlain board on using LIHTC for affordable housing; no action taken
Summary
An AES Northeast representative outlined how the Low Income Housing Tax Credit (LIHTC) works, how municipalities support LIHTC projects and how the Miramar and sewer-served sites in Champlain might be positioned for future affordable senior or workforce housing development.
Alex, a brand manager with AES Northeast, gave a 90-minute informational briefing to the Town Board on the Low Income Housing Tax Credit (LIHTC) program and how municipalities can support LIHTC-funded affordable rental projects.
Alex explained that LIHTC is a federal tax-credit program administered through state housing finance agencies; the IRS issues an allocation of credits to each state, and state agencies (in New York, the Office of Homes and Community Renewal) award credits to developers through a competitive Qualified Allocation Plan. He emphasized that LIHTC provides equity to developers via investors purchasing the credits and is not a direct local tax exemption.
Alex described the two main LIHTC types he addressed in plain terms: the 9% (competitive) credit, which can finance a larger share of project costs, and the 4% (noncompetitive) credit, which is typically paired with private activity bonds. He summarized typical income targeting rules used for LIHTC projects (for example, 40% of units at 60% of area median income or other equivalent tests) and noted that owners must maintain affordability for a multi-decade compliance period.
Alex gave recent New York State examples of LIHTC-funded projects and noted that the Miramar site, which the town is studying for redevelopment, and another parcel served by planned sewer extensions could be strong candidates for LIHTC because municipalities improve project competitiveness by securing utilities, zoning and site readiness.
Board members asked how senior or mixed-income workforce housing could be structured under LIHTC; Alex said municipalities typically support developers by confirming infrastructure capacity, adopting compatible zoning, assembling local market-demand information, and providing letters of support. He suggested that a developer would likely hire a LIHTC consultant to prepare an application but encouraged the board to identify shovel-ready sites and consider zoning changes as part of the town27s comprehensive planning effort.
No formal action or vote was taken on LIHTC or a specific development during the meeting. Alex said he would provide the board the presentation slides and a copy of New York27s Qualified Allocation Plan for further review.
Attribution and context
All technical explanations and program examples in this article are attributed to Alex (brand manager, AES Northeast), who explicitly framed his remarks as high-level and invited follow-up. The board27s discussion focused on how municipal actions (infrastructure and zoning) can increase a LIHTC application27s competitiveness; the meeting record shows no motion or commitment to a particular project.
Why this matters
LIHTC is often essential to making affordable rental developments financially feasible in high-construction-cost markets. If the town prepares suitable sites (sewer-served, rezoned and with local endorsements), developers may be able to pursue LIHTC applications that include senior, workforce and disability-accessible units.
Next steps suggested in the meeting
- AES Northeast to provide slides and key state-coded documents (Qualified Allocation Plan) to the town board. - Town to assess sewer-served sites and discuss zoning and site-readiness actions as part of the comprehensive-plan process.
Source: Presentation and Q&A with Alex, brand manager, AES Northeast, Town Board meeting record.
