MDFB Programs
Contribution for Tax Credit Program.
This program provides a 50% tax credit to contributors making a contribution directly to the Board's Infrastructure Development and Reserve Fund. Subject to approving applications from local municipalities, the Board will grant contribution proceeds to the applicant to partially fund public infrastructure improvements critical and necessary to support and leverage other public and private investment into and redevelopment of downtown business districts. Please refer to the program Guidelines and application process on the Board's web site for additional information. Please contact the Board for a copy of the application.
Public Infrastructure Bond Tax Credit Program.
Similar to the Contribution for Tax Credit program, this program may be used by the Board to guaranty its public infrastructure bond issues, the proceeds of which are loaned to the applying municipality to fund or partially fund public improvements critical and necessary to cause other public and private investment to occur in redevelopment areas. For purposes of D·R·E·A·M, the Board will prioritize this program to approved downtown redevelopment district participants. Board loan proceeds may be used for improvements to streets, sidewalks, lighting, storm and/or waste water improvements, land acquisition, relocation, demolition, renovation, and any other public costs necessary to support a redevelopment project. Borrowers must demonstrate a reasonable ability to repay; however in the event projected revenue streams are insufficient to allow full repayment this program authorizes the use of tax credits to provide full bond repayment.
This program may be used in conjunction with TIF, NID, CID, TDD, LCRA's, Urban Redevelopment Corporations, or other local public financing structures.
Technical Planning Assistance
Communities approved to participate in D·R·E·A·M will receive professional urban planning consulting services under a “cost-share” formula whereby the Board will contract for and deliver these services contingent upon the participating community obligating to a nominal percentile reimbursement of these costs. The planner will directly assist the communities in: reviewing and updating existing plans; testing market feasibility assumptions and demand; testing redevelopment plan budgets; and provide other urban planning services as needed and appropriate.
Technical Assistance in Creating Local Financing Entities
The Board will assist communities in creating tax increment financing, neighborhood improvement, community improvement, and transportation development districts and other local governmental, quasi-public financing entities as necessary to implement and sustain the redevelopment plan.
MHDC Programs
MHDC Rental Production & Preservation Program
The MHDC Rental Housing Production & Preservation Program provides below market interest rate construction and permanent financing to developers (for-profit and not-for-profit) for the acquisition and rehabilitation or new construction of rental housing for low and moderate income families. Applicants must demonstrate prior successful housing experience and engage the services of housing professionals such as architects, appraisers, attorneys, accountants, contractors and property managers with demonstrable multifamily housing experience. The MHDC funds are typically combined with Low Income Housing Tax Credits to fund affordable housing developments.
HOME Rental Production Program
The federally funded HOME program provides financing for the acquisition and rehabilitation or new construction of rental housing. As HOME Administrator for the State of Missouri, MHDC uses a portion of its annual HOME allocation to finance rental production at a very low interest rate, which results in rents that are affordable to low income families. Developers (for-profit and not-for-profit) are eligible to apply for financing. Developers must have the financial capacity to successfully complete and operate the proposed housing development. HOME funds are usually combined with Low Income Housing Tax Credits to fund affordable housing developments.
Low Income Housing Tax Credit Program
This program provides a federal tax credit to investors in affordable housing. The credit can be used each year for 10 years and is allocated to developers, who may sell it to raise equity to construct or acquire and rehabilitate affordable rental housing. Annually, the Internal Revenue Service allocates the credit to each state in an amount equal to $1.80 times its population. Missouri also has a state low income housing credit, and may allocate an amount equal to 100% of the federal credit. The Housing Credit is limited to a percentage of the Qualified Basis, based upon depreciable basis, and the percentage of affordable units in the development. The minimum number of qualifying units is a) 40% of the total number of units affordable to persons at 60% of the median income or b) 20% affordable to persons at 50% of the median income. Developers (for-profit and non-profit) are eligible to apply for tax credits.
DED Programs
Community Development Block Grant Program (CDBG)
Provides financial assistance to local governments for public improvements. Qualifying districts and nonprofit organizations may also receive CDBG funding through their local government. The state CDBG program is available to non-entitlement cities and counties in Missouri.
Neighborhood Assistance Program (NAP)
A contribution tax credit program that allows approved agencies to offer contributors an incentive of tax credits to leverage local dollars for community development activities.
Historic Preservation Tax Credit Program (HTC)
Provides an incentive to eligible applicants for rehabilitation of commercial or residential historic structures in the state of Missouri. The incentive is in the form of tax credits equal to 25% of the eligible rehabilitation expenditures of qualified historic structures.
Missouri Downtown Economic Stimulus Act (MODESA)
Provides supplemental state financial assistance for the redevelopment of designated economically depressed areas. MODESA is available for central business districts that are legally designated either a blighted or a conservation area. MODESA allows a portion of certain new state tax revenues generated in the redevelopment area to be diverted for a limited number of years to fund eligible public infrastructure and related costs.
Missouri Downtown Preservation
Provides supplemental state financial assistance for qualifying economic development projects and is available to municipalities with a population of 200,000 or less, and annual median household income of $62,000 or less. The redevelopment project area must be legally designated either a blighted or a conservation area, and not exceed 10% of the entire area of the municipality.
Brownfield Remediation and Demolition Tax Credits
Provides financial incentives for the redevelopment of commercial/industrial sites that are contaminated with hazardous substances and have been abandoned or under utilized for at least three years. The program may be used to rehabilitate an existing building contaminated with hazardous substances, or to clear existing structures and build a new facility. The program may also be applicable for contaminated sites that have no existing structures.
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