Published Sunday, Dec. 17, 2000
FARRELL
Authority applies for tax creditsMercer County Housing Authority made Friday’s deadline to apply to the Pennsylvania Housing Finance Agency for tax credits, which would be the single biggest funding source for the initial work at Steel City Terrace, Farrell.
Although the authority has received a $9 million federal Hope 6 grant to demolish the public housing units at Steel City and build a new community, it doesn’t want to use that money all at once, said Executive Director L. DeWitt Boosel.
The first phase is a $9 million project that would be funded this way:
Tax credits are sold to investors, who receive credits on their federal income taxes. Credits are not sold at the rate of $1 for $1, and officials believe they will get about 80 cents on the dollar for the sale.
Should the sale price be less, the authority will have to decide how to make up the difference.
The authority’s request is a good chunk of the tax credits available during this application phase, officials said.
The authority plans to build 53 apartments -- some will be subsidized public housing and the rest market-rate units -- and 12 homes for sale in the first construction phase. If the tax credits come through, construction could begin at the end of 2001.