According to The Oklahoman, a bill awaiting signature by Oklahoma Gov. Kevin Stitt would cut the affordable housing tax credit in half and could cancel several planned projects in Oklahoma City. The at-risk projects include rental homes in west Oklahoma City and Spencer, converting a dilapidated historic school into senior housing in northeast Oklahoma City, and plans to include 100 affordable apartments downtown. All the projects would provide reduced rent for tenants earning less than $41,640, which is 60% of the average area median income of $69,400.
Proponents of the legislation cite a 2018 incentives commission evaluation that suggested the cuts after determining the costs of the affordable housing tax credits outweigh the benefits. The commission warned the tax credits, long term, will cost the state $106.1 million over 10 years. Rep. Kyle Hilbert, R-Depew and Sen. Stephanie Bice, R-Oklahoma City, both proponents of the bill, say they relied on the 2018 incentives evaluation that suggested either cutting the amount or terms of the program that was launched in 2014.
"There are things that are nice to do as a state and then there are things you’re required to do, and when our required things that we need to do are taking a hit, I think that’s when you cut back on some of those nice things, the extra spending such as this," Hilbert said.
Cathy O’Connor, director of the Oklahoma City Urban Renewal Authority, warned Thursday signing of the bill will kill construction of affordable housing throughout the greater metro area. She said developers of the 1927 Harmony School at 1537 NE 24, last home to Marcus Garvey charter school, have gone through two applications for state affordable housing tax credits to convert the abandoned school to 40 apartments. “It’s a cool project — renovation of a historic school building into senior housing,” O’Connor said. “But it won’t happen (if the bill is signed) and we will be stuck with another abandoned building in northeast Oklahoma City.”
