Core Tech to build 64 new housing units under federal tax credit program
By Pacific Island Times News Staff
Core Tech Development stands to receive $36.6 million in tax credits over 10 years to build 64 new affordable housing units under the low-income housing tax credit or LIHTC.
The Guam Housing and Urban Renewal Authority’s board of directors approved the award of the LIHTC project to Core Tech and its subsidiary Summer Breeze LLC during its meeting Friday.
The project, which will be built in Radio Barrigada, will consist of six single-bedroom, 18 two-bedroom, 33-bedroom and 10 four-bedroom units.
Created in 1986, the LIHTC program is an indirect federal subsidy used to finance the construction and rehabilitation of low-income affordable rental housing. In exchange for tax credit, owners are required to keep the units rent-restricted and available to low-income tenants.
Through the new project, Core Tech will get $3.66 million in annual tax credit.
“Last week, our Administration unveiled Investment Para Hamyo, our comprehensive plan to maximize and mobilize all our financial resources to build back a stronger, more resilient island,” said Gov. Leon Guerrero.
“With this GHURA award, this plan is already in motion, and we are that much closer to our goal of utilizing up to $66 million in tax credits to finance construction for families who qualify.”
“The foundation of a safe and prosperous community is the availability of sufficient housing to provide homes for our people. We look forward to breaking ground on these affordable units and providing greater stability for families who are most impacted by limited inventory and high housing costs,” said Lt. Gov. Josh Tenorio.
Ray Topasna, GHURA’s executive director, said the new project is part of the agency’s efforts to ease the shortage of affordable housing on Guam.
“Even prior to the pandemic, we recognized a shortage of affordable housing for our people, which is why my team has never taken its foot off the gas,” Topasna said. “As a result, more affordable homes will be made available to Guamanians who are income-eligible.”
The GHURA board has also directed Topasna to review the remaining federal tax credits and explore options to award them promptly.
The housing authority started awarding credits in 2005 and has constructed 1,187 low-income affordable homes.
The most recent low-cost housing project on island was the Ironwood Villa Del Mar I in the village of Toto, which opened on Oct. 25, 2019.
In March of the same year, Core Tech Development Corp. made 64 housing units available to low-income households. The housing facility in the Lada district of Dededo was the completion of Core Tech’s Summer Town Estates four-phase project.
Since 2007, Core Tech has built nine low-income housing projects— three as a contract and six as a developer— consisting of 931 newly constructed units and 1,022 renovated units, for a total 1,953.