Nihonmachi Terrace was developed and operates with Federal housing financing. The property utilizes 2 Federal housing programs to make rent affordable to lower income tenants. These programs are Low Income Housing Tax Credit and Project Based Sec. 8.
Nihonmachi Terrace has a project-based Section 8 contract. 120 of the 245 total units at the property receive Section 8 assistance. This means that 49% of the renter households in the property pay no more than 30% of their adjusted income for rent.
The current Section 8 contract was effective on September 01, 2009 and the contract expires on August 31, 2029. The Section 8 contract rent is 143% of the Fair Market Rent for the area. According to the HUD Multifamily database, the fair market rents for the area are $1,412.00 for Zero Bedroom, $1,814.00 for One Bedroom, $2,289.00 for Two Bedroom, $2,987.00 for Three Bedroom, and $3,556.00 for Four Bedroom.
28% of California properties and 26% of all properties across the country have Section 8 rental subsidies. See the Rent Subsidies section for more.
Low Income Housing Tax Credit
The property was developed using the Low Income Housing Tax Credit Program. This program incentivizes investors to inject capital into rental apartments for lower income Americans. The property received a tax credit allocation in 2008 for $989,029 with a 10 year value of $9,890,290. The property was placed in service in 2009. 243 of 245 units at Nihonmachi Terrace are low income and subject to the tax credit program. The property, at the time of the tax credit allocation, was not located in a Qualified Census Tract or a Difficult Development Area and was not qualified for additional tax credit funding.