Company seeks QC for $41M housing project in Gualo Rai

The Commonwealth is bracing for another large housing project following revelation that a new firm has approached the Commonwealth Development Authority seeking tax relief and abatements for the soon-to-be built undertaking.

CDA Qualifying Certificate Program analyst Carline Sablan disclosed yesterday that Blue Water Homes LLC filed its application with the agency seeking the following abatements: relief on excise taxes at 100 percent for two years; 100 percent exemption from developer’s tax for two years; and 100 percent abatement for BGRT for 15 years.

Sablan told Saipan Tribune that the company’s business is a low-income housing project to be situated in Gualo Rai.

The company’s application has been endorsed to the CDA board since April for review and consideration.

Blue Water Homes LLC’s investment is estimated at $41.9 million. It plans to build 80 new affordable rental units.

The firm’s application will be deliberated by the CDA board this week to determine if there’s a need to hold a public hearing or not for the proposal.

Based on the initial assessment and review by the CDA administration, CDA executive director Manuel Sablan said yesterday that, like Tasi Homes LLC, Blue Water Homes was also found in violation of the QC statute for non-disclosure of all required information.

He hinted at the high probability of another “rejection” for the same reason.

Saipan Tribune learned that Blue Water Homes has already been approved $4.8 million in Low Income Tax Credit benefits under the Northern Marianas Housing Corp.’s Litex program. For 10 years, full benefit is anticipated at $48.579 million. The company is owned by a number of individuals and a company.

“Anyone who comes in for CDA’s qualifying certificate program, they have to demonstrate that [or disclose that] they went to NMHC. Like the Tasi Homes, based on our initial assessment, this company didn’t also disclose that information,” said Manuel Sablan.

For QC analyst Carline Sablan: “As of now, why we’re going to give up tax dollars for this project if what they presented at Housing was that they only needed tax credit to make it feasible?”

Both the executive director and QC analyst pointed out that under the federal regulations, a Litex applicant is required to ask for no more than what they need to get the project going.

The Low Income Tax Credit Program is basically a tax relief program that provides incentive for prospective buyers of this credit to help finance a project.