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17 The Hollywood Library/The Bookmark Apartments A joint public and private venture,the Hollywood Library/the Bookmark Apartments is an innovative, transit-oriented,mixed-use project in the Hollywood District of Portland,Oregon. The project combines a 13,000-square-foot branch library,owned by Multnomah County,with a 47-unit,mixed-income rental complex called “the Bookmark” and 815 square feet of ground-floor retail space,owned by Sockeye Development,LLC. The construction of the library cost $3.5 million, and was funded from a $29 million county bond. The Bookmark Apartments and adjacent retail space,which cost $6.5 million,was financed with 4 percent in low-income housing tax credits administered by Oregon Housing and Community Services,tax-exempt bonds,a Portland Develop- ment Commission loan,and developer equity. Nineteen apartments are reserved for households at or below 60 percent of the area median income,while the remaining 28 units are available at market rate. The library occupies most of the ground floor of the four- story building. Residents have access to a generous landscaped courtyard on the south side of the building.36,37 Profile• Low-Income Housing Tax Credit Program (LIHTC)—provides investor equity capital to reduce debt service on multifamily rental housing. Established by the Tax Reform Act of 1986, this program authorizes a federal tax incentive for the construction or rehabilitation of rental housing units occupied by low-income households. The LIHTC provides the owner with a tax credit to offset federal income taxes for a period of ten years. The size of the tax credit is based on the construction or rehabilitation costs for the low-income units. As state-chartered authorities established to help meet the affordable housing needs of the residents of their states, state and local housing finance agencies also provide a source of funding for mixed-income housing. These agencies administer a wide range of affordable housing and community develop- ment programs, including federally authorized housing pro- grams such as the Mortgage Revenue Bond program, the Low-Income Housing Tax Credit Program, and the HOME Investment Partnerships program. Housing trust funds, administered at the state and local levels, offer another means of providing a dedicated revenue stream to support the development and retention of affordable housing. About 150 states and localities have established housing trust funds.32 These public funds can be established by law at the national, state, or local level and perpetuated by ongoing rev- enues from dedicated sources of funding such as taxes, fees, or loan repayments. Typically, a housing trust fund is estab- lished through legislation that increases an existing revenue source, such as a real estate transfer tax, with the increase com- mitted to the housing trust fund.33 In 1992, the state of Florida passed the Sadowski Act, creating the largest dedicat- ed revenue source for affordable housing in the nation. Under the act, funds are shared between state (30 percent) and local (70 percent) housing trust funds. Now generating more than $185 million a year, the Sadowski Act has assisted more than 87,000 households with affordable homeownership or rental housing and leveraged an estimated $2.4 billion in private and public sector investments since its inception.34 In its postdevelopment phases, mixed-income housing has much in common with other residential developments—requiring funds to market units, exercise high-quality maintenance and manage- ment, and endure cyclical downturns in the housing market— while it maintains resources to subsidize the housing costs for lower-income residents.35 A joint public and private venture—the Hollywood Library/the Bookmark Apartments—combines a branch public library with a 47-unit, mixed-income rental complex called “the Bookmark” and ground-floor retail space. LA R A S W I M M E R