|
Sponsored By:
2.gif)
NAAEI Leadership Experience: Powered by Dale Carnegie
Responding to the need for leadership training within the apartment industry, National Apartment Association Education Institute (NAAEI) has partnered with Dale Carnegie Training to deliver a world-class leadership-training program.
This program targets regional employees and corporate department heads, helping them make the transition from being a great manager to an effective leader. The course will be held Oct. 14-15 in Denver, Colo. For more information about this two-day program, click on the Web Link below.
Tax Issues and Tax Reform
"Industry Pans GAO Plan for HUD to Oversee LIHTC"
"Reinstatement of a LIHTC LURA Following Foreclosure"
Congress
"Grassley: IRS 'Terrible' at Overseeing Housing Credit"
State and Local Activities
"Many Towns Snub State's Affordable Housing Mandate"
"North Carolina Reserves LIHTCs"
Green Building
"Enterprise’s Affordable, Green Development Breaks Ground in Baltimore"
Management and Compliance
"Embracing Change: How to Adopt a Revenue Management System"
Industry Trends
"Affordable Housing Supply Not Keeping Pace With Demand"
"Healthy Economy Carries Hidden Risk for Developers"
"Monumental Demand for Affordable Housing"
Association News
Catch Up on What You Missed
Register for SHCM Blend Learning Course
Learning on the Go with Webinar Wednesdays
Get a Jump on the New Year
LeadingAge Annual Meeting Offers Senior and Tax Credit Housing Sessions
NAHMA Releases 2015 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events
Tax Issues and Tax Reform
Industry Pans GAO Plan for HUD to Oversee LIHTC
RealEstateRama (07/29/2015)
The Government Accountability Office (GAO) released a report on July 23 recommending that HUD and the Internal Revenue Service (IRS) jointly oversee the Low-Income Housing Tax Credit (LIHTC) program. The recommendation came as GAO criticized the IRS' lack of oversight of the program, noting the IRS has conducted just seven audits of the 56 state housing finances agencies that oversee the program. As a steering committee member of the Affordable Rental Housing (ACTION) coalition, the National Multi Housing Council joined other members to oppose GAO's recommendation. In a July 24 letter to key congressional stakeholders, the Coalition said, "HUD has no experience in administering the Housing Credit program and little capacity to take on this responsibility. If necessary, the common sense solution would be to provide more resources to the IRS to increase oversight." Notably, the GAO found no problems with the LIHTC, and acknowledged the private sector's role in assuring properties are suitable for occupancy and rented to qualified families. The Treasury Department said responsibility for interpreting and enforcing the provisions of the Tax Code should remain entirely with the IRS, although it supports research and analysis by HUD on the program's effectiveness. The GAO's recommendation is unlikely to gain traction as lawmakers focus more on other priorities such as extension of the minimum 9 percent LIHTC.
Reinstatement of a LIHTC LURA Following Foreclosure
Mondaq (07/21/15) Bossi, Mark V.
In general, a foreclosure nullifies the Land Use Restriction Agreement (LURA) on a Low-Income Housing Tax Credit (LIHTC) property, thereby disqualifying the property from receiving any remaining tax credits. However, a lender can either reinstate the existing LURA following a foreclosure sale or encumbering the property with a new LURA. The process for reinstating a LURA following foreclosure varies from state to state and property to property. Ideally, a lender or its counsel should contact the appropriate state agency and discuss a reinstatement of the LURA prior to beginning the foreclosure process. One part of Section 42 of the Internal Revenue Code indicates that the lender has one year to reinstate the LURA, even though it may not be in effect as of the end of a calendar year. A LURA reinstatement is permanent and the lender cannot decide at some later point to terminate it. A reinstatement preserves the right of future owners of the property to claim tax credits for periods following the foreclosure, provided that the property is operated in compliance with the LURA. Under Section 42 of the Internal Revenue Code, tax credits allowable during a year in which the foreclosure takes place are to be allocated between the prior and new owners of the property based on the number of days during the year in which the property (or interest) was held by each.
Congress
Grassley: IRS 'Terrible' at Overseeing Housing Credit
The Hill (07/23/15) Becker, Bernie
Sen. Chuck Grassley (R-Iowa) has criticized the IRS for what he calls a "terrible" job at overseeing a tax credit for low-income housing. At Grassley's request, the Government Accountability Office looked into the Low-Income Housing Tax Credit and found IRS oversight had been "minimal." Grassley claims neither the IRS nor the Department of Housing and Urban Development seem "to have any way of knowing whether a multibillion-dollar program for low-income housing has worked as intended. This doesn’t bring accountability, and it may or may not deliver affordable housing for people in need." The GAO chalked up part of the IRS's issues to funding problems. The agency has been on its high-risk list for a quarter century, and its "budget has been reduced by 10 percent and enforcement program performance and staffing levels have declined since 2010."
State and Local Activities
Many Towns Snub State's Affordable Housing Mandate
Chicago Tribune (08/08/15) Berkowitz, Karen
In Illinois, housing officials are reporting that dozens of affluent suburbs have missed a recent deadline to create plans for increasing the supply of affordable housing within their borders. Under the state's Affordable Housing Planning and Appeals Act, 68 municipalities identified as having too little affordable housing were required to file plans with the Illinois Housing Development Authority (IHDA) by June 2. Officials granted 60-day extensions to a handful of municipal bodies that requested additional time. According to the IHDA, 40 of the towns required to submit plans have yet to do so. The 2004 law targets towns in which less than one-tenth of the total housing stock is considered to be affordable under state guidelines. It should be noted that the IHDA has no actual authority to enforce the mandate if municipalities fail to submit affordable housing plans. "We do feel that our hands are very much tied," agency spokeswoman Man Yee Lee said. "We are not a regulatory body. We don't have a stick." Among the suburbs that have not filed plans for meeting the state's affordable housing goals include several of the most prestigious zip codes in the Chicago metro area, including Deerfield, Lake Forest, Northbrook, River Forest, and Winnetka. For example, the state says just 4 percent of Deerfield's housing qualifies as affordable.
North Carolina Reserves LIHTCs
Affordable Housing Finance (08/14/15) Kimura, Donna
The North Carolina Housing Finance Agency (NCHFA) has approved low-income housing tax credits (LIHTCs) for 43 developments. The agency has reserved $23 million in 9 percent credits for developments located in 36 counties. The developments will provide more than 2,800 affordable homes. According to the NCHFA, the largest reservation, $847,861, is for Southside Revitalization II, an 85-unit project in Durham by the Durham Community Land Trustees. The NCHFA also approved six tax-exempt bond projects totaling 862 unit this cycle.
Green Building
Enterprise’s Affordable, Green Development Breaks Ground in Baltimore
Multi-Housing News (07/30/15) Lowenstein, Andie
On July 28, Enterprise Homes officially broke ground in Baltimore on a new development in the Bromo Tower Arts & Entertainment District. The $22.3 million Mulberry at Park Apartments, designed by Marks, Thomas Architects, was launched in the presence of city and state officials along with representatives from the U.S. Department of Housing and Urban Development, Bank of America, Baltimore Development Corporation, and the Downtown Partnership of Baltimore. "This transaction represents the first 9 percent LIHTC project financed by the Bank for Enterprise," said Miles Cary III, senior vice president of Community Development Banking for Bank of America Merrill Lynch. Mulberry at Park will feature 34 one-bedroom, 27 two-bedroom, and seven three-bedroom apartments with rents ranging from $773 to $1,155. Thirteen units will accommodate persons with physical disabilities. The development will also meet Enterprise Green Communities Criteria and LEED Silver standards. Habitat America will offer on-site resident services, while Bank of America is supplying $15.8 million in construction financing, tax credit equity, and permanent financing; State of Maryland Department of Housing and Community Development $1.5 million; and Baltimore City $870,000.
Management and Compliance
Embracing Change: How to Adopt a Revenue Management System
Property Management Insider (08/10/15) Blackwell, Tim
Apartment residents are paying more for new leases and renewals at the highest clip since its peak four years ago, according to recent data by MPF Research. Revenue management systems are helping property management companies and apartment owners to "get more bang for their buck." While market conditions are creating high demand, getting the maximum rent and profit is not always a given with manual pricing processes. While taking a chance with such a system can be a bit of a learning curve, analysts say adopting new technology to drive rents and increase occupancy is well worth the effort. Panelists at March's Crittenden Multifamily Conference in Texas agreed that embracing change is a key factor in making complex technology decisions. Additionally, experts say ongoing training and constant evaluation can help make the new process feel more comfortable for everyone involved.
Industry Trends
Affordable Housing Supply Not Keeping Pace With Demand
Argus Leader (08/01/15) Young, Steve
The supply of affordable housing in Sioux Falls, S.D., is not keeping up with rising demand from lower-income residents. Developers in the city are turning to federal tax credits to build lower-income housing in the city, but the bulk of what is being built is still not affordable for about half of the 3,700 households on the waiting list. The federal Low Income Housing Tax Credit (LIHTC) Program has helped Sioux Falls developers finance nearly a quarter of a billion dollars in affordable housing reflecting about 4,000 units since 1987. Half of the households on the waiting list in Sioux Falls are at 30 percent or less median income, or $21,300 a year for a family of four. In recent years, only 3 percent of tax credit housing units in Sioux Falls were constructed for their income level. And just 14 percent of the units were built for those at 40 percent median income. The LIHTC program has enabled the construction of new affordable housing complexes like the Pettigrew Heights Apartments and Summit Heights Apartment. On North Cleveland Avenue, two condemned buildings were renovated into the Turning Leaf Apartments. "We probably need to do a better job as a community of coming together to address those individuals who are on the waiting list, understanding exactly who they are and what we can do as a larger group to provide housing for them," says Erica Beck, vice president of development for Lloyd Companies.
Healthy Economy Carries Hidden Risk for Developers
Affordable Housing Finance (08/10/15) Vasbinder, Mike
The U.S. economy continues to rebound from the Great Recession, but other trends are emerging within the construction industry as trade contractors react to an influx of new work opportunities. Ruscilli Construction, one of Ohio's largest general contractors, has identified one particular trend that is causing concern over its potential for increasing costs on projects. The Davis-Bacon and Related Acts (DBRA) wage legislation could lead to higher costs and other risks for developers and public agencies, writes Mike Vasbinder, vice president of operations for Ruscilli. The weekly wage reporting forms are relatively simple to complete, but companies using 1099 employees are particularly affected by these reporting requirements. When given a choice, the number of trade contractors willing to bid on DBRA-governed projects over non-DBRA projects is decreasing, and subcontractors say the hassles and costs associated with required wage reporting is a key factor in these decisions. "Developers can avoid these risks by choosing a well-established general contractor that has plenty of experience with DBRA projects and a solid financial history," concludes Vasbinder.
Monumental Demand for Affordable Housing
GlobeSt.com (08/19/15) Rogal, Brian J.
Demand among both renters and investors appear to be strengthening for affordable housing communities. For instance, Berkadia's affordable housing group recently completed four sales totaling over $30 million for as many affordable housing properties in the Midwest. Even though America's economy continues to pull free from the lingering effects of the recession, there remains a clear and present need for affordable housing. Eric Taylor, a senior director in Berkadia's Detroit office, remarks, "Persistent wage stagnation, coupled with the lack of middle-income job creation following the Great Recession, has resulted in a monumental demand for rent-subsidized and income-restricted housing. Almost every deal that comes across our desks for underwriting is at or near 100 percent occupancy." He goes on to observe that there are a "wide range of investor types" now pursuing affordable housing opportunities, and these investors have varying motivations. They range from non-profit, affordable housing preservation groups to conventional market-rate converters.
Association News
Catch Up on What You Missed
If you did not attend the June National Affordable Housing Management Association (NAHMA) summer forum, held in conjunction with the NAA Education Conference and Exposition, you don’t have to miss the excellent education sessions that were presented in Vegas.
You can order 50-plus video and audio-synced PowerPoint recordings of the education sessions that were presented by industry speakers featured at the 2015 conference. You may earn up to six continuing education credits toward your NAAEI designation renewal.
The entire 2015 Rewind series is available for $199, a $100 savings for SHCM designates only. Please enter the coupon code NAAEI199 at checkout to receive your SHCM discount. To order the recordings, click the Web Link below.
NAHMA presented four sessions at the NAA conference.
- Disparate Impact and Multifamily Affordable Housing: The concept of disparate impact has been hotly debated in real estate and legal circles and reached the U.S. Supreme Court for resolution on three occasions, with the first two cases being settled before the Court could issue a ruling. The court issued its ruling in June on the third case. Speakers: Harry Kelly, Nixon Peabody LLP; Michael W. Skojec, Ballard Spahr LLP
- The Business Case for Retrofitting to Service Enrich Your Senior Housing: Providing service-enriched housing to seniors and enabling them to “age in place” in quality, supportive and affordable rental housing provides massive savings to Medicare and Medicaid, and, moreover, retrofitting existing senior housing can make good business sense. Speaker: David A. Smith, Recap Real Estate Advisors
- Unique Considerations for Marketing Affordable Housing: Learn how, beyond the regulations, rules, audits and paperwork, management agents are able to keep the property full on a bare-bones marketing budget. Speakers: Adriana Guzzo, NALP, Peabody Properties; Nancy Reno, Housing Management Resources, Inc.
- Key Federal Legislative and Regulatory Issues Impacting Affordable Multifamily Housing: This session focuses on key current federal legislative and regulatory issues facing providers of multifamily affordable housing participating in Department of Housing and Urban Development, rural housing and housing credit programs. Speakers: Larry Keys, NAHMA; Kris Cook, CAE, NAHMA; Greg Brown, NAA
Register for SHCM Blend Learning Course
The SHCM Blended Learning course will be held each Wednesday for four weeks beginning Sept. 16. The course is broken up into four webinar sessions with each presentation lasting approximately two hours with breaks, followed by a question-and-answer period for attendees.
- Wednesday Sept. 16, 12-3 p.m. EST, Chapter 1: Program Regulations presented by Gwen Volk
- Wednesday Sept. 23, 12-3 p.m. EST, Chapter 2: Unit Eligibility presented by Heather Staggs
- Wednesday, Sept. 30, 12-3 p.m. EST, Chapter 3: Applicant Eligibility & Certification presented by Anita Moseman
- Wednesday, Oct. 7, 12-3 p.m. EST, Chapter 4: Monitoring & Compliance presented by Heather Staggs
The cost for the course, including the SHCM exam and SHCM application fee, is $599; NAAEI designates will receive a $50 discount for the entire course. Individual webinars can be purchased at $99 each. To register, click the Web Link provided below.
Material for the webinars is based on NAHMA's newly revised Practical Guide to Housing Credit Management workbook. Participants will receive course materials in a PDF format prior to the first webinar session. Participants will have 14 business days to sit for the exam upon the conclusion of the series. All students will need to sit for the SHCM exam by Tuesday, Oct. 27.
Learning on the Go with Webinar Wednesdays
Join NAAEI, Apartment All Stars and Multifamily Insiders for Webinar Wednesdays, the largest premium webinar series to provide SHCM designates with access to industry thought leaders to discuss innovative ideas, best practices and emerging trends. These webinars will give participants the tools they need to become industry superstars in their own right. To review upcoming webinars or to register, click on the Web Link below.
- Aug. 19, Lisa Trosien presents Eye Candy-Online Visuals That Lead to Leases
- Sept. 2, Stephanie Graves presents My Online Reviews Say I'm Awful, but I Promise I'm Awesome!
- Sept. 16, Lori Snider presents Merchandising 101-Creating Spaces That Encourage Buying
- Oct. 7, Eric Broughton presents Unclog Your Profits! Master the Art of Maintenance, Procurement and Purchasing Intelligence
- Oct. 21, Tiffany Zwiefelhofer presents Marketing with Little or No Money
- Nov. 4, Mike Whaling presents Social Media: What Have You Done for Me Lately?
- Nov. 18, Rick Ellis presents The Resident Is Not the Problem-How to Overcome Resident Problems and Problem Residents … and Know the Difference
- Dec. 2, Bill Szczytko presents Escaping the Echo Chamber-Tech and Marketing Tips from Outside of Multifamily
- Dec. 16, Kate Good presents Your 2016 Marketing Playbook
Get a Jump on the New Year
Preorder you 2016 NAHMA Drug-Free Kids Calendar now by clicking on the Web Link below. Don’t wait, the 2015 edition sold out.
The calendars feature outstanding original artwork by children, seniors and adults with special needs living in affordable multifamily housing. This year’s contest celebrated community spirit with its theme and subtheme, Our Hands Are United: Reach Out and Be a Good Neighbor.
The cost is $5.50 per calendar, which is a Department of Housing and Urban Development and U.S. Department of Agriculture allowable expense. The calendars will be shipped in late September.
LeadingAge Annual Meeting Offers Senior and Tax Credit Housing Sessions
The 2015 LeadingAge Annual Meeting and Expo will be held in Boston, Nov. 1-4. Registration and hotel blocks are open. Affordable senior housing sessions will cover everything from “Maximizing Income from Section 8 Contracts” (G. Dunaway); “Pitfalls to Avoid in Low-Income Housing Tax Credit Programs” (H. Berk); to “Reasonable Accommodations” (K. Williams) and “Caring for LGBT Older Adults”; and a range of sessions focused on senior housing with services including “Building a Culture of Wellness” and “Understanding Hoarding Behaviors in Older Adults.” To find more information on the conference, click the Web Link.
NAHMA Releases 2015 Affordable 100 List
The National Affordable Housing Management Association (NAHMA) announces its 2015 Affordable 100—a list of the 100 largest affordable multifamily property management companies ranked by affordable unit counts—is available on its website, click Web Link below, as well as in the June issues of Affordable Housing Finance magazine and Units magazine. The NAHMA website version expands the list to the top 120 largest multifamily property management companies. In addition, the online version presents two specialty lists: the 25 largest housing credit (LIHTC) property management companies and the 25 largest Rural Development program property management companies.
Become a Specialist in Housing Credit Management® (SHCM®) Company!
The three national associations sponsoring the Specialist in Housing Credit Management® certification program invite your company to become a Specialist in Housing Credit Management® (SHCM®) Company, a corporate designation created specifically to honor management companies that successfully maintain a significant portion of their properties and staff to the high standards of the SHCM certification program.
The SHCM program, developed especially for management companies involved with properties developed and operated under the Low Income Tax Credit (LIHTC) program, is sponsored by the National Affordable Housing Management Association (NAHMA), the National Apartment Association Education Institute (NAAEI), and LeadingAge (formerly AAHSA, the American Association of Housing and Services for the Aging).
Earning the SHCM Company designation publicly demonstrates that a company is among the finest managers of LIHTC housing in the industry.
For more details on how to become a SHCM Company, click on the Web Link below.
Upcoming Events
NAHMA Regulatory Issues Fall Meeting
October 25-27, 2015
More info
LeadingAge Annual Meeting and Expo
November 1-4, 2015
More info
LeadingAge PEAK Leadership Summit
November 16-18, 2015
More info
Abstract News © Copyright 2015 INFORMATION, INC.
|
|
