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NAAEI Announces Tax Credit Property Management Online Training
The National Apartment Association Education Institute (NAAEI) is offering a 12-hour online course to prepare students for the SHCM certification exam. The training topics include program regulations, unit eligibility, applicant eligibility and certification, documentation, recordkeeping, compliance reporting and monitoring. This course satisfies the education requirement to apply for the SHCM credential. Use the code SHCM25 to receive a 25% discount on the purchase of the course using the Web Link below. Discount valid through Dec. 31, 2020.
Industry Trends
"LIHTC Market Settles Heading Into 2021"
Federal Regulation
"Capitol Hill Advocates Look Ahead to Future of Affordable Housing"
IRS-Related Activities
"IRS Releases Proposed Regulations on Average Income Test for Low-Income Housing Tax Credit"
State and Local Activities
"Pennsylvania Agency Applauds Low-Income Housing Tax Credit"
"Central Florida Affordable Housing Fund May Start in Early 2021"
Green Building
"10 Key Things Investors Ought to Know About Green Building"
"Affordable Housing That LEEDs in Being Green and Sustainable"
Association News
NAAEI Offers Emotional Support Animals Online Course
2020 Q3 Apartment Jobs Snapshot
Stock Your Giveaway Closet
NAHMA Releases 2020 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events
Industry Trends
LIHTC Market Settles Heading Into 2021
Affordable Housing Finance (11/18/20) Kimura, Donna
Syndicators report the Low-Income Housing Tax Credit (LIHTC) market has settled down since the early months of the COVID-19 pandemic and should remain steady heading into the new year. Jay Segel, executive vice president at R4 Capital, noted the pandemic forced many areas to shut down their businesses starting in March, prompting LIHTC investors to hit the pause button as they assessed what was happening in the industry and the nation. Since then, the market has been able to move forward and work itself out by early May, according to Segel. Several syndicators and debt providers even reported having record years. Overall on an aggregate basis, LIHTC prices have declined by “a couple of cents,” said Scott Hoekman, president and CEO of Enterprise Housing Credit Investments. Pricing has varied, but the overall decline has not been dramatic, he added. Going into the 2021, Hoekman and others will be watching to see if the pandemic drags on and what will happen with banks’ commercial real estate portfolios and their demand for LIHTCs. However, at this point, Enterprise is looking at a strong year with a large pipeline of secured business, Hoekman said. Roy Faerber, senior vice president, equity, at Boston Financial Investment Management, said that in the past, a developer may have seen five investors interested in a deal. Now, according to Faerber, there are fewer investors for every deal, which allows investors to pick and choose for more conservatively underwritten projects as well as for liquidity and developer experience.
Federal Regulation
Capitol Hill Advocates Look Ahead to Future of Affordable Housing
Affordable Housing Finance (11/17/20) Serlin, Christine
Two weeks after Election Day, affordable housing advocates expect to see a continuation of divided government, but are still optimistic about boosting housing and improving the Low-Income Housing Tax Credit (LIHTC). “It’s an intense polarized political environment,” said Stockton Williams, executive director of the National Council of State Housing Agencies. “It’s going to take a lot of work to get small things accomplished, and we are looking for big things. But the LIHTC has been improved in more difficult economic scenarios and political times. I feel very good about our chances to get more resources for housing.” Emily Cadik, executive director of the Affordable Housing Tax Credit Allocation, said one thing that will be different is that President-elect Biden will come into office with a $640 billion housing plan. In addition, she added, that the administration will look at what they can accomplish on the housing plan on the regulatory side without Congress’ approval. Affordable housing advocates are also working on a letter to the IRS and Treasury to request deadlines and other accommodations for the LIHTC program in light of disruption brought on by the pandemic. “These deadlines are important to the state housing agencies who are administering the credit as well as the people in the audience today,” Williams said. “If we can’t get the deadlines extended, there could be problems with closing or placed-in-service dates or other milestones.”
IRS-Related Activities
IRS Releases Proposed Regulations on Average Income Test for Low-Income Housing Tax Credit
Lexology (10/30/20) Pollock, Scott; Wilson, John
The U.S. Internal Revenue Service (IRS) and the Treasury Department on Oct. 30 released proposed regulations relating to the “average income test” for purposes of the Low-Income Housing Tax Credit (LIHTC). The proposed regulations provide guidance with respect to the implementation of the average income test and create narrow forms of administrative relief to help mitigate some of the risks associated with the average income test. Under the proposed regulations, the task of delineating a process for the designation of income limitations is largely delegated to the state credit agencies that administer the LIHTC program in their respective states. The proposed regulations do, however, require the taxpayer to make the designations by the end of the first taxable year of the credit period for the project. The proposed regulations allow for two kinds of “mitigating actions” to address noncompliant units. Such mitigating actions must be taken within 60 days of the end of the year of noncompliance. The first mitigating action would involve converting certain market-rate units into low-income units. The use of this mitigating action could avoid a loss of LIHTCs, but its applicability requires that eligible market-rate units be available for conversion. The second mitigating action would involve “removing” other compliant low-income units from the project’s “applicable fraction,” which could reduce the amount of LIHTCs that the project is entitled to claim.
State and Local Activities
Pennsylvania Agency Applauds Low-Income Housing Tax Credit
Pennsylvania Business Report (11/06/20) Druga, Melina
Gov. Tom Wolf recently signed into law the Pennsylvania Housing Tax Credit Act that creates a Low-Income Housing Tax Credit (LIHTC) program. The law directs the Pennsylvania Housing Finance Agency (PHFA) to create guidelines and procedures for administering a state tax credit to qualified, affordable housing projects. The state’s credit was modeled after the federal LIHTC program. “We want to thank all the housing advocates and affordable housing groups who came together in support for this important legislation,” said Robin Wiessmann, PHFA executive director and CEO. “Federal tax credits have proven their worth for more than three decades by financing the construction of tens of thousands of affordable rental units here in Pennsylvania. Our thanks go out to state legislators and the governor for creating a similar program on the state level that will help us fulfill our ongoing housing mission.” The credit was necessary to provide affordable housing in the state, he said. “Whenever we allocate federal tax credits, the demand always far exceeds the supply of tax credits we have available,” Wiessmann said. “At a time when a growing number of Pennsylvanians have to spend too much for stable housing, these state tax credits will be greatly appreciated.”
Central Florida Affordable Housing Fund May Start in Early 2021
Orlando Business Journal (10/26/20) Witthaus, Jack
A fund created to address Central Florida's affordable housing crisis may soon start distributing capital despite the pandemic affecting its support. The previously announced $100 million Housing Impact Fund may start deploying capital as soon as the first quarter of 2021, but to date, all of the commitments to the fund have been verbal, notes Mark Brewer, president/CEO of the Central Florida Foundation. The foundation and the Central Florida Regional Housing Trust unveiled the fund in February in an effort to build, renovate, and/or rescue 25,000 affordable homes over the next 10 years. The initial goal was to raise $25 million in debt, equity, and philanthropic capital that can be used to provide gap funding for tax credit affordable housing and workforce housing projects. Rob Panepinto, director of innovation districts strategy at the University of Central Florida and chairman of the Central Florida Housing Action Team, notes that major employers in the hospitality and tourism industry may not be able to contribute as much as they previously committed. Furthermore, the Housing Impact Fund will act as a revolving fund, so fundraising was expected to occur in stages over time. Meanwhile, hundreds of affordable housing units are planned in counties like Lake, Orange, Osceola, and Seminole, but experts say they are not sufficient.
Green Building
10 Key Things Investors Ought to Know About Green Building
Forbes (09/22/20)
Many real estate investors are surprisingly unversed in the finer details of green building, but understanding what the approach offers is important and can influence how they approach prospective buyers. With that in mind, members of the Forbes Real Estate Council — an exclusive community of property industry executives — provide insight on key aspects that investors should keep top of mind. Buildings with a smaller carbon footprint are both energy-efficient and healthier, they point out, but also more expensive upfront. The investment is likely to pay for itself over time, however, with significant additions to the bottom line if done properly. Therefore, the entire life cycle should be considered to ensure that green building makes sense from a financial standpoint. The executives also emphasize that there are avenues to green building besides LEED. For instance, the COVID-19 pandemic has fed interest in Wellness Certified buildings — which must satisfy criteria for air, water, nourishment, light, fitness, comfort, sound, materials, mind, and community. Regardless of which approach they take, the industry insiders note, investors must do more than showcase their certification. Rather, they should look for ways to tie in all of the benefits, both the obvious as well as lesser-known advantages, to the people who occupy the space.
Affordable Housing That LEEDs in Being Green and Sustainable
Professional Builder (09/01/20) Beirne, Mike
Communities in New York and California are being recognized as stellar examples of green and sustainable affordable housing. The U.S. Green Building Council singled out the properties for honors in the Outstanding Affordable Project category as part of its 2020 LEED Homes Awards. Syracuse's nearly 73,000-square-foot Freedom Commons, a LEED Gold winner, was designed and developed by Norstar Development USA and Sustainable Comfort. Most of the 54 units cater to former prisoners, with the remaining units supporting low-income families and formerly homeless residents. The development features LED lighting, ENERGY STAR-qualified appliances, low-flow fixtures with EPA's WaterSense label, and a healthy indoor environment with dedicated energy recovery ventilation. The five-story Arroyo includes 64 apartments, all of which receive natural light. Sunshades at the LEED Platinum winner reduce glare, which in turn reduces interior lighting needs, and curb solar gain, which eases energy demands on cooling systems. The Community Corporation of Santa Monica received affordable housing tax credits to bankroll construction, meaning that healthy materials and finishes were mandatory. Lastly, the 3365 Third Ave. development in the Bronx received plaudits for its low-energy, high-performance design. The 30-unit building features LED lighting, efficient HVAC, a rooftop solar array and green roof, low-flow plumbing, fiberglass triple-pane windows, and an airtight insulated concrete form envelope. The LEED Platinum winner is one of more than a dozen projects that illustrate Bronx Pro Group's mission to "develop quality housing that is both affordable and sustainable."
Association News
NAAEI Offers Emotional Support Animals Online Course
The NAA Education Institute announces the availability of an online course on emotional support animals. This course addresses the challenges created by reasonable accommodation requests for assistance animals, including emotional support animals. Students will learn what the implementation of federal policies looks like in practice and will receive many resources that can be downloaded for easy reference. To purchase the three-hour course for $198 visit the Web Link below.
2020 Q3 Apartment Jobs Snapshot
NAAEI brings you its workforce update: The Apartment Jobs Snapshot, which highlights labor force trends in the rental housing industry. The profile examines total job posting trends by position and geography as well as average salaries, time required to fill a position and the top skills found in job postings. To view the snapshot, click on the Web Link.
Stock Your Giveaway Closet
Don’t miss your chance to own a one-of-a-kind 2021 NAHMA Drug-Free Kids Calendar before they sell out. Download the order form from the NAHMA Online Store and send it in today. They make great giveaways for residents and staff. The calendar cost is $5.50 each, which is a Department of Housing and Urban Development and U.S. Department of Agriculture allowable project expense. There is a small shipping and handling fee for each calendar.
The calendars feature outstanding original artwork by children, seniors, and adults with special needs living in affordable multifamily housing. The underlying message for the annual calendar contest is always a drug-free theme. Still, the association wanted to open the door for more avenues of expression, so a subtheme is incorporated into the poster contest. The subtheme this year is My Voice Will Be Heard: Speaking the Language of Love.
To download the order form, click on the Web Link provided. To see the national winners, visit
https://www.nahma.org/awards-contests/calendar-contest/current-winners
/.
NAHMA Releases 2020 Affordable 100 List
The National Affordable Housing Management Association (NAHMA) announces its 2020 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 issue of NAHMA News. 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 two national associations sponsoring the Specialist in Housing Credit Management® (SHCM®) certification program invite your company to become a Specialist in Housing Credit Management® 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) and the National Apartment Association Education Institute (NAAEI).
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
NAA Digital Studio
February 25, 2021
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NAA Advocate
March 9-10, 2021
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NAHMA Biannual Top Issues in Affordable Housing Virtual Winter Conference
March 10-12, 2021
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NAA Digital Studio
April 22, 2021
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NAA Apartmentalize
June 16-18, 2021
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NAAEI Affiliate Education Conference
August 2-4, 2021
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NAA AEX Live
August 4-6, 2021
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NAA Digital Studio
September 14, 2021
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NAHMA Biannual Top Issues in Affordable Housing Virtual Fall Conference
October 20-22, 2021
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NAA Assembly of Delegates
November 2-4, 2021
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NAA Digital
December 7-9, 2021
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News summaries © copyright 2020 SmithBucklin
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