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CDC Issues Recommendations for COVID-19 Vaccinated Individuals


The Centers for Disease Control and Prevention (CDC) issued its first set of recommendations on activities that people fully vaccinated against COVID-19 can safely resume. The new guidance—which is based on the latest science—includes recommendations for how and when a fully vaccinated individual can visit with other fully vaccinated people and with other people who are not vaccinated. This guidance represents a first step toward returning to everyday activities in your communities. The CDC will update these recommendations as more people are vaccinated, rates of COVID-19 in the community change and additional scientific evidence becomes available.
To view the CDC Set of Guidelines on How Fully Vaccinated People Can Visit Safely with Others, click the Web Link provided.
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Congress


"Congress Approves $1.9 Trillion Rescue Plan"

HUD-Related Activity


"Marcia Fudge, Biden’s Pick to Lead HUD, Is Confirmed by Senate"

Industry Trends


"Key Predictions for the Affordable Housing Market in 2021"
"Which Cities Are Now U.S. Powerhouses? They're Not What You'd Expect"

IRS-Related Activities


"Industry Adapts to the New 4 Percent LIHTC Tax Rate"

State and Local Activities


"California Program Could Ease Strain on Moderate-Income Housing Construction"
"Virginia Lawmakers Approve New Affordable Housing Tax Credit Program"
"Report: Fully Funding Affordable Housing Would Have $5 Billion Impact"

Association News


NAAEI Offers Tax Credit Property Management Online Training
NAAEI Offers Discount on Purchase of Online Courses
January 2021 Apartment Jobs Snapshot
Scholarship Application Now Available Online
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events


Congress


Congress Approves $1.9 Trillion Rescue Plan
Affordable Housing Finance (03/10/21)

The recently passed $1.9 trillion American Rescue Plan Act allocates $21.55 billion for emergency rental assistance funded through the Coronavirus Relief Fund as well as $5 billion for emergency housing vouchers. It also includes $750 million through the Native American Housing Block Grant, Native Hawaiian Housing Block Grant, and Indian Community Development Block Grant programs, in addition to $100 million to assist rural households living in U.S. Department of Agriculture-financed properties. Other housing measures in the bill include $5 billion for homelessness assistance, $10 billion for homeowner assistance, $100 million for housing counseling through NeighborWorks America, and $20 million for fair housing activities, according to the National Low Income Housing Coalition. Adrianne Todman, CEO of the National Association of Housing and Redevelopment Officials, says, "We note in particular the $5 billion in new funding for emergency housing vouchers, which will allow housing agencies nationwide to work with local partners and landlords to provide shelter to homeless individuals, survivors of domestic violence, and those at high risk of homelessness." National Apartment Association president and CEO Bob Pinnegar and National Multifamily Housing Council president Doug Bibby noted, "However, the potential for ongoing eviction moratoriums at national, state, and local levels jeopardizes that stability as they do nothing to address underlying financial distress nor speak to the continuing housing affordability challenges facing our country."
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HUD-Related Activity


Marcia Fudge, Biden’s Pick to Lead HUD, Is Confirmed by Senate
New York Times (03/10/21) Thrush, Glenn

Rep. Marcia Fudge (D-Ohio) has been confirmed and sworn in as secretary of the Department of Housing and Urban Development, becoming the first Black woman in decades to run an agency that will be at the forefront of the Biden administration’s efforts to fight racial inequity and poverty. While in Congress, Fudge was a cosponsor of the Affordable Housing Credit Improvement Act, which seeks to expand and enhance the Low-Income Housing Tax Credit. Officials at the National Multifamily Housing Council (NMHC), National Apartment Association (NAA), National Housing Conference (NHC), Affordable Housing Tax Credit Coalition, and National Low Income Housing Coalition all congratulated Fudge on her confirmation. “On behalf of the nation's rental housing industry, we look forward to working with secretary Fudge and her team to navigate the challenges posed by COVID-19, provide critically needed support to apartment residents and housing providers, and address the housing affordability crisis, which has only been exacerbated by the pandemic,” said NMHC and NAA in a joint statement. Fudge has said she would use her time at HUD to address long-term issues, such as the affordability crisis in major cities.
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Industry Trends


Key Predictions for the Affordable Housing Market in 2021
Multi-Housing News (01/29/21) Jozsa, Evelyn

There is a shortage of more than 7 million affordable homes for the more than 11 million extremely low-income families in the United States, according to the National Low-Income Housing Coalition. Beyond the preexisting issues, the COVID-19 pandemic has slowed down new housing development. “Material costs have increased, supply chain issues have created delays, and COVID-19 has drastically impacted the reliability of labor, all of which are contributing to uncertainty in the ability to complete projects on time and on budget, and make it difficult to realistically underwrite,” said Joe Whalen, operations director/senior vice president at Lendlease. The COVID-19 crisis also forced developers to reimagine the way homes are designed, highlighting the importance of carefully planning and designing everything, from ventilation systems to the layout of common spaces, or creating the opportunity for Wi-Fi to accommodate those who are working or home-schooling. Another challenge for developers is putting together the funding stack and finalizing the closing. The Low-Income Housing Tax Credit floor is now 4 percent in order to help developers assemble the funding stacks. “This set minimum could allow up to 25 percent additional capital to the stacks and help fund budget gaps on current deals, allow deals to become larger—effectively increasing unit counts—and, ultimately, increase the amount of capital that can be allocated by municipalities,” Whalen said. He predicted that “2021 will be a big year for finalizing old deals that stalled during COVID-19 … and the year to regroup and restart the affordable program.”
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Which Cities Are Now U.S. Powerhouses? They're Not What You'd Expect
Inman (02/17/21) Bondarenko, Veronika

The Milken Institute's Best-Performing Cities Index, which annually ranks the country's powerhouse cities, included several up-and-coming cities this year while standbys like San Francisco and New York fell down the list. Palm Bay was among the emerging cities to make the list, taking second place behind Provo, Utah. Even as the pandemic ravaged the rest of Florida, employment dropped by only 1.5 percent in Palm Bay due to a diversity of jobs in the defense, aerospace, and manufacturing industries. The large range of jobs is expected to drive the post-pandemic recovery and continue to draw people to the area for years to come. "The Space Coast could stand to improve its housing affordability, however," the report said. "While 70 percent of all households spent less than 30 percent of their income on housing in 2019 (87th overall), rents and median home sales have increased in recent years, highlighting a need to build low-income, affordable housing today." Rounding out the top 10 powerhouse cities are Austin, Texas; Salt Lake City, Utah; Raleigh, North Carolina; Boise, Idaho; Phoenix, Arizona; Nashville, Tennessee; Ogden, Utah; and Huntsville, Alabama.
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IRS-Related Activities


Industry Adapts to the New 4 Percent LIHTC Tax Rate
Affordable Housing Finance (03/08/21) Kimura, Donna

A new permanent minimum 4 percent Low-Income Housing Tax Credit (LIHTC) rate was included in a fiscal 2021 spending and COVID-19 relief bill passed by Congress and signed by then-President Donald Trump at the end of December. Assuming the same level of bond issuance this year, Novogradac estimates that the 4 percent floor will mean about $3.3 billion more in available tax credits this year. In addition, the recent legislation provided about $1.2 billion in disaster LIHTCs to states affected by recent disasters, says Michael Novogradac, managing partner of the accounting and consulting firm. The floor rate would help finance about an additional 130,000 affordable units over 10 years, according to the company. In the near term, guidance is needed from the Internal Revenue Service (IRS) as to the effective date of the 4 percent floor for bond-financed projects. Beth Mullen, partner and affordable housing industry group leader at CohnReznick, points out, "State tax credit agencies and equity investors are likely to wait for IRS guidance before proceeding with using the 4 percent rate for the deals in the gray areas." Brian Coffee, senior director and head of the affordable housing business at Synovus and president of the Affordable Housing Investors Council, says transactions that used to have about 25 percent equity may now have about 35 percent equity from the 4 percent credit. He believes it will be important to see if the market can absorb the additional 4 percent credits. Overall, with more supply in the market, it could push yields up a bit and push prices down a bit, according to Coffee.
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State and Local Activities


California Program Could Ease Strain on Moderate-Income Housing Construction
Long Beach Post (03/15/21) Ruiz, Jason

A California state program created 18 months ago seeks to increase the stock of housing for middle-income earners by issuing bonds to investors. The program would allow investors to purchase existing market-rate buildings that are then transformed into units that a four-person household earning $90,000 to $135,120 annually can afford. Lennar, the developer of the Oceanaire apartment building in downtown Long Beach, recently took advantage of this program by selling the two-year-old luxury complex for $144 million to the California Statewide Communities Development Authority (CSCDA), which purchased the building using bonds purchased by investors. These investors are repaid through monthly rents, plus interest. The sale was approved by the city of Long Beach, which will forgo property taxes for up to 30 years but will get to retain proceeds from the future sale of the building. The city will also benefit from Oceanaire's 216 units being more affordable for the middle class. The CSCDA has helped cities across California issue more than $65 billion in bonds to create affordable housing, but until this past year, most of those projects were limited to helping households that make 60 percent of the area median income and below, says Jon Penkower, a managing director for the state development authority. The cities of Glendale, Pasadena, Monrovia, Oakland, and San Diego are all working their way to approving similar deals.
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Virginia Lawmakers Approve New Affordable Housing Tax Credit Program
Richmond Times-Dispatch (03/01/21) Robinson, Mark

Lawmakers in both chambers of the Virginia General Assembly approved a new tax credit program, a downscaled version of the so-called Virginia Opportunity Tax Credit Program. If Gov. Ralph Northam signs the bill into law, Virginia Housing, previously known as the Virginia Housing Development Authority, will oversee the initiative and up to $15 million annually will be allocated for it. Delegate Jeff Bourne (D-Richmond), who helped negotiate a compromise to pass the legislation, says the new tax credit will "play a small part in fixing a huge problem here in Virginia." With Northam's signature, Virginia will join 18 other states that have created a tax credit program corresponding with the federal Low-Income Housing Tax Credit program. A state work group urged lawmakers to adopt the approach in a report issued last fall. "It is a game-changer," said Brian Koziol, executive director of the Virginia Housing Alliance. "It is going to lead to a lot more units per year, and over time we'll see the impact of those." As of 2018, Virginia had a shortage of 400,000 affordable units, according to the National Low Income Housing Coalition. Affordable housing advocates have urged local and state leaders to facilitate the creation of new apartments and homes reserved for families making less than median income. Units built through the federal program are targeted to families making between 40 percent and 80 percent of the area median income, depending on household size.
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Report: Fully Funding Affordable Housing Would Have $5 Billion Impact
Florida Politics (02/02/21) Wilson, Drew

A new economic study from the Sadowski Coalition shows that using affordable housing funding for housing would create thousands of jobs and create millions of dollars for state and local governments. The report assessed the economic impact of using state and local housing trust funds solely for housing, as it relates to Florida's GDP, tax revenues, and personal income. It found that every dollar from the state and local housing trust funds for housing increases government revenues by 40 cents. If lawmakers appropriate the full $423.3 million collected in the state and local housing trust fund over the past year, revenues would increase by $167 million, including $86.6 million for the state and $80.5 million for local governments. Notably, Florida Gov. Ron DeSantis' budget recommendation would use the full $423 million to fund major housing programs in the state. Overall, the study concludes the full allocation would house 47,845 people, create 33,286 jobs, and have a $5 billion economic impact. Florida Realtors has been a staunch supporter of full funding. "The State and Local Government Housing Trust Funds remain a critical tool in Florida's effort to solve its affordable housing crisis," said Cheryl Lambert, president of Florida Realtors. "This study further amplifies that fact by demonstrating the ability of the trust funds to care for both the well-being of Floridians and the economic needs of the state."
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Association News


NAAEI Offers Tax Credit Property Management Online Training

The National Apartment Association (NAA) Education Institute offers a 12-hour online course to prepare students for the Specialist in Housing Credit Management (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 requirements to apply for the SHCM credential and includes the exam study guide.
For more information, click on the Web Link provided.
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NAAEI Offers Discount on Purchase of Online Courses

The NAA Education Institute offers the opportunity to lean in and learn forward on Visto, its online learning platform. Buy two courses and get 20% off. Buy three or more courses and get 25% off. The discount is automatically applied at checkout. Courses include Tax Credit Property Management, Emotional Support Animals, Fair Housing & Beyond, and many more. Follow the link below to save on your course purchases.
Click on the Web Link below for more information.
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January 2021 Apartment Jobs Snapshot

The NAA Education Institute releases 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, average salaries, the time required to fill a position, and the top skills found in job postings.
Click on the Web Link below for more information.
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Scholarship Application Now Available Online

The NAHMA Educational Foundation kicked off the scholarship season by releasing the 2021 scholarship application on Jan. 15, 2021. This will be the 15th consecutive year that the foundation will be making scholarships available to worthy student residents.
In 2020, the foundation awarded 108 scholarships worth a total of $270,000.
Applicants can access the application by going to https://nahma.communityforce.com or visiting www.nahma.org and clicking on the Educational Foundation icon. The application is digital and must be filed online. The deadline for completed applications is May 15, at 10 p.m. Eastern time.
The criteria for a completed application and the selection criteria remain the same as they have been for the past several years. Eligibility for the program requires that an applicant be a resident in good standing at an AHMA/NAHMA affiliated apartment community and be either a high school senior with a minimum grade point average of 2.5, a general equivalency diploma holder or a matriculated student with a minimum grade point average of 2.3 at an accredited college or trade/technical school. Applications from students in graduate-level programs will not be accepted.
A downloadable flyer promoting the scholarship to residents is available to share.
For more detail about the scholarship or to download the flyer, click on the Web Link provided.
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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.
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Upcoming Events

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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March 2021