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HUD Supportive Services Webinar Available on YouTube


The U.S. Department of Housing & Urban Development (HUD) has posted its Feb. 2 webinar on Supportive Service Demonstration for Elderly Households in HUD-Assisted Multifamily Housing on YouTube, click the Web Link provided. Copies of the slides are also available at HUD.gov.
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Tax Issues and Tax Reform


"The Importance of P3 to Affordable Housing Financing"

State and Local Activities


"CSH Examines States Agencies' Supportive Housing Policies"

HUD-Related Activity


"HUD Budget Seeks More Money to End Homelessness"
"FHA Reduces Multifamily Housing Insurance Rates to Support Energy Efficiency"

Green Building


"Top Green Building Trends for 2016"
"Study Demonstrates LEED-ND Rating System Falls Short on Affordable Housing"

Management and Compliance


"5 Ways to Achieve a Smooth Deal Closing"

Industry Trends


"What Rising Interest Rates Mean for LIHTC Deals"

Association News


Save the Date
Relive the 2015 NAA Conference and Expo
Learn from Anywhere
Leadership Training with Dale Carnegie
Own the Multifamily Housing Guide
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events


Tax Issues and Tax Reform


The Importance of P3 to Affordable Housing Financing
Commercial Property Executive (02/03/16) Walker, Justin

The theme of this year's World Economic Forum was "The Fourth Industrial Revolution," and how it must be values-driven to produce solutions to current challenges. In the United States, the Low-Income Housing Tax Credit (LIHTC) program is a good example of a well-coordinated and robust public-private partnership structure. This federally supplied and state-administered program works successfully because private investors provide all the equity and bear the financial risk. Grassroots advocacy group Affordable Rental Housing ACTION notes that since its creation, LIHTC has successfully financed 2.7 million quality affordable apartments. The development and preservation of those apartments support 96,000 American jobs annually, produce significant local income, and generate tax revenues at all levels. The program also features a service-enriched housing model that supports tenants' well-being through onsite social-service programs. Numerous studies have been conducted indicating that rental demand is set to surge in the coming years. In December 2015, the Joint Center for Housing Studies at Harvard University released its Biennial Rental Report, finding that rental vacancies nationwide are at their lowest point since 1985 and pointing to a significant lack of quality affordable housing supply. With this information and historical performance, affordable housing is well positioned to leverage its public-private partnership success and advocate for the program's expansion to meet the demand.
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State and Local Activities


CSH Examines States Agencies' Supportive Housing Policies
Affordable Housing Finance (02/04/16) Serlin, Christine

Nearly every state housing finance agency (HFA) promotes some sort of supportive housing development through the low-income housing tax credit (LIHTC) program, according to a new report from the Corporation for Supportive Housing (CSH). According to the report, 55 of the 56 agencies responsible for awarding LIHTCs provide potential scoring advantages for supportive housing, with 19 HFAs implementing new policies or substantially revised policies to encourage supportive housing development last year. Those include Arizona, Arkansas, Florida, Illinois, Iowa, Kentucky, Maine, Michigan, Montana, Nevada, New Hampshire, New Mexico, Pennsylvania, Puerto Rico, South Dakota, Texas, Utah, Virginia, and Wisconsin. Fifty-two HFAs provided general scoring incentives encouraging supportive housing, special-needs housing, or housing for people with disabilities, up from 50 HFAs in 2014. In addition, 18 HFAs promoted supportive housing with set-asides of LIHTC authority, up from 15 HFAs in 2014. These states include Maine, which added a $400,000 set-aside; Nevada with a $1 million veterans' supportive housing set-aside; and Pennsylvania, which increased its set-aside from two to four properties, depending on resource availability, and increased the pool from approximately $900,000 to $1.2 million.
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HUD-Related Activity


HUD Budget Seeks More Money to End Homelessness
Apartment Finance Today (02/09/16) Kimura, Donna

The Obama administration's fiscal 2017 budget plan includes several proposed changes to reform the low-income housing tax credit (LIHTC) program, such as by empowering states to convert some private-activity bond volume cap into authority to allocate additional LIHTCs. Furthermore, a building would be able to qualify for 30 percent-present-value LIHTCs without issuing bonds if the building receives an adequate allocation of tax-exempt volume cap. In another proposal aimed at providing incentives for creating mixed-income housing, projects would be allowed to comply with an income-average rule for LIHTC eligibility. Under this new rule, the average income for at least 40 percent of the units in a project could not exceed 60 percent of the area median income (AMI). None of these units could be occupied by households with income greater than 80 percent of the AMI. Buildings must meet this new average income threshold calculated both: (1) with all low-income units weighted equally; and (2) with each low-income unit weighted according to imputed LIHTC occupancy rules. For rehabilitation projects containing units that receive ongoing subsidies administered by HUD or the Department of Agriculture, a special rule would allow certain non-income qualified tenants to remain in residence without impairing the LIHTCs earned by the project. Meanwhile, preservation of federally assisted affordable housing would be added to the selection criteria for LIHTC allocations. This factor would join the 10 criteria that state housing agencies must include in the qualified allocation plans (QAPs) they consider when awarding LIHTCs.
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FHA Reduces Multifamily Housing Insurance Rates to Support Energy Efficiency
HousingWire (01/28/16) Swanson, Brena

In a significant effort on the part of the federal government to support energy efficiency, the Federal Housing Administration (FHA) has announced a new plan to lower multifamily insurance rates to promote the financing of energy efficient and affordable apartments. FHA expects the new rates, which take effect on April 1, 2016, will cause the rehabilitation of 12,000 more units of affordable housing per year annually. "Families across the country are struggling through an affordable housing crisis," says Housing and Urban Development (HUD) Secretary Julian Castro. "By reducing our rates, this administration is taking a significant step to encourage the preservation and development of affordable and energy-efficient housing in communities large and small. This way, hard-working families won't have to make the false choice between quality or affordable housing." FHA also announced that it is lowering upfront premiums to promote its affordable housing and energy efficiency goals. "HUD's decision today is a positive step toward helping support the need for affordable and more cost efficient rental housing," says David Stevens, CEO of the Mortgage Bankers Association. "This is one significant element to expand the availability of affordable and workforce rental housing in America."
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Green Building


Top Green Building Trends for 2016
New York Real Estate Journal (02/02/16) Schleider, Steven

In 2012, 41 percent of non-residential building starts were green, as opposed to 2 percent in 2005, according to the U.S. Green Building Council (USGBC). For 2015, the USGBC predicted 40 to 48 percent of new nonresidential construction would be green. Looking ahead to 2016, the number of buildings seeking LEED ratings will continue to increase dramatically, writes Steven Schleider, president of Metropolitan Valuation Services. He says there also will be more cool roofs and green roofs in 2016. Cool roofs, which are generally made of foam, rubber, special tiles, or solar-reflecting paint, lower temperatures inside a building and can result in energy savings of as much as 15 percent. Green roofs, which are planted with vegetation, can increase a roof's life span, result in major energy savings, greatly reduce water runoff, and mitigate the urban heat-island effect. Sustainable construction, which uses materials and products that require less use of natural resources and more sustainable resources, also is on the rise. In addition, LED lighting, which offers reduced maintenance, much longer life, and substantial energy savings, is trending upwards. Lastly, net-zero or zero-energy buildings are designed with energy-saving techniques and depend on renewable energy sources. Schleider says the future of green building is being facilitated by the development of new ideas, products, techniques, and technologies that will conserve energy and natural resources, reduce greenhouse gas emissions, and result in healthier buildings.
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Study Demonstrates LEED-ND Rating System Falls Short on Affordable Housing
Phys.org (01/21/16)

The national Leadership in Energy and Environmental Design for Neighborhood Development (LEED-ND) rating system does not encourage developers to include affordable housing in new developments, according to a study by Nicola Szibbo, a planner with the city and county of Honolulu. The study found only 40 percent of LEED-ND-certified projects include affordable housing, and the rating system does not meet its sustainability goal of equity, economy, and environment. In addition, Szibbo noted that under the LEED-ND rating system, developers can achieve certification without providing affordable housing, which accounts for just 3 percent of the overall rating system. "My research concludes that the affordable housing credit needs to be strengthened or critically reconsidered," she says. "The existing optional affordable housing is not currently effective and offers little incentive for developers to include affordable housing." Szibbo's study included statistical evidence, surveys, and interviews. The study found that among the 2009-2014 LEED-ND projects reviewed, 60 percent chose to ignore the specific affordable housing credit, and 41 percent of survey respondents believe the existing rating does not support social equity or social sustainability.
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Management and Compliance


5 Ways to Achieve a Smooth Deal Closing
Apartment Finance Today (02/15/16) Kimura, Donna

Closing a complicated affordable housing transaction is not easy. Affordable Housing Finance has turned to veteran developers and finance experts for advice on how to smooth the path. The players should negotiate all major deal points early in the process, long before closing. "For example, we try to make sure all major deal points are addressed in an equity letter of intent (LOI), including guarantees, credit delivery, pay-ins and conversion requirements, permit status, and dates for final investment approval," says developer Tom Capp, COO of Gorman & Co. The parties involved should have a complete list of the major items (documents, opinions and certifications) required to close, says bond attorney Wade Norris, a partner at Eichner, Norris & Neumann. The partners should try to identify potential loan waiver requirements with the lender early in the loan underwriting process, notes Nicholas A. Hamilton, managing director, RED Capital Group. Previous positive experiences with financial partners can be helpful and partners should not underestimate the amount of time needed to manage the process.
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Industry Trends


What Rising Interest Rates Mean for LIHTC Deals
Affordable Housing Finance (02/09/16) Kimura, Donna

The Federal Reserve's stated interest in slowly raising short-term interest rates this year could be a problem for a number of LIHTC deals. "On the developer side, higher interest rates coupled with a lack of state and local funding sources and increased construction and land costs could make deals more difficult to pencil out," says Todd Jones, senior vice president at Boston Financial Investment Management. "On the investor side, it could translate into higher costs of capital and make alternative investments more attractive relative to the LIHTC." Hal Keller, president of Ohio Capital Corporation for Housing, notes that "with an increase in interest rates, it may mean project-level gaps if projects cannot support the same amount of debt as they did in the lower interest rate environment." Higher rates would also impact deal structures and make deals tighter, adds Steve Kropf, president and CEO of Raymond James Tax Credit Funds. However, several syndicators predict that any rate increases will be modest this year, and point out that so far, long-term rates have not increased. Ryan Sfreddo, managing director at Red Stone Equity Partners, provides more context between higher rates and housing credit prices. "While I ultimately think that higher interest rates will lead to lower LIHTC pricing in order to generate higher LIHTC yields, the two are certainly not perfectly correlated given the distorting effect of CRA and investor demand for LIHTCs in a market with a relatively fixed supply of them," he says.
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Association News


Save the Date

Join the National Apartment Association (NAA) as the organization hosts its annual June Education Conference and Expo, June 15-18, in San Francisco, with the affordable housing education sessions taking place June 16-17. Join more than 9,200 apartment housing industry professionals in an exciting, collaborative environment. Gain inspiration and motivation from three general sessions featuring top-name keynote speakers along with 65 education sessions. Discover the latest products and services at the NAA Exposition, with exhibits from more than 450 suppliers. For more details, click the Web Link provided.
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Relive the 2015 NAA Conference and Expo

If you did not attend the National Affordable Housing Management Association (NAHMA) summer meeting, held in conjunction with the NAA Education Conference and Exposition, you do not have to miss the excellent education sessions that were presented in Vegas.
NAA’s Education Institute (NAAEI) is once again presenting its REWIND program, offering recorded video and PowerPoint-synced audio sessions. Choose from the more than 50 education sessions that were presented by industry speakers featured at the 2015 Education Conference & Exposition in Vegas.
You can now purchase the entire 2015 Rewind series for $199, a $100 savings for SHCM designates only; enter the coupon code NAAEI199 at checkout to receive your SHCM discount.
NAHMA sessions last year were:
  • Disparate Impact and Multifamily Affordable Housing
  • The Business Case for Retrofitting to Service Enrich Your Senior Housing
  • Unique Considerations for Marketing Affordable Housing
  • Key Federal Legislative and Regulatory Issues Impacting Affordable Multifamily Housing
For more information or to place an order, use the Web Link below.
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Learn from Anywhere

Join NAAEI, Apartment All Stars and Multifamily Insiders for Webinar Wednesdays, the largest premium webinar series in the industry to provide SHCM designates with access to industry thought leaders to discuss innovative ideas, best practices and emerging industry trends. These webinars will give participants the tools they need to become industry superstars in their own right. To review upcoming webinars, click the Web Link below and scroll down to the 2016 Webinar Wednesday first quarter schedule.
  • Feb. 24, Heather Blume, Model (Mis)behavior: 15 Ways to Modernize Your Model Home for 2016.
  • March 9, Leah Brewer, Superhero Secrets: The Art of Recruiting and Retaining Action Staff.
  • March 23, Rommel Anacan, How Not to Lose a Resident in 12 Months!
  • April 6, Mike Whaling, Marketing for the Moments That Matter Most to Apartment Shoppers.
  • April 20, Anne Sadovsky, Fair Housing Myths and Truths … Dispelling Rumors, Gossip and Misunderstandings!
  • May 11, Cathy Macaione, "Come in Anytime"—Three Words You Should Never Use When Setting Appointments with Prospects.
  • May 25, Terri Norvell, Leadership Essentials: My Team Knows What to Do. They Just Aren't Doing It.
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Leadership Training with Dale Carnegie

Responding to the need for leadership training within the apartment industry, 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 2016 dates and locations are Philadelphia, May 4-5; Atlanta, May 11-12; and Austin: Sept. 21-22. For more information about this two-day program, click the Web Link provided.
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Own the Multifamily Housing Guide

Multifamily Housing: The Essential Industry Text, has been developed as a definitive reference and interactive guide aimed at expanding the knowledge of multifamily professionals and as a complement to “on-the-job” experience for investors, developers, owners, managers, consultants and suppliers. As college students consider the apartment industry as a viable career option or choose to earn degrees in property management or real estate, this text offers a single source with best practices, uniform guidelines and standardized operational procedures, complete with a comprehensive glossary and industry terminology. To purchase a copy, use the Web Link below.
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Become a Specialist in Housing Credit Management® (SHCM®) Company!

The three 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), 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.
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Upcoming Events

NAHMA Federal Affairs Issues Meeting
March 6-8, 2016
More info

LeadingAge PEAK Leadership Summit
March 14-16, 2016
More info

NAHMA Public Policies Forum
June 15, 2016
More info

NAA Education Conference & Exposition
June 15-18, 2016
More info

NAHMA Regulatory Issues Meeting
October 23-25, 2016
More info

LeadingAge 2016 Annual Meeting and EXPO
October 30-November 2, 2016
More info
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February 2016