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LeadingAge Conference Offers Education on Aging-in-Place and Preservation of Senior Housing
The LeadingAge Annual Conference, to be held in Nashville on October 19-22, will offer networking and more than 180 educational sessions, including sessions critical to housing providers interested in advancing efforts to facilitate successful aging in place for seniors. Topics to be covered include Recapitalizing LIHTC after 15 years (Tapestry), Preservation Strategies for 202 Properties (Gates Dunaway), the Art of Creating Policies (Mary Ross), TRACS 202D/EIV (Jenny DeSilva/PMCS), the Affordable Housing Policy Forum, HUD Management Update, Innovations in Partnering for Mental Health, Dementia in Independent Living, Wellness, Mixed Finance/Mixed Income, SASH, Service Coordination, PACE, Leadership Development, and Crisis Management. Click on the link below for more details.
Tax Issues and Tax Reform
"Extra Credit: Considering Resyndication"
Congress
"Affordable Housing Credit May Be Heading to Floor"
State and Local Activities
"Portland Housing Bureau Gives First-Time and Elderly Home Buyers 4M Rays of Hope"
"No Low-Income Credits for Downtown Multifamily Developments"
HUD-Related Activity
"U.S. Senate Panel Backs Julian Castro for Housing Secretary"
Green Building
"State QAPs Continue to Push Green Housing"
Management and Compliance
"Rehab ROI: Which Upgrades Cause the Biggest Rent Bumps?"
Industry Trends
"Can Current LIHTC Prices Last?"
"Lack of Affordable Housing Puts The Squeeze on Poor Families"
Association News
Real Estate Mapping for Census Tracts and DDAs, Tax Credit Allocation
NAHMA Announces 2014 Affordable 100 List
U.S. Departments of the Treasury, HUD, and Justice Sign LIHTC - Fair Housing MOU
BiPartisan Congressional Support Develops for Permanent Housing Credit Rate Floor Legislation
SHCM Blended Learning Series Coming this Fall!
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Tax Issues and Tax Reform
Extra Credit: Considering Resyndication
Novogradac Journal of Tax Credits (06/14) Vol. 05, No. 6 Carnahan, Brian; Welty, Jon
A larger number of owners of low-income housing tax credit (LIHTC) properties turn to "resyndication," or obtaining a new allocation of credits to preserve an existing LIHTC property. The new allocation of credits can facilitate rehabilitation and upgrades to make an older property more marketable and sustainable. Ways to prepare for resyndicating a property include working with the state housing finance agency as early as possible in the planning process. Owners also should review the qualified allocation plan (QAP) for particular incentives and requirements for resyndication. Some QAPs regard older tax credit properties as "preservation" properties and may offer additional points or consideration. If the resyndicated property does not meet all of the requirements in the QAP, the owner may need to obtain waivers or other opportunities to submit the application. It is also crucial to consider if any aspects of the resyndicated property could conflict with the property, such as a higher minimum set-aside selected for the new project or new rent and income limits that conflict with gap financing requirements. If a resyndication occurs, owners need to examine such things as how it will affect current residents, whether there will be any planned reduction in units, and whether all of the current property will be part of a new development.
Congress
Affordable Housing Credit May Be Heading to Floor
Roll Call (06/26/14) Ota, Alan
An alliance of banks, state officials, and business groups is pushing for a permanent extension of a low-income housing tax credit enacted during the financial crisis. Rep. Pat Tiberi (R-Ohio) says his proposal (HR 4717) on the low-income housing tax credit is a strong candidate for a markup and floor action in coming months. Backers of the proposal include the National Council of State Housing Agencies and the Affordable Housing Tax Credit Coalition. The proposal would maintain the current 9 percent credit rate floor for the low-income housing tax credit, which is the share of qualified development costs that can be written off annually for 10 years. The proposal also would create a 4 percent credit rate floor for the acquisition of existing housing units, meaning that portion of a multi-family dwelling's cost that could be written off annually for 10 years. Tiberi's proposal is part of a Senate package of tax break extensions (S 2260). Supporters say the bill would spur construction of 100,000 units each year, and would help to address a projected shortfall of 4.9 million affordable housing units needed to fully meet the demands of 11.8 million low-income renters.
State and Local Activities
Portland Housing Bureau Gives First-Time and Elderly Home Buyers 4M Rays of Hope
Portland Business Journal (OR) (06/09/14) Giegerich, Andy
In Oregon, Portland's Housing Bureau reports that it has issued nearly $4 million of grants to local nonprofits that help low-income households obtain and maintain homes. Of that total, $2.4 million has gone to first-time homebuyers, while $1.45 million has been earmarked to help homeowners, primarily elderly, stay in their homes. Portland City Commissioner Dan Saltzman remarks, "As housing prices increase in Portland these programs become even more important, combatting gentrification, keeping families in their homes, helping seniors age-in-place, and providing opportunities for more low and moderate income families to become homeowners." The funds will begin landing in participating nonprofits' coffers starting July 1. The $2.4 million portion of the grants will go towards everything from education and counseling to financial assistance. With the $1.45 million, the nonprofits will provide 1,330 households with home repair, weatherization, and accessibility services.
No Low-Income Credits for Downtown Multifamily Developments
Memphis Business Journal (06/09/14) Poe, Ryan
Just one Shelby County multifamily housing development out of 12 applicants will receive low-income housing tax credits (LIHTCs) from Tennessee in 2014. The Tennessee Housing Development Agency this week released its list of 23 preliminary winners of roughly $15 million LIHTC allocations statewide, including the rehabilitation of the 200-unit Wesley Highland Meadows community -- the largest out of Shelby County by unit count. This year's round of LIHTC allocations is a blow for several downtown Memphis projects, most notably the second, 100-unit phase of the New Blossom apartments. The developers of most of these projects say they do not plan on moving forward unless they receive LIHTC allocations.
HUD-Related Activity
U.S. Senate Panel Backs Julian Castro for Housing Secretary
Reuters (06/25/14) Nawaguna, Elvina
San Antonio Mayor Julian Castro is expected to be confirmed to head HUD. The Senate Banking Committee on June 25 approved the nominee on a 16-6 vote, clearing the way for a final vote in the full chamber. The Stanford University and Harvard Law School graduate has been praised for his housing and development programs in San Antonio. Castro, 39, would replace Shaun Donovan, who will move on to lead the White House budget office. During a recent hearing on his nomination, Castro told lawmakers he would support their efforts to reform the housing finance system and wants to make sure taxpayers are not left on the hook in the event of another housing crisis. He also said it was possible to help low-income borrowers while keeping the FHA financially sound.
Green Building
State QAPs Continue to Push Green Housing
Affordable Housing Finance (06/01/14) Vol. 22, No. 4, P. 8
State housing finance agencies are using their low-income housing tax credit (LIHTC) programs to drive green building practices. Global Green USA, which has analyzed states' qualified allocations plans (QAPs) since 2006, has found a steady increase in green requirements in state QAPs. In its review of 2013 QAPs, scores improved for 28 states. The average score rose two points from 2012, from 34 to 36, and Connecticut, Maryland and Minnesota received perfect scores. Still, scores declined in 13 states from the previous year. "We have a general rising of all boats from a green perspective occurring, which I think means the majority of developments being built using LIHTCs in the country are meeting the basic standard of green," says Walker Wells, director of the nonprofit's Green Urbanism Program.
Management and Compliance
Rehab ROI: Which Upgrades Cause the Biggest Rent Bumps?
Apartment Finance Today (05/14) Caulfield, John
A large number of variables can affect rents, including the age of a building, tenant characteristics, and location. Investors and lenders may also require renovation and maintenance expenditures that do not correspond with the owner's investment schedule. Generally, however, property owners say renovation dollars tend to generate rent increases ranging from 10 percent to 30 percent. For Florida-based Gables Residential, the installation of wood (or wood-like) flooring proved to be a productive improvement, along with kitchen upgrades. However, even simple improvements in an apartment’s lighting can contribute to a positive return on investment (ROI). McKinley recently renovated a 319-unit apartment complex in Winter Park, Fla., in which it installed stackable washers and dryers in the units' closets. Those apartments now command $50 to $80 more in rent per month, says the company's CEO Albert Berriz. Home Properties acknowledges it can be difficult for property owners to determine which combination of improvements will lead to the largest ROI. In April, Home Properties launched a $3 million, three-year renovation of Stone Hill Apartments in Brookhaven, Pa., a complex of 11 three-story buildings with 205 units it purchased in November 2013.
Industry Trends
Can Current LIHTC Prices Last?
Affordable Housing Finance (06/01/14) Vol. 22, No. 4, P. 22 Kimura, Donna
Over the past three years, investor demand has sharply rebounded in the low-income housing tax credit market, where housing tax credit prices and yields move in an inverse relationship with one another. With demand now at historically high levels, average tax credit pricing routinely exceeds $0.90 per dollar of credit, says Fred Copeman, principal and leader of CohnReznick's Tax Credit Investment Services Group. However, average multi-investor fund yield has dropped by only 10 basis points, from an average yield of 7.2 percent to an average of 7.1 percent over the past 12 months. Yields should have fallen below 7 percent, but syndicators have been working to keep that from happening. Something has to give, assuming tax credit prices do not come down, which may mean yields in multi-investor funds will drop below 7 percent before the end of the year. "The unknown is how far prices increase before you lose current investors or lose the interest of potential new investors, particularly economic investors," says Beth Stohr, director of new production, affordable housing tax credit investments, at U.S. Bancorp Community Development Corp. Investors believe the market will hold steady in the near term and others feel it is where it will be for the rest of the year.
Lack of Affordable Housing Puts The Squeeze on Poor Families
National Public Radio (05/27/14) Fessler, Pam
In Washington, D.C.'s NoMa (North of Massachusetts Avenue) area, studio apartments rent for about $1,500 a month, while two bedroom units can go as high as $6,000 a month. However, the high-end housing market is displacing people living in affordable housing, says Will Merrifield at the Washington Legal Clinic for the Homeless. The city's waiting list for subsidized housing currently has 72,000 families on it. Adrianne Todman, who runs the District of Columbia Housing Authority, says the city continues to lose affordable housing, and that this is happening nationwide in large urban areas. However, Todman adds that the new growth is helping spur a stronger tax base in the area. The subsequent increase in tax funds can be allocated for new affordable housing. "I think that we probably just need to act with a little bit more urgency," Todman says. Housing and Urban Development Secretary Shaun Donovan says the nation is currently in its "worst rental affordability crisis" in history.
Association News
Real Estate Mapping for Census Tracts and DDAs, Tax Credit Allocation
A new set of resources geared toward experienced tax credit developers, to help focus on projects that meet state QAP requirements, is now available at www.onPlist.com. Billed as “the next generation of Real Estate websites,” it includes an advanced mapping system showing Qualified Census Tracts (QCT), Difficult Development Areas (DDA) and where current 4% and 9% tax credit projects are located. EB-5 qualified locations will be coming soon.
Click on the link below for more details.
NAHMA Announces 2014 Affordable 100 List
NAHMA recently announced its 2014 Affordable 100, a list of the 100 largest affordable multifamily property managers, ranked by affordable unit counts. The list is available at NAHMA’s website via the link below, as well as in the June issues of Affordable Housing Finance magazine and Units magazine.
The NAHMA website version of the list also includes the next 20 largest multifamily property management companies, for a total list presenting the top 120. In addition, the NAHMA website version presents two specialty lists -- the 25 largest housing credit (LIHTC) property management companies, and the 25 largest Rural Development program property management companies. The NAHMA website also provides the listed management companies with the option to include hyperlinks to their own corporate websites, so web visitors can quickly and easily find out more information on a particular company.
The Affordable 100 was created in an effort to accurately determine the size of the portfolio of affordable multifamily units receiving federal subsidy in the United States. It lists affordable units containing at least one of following federal subsidies: HUD Project-based Section 8, Section 42 LIHTC, HOME funds, bonds and USDA Section 515.
U.S. Departments of the Treasury, HUD, and Justice Sign LIHTC - Fair Housing MOU
A new Memorandum Of Understanding (MOU) has been entered into by the Departments of the Treasury, Housing And Urban Development, and Justice to promote enhanced compliance with the Fair Housing Act (ACT). This document highlights the cooperative efforts of reporting, enforcement, referral, settlement and/or judgments to enforce the terms of the settlement agreement or consent decree undertaken for the benefit of residents of low-income housing tax credit properties and the general public. Click on the link below for more details.
BiPartisan Congressional Support Develops for Permanent Housing Credit Rate Floor Legislation
In May, Congressmen Pat Tiberi, R-Ohio, and Richard Neal, D-Mass., introduced bipartisan legislation (H.R. 4717) that would encourage additional private investment in affordable rental housing. The Tiberi-Neal bill would make permanent the 9 percent Housing Credit for new construction and create a new 4 percent credit rate floor for investment in existing developments.
Also recently, former U.S. Senate Majority Leader George Mitchell and former U.S. Senator Christopher Bond, co-chairs of the Bipartisan Policy Center Housing Commission, issued statements in response to the introduction of H.R. 4717 that emphasized the value of the housing credit in leveraging resources of the private sector.
The Bipartisan Policy Center will explore this and other issues at its New Directions for National Policy: 2014 Housing Summit in Washington, DC on September 15 and 16. Click on the link below for more details.
SHCM Blended Learning Series Coming this Fall!
Take advantage of this convenient, affordable way to prepare to earn the Specialist in Housing Credit Management (SHCM) certification. Each webinar will last for approximately two hours, followed by a question-and-answer period for attendees.
• The cost for the course, including the SHCM exam, is $549 for members and $599 for non members.
• Individual Webinars can be purchased at $99 each.
Webinar dates are:
September 4
September 11
September 18
September 24
Each webinar will begin at 12:00 eastern.
To register, click on the link below.
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 link below.
Abstract News © Copyright 2014 INFORMATION, INC.
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