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Providing, Preserving and Linking Affordable Senior Housing with Services


Senior housing providers—from organizations small and large—will find a range of session offerings to address residents needs/concerns, ensure up-to-date regulatory compliance, explore tools for preservation/refinancing, and review new legal and labor-related issues impacting housing providers of all types at the LeadingAge Annual Meeting and EXPO, Oct. 30-Nov. 2, in Indianapolis. More details on the conference and a summary of the almost 40 targeted HUD senior housing and housing with services sessions can be found by clicking the Web Link.
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Tax Issues and Tax Reform


"How to Unleash Underutilized Private Activity Bonds to Build More Affordable Rental Housing"

Green Building


"How Affordable Housing is Driving Passive Design"
"BREEAM Issues Technical Manual for U.S. Green Building Market"

State and Local Activities


"Durham Moves Forward With Plan to Bring Affordable Housing Downtown"
"Affordable Housing Efforts Get a Boost From $205 Million in Tax Breaks and Low-Interest Loans"

Association News


What Income Averaging for LIHTC Looks Like
Lower Court Dismisses Landmark Fair Housing Case against Texas Tax Credit Administrator
Senior LIHTC Properties are Less Costly to Operate than Family LIHTC Properties
Enterprise Report Looks at Balancing Priorities in State QAPs
Take SHCM Blended Learning Course Online
NAHMA Releases 2016 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events


Tax Issues and Tax Reform


How to Unleash Underutilized Private Activity Bonds to Build More Affordable Rental Housing
Novogradac Journal of Tax Credits (09/16) Novogradac, Michael

The Council of Development Finance Agencies (CDFA) reports that in 2015, 13 states did not allocate any private activity tax-exempt bond (PAB) cap to affordable rental housing. In addition, $65 billion in available PAB cap went unused in 2015, of which $54.5 billion was carried forward to 2016. When meeting certain requirements, properties with PAB financing generate 4 percent low-income housing tax credits (LIHTCs). Investors that make equity investments in partnerships to partially fund acquisition, construction, and/or rehabilitation achieve reduced tax liability. On a positive note for those in need of affordable housing, $6.6 billion of bond cap in 2015 was used for the production and renovation of affordable rental housing. To generate more affordable rental housing per volume cap dollar, allocating agencies should actually limit the PAB bond award. This is because to be eligible for the maximum amount of LIHTCs, a development needs to use PABs to finance at least half of its land and building costs. As such, if PAB bond volume is limited to 52 percent to 55 percent of these costs, then more bond cap will be available for other developments. Any additional amount of needed debt financing could be covered by taxable debt issued at the same time, known as a taxable tail. Using the 4 percent LIHTC to finance the construction and preservation of existing affordable housing stock is a proven, effective way to use PAB allocations. LIHTC funding is an effective way to not only increase affordable housing stock, but to bring supplemental resources into play.
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Green Building


How Affordable Housing is Driving Passive Design
EcoBuilding Pulse (09/13/16) Humphries, Courtney

Many states are now offering tax credits and incentives to encourage the construction of buildings that are in compliance with the Passive House performance standard developed by the German-based Passivhaus Institut and adapted to the United States market by the Passive House Institute US. The effort is spearheaded by Tim McDonald, president and CEO of the design/build firm Onion Flats. McDonald explored ways to promote energy efficiency in Pennsylvania’s affordable housing sector as part of a research project through Temple University. In 2014, he and other architects and builders worked with the Pennsylvania Housing Finance Agency (PHFA) to craft a solution to promote high-performance projects without requiring new subsidies or regulations. In 2015, the PHFA began offering credits for projects seeking Passive House certification. Last year, 31 of the 85 proposed new construction developments in Pennsylvania stated an intent to meet Passive House standards; of those, seven received the tax credits. The effort "really transformed the affordable housing market in Philly," says David Salamon, who worked with Wallace Roberts & Todd on two of the original seven projects awarded tax credits in 2015. The local developer, Pennrose Properties, ultimately saw the value of adopting Passive House standards, but without the initial incentive, “these buildings wouldn’t be meeting these standards at all,” Salamon says. McDonald has contacted housing agencies in 40 states and to date, about a dozen of those states have added Passive House certification as a factor to their provision of credits and incentives.
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BREEAM Issues Technical Manual for U.S. Green Building Market
Environmental Leader (08/05/16) Hardcastle, Jessica Lyons

BREEAM has issued a technical manual for BREEAM USA In-Use, which is tailored specifically for the U.S. marketplace. The new standard accounts for the specific legal requirements and government regulations in place and addresses the nuances affecting the American marketplace. The release of the technical manual brings BREEAM closer to full deployment in the U.S., according to BRE America, the partnership between the U.K.’s BRE Group and BuildingWise. BREEAM USA In-Use focuses on the 5.6 million existing commercial buildings in the U.S. that are not currently benchmarking their sustainability efforts using a "scientifically-based green building certification" such as LEED for Existing Buildings (LEED EB). “We are excited to take the next step in making BREEAM USA accessible to green building assessors as well as building management and ownership groups across the country,” says BRE America CEO Barry Giles. "Through this comprehensive American-tailored revision of the globally focused BREEAM In-Use program, we are finally able to offer every commercial existing building a robust and proven green building rating system that helps to address the individual concerns and obligations of building owners and facility managers."
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State and Local Activities


Durham Moves Forward With Plan to Bring Affordable Housing Downtown
Raleigh News & Observer (09/09/16) Bridges, Virginia

The Durham, N.C., City Council on September 8 received an update on the process to build affordable housing next to the Durham Station Transportation Center downtown. In 2015, the council directed city staff to move forward with a process to seek proposals for using the roughly 2-acre vacant site on the corner of Jackson and Willard streets for a mixed-use development anchored by housing in which 80 percent of the units would go to families making less than 60 percent of the area median income. Richard Valzonis, senior project manager with the city’s Community Development Department, said the city is working to identify a qualified developer for the project that plans to seek Low-Income Housing Tax Credits. Valzonis said the timeline includes bringing a development agreement to the City Council in March, submitting the tax credit application in spring 2018, and beginning construction in August 2019. Some members of Durham Congregations, Associations and Neighborhoods, which pushed for affordable housing on the property, attended the Thursday meeting because they were concerned that city officials were moving away from a previous commitment. Mayor Bill Bell said the city may not move as fast as some would like but remains committed to building affordable housing in Durham.
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Affordable Housing Efforts Get a Boost From $205 Million in Tax Breaks and Low-Interest Loans
Triangle Business Journal (08/18/16) Hoyle, Amanda

The North Carolina Housing Finance Agency’s federal tax reform allocation committee has released its list of 59 projects statewide that have been approved for more than $205 million in tax breaks and low-interest loans and bonds. Eleven of the projects are located in the state's Raleigh-Durham Research Triangle region. The federal tax credits and low interest loans help keep out-of-pocket expenses lower for the developers and owners of the communities, who in turn are able to pass on those savings in the form of reduced rental rates for tenants. All of the apartments approved for these Low-Income Housing Tax Credits, funds from the state’s Workforce Housing Loan Program or funds from NCHFA must target households earning 60 percent or less of that county’s median income. The NCHFA estimates that the subsidies will help support the construction or renovation of 5,406 privately-owned and managed apartment units worth about $667 million when completed. About 73 percent of the units will target families with the remainder reserved for seniors. At least 540 units will provide housing for people with disabilities. The committee approved tax credits and bonds for 59 projects out of the 172 applications received.
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Association News


What Income Averaging for LIHTC Looks Like

Earlier this summer (see June and July 2016 SHCM Newsbriefs) this newsletter covered the Cantwell, Hatch bill proposal to expand the tax credit program and allow income averaging. An infographic fact sheet on Low Income Housing Tax Credit income averaging shows how this will better serve low-income households. Download the fact sheet here.
Highlights of the bills are available in the News section of Cantwell’s website by clicking the Web Link below.
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Lower Court Dismisses Landmark Fair Housing Case against Texas Tax Credit Administrator

On Friday, Aug. 26, the U.S. District Court for the Northern District of Texas (Dallas) ruled that Inclusive Communities Project (ICP) did not have enough evidence against the Texas Department of Housing and Community Affairs (TDHCA) to prove that the state’s administration of Low Income Housing Tax Credits violated the Fair Housing Act (FHA).
The decision came more than a year after the U.S. Supreme Court issued a landmark ruling in the case that disparate impact claims could be recognized under the FHA. At that time, the high court did not consider the specific merits of the ICP case, but instead focused on the larger question of whether or not disparate impact could be used as a legal argument in fair housing cases.
To read the full ruling, click the Web Link provided.
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Senior LIHTC Properties are Less Costly to Operate than Family LIHTC Properties

According to a recent Novogradac article, total operating expenses were lower for senior-focused Low Income Housing Tax Credit properties than for family-focused properties in each of the five years Novogradac & Company examined as part of the newly released 2016 Multifamily Rental Housing Operating Expense Report. Not only were expenses higher for family-focused properties, the difference grew from $148 per unit (3.7 percent) in 2010 to $365 per unit (8.4 percent) in 2014. For more information, click the Web Link below.
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Enterprise Report Looks at Balancing Priorities in State QAPs

Enterprise recently released a report on balancing cost control with development quality and resident opportunity in affordable housing, Giving Due Credit: Balancing Priorities in State Low-Income Housing Tax Credit Allocation Policies. Through a review of each state’s Qualified Allocation Plans (QAPs) for the Low Income Housing Tax Credit, the research identified leading practices for cost-effective production and preservation of affordable housing. To read more about the report’s findings and recommendations click the Web Link.
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Take SHCM Blended Learning Course Online

The SHCM Blended Learning course will be held four consecutive Tuesdays beginning Nov. 1. 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.
  • Tuesday, Nov. 1, 12-3 p.m. EST, Chapter 1: Program Regulations presented by Anita Moseman.
  • Tuesday, Nov. 8, 12-3 p.m. EST, Chapter 2: Unit Eligibility presented by Gwen Volk.
  • Tuesday, Nov. 15, 12-3 p.m. EST, Chapter 3: Applicant Eligibility & Certification presented by Dodi Gershen.
  • Tuesday, Nov. 22, 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 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. For more information, click the Web Link.

Save the Date: The SHCM CEU webinar is Wednesday, Dec. 7, from 2-4 p.m.
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NAHMA Releases 2016 Affordable 100 List

The National Affordable Housing Management Association (NAHMA) announces its 2016 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.
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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.
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 MAXIMIZE: Multifamily Asset Management Conference
October 17-19, 2016
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NAHMA Regulatory Issues Meeting
October 23-25, 2016
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LeadingAge Annual Meeting & EXPO
October 30-November 2, 2016
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NAA Student Housing Conference & Exposition
February 14-15, 2017
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September 2016