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Senior’s Hurricane Assistance Hotline
National Church Residences and LeadingAge, on Sept. 14, launched a Hurricane Services for Seniors Hotline to triage and help match people needing units and/or services with available units and/or services, particularly seniors and persons with disabilities, similar to what was done after Hurricane Katrina. If you know someone who needs this services, call 844-259-4747 between the hours of 8 a.m. and 5 p.m. Eastern, Monday through Friday. LeadingAge also details HUD responses and LeadingAge resources related to the recent hurricanes at http://leadingage.org/regulation/hud-responds-recent-hurricanes.
Industry Trends
"Affordable Housing Developers Face New Challenges"
"How Mixed-Income Housing Can Benefit Both Communities and Investors"
"Creativity Key to Affordable Housing Funds"
State and Local Activities
"Historic LIHTC Development Survives Equity Market Turmoil"
Management and Compliance
"Long-Time Resident Retention Tips"
Green Building
"ROI of Sustainability Is More Complex Than You Think"
"Multifamily Pros Choose Next-Gen Products for Greater Efficiency"
Association News
Important LIHTC Disaster Relief Information for Tax Credit Providers
New Housing Credit Fact Sheets on Older Adults
LeadingAge Annual Meeting Features Sessions on HUD and Tax Credit Compliance
Register for SHCM Online Course
NAHMA Releases 2017 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events
Industry Trends
Affordable Housing Developers Face New Challenges
National Real Estate Investor (09/19/17) Anderson, Bendix
Even as the need for affordable housing continues to increase, developers are facing more obstacles to building new projects. "We believe affordable housing production, that is, the development or preservation of projects financed with low-income housing tax credits (LIHTCs), will be at best flat to last year," says Richard Gerwitz, co-head of Citi Community Capital, a community lending and investment arm of Citi. The federal LIHTC program is providing less funding in 2017 than it did in prior years. Meanwhile, developers of all types have to pay more to compete for workers, construction materials, and development sites. Several studies and reports say that all that adds up to the likelihood that fewer units of affordable housing will start construction this year compared to 2016. It now seems likely that the LIHTC would survive potential tax reform, as prominent Congress members from both parties have co-sponsored proposals to expand the program. However, any new tax law is likely to reduce the corporate tax rate from 35 percent to as low as 15 percent, which would reduce the need for corporations to invest in tax benefits like the LIHTC. "A potential reduction in corporate tax rates, and other tax code changes being discussed in Washington, has caused a drop in tax credit pricing, leaving many planned projects short of the funds needed to allow them to proceed," says Gerwitz.
How Mixed-Income Housing Can Benefit Both Communities and Investors
Urban Land (09/17) Harper, Jeremy
Experts say more investors are viewing affordable housing as a comparatively low-risk venture that provides a stable rate of return. "All of a sudden, hedge funds have woken up to the idea that affordable housing can be a really good, steady kind of investment," noted Victoria S. Davis, president of Washington, D.C., development firm Urban Atlantic at a panel discussion at the ULI Housing Opportunity 2017 conference in New Orleans. Urban Atlantic's recent mixed-income ventures include a $120 million renovation and conversion of two abandoned former U.S. Environmental Protection Agency office buildings that were part of an urban redevelopment area, she said. The Sky House East and West projects, now rebranded under new names, feature market-rate space at $3.25 a square foot, with 20 percent of the units set aside for renters making 50 percent of area median income. Urban Atlantic is in the planning stages of an even larger mixed-income project called the Parks at Walter Reed, which is a 66-acre redevelopment of the former Walter Reed Army Medical Center in Washington, D.C. The development team of Hines, Urban Atlantic, and Triden Development Group proposed 400 affordable units among the overall 2,000 units, a ratio that helped in the bid process. All the panelists stressed that while mixed-income development can be a profitable venture, the driving force for their companies is a strong social mission to offer suitable housing for a range of incomes, which, in turn, helps create more solid and inclusive neighborhoods.
Creativity Key to Affordable Housing Funds
GlobeSt.com (09/18/17) Salustri, John
Nearly 39 million people in the United States, or one in eight, currently rent apartments, but only 40,000 of the 300,000 apartments coming out of the ground annually are affordable, says Al Beaumariage, KeyBank's SVP and program manager for affordable housing. Since the current upswing began in about 2010, "the number of renter households has increased on average by 800,000 annually," he says. Meanwhile, the National Apartment Association estimates that in 2015 dollars, the median income of an apartment household has fallen by $3,000 since 1985, according to Beaumariage. "Since 2001, renters' real median income has fallen 9 percent, so nearly a third, or 31 percent of renters, earn less than $20,000 per annum. That too is fueling the affordable housing crisis." He believes that Senate Bill 548, formally the Affordable Housing Credit Improvement Act of 2017, is a step in the right direction. "It starts to provide a fix for many of the barriers to tax-credit development and allows low-income housing tax credits for working-class families. The bill will also enable developers to build in higher-cost areas with better infrastructure and proximity to employment and schools by establishing a 4 percent minimum credit rate for certain projects." Beaumariage believes this would eliminate NIMBY objections raised at the local level. KeyBank western region manager Cathy Danigelis says it is fortunate the bill has bipartisan support. "Because it utilizes public and private funds, and both parties realize that housing is crucial."
State and Local Activities
Historic LIHTC Development Survives Equity Market Turmoil
Novogradac (09/06/2017) Garcia, Teresa
Financing the first low-income housing tax credit (LIHTC) property in Crawford County, Wis., was challenging because the timing coincided with the LIHTC equity market turmoil in late 2016. Commonwealth Development Corporation sought to convert a historic school into Lawler School Lofts in Prairie du Chien. U.S. Bank stepped in as the LIHTC and federal historic tax credit (HTC) equity investor when the original tax credit investor withdrew. Kyle Kochtanek, business development officer for U.S. Bank, says, "We saw this time of uncertainty as an opportunity to demonstrate to others U.S. Bank’s ability and commitment to executing in both good times and bad." U.S. Bank provided $6 million in federal LIHTC and federal HTC equity, while Associated Bank invested in state HTCs. Once completed, Lawler School Lofts will have 40 apartments, six of which will be market rate. The remaining apartments will be set aside for households earning up to 50 percent of the area median income (AMI). A subset of those income-restricted apartments will be geared toward veterans earning 30 percent or less of the AMI. Local nonprofit Couleecap will provide on-site supportive services, such as education and gap training. Chase is providing a $6.1 million construction loan and, through a partnership with insurer consortium Impact CIL, a $654,000 permanent loan. Chase also sponsored a $510,000 Affordable Housing Program grant through the Federal Home Loan Bank. In addition, the development has a HOME Loan of $468,000, which results in a complex capital stack with seven permanent layers of financing that are all essential to the Lawler School Lofts project.
Management and Compliance
Long-Time Resident Retention Tips
Property Management Insider (09/07/17) Blackwell, Tim
The Apartment Association of Greater Dallas' Anne Sadovsky believes some simple incentives will encourage residents to continue living at the property and improve resident retention rates. Number one, make reserved parking a perk for loyal residents. "Bring back that new apartment feeling," suggests Sadovsky. Apartments can be turned back into "brand new" units by simply painting and cleaning up. Also, create a sense of ownership. If the apartment property makes an upgrade as a reward for long-term residency and renewal, the renter gets the benefit without dipping into their wallet. The improvement can be as simple as putting in new nice lighting fixtures or adding a ceiling fan in the master bedroom. Finally, be sure to establish a sense of community. Apartment managers can plan simple events or social gatherings, usually at a nominal expense, so that residents gather and get to know each other. The idea is people will be less likely to move if they have strong bonds with neighbors. Sadovsky concludes, "While this is a business, it's also a lifestyle for our residents. It is their home so encourage them to stay."
Green Building
ROI of Sustainability Is More Complex Than You Think
National Real Estate Investor (08/07/17) Derhake, Joseph P.
Energy efficiency and sustainability can entail more value and more complexity than superficially assumed, and commercial real estate owners and investors should probe how financial, regulatory, social, and market forces increasingly incentivize and reward sustainability in commercial real estate in order to bring sustainability and profitability into reconciliation for optimal return on investment. Although improving a typical multifamily asset's operational efficiency can offer significant savings on operating expenses, there are other sources of positive returns. These include federal programs that promote green affordable housing by rewarding more points to projects with sustainability features and document the implementation energy reduction projects. In addition, better energy efficiency can open up access to improved financing, including loans for green buildings. Furthermore, several states and local government are imposing ordinances for green building certifications for new construction, or benchmarking for all existing commercial buildings that exceed a certain square footage. Meanwhile, energy disclosure and rating programs are pushing transparency and availability of building data, which has transformed building energy performance into a metric that is an essential element of real estate investment, leasing, and financing decisions. Institutional investors subsequently are identifying the financial advantages and are requesting sustainability, and fund managers need a plan to address it.
Multifamily Pros Choose Next-Gen Products for Greater Efficiency
Multifamily Executive (08/17/17) Serlin, Christine
Energy efficiency and improved performance have emerged as two of the main drivers "moving the needle" toward next-generation products for apartment construction. Multifamily housing architects and developers weighed in on the next-gen products they are presently installing or considering installing as part of a survey recently conducted by The Farnsworth Group. Nearly 50 percent of the respondents said they are seeing next-gen HVAC systems being used in apartment construction. Out of nearly four dozen responses, 13 percent reported installing high-efficiency HVAC systems, while another 12.5 percent are considering making the move. Approximately 17 percent of respondents said they are considering installing HVAC systems with a seasonal energy efficiency ratio (SEER) rating of 14 or higher. More than 10 percent of the respondents said they are installing heat pumps, while 4.3 percent acknowledged they are installing variable refrigerant flow systems. For utility management, programmable thermostats are becoming an increasingly popular feature. Of 35 respondents, 17.1 percent said they are installing Nest thermostats, specifically. Another 15.8 percent are considering Internet-connected/Wi-Fi thermostats. Finally, water heater selection is leaning toward improved efficiency. Of 37 respondents, 16.2 percent are in the process of installing and 43.5 percent are seriously considering installing tankless water heaters, which provide hot water only as needed.
Association News
Important LIHTC Disaster Relief Information for Tax Credit Providers
According to Novogradac’s 2017 Hurricane Season Edition there are approximately 670 Low-Income Housing Tax Credit (LIHTC) properties with approximately 89,900 units in the Presidentially Declared Disaster areas, according to estimates from the Texas Department of Housing and Community Affairs and the Department of Housing and Urban Development. A LIHTC property with vacancies has the option to temporarily house displaced households. To do so and remain in compliance, LIHTC property owners and managers must first obtain written approval from the LIHTC allocating agency. Revenue Procedures 2014-49 and 2014-50 provide LIHTC and tax-exempt bond financed rental housing properties located in presidentially declared disaster areas temporary relief from numerous LIHTC compliance requirements. To read more about LIHTC disaster relief, click the Web Link below.
New Housing Credit Fact Sheets on Older Adults
LeadingAge worked with the ACTION Campaign to produce two new fact sheets describing the importance of the Low-Income Housing Tax Credit program to meeting the affordable housing needs of older adults. The fact sheets for the House bill (H.R.1661) and Senate bill (S.548) are great tools to provide members of Congress when advocates ask for support for the House and Senate bills that would expand and strengthen the Housing Credit Program. To read more, click on the Web Link provided.
LeadingAge Annual Meeting Features Sessions on HUD and Tax Credit Compliance
LeadingAge’s Annual Meeting & EXPO, the nation’s largest annual event for the not-for-profit aging services field, will take place Oct. 29-Nov. 1 in New Orleans. In education sessions, during general sessions and through eye-opening, one-of-a-kind experiences, attendees will be immersed in activities focused on helping older adults thrive. LeadingAge has highlighted some great sessions to attend by day for HUD and Tax Credit senior housing providers. Find out more about the sessions at
http://leadingage.org/sites/default/files/HUD%26Tax%20Credit%20Housing
.pdf. For more about the annual meeting, click on the Web Link provide below.
Register for SHCM Online Course
Take advantage of this convenient, affordable way to prepare to earn the Specialist in Housing Credit Management (SHCM) certification in four online sessions, or brush up on your housing credit compliance knowledge. Each webinar will last for approximately three hours, including a question-and-answer period for attendees. The webinars take place on consecutive Tuesdays: Oct. 3, 10, 17 and 24, and each begins at 12 p.m. Eastern.
The schedule for this course is:
- Oct. 3: Chapter 1, Program Regulations presented by Anita Moseman
- Oct. 10: Chapter 2, Unit Eligibility presented by Dodi Gershen
- Oct. 17: Chapter 3, Applicant Eligibility & Certification presented by Heather Staggs
- Oct. 24: Chapter 4, Monitoring & Compliance presented by Gwen Volk
The cost for the course, including the SHCM exam and SHCM application fee, is $549 for National Apartment Association (NAA) and National Affordable Housing Management Association (NAHMA) members; $599 for nonmembers. Individual webinars can be purchased for $109 each. To register, click the Web Link provided below. For more information about the SHCM program, visit https://www.naahq.org/education-careers/credentials/shcm. If you need assistance with the registration process, contact Shana Treger by emailing shana@naahq.org.
NAHMA Releases 2017 Affordable 100 List
The National Affordable Housing Management Association (NAHMA) announces its 2017 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 NAHMA News, 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.
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.
Upcoming Events
NAA MAXIMIZE: Multifamily Asset Management Conference
October 2-4, 2017
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NAHMA Fall Meeting: The State of Affordable Housing in America
October 22-24, 2017
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LeadingAge 2017 Annual Meeting & EXPO
October 29-November 1
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