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Key Housing Credit Compliance Webinar is Free to SHCM Certificant Holders
The biannual tax credit compliance webinar offered by NAAEI and NAHMA will take place on Wednesday, December 3 at 2:00 pm Eastern. If your SHCM certification is current you may participate in the webinar free of charge. Join our four experts for an informative webinar focused on housing credit compliance issues. The webinar will provide an hour of instruction, followed by about 30 minutes Q&A. Featuring four experts:
• Karen Newsome SHCM, NAHP-e
• Anita Moseman, FHC, SHCM, NAHP-H, CPO
• Greg Proctor, SHCM, NAHP-e
• Gwen Volk, SHCM, NAHP-e, FHC, CPO
Registration details: The live webinar is being offered free of charge to NAAEI Designates and SHCM certified professionals (your registration will be verified via the SHCM certificant database). To qualify for free registration, SHCM certificants must be current in their annual renewal requirements. To register, click on the link below.
Tax Issues and Tax Reform
"Disaffiliated Lenders and LIHTC"
IRS-Related Activities
"IRS Updates Section 42 Audit Technique Guide"
State and Local Activities
"Proposed S.F. Law Would Put a Solar Panel on Nearly Every Roof"
"Seattle City Council Backs Developer Fee to Fund Affordable Housing"
Green Building
"Greenbuild 2014: Financing Green Retrofits for Affordable Housing"
"Why it Pays for Houston's Class B and C Properties to Go Green"
Management and Compliance
"Chicago Group Sells Landlords on Benefits of Energy Efficiency"
Association News
It's Not Too Late to Order the Affordable Housing Education Session Recordings!
NAAEI Presents Webinar Wednesdays
NAAEI Leadership Experience Powered by: Dale Carnegie
NAHMA 2015 Calendars Now Available
NAHMA Announces 2014 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Tax Issues and Tax Reform
Disaffiliated Lenders and LIHTC
Lexology (11/05/14) Breed, Jerry
Low-income housing tax credits (LIHTC) are allocated after the allocation of depreciation losses. If an investor’s capital account becomes negative before the end of the credit period, the investor can still claim credits only if the LIHTC partnership has non-recourse debt from sources unrelated to the general partner that will produce minimum gain. Non-recourse debt owed to a developer partnership is partner non-recourse debt and does not generate minimum gain if an individual owns both the pass-through general partner of the LIHTC partnership and the developer partnership. If the general partner of the LIHTC partnership is a corporation of which the owners of the developer own less than 80 percent, then “tiered partnership” rules do not apply, and the loan from the developer entity to the LIHTC partnership is unrelated. Under Treasury Regulation Section 1.752-4(b)(2)(iv), a lender entity structured to avoid the related party rules is treated as related unless the overlapping ownership is less than 20 percent. The best way to ensure that a lender is disaffiliated is to incorporate the general partner rather than the developer entity, and to ensure that the developer entity's principals own less than 80 percent of the general partner.
IRS-Related Activities
IRS Updates Section 42 Audit Technique Guide
Novogradac Journal of Tax Credits (11/14) Vol. 5, No. 11 Wallace, Dirk
The Internal Revenue Service (IRS) on Sept. 18 released a final draft of the revised audit technique guide for the Low-Income Housing Tax Credit (LIHTC) program, the first substantial update to the guide since 1999. Under the changes, the guide clarifies that a state agency can cease compliance monitoring when it notifies the IRS that a building is no longer in compliance with or participating in the LIHTC program. The definition of “residential rental property” has been expanded, and a townhouse can be a “qualified low-income building,” as well as apartment buildings, single-family dwellings, row-houses, duplexes, and condominiums. A new section clarifies that facilities functionally related and subordinate to residential units, such as units for maintenance personnel, can be included in eligible basis for the purposes of the LIHTC. Another new section, “Emergency Housing Relief,” discusses a LIHTC project’s ability to provide emergency housing for displaced persons. “Accounting Costs” are now separately addressed, and include a discussion on the treatment of accounting costs during a building's construction.
State and Local Activities
Proposed S.F. Law Would Put a Solar Panel on Nearly Every Roof
San Francisco Chronicle (10/17/14) Baker, David R.
San Francisco could soon require solar panels on most new construction citywide and push owners of existing apartment communities to plant photovoltaic arrays on their rooftops. David Chiu, president of the San Francisco Board of Supervisors, plans to introduce a resolution by the end of the month mandating that all new buildings include solar panels, rooftop gardens, or both -- a requirement that would apply to both commercial and residential buildings wherever feasible. He remarks, "If you ever go to the top of a tall building in San Francisco and look down, you see the potential for sustainability on every single roof in the city." Chiu, who is running for a seat in the California Assembly, has conceded that it indeed might not be feasible everywhere. Many of the towers rising in San Francisco's downtown corridor, for example, have limited roof space, often occupied by heating and cooling equipment. Dubbed Solar Vision 2020, Chiu's proposal seeks to curb the City by the Bay's greenhouse gas emissions and boost a thriving local industry in one broad stroke. It would establish a goal of roughly doubling the amount of solar electricity generated throughout the city to 50 megawatts in 2020 from 26 megawatts currently. To meet the goal, San Francisco building owners would have to install enough panels every year to generate as much energy as 500 individual home solar systems. Chiu concludes that this will almost certainly require some new incentive program, stating, "Many [building owners] have told me that if we just had the right financing mechanisms, they'd be interested in doing this."
Seattle City Council Backs Developer Fee to Fund Affordable Housing
Puget Sound Business Journal (10/21/14) Aitchison, Sarah
The Seattle City Council approved a resolution by a seven-vote majority to enact a real estate development fee to help fund affordable housing. The Affordable Housing Linkage Fee Program -- the first of its kind in Seattle -- will be implemented over the next three years. Each year, one-third of the fee will be implemented until the entire fee is rolled out. According to the resolution, the linkage fee will be enforced in areas where "future development is most likely to occur, including most new multi-family residential and commercial development in multi-family, commercial, and downtown zones." The fee will be dependent on where and what developers are building. It can range from $5 to $22 per square foot of rentable area in the building upon initial implementation. It is a required fee. However, developers can avoid it if they make 3 percent to 5 percent of units available to people who make 80 percent or less of the median income for that area. The legislation allows for fees to be adjusted based on two factors -- market rental and development rates -- once a year.
Green Building
Greenbuild 2014: Financing Green Retrofits for Affordable Housing
Multi-Housing News (10/24/14) Ratliff, Mike
Retrofitting affordable properties with “green” features can be complicated, but a variety of resources can help make these buildings more efficient. In New Orleans, a Greenbuild panel titled “Financing Green Retrofits for Affordable Housing: A Polyphonic View” recently looked at persistent challenges and new solutions. Financing for green retrofitting is one hurdle, but funding may come from sources such as Fannie Mae’s new Green Preservation Plus execution option, state utility assistance programs, multifamily energy-efficiency programs, and weatherization rebates. Other concerns involve owners' returns on investments, regulatory and utility barriers, and a lack of owner expertise. One LIHTC community in California appointed a "healthy and sustainable homes coordinator" on the central staff to help residents be more energy-efficient. An energy-services company known as Affordable Community Energy Inc. targets the full range of energy efficiency programs and takes on the cost of improvements and the cost of operations. They charge the customers for the electricity produced on site at a 10-percent lower rate than what the customers would have paid their utility company, which covers the owners' hurdles of capital and concerns about returns.
Why it Pays for Houston's Class B and C Properties to Go Green
Houston Business Journal (11/18/14) Takahashi, Paul
While LEED-certified buildings may cost slightly more to build or retrofit, they are more energy efficient, which translates to cost savings over the long haul, are more marketable, and can command higher rents and asking prices than non-LED buildings. But according to Gavin Dillingham, a research scientist with Houston Advanced Research Center, not all building owners understand the value proposition of going green. "Class A gets it," said Dillingham. "Class B and C folks need a lot more education to build capacity." Of the 296 Class A office buildings in Houston, 28 percent have LEED status, according to CBRE Group, while just 2 percent of the city's 571 Class B office buildings and none of the city's 375 Class C office buildings have LEED status. While the increased cost plays a role, the green gap is primarily due to a lack of awareness about the cost savings of obtaining LEED certification, said Jonathan Wilson, manager of client development at Texas-based Schneider Electric Energy & Sustainability Services. To encourage Class B and Class C property owners to invest in green retrofit, Houston is getting involved by partnering with the Institute of Real Estate Management to relaunch the Houston Green Office Challenge, which invites local businesses to compete for the distinction of being the most green company in town.
Management and Compliance
Chicago Group Sells Landlords on Benefits of Energy Efficiency
Midwest Energy News (11/04/14) Lydersen, Kari
Chicago-based Elevate Energy has launched a program to educate owners of multi-unit buildings about the benefits of energy efficiency measures. The group notes that landlords will not not directly reap all or any of the financial benefits. However, Elevate Energy maintains there is a "split incentive" to investing in insulation, new furnaces, smart appliances and efficient lighting. The energy cost savings from such investments would enable cash-strapped, low-income renters to spend more on food and health care. This could mean more desirable housing that results in lower tenant turnover. Energy efficiency upgrades could reduce utility bills for common building areas or in cases where landlords pay for heat or other portions of the utility costs. Elevate Energy also says weatherizing and installing new furnaces can reduce the risk of fires caused by space heaters. The program provides energy audits and advice on contractors and upgrades.
Association News
It's Not Too Late to Order the Affordable Housing Education Session Recordings!
NAA’s Education Institute (NAAEI) is once again presenting its “REWIND” program, offering recorded video and PowerPoint-synced audio sessions. Order 20 video and 22 PowerPoint-synced audio sessions from top industry speakers featured at the 2014 Education Conference & Exposition in Denver.
You can now purchase the entire 2014 Rewind series for $199.00, a $100 savings for SHCM Designates only. Please enter the coupon codeREWIND100 at checkout to receive your SHCM discount.
Details on the affordable housing sessions that were offered follow:
Session 1: NAHMA Presents: Scenarios for Housing Credit Reform— Is There Life Afterward?
The Low Income Housing Tax Credit (LIHTC or Housing Credit) program is the primary and virtually sole source of major funding for development of new and major rehab of existing affordable multifamily housing across the country. As Congress considers substantive reform of the federal tax code in an effort to solve the nation’s fiscal woes, all programs are on the table for possible major change—or even elimination. In this session, industry experts will discuss likely scenarios of reform to the Housing Credit program, as well as what forward thinkers may already be contemplating as “Plan B” if the Housing Credit program undergoes major change.
Nicolo Pinoli, Partner, Novogradac & Company LLP; Jerry Lemon, Senior Vice President, Winn Development; Michelle Norris, SHCM, NAHP-e, Senior VP—Acquisitions & Development, National Church Residences; Kris Cook, CAE, Executive Director, NAHMA
Session 2: NAHMA Presents: Energy-Saving Solutions Designed to Pay for Themselves
In mid-2013, the Department of Housing and Urban Development awarded nearly $23 million from its Energy Innovation Fund to organizations leading the way in bringing energy-saving solutions to affordable multifamily housing. One year later, attendees will learn from grant recipients about the programs they launched and the successes they achieved, including: A pilot program to finance energy-efficient retrofits designed to pay for themselves through reduced energy costs; development of innovative and replicable strategies designed to set new industry standards for energy efficiency; and creation of new financing tools designed to facilitate significant reductions in energy consumption, operating costs and the carbon footprint of affordable multifamily housing.
Darien Crimmin, Vice President of Energy and Sustainability, WinnDevelopment; Jeffrey Greenberger, Chief Operating Officer, Affordable Community Energy; Richard Samson, President, SAHF Energy, a Division of Stewards of Affordable Housing for the Future; Kris Cook, CAE, Executive Director, NAHMA
Session 3: NAHMA Presents: The Clipboard Is Dead—Long Live the Tablet!
Most daily and weekly maintenance processes are confined to the flat and lifeless world of a clipboard, pencil and paper. This information is never shared and has little oversight or accountability. Paper-based work order systems are labor intensive—valuable time is consumed in constant movement to and from the office to pick-up and drop off work orders. Learn how to say goodbye to the clipboard and welcome new maintenance tools —bring on the tablets to optimize site staff time and efficiency, lower utility and operations costs, be persistent with performance checks and realize all the savings promised by sophisticated systems.
Michael Ferguson, Director of Facilities and Capital Planning, Peabody Properties, Inc.; Matthew Holden, President, Sparhawk Group; Michelle Kitchen, Director of Government Affairs, NAHMA
Session 4: NAHMA Presents: Legislative and Regulatory Issues Affecting Affordable Multifamily Housing
The world of affordable multifamily housing is not only highly regulated by three federal agencies, but also highly dependent on the ability of Congress to pass timely and sufficient annual funding bills. This session will focus on key current federal legislative and regulatory issues facing providers of affordable multifamily housing participating in HUD, rural housing and Housing Credit programs. Learn about the impact of federal budget appropriations, sequestration and the deficit on funding for affordable multifamily housing programs now and in the future; the latest regulatory initiatives impacting the Housing Credit, HUD and rural housing programs; and real-world impacts on communities, management companies and owners.
Gianna Solari, Vice President/COO, Solari Enterprises, Inc.; Greg Brown, Senior Vice President of Government Affairs, National Apartment Association; Kris Cook, CAE, Executive Director, NAHMA; Michelle Kitchen, Director of Government Affairs, NAHMA
To order, click on the link below.
NAAEI Presents Webinar Wednesdays
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 on the link below and scroll down to the 2014 Webinar Wednesday schedule.
Nov. 19, 2014 -- Rebecca Rosario, Getting to "I Do", Again and Again. Keeping the Resident Romance Alive
Dec. 3, 2014 -- Kiley Haught, What Your Residents Won't Tell You AND Your Managers Don't Know
Dec. 17, 2014 -- Kate Good, Your 2015 Marketing Playbook
NAAEI Leadership Experience Powered by: 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. For more information about this two-day program, click on the link below.
NAHMA 2015 Calendars Now Available
NAHMA recently announced that the 28th edition of its Drug-Free Kids Calendar is now available for purchase. The calendars feature outstanding original artwork by children and seniors and special needs adults living in affordable multifamily housing.
In addition to the drug-free message, this year’s contest had a sub-theme that reinforces a message about positive uses of time. This year’s contest theme was one of celebration: “Join the Dance of Life: Celebrate Music, Arts and Crafts.”
The full-color calendars feature the artwork of children and seniors who reside in affordable, multifamily housing all across the country. Children (grades K-12), seniors (age 62 or older) and special needs residents competed in the national calendar contest and winners were selected by a panel of independent judges. Children and seniors competing in the national contest are selected from the thousands who participate in the regional poster contests sponsored by local Affordable Housing Management Associations (AHMAs) across the country.
The grand-prize winner receives a $2,500 scholarship from the NAHMA Educational Foundation, national winners receive $1,000 scholarships and Honorable Mentions receive a $100 scholarship. In addition, the grand-prize-winning artwork is printed on the cover of the 2015 calendar, with the other artwork appearing inside and on the back cover.
Calendars are $5.50 each and can be ordered from NAHMA’s website at http://www.nahma.org/store, or by calling (703) 683-8630 ext. 115. Because of its strong anti-drug message, the calendar is an allowable project expense for managers of housing subsidized by HUD and the Department of Agriculture. Tax credit properties that purchase calendars benefit twofold: by supporting the drug-free message and their own commitment to social services, and potentially obtaining more points in the funding-allocation process.
For more details, click on the link below.
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.
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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