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Preorder NAA Conference Session Recordings
National Apartment Association Education Institute (NAAEI) is proud to present its REWIND program. REWIND will offer 50-plus PowerPoint-synced audio and video-recorded sessions from the NAA Education Conference and Exposition, June 24-27. Preorder by June 12 for only $99*. After June 13, the price increases to $199* and after the conference, the price climbs to $299*. For more information, visit www.naahq.org/REWIND or email Kim McCrossen at kimberlymccrossen@naahq.org.
*member pricing
Tax Issues and Tax Reform
"Reinstatement of a LIHTC LURA Following Foreclosure"
"Wisconsin Awards $12.5 Million in LIHTCs"
Congress
"Congress to Decide Key Housing Bills"
State and Local Activities
"Landlord Discrimination Against Section 8 Vouchers Outlawed"
"City May Boost Affordable Housing With Density Bonus"
Green Building
"How Multifamily Properties Can Save by Going Green"
"Enterprise Updates Cost-Effective Framework for All Affordable Housing"
Industry Trends
"Affordable Housing Out of Reach for Many Americans"
"Fannie Launches New Bond-Related Programs"
Association News
Connect, Learn, Grow at NAA’s Educational Conference and Expo
Save the Date
NAAEI Leadership Experience: Powered by Dale Carnegie
NAAEI Presents the 2015 Webinar Wednesdays
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Tax Issues and Tax Reform
Reinstatement of a LIHTC LURA Following Foreclosure
Lexology (04/14/15) Bossi, Mark V.
A foreclosure usually eliminates the LIHTC Land Use Restriction Agreement (LURA) that contains the rent and occupancy restrictions on a LIHTC property, which disqualifies a property from receiving any remaining tax credits. Still, most lenders would like to take advantage of the value of any remaining tax credits. A lender can do this by reinstating the existing LURA following the foreclosure sale or encumbering the property with a new LURA. To reinstate a LURA following a foreclosure, a lender or its counsel should contact the appropriate state agency and discuss a reinstatement of the LURA before beginning the foreclosure process. Most housing agencies say that the lender has one year to reinstate the LURA, but since it is the Internal Revenue Service that will decide whether the credits are allowable, a more cautious approach is to reinstate the LURA prior to the conclusion of the taxable year in which the foreclosure takes place. Additionally, once a LURA is reinstated following a foreclosure, the reinstatement is permanent and the lender cannot decide to terminate it at any point after.
Wisconsin Awards $12.5 Million in LIHTCs
Apartment Finance Today (04/15) Serlin, Christine
Wisconsin Lt. Gov. Rebecca Kleefisch recently announced that the state has awarded $12.5 million in low-income housing tax credits (LIHTCs) to fund 25 affordable housing developments. These credits, distributed by the Wisconsin Housing and Economic Development Authority, will help create 1,293 units and generate economic activity for the state. The authority received 51 applications for the 2015 LIHTC round. “Affordable housing and economic development are critical factors in our ongoing efforts to grow the state's economy,” Kleefisch said.
Congress
Congress to Decide Key Housing Bills
Affordable Housing Finance (05/08/15) Kimura, Donna
Both the Senate and the House have introduced bills that would set a minimum rate for the low-income housing tax credit (LIHTC). Richard Goldstein, a partner at the Nixon Peabody law firm, noted that the proposal may need to be attached to a large bill to be passed, but such an opportunity may come when Congress addresses the Highway Trust Fund. Sens. Maria Cantwell (D-Wash.) and Pat Roberts (R-Kan.) on May 5 introduced S. 1193, which would permanently set LIHTC rates at 9 percent for new rental construction property and 4 percent for acquisition. Reps. Pat Tiberi (R-Ohio) and Richard Neal (D-Mass.) introduced the identical H.R. 1142 in February. Both bills have bipartisan support. While LIHTC supporters would like to see permanent rates they may be set on a temporary basis. Other proposals have also been floated for the LIHTC program. They include allowing an "income averaging" option at LIHTC properties. Under this proposal, at least 40 percent of the units in the project would have to be occupied by tenants with incomes that average no more than 60 percent of the area median income (AMI). No rent-restricted unit, however, could be occupied by a tenant earning more than 80 percent of the AMI. Another idea is to allow unused private-activity bond cap to be converted into LIHTCs. Both changes have been backed by the Obama administration in recent budget proposals, including the fiscal 2016 plan. In the coming months, Congress also will have to address the Department of Housing and Urban Development budget.
State and Local Activities
Landlord Discrimination Against Section 8 Vouchers Outlawed
Santa Monica Daily Press (CA) (05/07/15) Simpson, David Mark
The Santa Monica Council has unanimously approved an ordinance that prohibits housing discrimination based on a tenant's income source, including Section 8 vouchers. Under the city ordinance, landlords would not be required to lower their rents to accommodate those with Section 8 vouchers. Those who do violate the ordinance could be fined $1,000 to $10,000. City Attorney Marsha Moutrie said that there was evidence that some community residents had "difficulty obtaining housing that seemed to be related to their source of income and that is particularly true of Section 8 tenants." There are currently no federal or California laws that prohibit discrimination against Section 8 voucher holders.
City May Boost Affordable Housing With Density Bonus
Berkeleyside (04/29/15) Raguso, Emilie
In California, the city of Berkeley is looking to build up its affordable housing stock by providing developers with an alternative to a state law that grants them extra density in return for including affordable units on site. Under terms of the proposal put forth by Berkeley Mayor Tom Bates and Councilwoman Laurie Capitelli, rental housing developers seeking a density bonus would not have to include below-market-rate units in their projects. Instead, they would pay new fees that could potentially bring millions into the city's Housing Trust Fund for affordable housing. The state density bonus enables developers who include 11 percent below-market-rate units meeting very-low-income standards to add 35 percent more units to their project. Council members previously established a $20,000-per-unit fee for developers who opt not to include affordable units on site and do not seek the density bonus. To be sure, most projects that have come before the city have elected to take the bonus -- to get the extra units. As a result, little money has come into Berkeley's Housing Trust Fund.
Green Building
How Multifamily Properties Can Save by Going Green
Property Management Insider (03/11/15) Blackwell, Tim
Going green can save some real money now for apartments, and more than just on energy bills. Multifamily housing developers and investors will be able to cash in when financing apartment properties that have a green building certification. Fannie Mae recently confirmed that it will give discounts on interest rates if the buildings have an energy stamp of approval. According to the government-sponsored enterprise, a 10-basis-point reduction in the interest rate of a multifamily refinance, acquisition, or supplemental mortgage loan will be automatic for an energy efficient-certified property. That is a savings of $95,000 on a $10 million loan amortized over 30 years. Apartment buildings that are LEED-rated, Energy Star certified, or meet Enterprise's Green Communities Criteria qualify for the savings. Meanwhile, more and more apartment communities are using EPA’s Portfolio Manager to benchmark energy and water usage. Michael Zatz, Chief of the Market Sectors Group in the Energy Star Commercial Buildings Program, has spoken to the multifamily housing industry about the program at various conferences. As evidence that the program is working, he notes that participation has included a well-rounded mix of buildings types, sizes, and ages. Most are located in areas where apartments are required by law to benchmark energy usage. EPA is working with some organizations to roll out still more programs possibly by the end of this year to encourage managers and residents to be more energy focused.
Enterprise Updates Cost-Effective Framework for All Affordable Housing
Affordable Housing Finance (04/13/15) Osdoba, Tom; Swenson, Katie
In general, 70 percent of design decisions are made during the first 10 percent of the design process. To maximize time and resources, Enterprise Community Partners worked with the U.S. Green Building Council, University of Virginia, Health Impact Project, American Heart Association, and New York City Department of Health and Mental Hygiene to create the 2015 Enterprise Green Communities Criteria. The Criteria were introduced in 2004 as the first national standard for affordable housing developers to take advantage of economic, health, and environmental benefits of green building without compromising affordability. Enterprise Community Partners seeks to make the Criteria the required baseline for all affordable housing development nationwide. This year's Criteria includes resilient design features to maintain livable conditions during climate change, natural disasters, power loss, and other interruptions in available services. The Criteria also helps to improve residents’ health through new mandatory "Active Design" policies, including simple, cost-effective measures like improving stairwell access and visibility. Merely 2 minutes of daily stair-climbing burns enough calories to prevent annual weight gain, while prominent stairwells encourage social interaction, which can improve mental health. To date, Enterprise Community Partners has deployed nearly $3 billion to create more than 38,000 green homes; built the green building capacity of more than 550 organizations; and transformed local, state, and federal policies to support green affordable housing development.
Industry Trends
Affordable Housing Out of Reach for Many Americans
Affordable Housing Finance (05/19/15) Serlin, Christine
A new report from the National Low Income Housing Coalition (NLIHC) concludes the nation continues to see a mismatch between wages and housing costs. As a result of historic low homeownership rates, the rental market is tightening with rising rents and declining vacancy rates. "Full-time minimum-wage workers are just unable to find modest affordable housing in their communities," says NLIHC research director Megan Bolton. In 2015, a U.S. household must earn $19.35 an hour, more than two and a half times the federal minimum wage, to afford a two-bedroom apartment without spending more than 30 percent of their income on rent. The national housing wage for a one-bedroom unit is $15.50. Wages are only one piece of the puzzle, with supply being the other key component. The preservation of public housing and Section 8 project-based housing is critical, says Sheila Crowley, NLIHC president and CEO. The National Housing Trust Fund (NHTF), which is to be implemented in 2016, was established to provide additional affordable housing, and the NLIHC is committed to bringing the NHTF to scale. Crowley adds that housing choice vouchers have been very successful in helping people to bridge the gap of what they earn and where they can afford to live, but vouchers continue to be lost. "It’s a program that is losing ground in the current budget climate in Washington, D.C., and that needs to be reversed," she says.
Fannie Launches New Bond-Related Programs
Affordable Housing Finance (05/14/15) Kimura, Donna
The government-sponsored enterprise Fannie Mae is making several new moves after reorganizing to combine its affordable housing debt, small loan, and green finance businesses. “We're really looking forward to doubling down on the affordable business, especially in the subsidized affordable housing space,” said Bob Simpson, vice president of the new group. “We intend to be more aggressive and focused in doing more affordable transactions in the years to come.” Fannie Mae provided $2.6 billion of affordable housing financing last year, its second-highest year since 2007, and the first quarter of 2015 surpassed last year's pace, Simpson reported. The company will introduce new products to increase its competitiveness. One such offering is a mortgage-backed securities (MBS) pass-through product that allows Fannie Mae MBS to be used as collateral for tax-exempt bonds.
Association News
Connect, Learn, Grow at NAA’s Educational Conference and Expo
Be sure to register for the National Apartment Association (NAA) June Education Conference and Expo with affordable housing education sessions, June 24-27. More details can be found by clicking the link below. The National Affordable Housing Management Association (NAHMA) sessions this year are:
Thursday, June 25, 9-10 a.m.
NAHMA Presents Disparate Impact and Multifamily Affordable Housing
Under the doctrine of disparate impact, normal practices in the development, rehab and management of housing may be considered discriminatory and illegal if they result in disproportionate “adverse impact” on certain classes of persons, even if the practices are not intended to discriminate. The concept of disparate impact has been hotly debated in real estate and legal circles, and has reached the U.S. Supreme Court for resolution on three occasions, with the first two cases being settled before the court could issue a ruling. The third case is before the court at press time of this write up. The principal question before the court: Does the Fair Housing Act establish the concept of and provide for claims under disparate impact?
Moderator: Kris Cook, executive director, NAHMA
Speakers: Harry J. Kelly, Nixon Peabody LLP; Michael W. Skojec, Ballard Spahr LLP
Thursday, June 25, 10:15-11:15 a.m.
NAHMA Presents the Business Case for Retrofitting to Service Enrich Your Senior Housing
Baby Boomers are rapidly turning “senior” in large numbers. Providing affordable housing and health care for this population will be two of the most important public policy challenges faced in the coming years. The solutions need not be mutually exclusive, however; in fact, studies show that providing service-enriched housing to seniors and enabling them to “age in place” in quality, supportive and affordable rental housing provides massive savings to Medicare and Medicaid, and, moreover, that retrofitting existing senior housing can make good business sense.
Moderator: Kris Cook, executive director, NAHMA
Speaker: David A. Smith, chairman and founder, Recap Real Estate Advisors
Thursday, June 25, 11:30 a.m.-12:30 p.m.
NAHMA Presents Unique Considerations for Marketing Affordable Housing
Like most aspects of managing affordable multifamily housing, the marketing of properties is subject to government regulation, including the creation and implementation of an Affordable Fair Housing Marketing Plan. Learn how, beyond the regulations, rules, audits and paperwork, management agents are able to keep the property full on a bare-bones marketing budget.
Moderator: Kris Cook, executive director, NAHMA
Speakers: Adriana Guzzo, director of marketing, Peabody Properties; Nancy Reno, vice president of marketing and training, Housing Management Resources, Inc.
Friday, June 26, 9-10 a.m.
NAHMA Presents Key Federal Legislative and Regulatory Issues Impacting Affordable Multifamily Housing
The world of affordable multifamily housing is not only highly regulated by three federal agencies, but it is also highly dependent on the ability of the U.S. Congress to pass timely and sufficient annual funding bills. This session will focus on key current federal legislative and regulatory issues facing providers of multifamily affordable housing participating in HUD, rural housing and housing credit programs.
Moderator: Larry Keys Jr., director of government affairs, NAHMA
Speakers: Kris Cook, executive director, NAHMA; Greg Brown, senior vice president of government affairs, NAA
Save the Date
Specialist in Housing Credit Management (SHCM) Blended Learning Webinar Series starts Sept. 16. The course price is $549 for members and $599 to nonmembers. The course is broken up into four webinar sessions: Sept. 16, 23, 30 and Oct. 7, each taking place 12-3 p.m. EST. To register, contact Shana@naahq.org.
NAAEI Leadership Experience: Powered by Dale Carnegie
Responding to the need for leadership training within the apartment industry, National Apartment Association Education Institute (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. Course will be held Oct. 14-15 in Denver, Colo. For more information about this two-day program, click on the Web Link below.
NAAEI Presents the 2015 Webinar Wednesdays
Join National Apartment Association Education Institute (NAAEI), Apartment All Stars and Multifamily Insiders for Webinar Wednesdays, the largest premium webinar series in the industry to provide Specialist in Housing Credit Management® (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 go visit
http://www.naahq.org/learn/education/take-a-class-online/webinar-wedne
sdays and scroll down to the 2015 Webinar Wednesday schedule.
- May 20, Leah Brewer: Action Leasing: Lease Better, Faster, Higher, Further
- June 6, Kiley Haught: #PARTYFAIL
- June 17, Amy Kosnikowski: Make the First Five Minutes Count: Perfecting Your Leasing Pitch & Positive Impressions
- July 8, Jackie Ramstedt: Dear Residents: We Love You So Much We're Raising Your Rent
- July 22, Don Sanders: Secrets of a Closing Artist
- Aug. 5, Anne Sadovsky: How to Handle the Head Scratching Parts of Fair Housing
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 2015 INFORMATION, INC.
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