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HUD Redesigns Its Website
HUD.gov has been redesigned to make it easier for people to find the Department of Housing and Urban Development’s (HUD) most popular content and get the information they need more quickly. There is a new search tool function and more images, making the content livelier and more engaging. The new site is also mobile friendly. To view the new design, click on the Web Link below.
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Industry Trends
"2019: Year of Surprises?"
"Freddie Mac Re-Enters LIHTC Market, Commits as Much as $100 Million for Affordable Housing"
Congress
"Sen. Heller Introduces Senior Affordable Housing Tax Credit Act"
State and Local Activities
"Incentives Watch: Which States Provide Low-Income Housing Tax Credits to Encourage New Affordable Housing?"
"Pennsylvania Low-Income Housing Tax Credit Introduced in General Assembly"
"To Reach Its Affordable Housing Goals, Dallas Will Need More Developments Built on Tax Credits"
Green Building
"Green Roof Requirements Are on the Rise"
Association News
Save the Date: Online SHCM Course
Learn How to Improve Your Strategic Thinking
Register for Emerging Trends in Tax Credit Webinar
October Deadline for TLS Upgrade
CNA e-Tool Release
NAHMA Releases 2018 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events
Industry Trends
2019: Year of Surprises?
Apartment Finance Today (10/03/18)
Nick Hamilton, the lead banker for multifamily mortgage loans and housing bond issues for RED Capital Group, discussed his outlook for 2019. He noted that a continued rise in 10-year Treasury yields will negatively affect permanent debt sizing and equity pricing, adding strain to projects that are already challenged by increased labor and materials costs. Reduced loan sizing would be felt most on 4 percent Low-Income Housing Tax Credit (LIHTC) transactions, where the capital stack is more heavily weighted toward debt. While projects become more stretched for capital, sellers of existing properties eligible for LIHTC syndication have not reduced their pricing expectations. Notably, there are many legislative proposals with bipartisan support to encourage the production of affordable housing and to improve the LIHTC program, Hamilton noted. In addition, the GSEs are making an effort to support the kind of marketplace expansion that is required. "The GSEs both have a strong appetite for affordable housing debt, since it does not count against annual lending caps set by their regulator," he said. For example, Freddie Mac successfully innovated the tax-exempt loan (TEL) program several years ago, and more recently announced a mezzanine loan program for affordable and workforce housing. Both GSEs have re-entered the market for LIHTC equity and they are expected to play an important role in non-CRA (Community Reinvestment Act) markets that banks do not always focus on. In 2019, Hamilton expects higher interest rates and a continued flattening of the yield curve, though that would also lower yield maintenance penalties on deals nearing the end of their compliance period.
Freddie Mac Re-Enters LIHTC Market, Commits as Much as $100 Million for Affordable Housing
HousingWire (10/04/18) Lloyd, Alcynna
Freddie Mac estimates that more than 19 million households nationwide are cost-burdened, and 11 million of those are spending more than 50 percent of their income on housing. To address this growing crisis, Freddie Mac says it has closed its first Low-Income Housing Tax Credit Fund (LIHTC), marking Freddie’s re-entry into the LIHTC market after nearly a decade, according to Freddie Mac Targeted Affordable Sales and Investments Vice President David Leopold. The fund will provide up to $100 million in targeted investments, focusing on the creation and preservation of affordable homes nationwide. Freddie says it seeks to invest in such underserved areas as rural communities and developments that provide health care and job training to residents. Freddie says Enterprise Community Investment’s long history of affordable housing investment is the reason why it partnered with the nonprofit firm. Since 1982, Enterprise has invested $12.8 billion in LIHTC equity, financing more than 150,000 homes. The fund has already financed an $8.2 million investment in a property located in Summit County, Colo., a rural area approximately 75 miles outside of Denver. Wintergreen West will provide 40 apartment homes for county residents earning between 30 percent and 60 percent of the area’s median income. Freddie Mac says the units will range from one to three bedrooms.
Congress
Sen. Heller Introduces Senior Affordable Housing Tax Credit Act
Novogradac (10/16/2018)
Sen. Dean Heller (R-Nev.) has introduced the Seniors Affordable Housing Tax Credit Act. The measure would allocate tax credits to states, which would award them to owners or developers of rental property for low-income older adults. Seniors in those properties would pay no more than 30 percent of their income for rent and utilities and the property owner would receive a federal tax credit as compensation for potential loss. Starting in 2019, each state would have a credit amount equal to $1.75 multiplied by the state population, with a minimum of $2 million annually, with the amount adjusted annually for inflation.
State and Local Activities
Incentives Watch: Which States Provide Low-Income Housing Tax Credits to Encourage New Affordable Housing?
Bloomberg BNA (10/11/18)
Several states offer Low-Income Housing Tax Credits (LIHTCs) to ensure the availability of housing options, including Arkansas, California, the District of Columbia, Hawaii, Massachusetts, and New York. For example, Arkansas provides an LIHTC based on the federal version for owners of qualified projects in the state. The credit is 20 percent of the federal low-income housing, up to $250,000 or the income or annual premium tax otherwise due in any taxable year. Recapture provisions apply if the taxpayer is required to recapture a portion of the federal LIHTC. California offers a credit for low-income housing based on the 1992 federal provision for LIHTCs, with some modifications. In the District of Columbia, taxpayers who own low-income housing that follows the federal provision for LIHTCs as it is in effect for the year the tax credit is claimed are eligible for the D.C. LIHTC. Meanwhile, Hawaii provides a credit for owners of residential rental buildings with low-income housing that claim the federal LIHTC. The credit follows the provisions of the federal credit, except that the state housing credit ceiling equals zero for the calendar year immediately following the expiration of the federal LIHTC program and for all subsequent calendar years. In Massachusetts, LIHTCs are allocated to qualified low-income housing projects, with the amount of credit available depending on the pool of available federal credits granted. Finally, in New York, owners of residential rental buildings in low-income housing projects may be eligible for a 10-year credit period.
Pennsylvania Low-Income Housing Tax Credit Introduced in General Assembly
Pittsburgh City Paper (09/21/18) Deto, Ryan
The Pittsburgh City Council has created a $10 million Housing Opportunity Fund intended to increase the city's affordable-housing units. At the state level, Pennsylvania state Sen. Tom Killion (R) has introduced SB-1185, which calls for creating a state low-income tax credit. "This new tax credit will incentivize private investment in new and existing affordable housing in the commonwealth," says Killion. The tax credit is modeled after the federal Low-Income Housing Tax Credit (LIHTC), and developers would apply for tax breaks for their projects. Pennsylvania Housing Alliance director Phyllis Chamberlain says the commonwealth lacks substantial affordable, subsidized units. Housing Alliance's data shows Pennsylvania only has 66 affordable units per 100 low-income households, and only 38 affordable units per 100 very-low-income households. “Pennsylvania is in need of affordable housing opportunities for low-income residents,” says Chamberlain. "A state housing tax credit will increase the viability of affordable housing projects for developers and private investors looking to build or rehabilitate properties." SB-1185 has to date gained bipartisan support from seven Republicans and five Democrats. The proposed state credit would serve households that bring in up to 80 percent Area Median Income (AMI); 10 percent of the funds would be for households at 30 percent AMI. The AMI for the Pittsburgh region is about $56,000 per household per year.
To Reach Its Affordable Housing Goals, Dallas Will Need More Developments Built on Tax Credits
D Magazine (10/18) Shinneman, Shawn
In September, the U.S. Government Accountability Office released a study on Low-Income Housing Tax Credits (LIHTCs), finding that projects of 100 LIHTC units or more cost $85,000 less per unit than projects of 37 units or less, and projects in urban areas are roughly $13,000 costlier than those in non-urban areas. Maureen Milligan, Dallas’ assistant director of the Department of Housing and Neighborhood Revitalization, says the study's findings could give staff context for the cost of projects brought before it in the future. The LIHTC program offers advantages for both for the city and for developers, which receive a 9 percent or 4 percent tax credit on their project. Under Dallas' new comprehensive housing policy, the city encourages applications by laying out a self-scoring application for LIHTC projects that seek the city’s support, enabling staff to conduct an extensive and impartial evaluation. Meanwhile, the new Neighborhood Quality of Life committee seeks to analyze and influence the state’s quality allocation plan, a yearly guideline that outlines the criteria for how individual projects are judged. A special meeting of the committee will take place on Oct. 22 to consider staff recommendations. Ideally, development will be encouraged in areas that will allow low-income residents the greatest opportunities for success, which calls for using identified reinvestment zones and other "higher opportunity areas," says Bill Hall, chair of the city’s new Housing Policy Taskforce.
Green Building
Green Roof Requirements Are on the Rise
Governing (10/18) Daigneau, Elizabeth
A study commissioned by the Washington state Department of Energy and Environment found that every dollar invested in green roofs generates $2 in benefits. In January 2017, San Francisco launched its Better Roofs Ordinance, making it the first major U.S. city to mandate solar and living roofs, requiring them on between 15 percent and 30 percent of most new construction. Voters in Denver recently approved a green roof initiative that requires newly built buildings exceeding 25,000 square feet to allocate a portion of their rooftops to vegetation or solar panels. The green roofs are intended to help reduce Denver’s urban heat island effect, which is the third worst in the nation. Approximately 25 cities in North America have some sort of program to encourage green roofs, but "lately we’re seeing more of a move to make them mandatory," says Steven Peck, founder and president of Green Roofs for Healthy Cities. His group offers the Living Architecture Performance Tool (LAPT), a rating system and best practice guide. LAPT is free to policymakers, who can use it to maximize public benefits and create effective policies. A study by the University of Michigan found that a 21,000-square-foot green roof costs about $100,000 more to install than a conventional roof, but over its lifetime, the green roof saves about $200,000 primarily due to reduced energy needs. Meanwhile, Counterpointe Sustainable Real Estate announced last year it will start offering property assessed clean energy (PACE) financing.
Association News
Save the Date: Online SHCM 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 two hours, followed by a question-and-answer period for attendees. The webinars take place on consecutive Tuesdays in November with each beginning at 12 p.m. Eastern time.
The course schedule is as follows:
- Nov. 6: Chapter 1, Program Regulations presented by Dodi Gershen
- Nov. 13, Chapter 2, Unit Eligibility presented by Gwen Volk
- Nov. 20, Chapter 3, Applicant Eligibility & Certification presented by Anita Moseman
- Nov. 27, Chapter 4, Monitoring & Compliance presenter to be determined
The cost for the course, including the SHCM exam and SHCM application fee, is $549 for National Apartment Association Education Institute (NAAEI) and National Affordable Housing Management Association (NAHMA) members and $599 for nonmembers. Individual webinars can be purchased for $139 each for members or $149 each for nonmembers. To register, click the Web Link provided below. If you need assistance with the registration process, please contact: Amy Allen, at AAllen@naahq.org.
Learn How to Improve Your Strategic Thinking
Explore what it means to be a strategic thinker and learn a new approach for anticipating and solving problems with the webinar NAHMA Presents Key People Skills for Property Management Staffers: Strategic Thinking and Problem Solving. This is your chance to break out of your routine and learn to work more efficiently, become a better communicator and achieve better results through a live 90-minute, interactive webinar. The session takes place Tuesday, Nov. 27, beginning at 2 p.m. Eastern, and is led by Brenda Harrington, founder of Adaptive Leadership Strategies LLC. Register for the training session through your local AHMA today.
Topics for the session include:
- Critical thinking
- Making decisions with greater impact
- Understanding how to connect the dots
This webinar is designed for property management staffers; corporate or headquarters staff, including regional and district managers; mid- and entry-level managers and supervisors; compliance specialists; and human resources, accounting and technical staff.
The webinar is brought to you by NAHMA and is hosted by Rocky AHMA. Contact information for your local AHMA can be found by visiting the AHMA Directory map at nahma.org and clicking on the AHMA nearest to your location. For more information, click on the Web Link provided below.
Register for Emerging Trends in Tax Credit Webinar
Join the experts on Thursday, Nov. 29, beginning at 2 p.m. Eastern, to learn about the Emerging Trends in Tax Credits.
The webinar will provide 1.5 hours of instruction, followed by a 30-minute question-and-answer session. It is presented by Anita Moseman, FHC, SHCM, NAHP-H, CPO, vice president, Monfric Realty Inc.; and Gwen Volk, SHCM, NAHP-e, CPO, FHC, president, Gwen Volk INFOCUS Inc.
It is free to current SHCM certified professionals and $149 for non-SHCM professionals. Be sure that you renewed your SHCM credential in 2018 in order to participate in this webinar free of charge.
For questions about your renewal, contact Natasha Patterson, ACA, from NAHMA, at npatterson@nahma.org or 703-683-8630, ext. 117. For registration issues, contact Amy Allen, from NAA, at AAllen@naahq.org or by phone 703-797-0608.
To register for this course, click the Web Link below.
October Deadline for TLS Upgrade
The Department of Housing and Urban Development (HUD) issued an updated TRACS notification with a deadline of Oct. 20 for the Transport Layer Security (TLS) upgrade. Secure Sockets Layer (SSL) was renamed TLS after SSLv3 was released. HUD needs to upgrade TLS to meet PCI Data Security Standards. As a result, occupancy software applications submitted electronically to TRACS using the outdated TLS v1.0 will have all access disabled after Oct. 21. Call the Multifamily Housing Help Desk Support, 800-767-7588, for assistance. For more information, click on the Web Link below.
CNA e-Tool Release
Capital Needs Assessment (CNA) e-Tool Release 2.3.2 was slated to become operational as of Oct. 15. In response to industry feedback, the calculations of remaining useful life (RUL) are no longer based on current year; all RUL and current age calculations are now based on the “Date of Site Visit” within the Assessment Tool. Additionally, the new release makes several improvements to such features as the noncritical repair needs panel and the annual deposit values for the snapshot report. A new virtual classroom webinar and slide deck describing changes in the CNA e-Tool Release 2.3 and the Assessment Tool 1.2 v7 are available on HUD.gov. Click on the Web Link below for more information.
NAHMA Releases 2018 Affordable 100 List
The National Affordable Housing Management Association (NAHMA) announces its new 2018 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
NAHMA Biannual Top Issues in Affordable Housing Fall Conference
October 21-23, 2018
More
LeadingAge Annual Meeting and Expo
October 28-31, 2018
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NAA Assembly of Delegates
November 14-17, 2018
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NAHMA Biannual Top Issues in Affordable Housing Spring Conference
March 3-5, 2019
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LeadingAge PEAK Leadership Summit
March 17-20, 2019
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NAHMA Biannual Top Issues in Affordable Housing Fall Conference
October 27-29, 2019
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