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EIV System Delay
The Department of Housing and Urban Development (HUD) reports there will be a delay in the regularly scheduled computer matching with Health and Human Services/National Data of New Hires. As a result, income reports containing new hires, federal/nonfederal wages and unemployment data will not be updated in the Enterprise Income Verification (EIV) system used by owners of multifamily properties during November and December 2018. However, Social Security related income and EIV Verification Reports data will not be affected. Effective Nov. 5, owners/agents must refer to Chapter 5-13 of HUD Handbook 4350.3 for the hierarchy of acceptable forms of verification for the affected income data. For compliance monitoring purposes, copies of EIV reports containing outdated data must be retained in accordance with Chapter 9-14 of HUD Handbook 4350.3. A copy of the RHIIP Listserv message should accompany the retained reports for explanatory purposes. To access the HUD Handbook, click on the Web Link below.
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Industry Trends
"A Tough Road Ahead"
"Nearly 500,000 LIHTC Units at Risk of Being Lost"
"Tiny Rooms, Shared Kitchens: Co-Living on the Rise in Big Cities"
Tax Issues and Tax Reform
"New LIHTC Research Refutes Common Misconceptions of the Program"
Congress
"Waters' Priorities: Shielding Consumers, Housing"
State and Local Activities
"4,000 Jobs Linked to State’s Affordable Housing Tax Credit"
Green Building
"Affordable Housing Developers Get New Tool to Finance Solar Arrays in California"
Association News
NAA Offers Online Learning Discount to SHCM Credential Holders
Learn How to Improve Your Strategic Thinking
Earn NAAEI’s CAPS Credential for Career Advancement
2018 Q3 Apartment Jobs Snapshot
SHCM Webinar Series Hosted by NAA
NAHMA Releases 2018 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events
Industry Trends
A Tough Road Ahead
Affordable Housing Finance (11/01/18) Kimura, Donna
The Federal Reserve raised its benchmark interest rate a quarter point, to a range of 2 percent to 2.25 percent, near the end of September, and more increases are expected in coming months. Ten-year Treasury rates are projected to increase to 3.3 percent in 2019 and 3.5 percent in 2020, according to a recent Urban Land Institute Real Estate Economic Forecast. However, these rates remain below the 20-year average of 3.6 percent. Borrowers are looking closely at interest rates and how they impact their deals, says Jeff Englund, senior managing director of the multifamily affordable housing finance platform at Greystone, noting that Fannie Mae and Freddie Mac have rolled out early rate-lock products that are gaining attention. Noel Khalil, chairman and CEO of Columbia Residential, says there is rising demand for qualified workers, which is driving up labor costs. Heading into 2019, the developer says he will work to identify additional subsidy sources and explore new programs, including the income-averaging option for Low-Income Housing Tax Credit (LIHTC) developments. David Leopold, vice president of targeted affordable sales and investments at Freddie Mac Multifamily, says the securities issuer recently announced its "Targeted Affordable Mezzanine product for refinancing or acquiring Sec. 8 properties and Year 11 or later LIHTC properties, or repositioning any affordable property for resyndication with a new allocation of LIHTCs." Both Fannie Mae and Freddie Mac returned to the LIHTC market this year after nearly a decade.
Nearly 500,000 LIHTC Units at Risk of Being Lost
Apartment Finance Today (10/18/18) Serlin, Christine
Nearly half a million Low-Income Housing Tax Credit (LIHTC) units, or almost one-fourth of the total, will reach their 30-year mark and the end of their federally mandated affordability restrictions between 2020 and 2029, according to a joint report by the National Low Income Housing Coalition (NLIHC) and the Public and Affordable Housing Research Corp. (PAHRC). These units do not receive other types of subsidies that would extend their affordability, and without new capital investment for rehabilitation, are at risk of physical deterioration. About 42 percent of expiring LIHTC units between 2020 and 2029 are most concentrated in neighborhoods that rank low in both neighborhood desirability and opportunity. Demand for preservation resources may be greater for owners seeking to address the physical deterioration of the units in these neighborhoods. However, these units might be less desirable for preservation on the policy side if access to opportunity and desegregation are priorities. “The quickly approaching Year 30 deadline creates urgency for solutions,” said NLIHC president and CEO Diane Yentel. “We must move beyond the status quo of needlessly scarce resources and commit to a longer-term and bolder vision for a comprehensive national housing policy that ensures affordable homes for our nation's more than 11 million extremely low-income renter households.” Included in the report's vision for a housing safety net are reforms to the LIHTC program, increased subsidies for the preservation and production of affordable housing to markets and populations most in need, and expanded access to Housing Choice Vouchers.
Tiny Rooms, Shared Kitchens: Co-Living on the Rise in Big Cities
Wall Street Journal (10/16/18) Kusisto, Laura
Co-living buildings have not been around long, but they are emerging as popular living options for renters in big cities. In co-living buildings tenants live in small rooms, but share larger common areas with strangers. They are a lot like college dormitory halls, but these modern arrangements may come with perks like dog walking, cooking classes and cleaning services. Developers are responding with plans to build a number of large co-living projects throughout the country. If these projects are successful it could open the door for larger investors to enter the field. Co-living buildings could also provide an alternative for luxury multifamily buildings, which are oversupplied in some locales. Rents in these buildings are still not cheap, but they often cost less than traditional apartments. Nevertheless, some officials believe co-living buildings could also address a lack of affordable housing in cities where rents are rising.
Tax Issues and Tax Reform
New LIHTC Research Refutes Common Misconceptions of the Program
Novogradac (11/01/2018) Lawrence, Peter
A recent study by researchers at New York University and the University of Massachusetts Boston reveals that there are many factors that influence where Low-Income Housing Tax Credit (LIHTC) financed housing is located, such as state qualified allocation plans (QAPs), developer preferences and priorities, availability of land, and additional types of affordable housing subsidies. The authors focused on the 9 percent credit, which gives states more scope to affect siting decisions. The authors found that states that gave higher priority to neighborhoods of opportunity, as evidenced by a change in the criteria of their QAPs, saw more LIHTC properties developed or rehabilitated in these areas. More properties were located in high-opportunity, low-poverty areas, and there was also a decrease in the percentage of properties located in areas where minorities made up a majority of the residents. These findings should encourage more states to take steps to ensure affordable rental housing is located in areas of opportunities. Meanwhile, a recent report by the Center on Budget and Policy Priorities (CBPP) examined how the LIHTC could be doing more to locate affordable housing in area of high-opportunity and make housing more accessible to households making less than 30 percent of the area median income (AMI). While the CBPP compares LIHTC housing with all homes housing renters at or below 60 percent of the AMI, it does not focus on 9 percent new construction LIHTC properties, nor does it exclude one- to four-unit properties.
Congress
Waters' Priorities: Shielding Consumers, Housing
American Banker (11/09/18) Haggerty, Neil
Expected incoming House Financial Services Committee Chair Maxine Waters (D-Calif.) said in her first comments since the election that the committee will focus on protecting "consumers and investors from abusive financial practices." She also said she is committed to "hearing a range of views," if chosen to lead the panel. Waters is expected to focus not only on the shortage of affordable housing options but also on consumer protection issues, including those overseen by the Consumer Financial Protection Bureau. Waters has said that she will "prioritize ... making sure that there are strong safeguards in place to prevent another financial crisis, expanding and supporting affordable housing opportunities, and tackling the homelessness crisis."
State and Local Activities
4,000 Jobs Linked to State’s Affordable Housing Tax Credit
Journal Record (OK) (11/01/18) Fleming, Molly M.
The Oklahoma Affordable Housing Act allocates $4 million per year in state Low-Income Housing Tax Credits (LIHTCs), which cannot be used in the counties of Oklahoma, Tulsa, or Cleveland. As the largest single user of the LIHTC program, LW Development owner Lance Windel spoke in favor of the tax credit. He is constructing homes or will soon start in Hugo, Ardmore, Chickasha, Marietta, Stillwater, Davis, and Duncan. Greg Shinn, board president of the Oklahoma Affordable Housing Coalition, noted that in 2017, more than 600,000 state residents were living at or below the federal poverty level, which is nearly 16 percent of the population, according to a report by the Oklahoma Policy Institute. Shinn said the coalition supports allowing the credits to be used in all 77 counties, as recommended by PFM Consulting Group. He added there could be a formula to ensure that heavily populated urban counties do not take away funds from rural areas. PFM Consulting Group said while the program is only $4 million annually, it will cost the state $40 million by 2024 because there is a 10-year credit period. However, a study by the housing coalition found that about 4,000 jobs were linked to the construction of 2,007 units using LIHTCs. About 100 people are employed annually to manage all the units, generating $3 million in labor income, according to the study, conducted by the state’s Department of Commerce. "There’s a ripple effect of direct and indirect economic activity," Shinn said. "It's way beyond what the consulting firm is talking about."
Green Building
Affordable Housing Developers Get New Tool to Finance Solar Arrays in California
Novogradac & Company LLP (11/08/2018) O’Meara, Mark
Affordable housing developers in California have a new tool to help them get into solar energy. The Solar on Multifamily Affordable Housing (SOMAH) program, signed into law in October 2015, aims to install solar arrays on existing affordable housing developments and to make energy bill savings available to low-income households. The program is slated to launch by the end of 2018. “The program creates an incentive for property owners to capitalize on real estate that already exists,” said Michael McCloud, senior director of asset management at AMCAL Housing, a developer and operator of affordable, market-rate and student housing primarily in California, Texas, and Washington. “There is a considerable amount of housing stock in the state that would benefit from renewable energy. … You've got a roof not doing anything else. It's a no-brainer.” The SOMAH program will do four key things. First, it will direct up to $100 million annually from 2016 to 2026 to subsidized solar energy systems on affordable housing. The program is funded through greenhouse gas allowance auction revenues. Second, the program encourages development and installation of solar systems in California's disadvantaged communities across the state. Third, SOMAH emphasizes the goal of lowering the energy bills for affordable housing tenants. Finally, the program will develop at least 300 megawatts of installed solar generating capacity by Dec. 31, 2030. “This is an opportunity to put solar generation as close to the end user as possible,” said McCloud. “...This is an opportunity for us to go back and utilize the rebate to decrease the costs of our common area [energy consumption].”
Association News
NAA Offers Online Learning Discount to SHCM Credential Holders
The NAA Education Institute (NAAEI) is offering a discount code worth 25 percent off to SHCM credential holders for purchases of online courses on Visto, NAAEI’s learning management system. To receive the discount, use the promo code shcm18 during the checkout process. The code is valid through Dec. 31, 2018. To register for a course, click the Web Link below.
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. Registration closed Monday, Nov. 19, so 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.
Earn NAAEI’s CAPS Credential for Career Advancement
The Certified Apartment Portfolio Supervisor (CAPS) credential is offered to multisite supervisors with 24 months of multisite supervision experience. Property managers learn about measuring portfolio performance and property valuation; operational and financial analysis; understanding owner’s reports; overseeing the budget process across a portfolio; stakeholder relations with residents, communities and municipalities; talent development and management; property development feasibility analysis and much more. After completing the required coursework and successfully completing an examination, credential holders gain the tools to perform their jobs more effectively and advance in their careers. To find out more about earning the CAPS credential, visit the link below.
2018 Q3 Apartment Jobs Snapshot
NAAEI brings you its quarterly workforce update: The Apartment Jobs Snapshot, which highlights labor force trends in the rental housing industry. The profile examines total job posting trends by position and geography as well as average salaries, time required to fill a position and the top skills found in job postings. For more information, click on the Web Link below.
SHCM Webinar Series Hosted by NAA
In conjunction with NAHMA, NAAEI is offering the SHCM exam preparation course during the month of November. The blended learning webinar series is offered over four consecutive weeks each spring and fall. An Emerging Trends in Tax Credit webinar is also offered on Nov. 29. Participation in the Continuing Education Units (CEU) webinar is free for SHCM credential holders in good standing and offers two continuing education credits. Visit the link below for more information and to register.
NAHMA Releases 2018 Affordable 100 List
The National Affordable Housing Management Association (NAHMA) announces its 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
NAA CampusConnex
February 12-13, 2019
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NAHMA Biannual Top Issues in Affordable Housing Spring Conference
March 3-5, 2019
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NAA Advocate
March 5-6, 2019
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LeadingAge PEAK Leadership Summit
March 17-20, 2019
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NAA Apartmentalize
June 26-28, 2019
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NAHMA Biannual Top Issues in Affordable Housing Fall Conference
October 27-29, 2019
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News summaries © copyright 2018 SmithBucklin
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