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HUD Announces Trainings for the Lead Safe Housing Rule Amendment
The Department of Housing and Urban Development (HUD)’s Office of Lead Hazard Control and Healthy Homes (OLHCHH) is holding the 2019 Lead Safe Housing Rule (LSHR) Amendment Trainings throughout the summer. These free three-hour trainings help you review federal lead regulations and discuss the LSHR Amendment for pre-1978 housing. Presenters provide a step-by-step explanation of how public housing agencies, grantees and owners respond to cases of elevated blood lead levels in children less than 6 years old living in a federally assisted housing unit. To learn more, click on the Web Link below.
Industry Trends
"LIHTC Investors Assess the Market"
"Freddie Mac Invests $50 Million in Affordable Housing in Rural, Underserved Areas"
"Five Takeaways From a Study on the Middle-Income Seniors Market"
Congress
"NMTC Extender Legislation Faces Challenging Path to Approval"
State and Local Activities
"Arizona Updates Low-Income Housing Tax Credit Caps"
"Nevada Lawmakers Tackle Widening Affordable Housing Gap"
Green Building
"Measuring Multifamily LEED Certifications"
Association News
Attend NAA’s Apartmentalize Education Conference
Register for Emerging Trends in Tax Credit Webinar
NAA offers free webinar: What is Shaping Multifamily Design Now?
Q1 2019 Apartment Jobs Snapshot
NAA Offers Online Learning Discount for Online Courses
Help NAHMA Promote Adult Literacy
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events
Industry Trends
LIHTC Investors Assess the Market
Affordable Housing Finance (05/03/19) Kimura, Donna
Investors are largely positive about the Low-Income Housing Tax Credit (LIHTC) market this year, but are still being cautious. Jennifer Seamons, senior vice president and national originations manager at KeyBank’s Key Community Development Corp., says the market continues to be competitive, especially for major banks with Community Reinvestment Act obligations. However, Seamons notes that the market-rate economy is starting to peak somewhat, and market-rate rents are softening in some areas. Meanwhile, a new income-averaging option allows LIHTC units to serve households earning up to 80 percent of the AMI as long as the average income limit at the property does not exceed 60 percent of the AMI. Seamons points out that without a significant discount, potential renters may opt to pay a little more and live in a market-rate apartment, making units more challenging to lease. Community development bankers at Bank of America Merrill Lynch (BofAML) are seeing growth in their historic tax credit business. The bank has also been seeing larger LIHTC projects in the market and has the ability to create efficiencies in many of those deals, says Maria Barry, BofAML's national executive of community development banking. In addition, BofAML is working to extend its relationship with developers and residents after properties are built. This includes connecting new LIHTC developments with local bank centers. The bank had a successful pilot in New Jersey and intends to roll out the program nationally this year.
Freddie Mac Invests $50 Million in Affordable Housing in Rural, Underserved Areas
HousingWire (04/17/19) Basile, Caroline
Freddie Mac said April 17 that it closed a Low-Income Housing Tax Credit (LIHTC) fund with CAHEC and initiated several investments within the fund, totaling $50 million, for affordable rental housing in the Middle Appalachia region of North Carolina, Tennessee, Kentucky, and West Virginia. This closing marks the sixth LIHTC fund that Freddie has closed since re-entering the market last year. The fund is the first managed by CAHEC, which will invest in the creation and preservation of affordable rental housing, according to Freddie Mac. The fund will focus on transactions in typically underserved areas, such as rural communities and developments that provide supportive services. The fund has provided $50 million to date in targeted affordable housing investments, supporting 411 units of LIHTC housing across eight properties. David Leopold, Freddie Mac's VP of Targeted Affordable Sales & Investments, says, "From Middle Appalachia to rural North Carolina, the investments we are making will help upgrade housing stock while preserving affordability for low-income individuals and families in need of decent places to live." Freddie Mac says it developed its proprietary fund with CAHEC because of the company's "deep expertise with the LIHTC program, its commitment to serving communities in need, and its ability to support Freddie Mac's mission of delivering liquidity and stability to underserved markets."
Five Takeaways From a Study on the Middle-Income Seniors Market
National Real Estate Investor (04/30/19) Yamshon, Lyndee
A University of Chicago study predicts the percentage of middle-income seniors who cannot afford senior housing by income alone will grow to 81 percent in the next 10 years. These individuals will have $60,000 or less in annual income and other annualized assets, below the probable average yearly assisted-living rental rate of $62,000. Fifty-four percent of middle-income seniors with housing equity will have annual income of or below $60,000, and the gap will be especially significant among 75- to 84-year-olds. The study also determined the privately-run senior housing sector has overcompensated with high-income residents, and 16 million middle-income seniors will likely find housing unaffordable by 2029. Even if 46 percent of seniors are hypothetically able to afford housing, they must be willing to deplete their assets completely and discard nest eggs. The study concludes that these and other trends will establish a major unmet need in the senior housing sector, with potential remedies including private-investor pools interested in pursuing socially responsible investments with a suitable risk profile.
Congress
NMTC Extender Legislation Faces Challenging Path to Approval
Novogradac Journal of Tax Credits (05/19) Vol. 10, No. 5 Novogradac, Michael
It is essential to provide an indefinite extension of the New Markets Tax Credit (NMTC) program as NMTC allocations end after the 2019 round. The proposed H.R. 1680 and S. 750 bills both call for permanence, an inflation adjustment for allocation authority, and the ability to offset the alternative minimum tax (AMT). If the incentive is made a permanent part of the tax code, it is reasonable to expect an expansion in the allocation amount and AMT relief. The legislation introduced this year would have an inflation adjuster that would result in an allocation of nearly $5.1 billion in 2020. Another scenario would involve a short-term extension of one or two years, under which the NMTC is less likely to get an increase in allocation amounts or AMT relief. That is because changing the allocation amount, even linking it to an inflation adjuster, would be seen as changing policy, something usually not done with short-term extensions. Among the House co-sponsors are 20 members of the 42-member tax-writing Ways and Means Committee, which is led by NMTC advocate Richard Neal (D-Mass.). On the Senate side, there are seven co-sponsors who are also members of the 28-member Senate Finance Committee, plus Senate Minority Leader Chuck Schumer (D-N.Y.). A significant co-sponsor is Sen. Tim Scott (R-S.C.), who is also Congress' chief champion of the opportunity zones (OZ) incentive. Scott understands that NMTC and the OZ incentives are complementary.
State and Local Activities
Arizona Updates Low-Income Housing Tax Credit Caps
Mohave Valley Daily News (AZ) (05/04/19) Flores, Saul A.
The Arizona Department of Housing (ADOH) has issued an update of its Low-Income Housing Tax Credit (LIHTC) program, which provides a credit to offset an investor’s federal income tax liability. Under the ADOH update, a one-person household earning $22,920 and living in a zero-bedroom unit, for instance, would see the rent capped at $573, while for a three-bedroom unit, the average combined salary of four- and five-person households would be used to determine the rent. This means for a salary average of $34,020, rent is to be $850. The figures used by ADOH were derived from the U.S. Department of Housing and Urban Development Median Income Charts, which became effective on April 24. In order to be considered for tax credits in Arizona, the proposed development must involve new construction, substantial rehabilitation, or acquisition and substantial rehabilitation. A development qualifies for LIHTCs if it is residential rental property and if at least 20 percent of the residential units in the development are both rent-restricted and occupied by individuals whose income is 50 percent or less of the area median gross income, or at least 40 percent of the residential units in the development are both rent-restricted and occupied by individuals whose income is 60 percent or less of the area median gross income. Tax credits may be claimed only on units that have been set aside for participation under the program. Since tax credits are awarded on a competitive basis, ADOH’s Qualified Allocation Plan encourages "targeting" of the units to income levels lower than the federal limits describe.
Nevada Lawmakers Tackle Widening Affordable Housing Gap
Las Vegas Review-Journal (05/05/19) Lochhead, Colton
Facing one of the worst affordable housing shortages in the country, Nevada lawmakers are working on a package of bills to address the issue, ranging from direct investment of state dollars to empowering local governments to get involved and stronger tenant protections. The average monthly rent for apartments in Southern Nevada jumped by nearly $200 from 2013 to 2016, according to a 2018 report from the Nevada Housing and Neighborhood Development, a nonprofit that develops and manages affordable housing in Clark County. When it comes to available affordable housing, Nevada ranks as the worst in the country, according to the National Low Income Housing Coalition. The most direct investment, and likely most immediate impact, would come from Senate Bill 448, which would set aside $10 million in state dollars via tax credits to build affordable housing in Nevada. Currently, 95 percent of the affordable housing in Nevada was built using funds through the federal government’s Low-Income Housing Tax Credit program, and about 1,000 to 1,200 new units are built using that credit each year. Sen. Julia Ratti (D-Sparks) says the state investment from SB448 would add about 600 new units in the state — 60 percent more. SB448 has received unanimous support in the Senate and is being considered in the Assembly.
Green Building
Measuring Multifamily LEED Certifications
Multihousing Pro (04/02/19) Rudy, Michael
A recent RentCafe report looked at how the multifamily housing industry has adopted energy efficiency in its buildings, using Leadership in Energy and Environmental Design (LEED) certification as the criterion for determining that a building is energy efficient. The report counted buildings that have achieved or been proposed for LEED certification in that category, focusing on buildings with 50 or more units. The researchers looked statistics on the number of LEED certified multifamily residential buildings in the U.S., examining measures for new construction such as how many LEED certified multifamily units have been built per year and what percentage of new units are LEED certified by area. The report also looked at the existing base of multifamily units to determine where LEED certification is most common. The highest fraction of new units being LEED certified was in 2014, when it reached 19 percent. While developers have built a lower proportion of LEED certified units since then, there were actually more new units with LEED certification built in 2016 because there were more apartment units being built overall. The report found that Silver Spring, Md., ranks first with one LEED certified apartment for every 18 people. Other leading cities include McLean, Va., College Park, Md., Arlington, Va., and Rockville, Md. Of the 10 cities with the highest numbers of LEED certified apartments per person, all are either in the Washington, D.C. area, or in the Seattle Wash. area.
Association News
Attend NAA’s Apartmentalize Education Conference
Apartmentalize, formerly the National Apartment Association (NAA)’s Education Conference & Exposition, is the industry’s premier education conference and trade show, attracting 10,000 multifamily housing professionals seeking education, networking and business opportunities. It is the largest event in the multifamily housing industry. This year’s conference will be held in Denver, Colo., from June 26-28, and will feature more than 80 education sessions. To find out more, view the conference schedule and register to attend, visit the link below.
Register for Emerging Trends in Tax Credit Webinar
Join the experts on May 23 beginning at 2 p.m. Eastern to learn about the emerging trends in tax credits, including legislative changes to Low-Income Housing Tax Credit programs, nuances of minimum set asides, Violence Against Women Act requirements and new inspection protocols.
The webinar will provide 1.5 hours of instruction, followed by a 30-minute question-and-answer session. It is presented by Dodi Gershen, NAHP-e, FHC, SHCM, vice president and director of management, The Gershen Group, and Gwen Volk, SHCM, NAHP-e, CPO, FHC, president of 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.
NAA offers free webinar: What is Shaping Multifamily Design Now?
NAA is offering a free webinar taught by industry supplier PPG Paints. What is Shaping Multifamily Design Now? is an informative one-hour webinar to instruct participants on how color can define a space, create an experience and connect with customers on a deeper level. Studying the design likes and dislikes of generational groups allows for more customization and potentially longer rentals. The webinar will be held on Wednesday, May 22, at 11 a.m. Eastern. Visit the link below to register.
Q1 2019 Apartment Jobs Snapshot
NAA brings you its monthly 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. Click on the Web Link for more information.
NAA Offers Online Learning Discount for Online Courses
The NAA Education Institute is offering a discount code worth 15% off to SHCM credential holders for your entire purchase of online courses on Visto, our learning management system. To get 15% off all Visto courses, including credentials and compliance courses, professional skills and leadership training, leasing, preventative maintenance and repair courses, use promo code: FORWARD15 at checkout. The code is valid through May 31. Click on the Web Link provided for more information.
Help NAHMA Promote Adult Literacy
Help NAHMA promote adult literacy by connecting affordable housing residents to a free app for improving reading and English skills. The app is available for download until Aug. 31.
NAHMA members are uniquely situated to reach residents of affordable housing who are working hard to improve the financial and educational status of their families. Some of these residents may be interested in taking advantage of a free literacy app to improve reading and English skills.
To help NAHMA succeed in promoting adult literacy and demonstrating that housing is a platform for success, downloadable promotional flyers—available in English and Spanish—are available to share with residents.
The literacy app is free, self-supported, self-paced, and is intended for all ages. The app can be downloaded at https://abc.xprize.org/ac5588 using Community Referral Code 5588 until Aug. 31.
For more information, click on the Web Link below.
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 Apartmentalize
June 26-28, 2019
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NAAEI Affiliate Education Conference
August 19-21, 2019
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NAA Maximize
September 23-25, 2019
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NAHMA Biannual Top Issues in Affordable Housing Fall Conference
October 27-29, 2019
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LeadingAge Annual Meeting + Expo
October 27-30, 2019
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