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E-Signature Policy Change Enters Comment Phase


The draft Multifamily Housing notice, Electronic Signature, Transmission, and Storage—Guidance for Multifamily Assisted Housing Industry Partners, has been posted to the Multifamily Policy Drafting Table for review and feedback. The comment period closes Aug. 9. The draft notice pertains to occupancy policies and business operations of assisted multifamily housing properties. It provides proposed guidance on acceptable procedures for use of electronic signatures, electronic transmission and storage of documents and files. To read the draft, click on the Web Link below.
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Industry Trends


"Apartment Demands Hits Five-Year High"
"Cities Need Affordable Housing, Work With Builders to Get It"

Tax Issues and Tax Reform


"Advocacy Critical to Expansion of LIHTC Program"

Congress


"Bill Seeks to Create 'Neighborhood Homes' Tax Credit"
"Treasury Wrestles With How to Measure Success in Opportunity Zones"

HUD-Related Activity


"Housing Leaders Blast HUD Plan to Ban Mixed-Status Families"

State and Local Activities


"State Incentives Crucial to Success of Community Development"
"'Affordable Housing Crisis’: Future of Missouri Low-income Tax Credit Still in Flux"

Association News


Add the NAHMA COQ Awards Application to Your Summer To-Do List
Help NAHMA Promote Adult Literacy
Are You up for the Challenge?
NAHMA Releases 2019 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events


Industry Trends


Apartment Demands Hits Five-Year High
Wall Street Journal (07/01/19) Parker, Will

New household formation and a shortage in available homes have led to a five-year high in demand for rental apartments this spring, according to a study conducted by real-estate analytics firm RealPage. Second quarter apartment move-ins increased 11 percent from the same three-month period in 2018. This increase drove the national occupancy rate up to 95.8 percent versus 95.4 percent year over year. Apartment demand was particularly intense in such major markets as Chicago and Houston, where move-ins outpaced construction by almost 3-to-1 in the April through June period. Meanwhile, rent prices continued to increase across the country, though small metropolitan areas tended to see bigger increases than elsewhere. Wilmington, N.C., and Huntsville, Ala., saw second-quarter rent increases of 7.4 percent and 6.4 percent, respectively. The surge in rental apartment demand may indeed be attributed to the slowing home-sales market. The volume of existing-home sales on an annualized basis has now dropped for 15 consecutive months, but home prices are still growing faster than income. With a shortage of affordable options, more people are turning to rental apartments for their housing needs. But there is an emerging affordability problem with apartments, too. Much of the new supply of rental units targets high-income earners, and the apartment stock "doesn't really help the consumer in [lower-end] housing where it's already full," observes RealPage chief economist Greg Willett.
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Cities Need Affordable Housing, Work With Builders to Get It
New York Times (07/09/19) Meyer, Eugene L.

Developers across the United States are realizing that economics are essential in determining how many and at what price affordable housing units may be included for mixed-use projects. As a result, developers are working with community leaders to ensure their projects are both socially responsive and financially profitable. For example, PN Hoffman and Madison Marquette's $2.5 billion development along a mile of the Potomac River in Washington, D.C., called the Wharf, has 761 units of housing, of which 26 percent are listed as affordable as required by the city government. The Wharf's second phase will also feature affordable units. To help make the Wharf project profitable, the District of Columbia reduced its price for the land as well as the percentage of lowest-cost housing while allowing more below-market, moderate-income "work force" units. Monty Hoffman, CEO of PN Hoffman, notes, "It allowed us to avoid residential offerings only at the extreme ends—deep affordable and waterfront market rate." The Metropolitan Washington Council of Governments has said the region needs to build more than 100,000 housing units by 2045, of which 40 percent should serve the lowest-income residents. Separately, the District of Columbia has set a goal of 36,000 units by 2025, of which 12,000 would be affordable. To reach that goal, Washington, D.C. Mayor Muriel E. Bowser has offered solutions that include a $100 million annual housing production trust fund, regulatory relief, and a higher building height limit.
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Tax Issues and Tax Reform


Advocacy Critical to Expansion of LIHTC Program
Apartment Finance Today (07/10/19) Gasson, David

The affordable housing industry has an opportunity to help pass the most comprehensive piece of Low-Income Housing Tax Credit (LIHTC) legislation since the credit was enacted in 1986. The Affordable Housing Credit Improvement Act of 2019 (AHCIA) was introduced in the House and Senate on June 4. AHCIA would significantly increase affordable housing resources in both the 9 percent and 4 percent programs, as well as enact reforms that will spur development in rural areas, allowing for additional basis boosts if financially warranted, writes David Gasson, executive director of the Housing Advisory Group, which advocates on behalf of housing issues. The legislation would allow for the development of housing for veterans using the 4 percent LIHTC and bonds; disallow any requirement for local letters of support as part of a qualified allocation plan; and make both programs more efficient as tools to preserve existing housing. Although there is strong bipartisan support for the legislation, affordable housing practitioners across the country need to reach out to their elected officials in support of the LIHTC. This will force Senate majority leader Mitch McConnell (R-Ky.) to take S. 1073 seriously and demonstrate to House minority leader Kevin McCarthy (R-Calif.) the support H.R. 3077 has within his Republican conference. While it is very difficult to predict the issues on the agenda of Congress and the Trump administration this year, the affordable housing industry should make sure the AHCIA is in the strongest possible position for consideration once the negotiations get serious, according to Gasson.
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Congress


Bill Seeks to Create 'Neighborhood Homes' Tax Credit
Apartment Finance Today (06/24/19) Kimura, Donna

U.S. Reps. Brian Higgins (D-N.Y.) and Mike Kelly (R-Pa.) have introduced the Neighborhood Homes Investment Act (NHIA), which proposes to create a federal tax credit to spur the rehabilitation of deteriorated single-family homes in distressed neighborhoods. Buzz Roberts, president and CEO of the National Association of Affordable Housing Lenders, anticipates that many investors, financial partners, and developers that participate in the Low-Income Housing Tax Credit (LIHTC) market could also utilize the new credit. The NHIA credit would provide up to 35 percent of the eligible development cost to help developers reduce their risk of loss. NHIA tax credits would be awarded to project sponsors, including developers, lenders, or local governments, via statewide competitions administered by state housing finance agencies. Sponsors would use the credits to raise investment capital for their projects, and the investors could claim the credits against their federal income tax when the homes are sold and occupied by moderate- and middle-income homebuyers. Supporters of the legislation estimate the credit could potentially generate 500,000 homes over 10 years as well as roughly $100 billion in development and 785,714 jobs in construction and related industries. Roberts believes there is sufficient space in the market as well as investor appetite for the planned credit. For neighborhoods to be eligible for NHIA, they must have an elevated poverty rate (130 percent of the metro or non-metro rate), up to 80 percent of the metro or non-metro median, and below the metro or state median.
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Treasury Wrestles With How to Measure Success in Opportunity Zones
Politico (07/12/19) Faler, Brian

Developers that participate in the federal government's Opportunity Zone program currently do not have to provide information about what, where, and why they are doing it. Two of the program's creators, Sens. Tim Scott (R-S.C.) and Cory Booker (D-N.J.), are now backing legislation to restore reporting requirements that had been eliminated by GOP senators' budget reconciliation strategy. Several entities want the Treasury Department to implement its own requirements for disclosure, including cities like New York, Los Angeles, and San Antonio; the National Fair Housing Alliance, and the National Trust for Historic Preservation. Some entities want to see detailed figures on how many jobs are created, how many developers offer a "living wage," and how many provide employer-sponsored benefits. Concerns over potential gentrification are spurring calls for the Treasury to track the program's effect on housing prices and eviction rates. Some groups advocate the creation of a new reporting website. However, law firm Steptoe & Johnson warns that disclosing details about participants' activities could potentially violate taxpayer privacy laws. The nonpartisan Government Accountability Office has had similar difficulty in examining the impact of two other programs—the New Markets Tax Credit and Empowerment Zones—as a result of insufficent data.
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HUD-Related Activity


Housing Leaders Blast HUD Plan to Ban Mixed-Status Families
Affordable Housing Finance (07/02/19) Kimura, Donna

The Department of Housing and Urban Development (HUD) is proposing to evict families living in subsidized housing if a member is undocumented. If passed, the rule would threaten the housing stability of 25,000 mixed-immigration status families, including 55,000 children who are U.S. citizens or otherwise eligible for HUD assistance, say officials opposed to the plan. They point out that housing subsidies do not support undocumented immigrants because while these individuals are permitted to live with their families, rents are prorated to ensure that subsidies do not assist with the undocumented immigrant’s portion of the rent. The proposal also would create additional burdens on private landlords who participate in the Housing Choice Voucher program, which serves more than 2 million low-income households. "This adds to the already difficult task of recruiting private landlords to accept Sec. 8 Housing Choice Vouchers," notes Sunia Zaterman, executive director of the Council of Large Public Housing Authorities in Washington, D.C. Doug Guthrie, president and CEO of the Housing Authority of the City of Los Angeles, says the city has identified approximately 11,600 members of mixed-status households at risk, including 31 percent of Los Angeles' public housing residents. Rep. Sylvia Garcia (D-Texas) and Sen. Kirsten Gillibrand (D-N.Y.) have introduced legislation to prevent HUD from moving forward with the proposed rule. There is also language to halt the plan in a HUD spending bill that has passed the House of Representatives.
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State and Local Activities


State Incentives Crucial to Success of Community Development
Novogradac Journal of Tax Credits (07/19) Vol. 10, No. 7 Novogradac, Michael

State-level community development tax incentives play a key role in the success of federal tax incentives. The historic tax credit (HTC) is the most common, with 35 states having some type of a historic rehabilitation/preservation credit. Legislation was introduced this year proposing state HTCs in California, Hawaii, Michigan, Nevada, and Tennessee. Eighteen states have some version of the Low-Income Housing Tax Credit (LIHTC), including Nevada, where a bill was signed in June. Six more states—Arizona, Kentucky, Maine, Maryland, Pennsylvania, and South Carolina—had LIHTC programs proposed during this year’s legislative session. Wisconsin enacted a state LIHTC in 2018, but only for properties that use 4 percent federal LIHTCs and bonds. This suggests that federal 4 percent LIHTC and the tax-exempt multifamily private activity bonds that generate them are undersubscribed, and there is ample opportunity for developers to use the non-competitive incentive to build affordable housing–as long as there is a state subsidy to fill the financing gaps. Wisconsin's state LIHTC program directs developers to 4 percent LIHTCs. That way, Wisconsin is more likely use its private activity bond cap, rather than have it expire after three years. The HTC and new markets tax credit (NMTC) state-level incentives similarly can be used to attract equity capital to that state and encourage the development of certain types of properties.
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'Affordable Housing Crisis’: Future of Missouri Low-income Tax Credit Still in Flux
Kansas City Star (07/08/19) Hancock, Jason

Missouri has not issued any new Low-Income Housing Tax Credits to developers since 2017, when former Gov. Eric Greitens shut down the state's $150 million a year program. The Missouri Housing Development Commission (MHDC) has been credited for helping create as many as 2,500 housing units each year for Missouri’s most at-risk residents, including senior citizens, veterans, and the disabled. Soon after Matt Fulson’s company completed a low-income housing development for seniors in Kansas City, Mo., it was fully leased. Fulson, the founder and president of Fulson Housing Group, subsequently sought to open a second 40-unit project nearby, but he was unable to. Those opposed to the MHDC program say it is inefficient, and some say it is a giveaway to affluent developers. Missouri Gov. Mike Parson, who replaced Greitens, has pledged to allow state housing credits to be issued if lawmakers passed significant reforms. However, after no legislative action was achieved in the General Assembly, Parson says he will try to call lawmakers to a special session later this year to focus on getting the program operational. Fulson says the uncertainly leaves developers like him and low-income Missourians in need of affordable housing in a difficult situation. "There is most certainly an affordable housing crisis in Missouri," Fulson says.
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Association News


Add the NAHMA COQ Awards Application to Your Summer To-Do List

Before summer vacations and back-to-school events start dominating the schedule, plan to enter the NAHMA 2019 Communities of Quality (COQ) Awards competition. The submission deadline to NAHMA is Nov. 7. To enter the awards competition, a property must first apply for and achieve national recognition as a NAHMA Community of Quality with a minimum score of 325 points on its National Recognition application. If a property is not currently a nationally recognized COQ property, the deadline for submitting an entry-level application to a local AHMA for consideration in the national program is Sept. 5.
The Communities of Quality (COQ) Awards recognize outstanding property management companies providing the highest quality of safe, affordable multifamily rental housing in communities across the country.
Judging is based on a point system that takes into account your National COQ Recognition Program application and the required COQ Awards application essay. All affordable multifamily properties may compete—it doesn’t matter how big or small your community may be, where it is located, or which affordable rental program (HUD, RD or LIHTC) it participates in. To download a copy of the COQ Awards brochure, click on the Web Link below.
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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.
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Are You up for the Challenge?

Join NAHMA for the fall AHMA Advocacy Challenge and educate your lawmakers on the importance of affordable housing.
Participate in advocacy activities such as site visits, meetings with lawmakers and resident advocacy activities, during the summer and fall to earn points for your AHMA, and don’t forget to use the hashtags #ScoreMoreHousing and #nahma19. The region with the most points wins! The challenge takes place July-October with the winners announced at the fall NAHMA Biannual Top Issues in Affordable Housing Conference, Oct. 27-29.
Find helpful tips, advocacy activity ideas and key legislative platform talking points in the Advocacy Toolkit and get started today. To learn more about the Advocacy Challenge, click on the Web Link provided below.
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NAHMA Releases 2019 Affordable 100 List

The National Affordable Housing Management Association (NAHMA) announces its 2019 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.
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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.
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Upcoming Events

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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July 2019