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NAAEI Announces "CAMnesty" Program


Designed for individuals who completed all Certified Apartment Manager (CAM) requirements except the Community Analysis or the exam, NAAEI is launching the program CAMnesty. Through March 2014, these individuals can pay a fee, complete the new Research, Analysis and Evaluation module of the newly revised CAM course and take the new two-part exam to complete their professional designation.

If a CAM candidate is less than two years expired, the fee is $250. If more than two years have passed, then the fee is $350. Fees include the CAM extension fee, the online Research, Analysis and Evaluation module, a Test-Prep Webinar, the new two-part CAM exam at a local testing center operated by Castle Worldwide and a CAM certificate and pin.

For more details, click on the link below.
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Tax Issues and Tax Reform


"Q&A: How Would a Natural Disaster Affect Your Historic Tax Credits?"
"LIHTC Industry Eyes Accounting, CRA Changes"
"Tax Reform Not Going Away"

State and Local Activities


"Groups Fight to Overcome Lack of Affordable Housing in D.C. Region"
"$40 Million in Sandy Aid Going for Affordable Housing Units"

HUD-Related Activity


"HUD Announces RAD Changes"

Green Building


"Construction Projects Getting 'Green' Light"

Management and Compliance


"Chemicals of Concern: Cut Through the Controversy"

Industry Trends


"Demand High to Refinance Housing Deals"

Association News


Affordable Housing Education Session Recordings
Now Available

NAAEI Webinar Wednesdays
NAHMA Announces 2013 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!


Tax Issues and Tax Reform


Q&A: How Would a Natural Disaster Affect Your Historic Tax Credits?
Novogradac Journal of Tax Credits (07/13) Vol. 4, No. 7 Buss, Frank

If a historic tax credit (HTC)-financed building were to be demolished in a natural disaster, HTC recapture rules would be triggered. These rules state that recapture is equal to 100 percent of the credit claimed and used to reduce tax if the recapture event occurs before the first anniversary of the respective qualified rehabilitation expenditures (QREs) placed-in-service date. The recapture percentage is reduced by 20 percent for each subsequent year. For instance, the recapture amount is 80 percent of the originally claimed credit for the year from the first anniversary date to the day before the second anniversary date, 60 percent from second anniversary to the day preceding the third anniversary date, 40 percent from third anniversary to the day preceding the fourth anniversary date, and 20 percent from fourth anniversary to the day preceding the fifth anniversary date. After five years, there is no recapture. Unlike the low-income housing tax credit (LIHTC), there is no provision to restore the property in a full destruction of the building. If the qualified rehabilitated building has been completely destroyed, the property cannot be replaced and the HTC recapture is calculated using the 20 percent declining calculation as noted above. If the qualified rehabilitated building is partially destroyed, HTC recapture can be avoided if the building is restored according to the standards previously established by the National Park Service and the state housing preservation office (SHPO). Partially damaged property would not trigger recapture if the owner makes the necessary repairs and places the property back in service within a reasonable time.
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LIHTC Industry Eyes Accounting, CRA Changes
Affordable Housing Finance (07/13) Kimura, Donna

Supporters of low-income housing tax credits (LIHTCs) are closely monitoring potential accounting and Community Reinvestment Act (CRA) changes that could encourage the expansion of affordable housing. The Financial Accounting Standards Board (FASB) has been considering a change to the effective yield method, or a ratable amortization method, where costs and tax credits are reported on the same line of a financial statement. Many in the affordable housing industry say the proposal would make the accounting of LIHTC investments clearer and attract more investment capital to the market. Changes to the CRA are also being suggested, such as allowing banks to invest in a wide area, says Fred Copeman, a principal at CohnReznick. Under the existing system, CRA responsibility is based on where a bank’s money is, whereas state housing agencies allocate LIHTCs based on where the housing needs are, he explains. "There’s a mismatch, and that mismatch between the behavior of CRA capital and the way the credits are allocated is what has led to the two-tier pricing structure that we have." The proposed changes could help spread some of the capital to other regions. The CRA pricing differential can be $0.05 to $0.30 based on the market, notes Linda Hill, senior vice president at Alliant Capital.
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Tax Reform Not Going Away
Affordable Housing Finance (06/13) Kimura, Donna

Federal lawmakers' discussions on tax reform are worrying many people, who predict the low-income housing tax credit (LIHTC) might get eliminated along with other tax expenditures. Bob Moss at Boston Capital notes that affordable housing advocates are still searching for a champion in the Senate after the recent departure of Maine’s Olympia Snowe. Even if the LIHTC program remains intact, other changes to the tax code could cause a loss of equity for affordable housing, according to Michael Novogradac, managing partner at Novogradac & Co. The accounting firm recently assessed the potential impact of tax reform on the LIHTC program. Meanwhile, Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.) introduced the Housing Reform and Taxpayer Protection Act, which calls for dissolving Fannie Mae and Freddie Mac within five years of the bill’s passage and creating the Federal Mortgage Insurance Corp. (FMIC), which would be modeled after the FDIC. The multifamily guarantee business of Fannie and Freddie would be transferred to the FMIC. Several affordable housing organizations promptly responded with a letter calling for the legislation to be strengthened.
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State and Local Activities


Groups Fight to Overcome Lack of Affordable Housing in D.C. Region
Washington Post (07/04/13) Cech, Laura Barnhardt

Affordable housing is an ongoing problem in the Washington, D.C., region, where nearly a third of homes sold last year cost $500,000 or more, according to data from MRIS. To afford a District home renting for $1,412 a month, while meeting the affordability standard of 30 percent of income, a person needs to earn $56,480 annually, according to National Low Income Housing Coalition. This translates into working 132 hours a week to meet that standard for a minimum-wage worker. In the District this year, Mayor Vincent C. Gray allocated $100 million for affordable housing, and a city task force has set a target of creating or preserving 10,000 affordable units by 2020. The nonprofit City First Enterprises started using the “shared equity” structure, in which the appreciation value is shared with the next buyer, roughly three years ago, says John Hamilton, its president. When an owner sells the property, he or she receives a portion of the appreciation on their investment, plus a return on any improvements they make. Meanwhile, the Montgomery Housing Partnership is now building and selling units in a development called Olney Springs, and plans to break ground next year on a 134-unit complex in Silver Spring, Md., with a mix of family and senior housing. Two other apartment complexes are also being renovated by the partnership.
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$40 Million in Sandy Aid Going for Affordable Housing Units
NJ.com (06/21/13) Spoto, MaryAnn

A new pool of apartments is expected to become available for low-and moderate-income residents impacted by Hurricane Sandy via federal aid that will subsidize rental units, says New Jersey officials. The Landlord Incentive Program will use $40 million in Community Development Block Grant funds, which are estimated to assists at least 1,000 families, says state Community Affairs Commissioner Richard Constable III. New Jersey has earmarked $379 million in Community Development Block Grants from its portion of the $60 billion in federal Sandy aid to go toward programs for renters and rental property owners. Constable forecasts this program will open up more than 7,000 affordable housing units over the next two years. Community Affairs spokeswoman Lisa Ryan says the program may potentially be extended beyond two years if funding is available. After the two-year term, the rental units' rent will return to market rate, she says. Ryan adds that the state will require all participating landlords to notify tenants upfront that the program is for two years. They will do this by having their tenants sign a lease addendum that states the apartment’s rent will remain affordable for a maximum of two years.
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HUD-Related Activity


HUD Announces RAD Changes
Apartment Finance Today (07/13) Kimura, Donna

The Department of Housing and Urban Development (HUD) has unveiled a set of revisions to the Rental Assistance Demonstration (RAD) program as part of its to expand the use of the program. “We want it to be an effective tool for housing authorities, big and small,” says Patrick Costigan, senior adviser to HUD Secretary Shaun Donovan. Costigan says the changes reflect HUD's desire to broaden the program and be responsive to larger housing authorities and larger projects. The first component of RAD allows public housing and moderate rehabilitation properties to convert, under a competition limited to 60,000 units, to long-term Section 8 rental assistance contracts. The second component allows Rent Supplement, Rental Assistance Payment, and Mod Rehab properties to convert tenant-based vouchers issued upon contract expiration or termination to project-based assistance. About 15,000 units in 132 projects taking part in RAD a year into the program. Costigan says these projects are estimated to generate $800 million in private debt and equity, and approximately 39 percent of those units are projected to use 4 percent low-income housing tax credits (LIHTCs) and bonds. That's significant because that subsidy is available and often goes unused, Costigan notes. About a quarter of the other deals are looking at using 9 percent LIHTCs, and about 37 percent of the 15,000 units are proposing to use debt only, with many using Federal Housing Administration programs. The revisions include providing RAD awards for projects requiring multi-phased development to facilitate the assembly of financing; allowing public housing authorities (PHAs) to adjust subsidy (and initial contract rents) across multiple projects to facilitate financing; and eliminating the caps on awards to PHAs and to mixed-finance projects.
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Green Building


Construction Projects Getting 'Green' Light
Boston Herald (MA) (06/21/13) Restuccia, Paul

Green commercial construction is becoming mainstream throughout Massachusetts, benefiting tenants, building owners, and developers. Many communities will only grant permits to new construction projects that can demonstrate entry-level LEED certification, in compliance with the state's Stretch Energy Code. Tenant demand for energy-efficient, healthy workspaces is a driving force in green construction. Green policies adopted by many companies and retailers also are driving green building, as is energy accountability. "More building owners are tracking energy use, and that means that you have to deliver the energy efficiency you promise," says Shawmut Design & Construction's Tom Perry. "Using energy-efficient heating and cooling systems does not significantly add to the cost of projects." MassSave offers building owners rebates for using energy-efficient products and lighting, and federal tax credits are available for photovoltaic panels. Suffolk, Bond, and Shawmut are among the large contractors employing lean construction management models, recycling waste, and using electronic documentation in an effort to save resources, time, and money. GFC Development president Charles Aggouras expects all office buildings to be green one day. "Super-insulated office buildings that don't require any energy from utilities are going to happen," he says. "It's not that hard. All you need is the sun."
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Management and Compliance


Chemicals of Concern: Cut Through the Controversy
Buildings (06/13) Vol. 107, No. 5, P. 42 Penny, Janelle

As LEED v4 approaches its official release date, building managers are wondering how best to optimize building material ingredients and the supply chain, especially when the issues have no clear guidelines and are subject to interpretation. One method of greening an organization's building material purchases is the precautionary principle, by which chemicals in building products are guilty until proven innocent, and are not used until proven to be safe beyond a reasonable doubt. As this can rule out potentially unharmful chemicals, a risk assessment method can also be utilized, in which the applications of specific chemicals are studied to chart their actual hazards in practice; if the risk is below a certain threshold, the chemical may be used. To assess chemicals, a company can use a red list, a lifecycle assessment, or a supply chain inquiry. A red list specifies chemicals that cannot be used based on their properties; its downfall is it prevents useful but potentially toxic chemicals from being used safely in a way that effectively eliminates any exposure to hazard. Lifecycle assessments are multi-parameter profiles of chemicals or materials that allow an organization to compare various aspects of a chemical in order to determine its suitability, and would be used for a risk assessment; however, there is no standardization of lifecycle assessment data. By inquiring into a product's supply chain, an organization can be assured that each material or chemical they use is safe and responsible. Purchasing power can be used to incentivize suppliers to increase their transparency and improve their processes.
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Industry Trends


Demand High to Refinance Housing Deals
Atlanta Business Chronicle (06/25/13) Hudson, Wes

Owners of aging affordable housing properties are hoping to accelerate the refinancing of their long-term loans at low interest rates. Market observers say 2013 should be another robust year for refinancing amid low interest rates, stronger banks, and stronger real estate markets. The majority of properties built with low-income housing tax credits in the 1990s have already reached the end of their 15-year compliance period. Year 15 is typically the time when the original limited partner in an LIHTC deal sells its equity stake in the partnership, and the general partner looks for a new source of capital, prompting high demand to refinance. Congress started increasing the volume of LIHTCs allocated annually in 2001, while in 2008, a change to the tax law made it easier for limited partners to leave the partnership before the end of the compliance period. Limited partners can now sell their interest in LIHTC property after they have received their 10 years of tax credits but before the property reaches its 15th year. Older affordable housing properties with Federal programs like Section 8 and using financing under Section 236 also want to benefit from low interest rates to take out new loans. Many lenders now offer 35-year amortizations to affordable housing borrowers, and the longer amortization periods reduce the amount of a loan’s monthly payments and enable larger loans.
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Association News


Affordable Housing Education Session Recordings
Now Available

If you did not attend the co-located NAHMA Summer Meeting - Public Policy Issues Forum, held in conjunction with the NAA Education Conference and Expo, you don’t have to miss the excellent education sessions that were presented in San Diego.

You can now purchase 21 video recorded and 20 Audio-synched PowerPoint sessions and view them online for only $199.99, a $100 savings for SHCM Designates only. Please enter the coupon code NAAEI199 at checkout to receive your SHCM discount.

If you’d like to purchase all 4 affordable housing sessions presented by NAHMA, they can be purchased for $89.99. Or, you can purchase each of the following sessions for $29.99.

Session 1: NAHMA Presents Connecting the Trends: Impacts of the New Fiscal Reality on Affordable Housing
Industry experts analyze driving trends in the economics of providing affordable multifamily housing, and help attendees understand and prepare for this new reality. Key discussion areas include: a) Federal budget cuts will be on the horizon for a while, and will impact all programs; b) As a result of reduced Federal spending, there will be changes in State and local government approaches to affordable housing; c) To survive, property management companies will need to find operational changes and solutions to save money; and, d) There will be changes in preservation and production strategies as a result of across-the-board reduced resources.
Speakers: Greg Brown, National Apartment Association; Nicolo Pinoli, Novogradac & Company LLP; Jerry Lohla, San Diego Housing Commission; Ann Kern, San Diego Housing Commission

Session 2: NAHMA Presents Innovative Technology and Green Solutions in Affordable Housing
Industry experts present and analyze innovative technology and green solutions for improved operations and cost-savings in affordable multifamily housing. Attendees will learn tried-and-true approaches to maximize innovative, cost-effective and efficient solutions. Key discussion areas will include: a) The Top 10 easiest, cheapest and most effective technology solutions for affordable multifamily housing; b) The Top 10 easiest, cheapest and most effective green solutions for affordable multifamily housing; c) Cutting-edge technology and green solutions – is it hype or real savings for some of these trendy solutions? d) Tracking and measuring your ROI.
Speakers: David Durik, Indatus; Michael Miller, American Utility Management; Mark Morgan, Interstate Realty Management; and Robert Robinson, LEED AP BD+C; Federal Practice Group, LLC

Session 3: NAHMA Presents Inspiring New Directions in Providing
Niche Affordable Housing
Industry experts present and analyze new trends in affordable housing, specifically finding niche programs and serving vulnerable populations. Attendees will learn about new funding and programs for specialized programs and populations. Key discussion areas will include: a) Veterans – an overview of programs and key factors in serving returning and homeless veterans; b) Vulnerable populations – a look at programs focusing on transitional age use (persons aging out of foster programs) and supportive housing for homeless and special needs residents; c) Senior housing – a discussion of emerging trends and programs, factors to consider for frail elderly, aging baby boomers, and other senior housing issues; and d) Workforce housing – a look at the housing and transportation affordability index, mixed-income housing, and other key current issues.
Speakers: Nancy Bills, Biltmore Properties, Inc.; Kelly Boyer, Preservation Partners Development, LLC; Emily Cadik, Enterprise Community Partners; and Gianna Solari, Solari Enterprises, Inc.

Session 4: NAHMA Presents Connecting the Trends: Case Studies in Innovations in Affordable Housing
Industry experts present case studies showcasing the key concepts from NAHMA’s earlier sessions during the conference, including new trends resulting from today’s fiscal realities, innovative technology and green solutions, and inspiring new directions in providing niche affordable housing. Attendees will learn real and practical applications of all of the latest emerging trends impacting affordable multifamily housing across the country.
Speakers: David A. Smith, Recap Real Estate Advisors; Joel John Roberts, Path Partners; and Michael Martinez, McCormack Baron Ragan Management Services

For more details, click on the link below.
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NAAEI Webinar Wednesdays

Join NAAEI, Apartment All Stars and Multifamily Insiders for Webinar Wednesdays, the largest premium webinar series in the industry with access to industry thought leaders to discuss innovative ideas, best practices and emerging industry trends. Registration is $29.99 per webinar or $39.99 for a monthly subscription.

7/24/13 - Rommel Anacan - Dollars and Rents: How to Help Your Teams Navigate Residents Through the Changing Rental Market

8/7/13- Anne Sadovsk - What's New and What's Hot in Fair Housing

8/21/13 - Stephanie Graves - How To Make Your Residents Work For You - Resident Referral Ideas That Work

9/4/13 Mike Whaling Get Yours Wheels Turning! HOW TO: Apply and Measure the “Hub-and-Spoke” Model of Online Marketing to Apartment Marketing

9/18/13 - Eric Broughton - Beyond Craigslist

10/2/13 - Paul Rhodes - Tricks of the Trade: Maintenance

10/23/13 - Lisa Trosien - No Tech, Low Tech, High Tech Marketing Strategies

11/6/13 - Terri Norvell - The Formula for Extraordinary Leasing Success

11/20/13 - Stepnahie Graves - The Office Personnel's Guide to Maximizing your Maintenance Team

12/4/13 - Erica Campbell - Reputation Management: Converting One's Negativity into your Opportunity

12/18/13 - Kate Good - Your 2014 Marketing Playbook

For more details, click on the link below.
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NAHMA Announces 2013 Affordable 100 List

The National Affordable Housing Management Association (NAHMA) recently announced the release of the NAHMA Affordable 100, a list of the 100 largest affordable multifamily property managers, ranked by affordable unit counts. The list is available at NAHMA’s website (see link below).

NAHMA would like to extend its sincere thanks to the NAHMA Survey Task Force, without whose hard work and support this survey would not be possible. In particular, sincere appreciation goes to Task Force Chair John Yang of RentalHousingDeals.com, and task force members, Janel Ganim, Property Solutions; Jed Graef, MRI Software; Dave Layfield, ApartmentSmart.com; Mark Livanec, Yardi; Lori Russell, RealPage; Gustavo Sapiurka, RealPage; and Shari Smith, Choice Property Resources, Inc. For more details, click on the link below.
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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.
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July 2013