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SHCM Blended Learning: Brush up on Your LIHTC Program Knowledge, or Earn the SHCM Certification Entirely Online
Back by popular demand, NAAEI and NAHMA will be offering the SHCM Blended Learning Course each Thursday in September. The course is broken up into four webinar sessions. Each webinar will last approximately two hours, followed by a question-and-answer session for attendees.
The schedule for this course is as follows:
Thursday, September 5, 2013, 12:00 -3:00pm (EST)
Thursday, September 12, 2013, 12:00-3:00pm (EST)
Thursday, September 19, 2013, 12:00-3:00pm (EST)
Thursday, September 26, 2013, 12:00-3:00pm (EST)
The cost for the course, including the SHCM exam and SHCM Application fee, is $599; NAAEI designates will receive a $50 discount for the entire course. Individual webinars can be purchased at $99 each. Material for the webinar is based on NAHMA’s "Practical Guide to Tax Credit Housing Management" workbook. Participants will receive course materials in a pdf format prior to the first webinar session. To register, please click on the link below.
Tax Issues and Tax Reform
"Tax Credits Help Save Low-Income Neighborhoods"
"How Will Tax Credits Fare With a Blank Slate?"
Congress
"Cantwell Introduces Bipartisan Bill to Bolster Construction of Affordable Housing"
State and Local Activities
"Report Finds a City Incentive Is Not Producing Enough Affordable Housing"
"Texas OKs Historic Tax Credit"
"Section 8 Housing Cuts Affecting Maine Landlords"
Green Building
"Building Green Increases Demand for Traditional Materials"
Rural Development Related Activity
"37 Rural Reasons to Save LIHTCs"
Industry Trends
"The Interest Rate Surge and Its Impact on Multifamily"
Association News
It's Not Too Late to Order the Affordable Housing Education Session Recordings!
NAAEI Webinar Wednesdays
NAAEI Announces "CAMnesty" Program
NAHMA Announces 2013 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Tax Issues and Tax Reform
Tax Credits Help Save Low-Income Neighborhoods
Philadelphia Inquirer (08/19/13) Frishkoff, Andrew
Andrew Frishkoff with the nonprofit Local Initiatives Support Corp. writes in a commentary that the once-decrepit neighborhood of Eastern North Philadelphia has been revitalized partly thanks to a pair of critical federal tax-credit programs. One program is the low-income housing tax credit, which presently supports 90 percent of affordable housing development across the country, and the other is the new-markets tax credit, which encourages investments in businesses, real estate projects, and facilities such as health clinics, charter schools, and child-care centers in low-income communities. The housing credit has helped Asociacion Puertorriquenos en Marcha and other groups to construct, fix, and preserve hundreds of new homes that are affordable to low-income families in Eastern North Philadelphia. Meanwhile, the Treasury Department estimates that the new-markets credit has funded at least 3,500 businesses and real estate projects in low-income neighborhoods. However, congressional efforts to revamp the tax code and remove deductions and credits could lead to an unraveling of such incentives, Frishkoff warns. "It would be tragic to eliminate programs whose long-term benefits far outweigh their costs—in this case, bringing much-needed capital and jobs to communities that most investors have deserted," he emphasizes. "Thanks to the credits and the projects they support, property values have risen and disposable incomes have jumped in the targeted neighborhoods, all while the tax base has expanded and communities have become safer, healthier places to live and work." Frishkoff says Congress must carefully consider "programs that truly grow our economy, the ones that positively impact the health and wealth of our communities and help low-income families pull themselves up into the middle class" as tax reform moves forward.
How Will Tax Credits Fare With a Blank Slate?
Novogradac Journal of Tax Credits (08/13) Vol. 04, No. 8
As lawmakers mull ways to reform tax code, Sens. Max Baucus (D-Mont) and Orrin Hatch (R-Utah) have proposed to put all tax provisions on even footing. Senators were given until July 26 to submit proposals to be considered during the crafting of the Senate Finance Committee's bill. Legislators were asked to provide detailed specifications on what they want to retain in addition to legislative language, if possible. Each tax credit will be added back to the tax code only if enough senators make a compelling case for it. Sens. Baucus and Hatch indicated they will give special attention to proposals that are bipartisan. As a result, advocates of various tax expenditures, including the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic tax credit (HTC), and investment tax credit (ITC), spent significant time reaching out to Senators in July to make a case for retaining those provisions during tax reform. When Congress reconvenes in September, the Senate Finance Committee is anticipated to hold a series of hearings and a mark-up of the draft language that is being developed now. Meanwhile, such groups as the ACTION campaign, the Housing Advisory Group, and the New Markets Tax Credit Coalition have drafted template letters that can be used to write letters to senators and representatives. It may also be worthwhile to invite lawmakers to tour a tax credit property in their district.
Congress
Cantwell Introduces Bipartisan Bill to Bolster Construction of Affordable Housing
RealEstateRama (08/05/2013)
U.S. Senator Maria Cantwell (D-WA) on Aug. 4 introduced a bipartisan bill along with 20 colleagues to bolster investments in affordable housing developments and the construction jobs that they support nationwide. Cantwell's legislation – the Improving the Low Income Housing Tax Credit Rate Act (S. 1442) – would improve the existing LIHTC program to provide greater certainty for new housing construction. Cantwell's legislation would eliminate the floating rate used by the LIHTC program and make permanent a 9 percent minimum rate for new projects and 4 percent rate for acquiring existing housing. The LIHTC rate is currently linked to federal borrowing costs – which vary — making the financing of affordable housing less predictable. "This bill supports a proven job creating program that means 95,000 jobs a year across the country," said Cantwell. "The Low Income Housing Tax Credit is a win-win for our communities: It leverages private capital to invest in new jobs and new housing in our communities. This legislation will improve the tax credit for years to come." Cantwell's bill would end the floating credit rate, which makes the cost of project development increasingly unpredictable.
State and Local Activities
Report Finds a City Incentive Is Not Producing Enough Affordable Housing
New York Times (08/15/13) Navarro, Mireya
A New York City affordable housing program has generated less than 2 percent of all apartments developed in the city since 2005, according to a new report from the office of City Councilman Brad Lander and the Association for Neighborhood and Housing Development. The 2,700 permanently affordable units generated under the inclusionary zoning policy are not enough, according to Lander, affordable housing advocates and some mayoral candidates, and they have called for the city to require developers to build more affordable units. An optional program, inclusionary zoning allows developers of market-rate housing to build more units than would normally be allowed when neighborhoods are rezoned for new development, as long as they make 20 percent of the new homes affordable. "People are desperate for affordability, and there's a mismatch between the anxiety people have and the policy tools that are available," says Lander, a low-income housing advocate and a former director of the Pratt Center for Community Development. With a mandatory program, 50,000 additional affordable units could be built over 10 years, says Bill de Blasio, the city's public advocate. Participation in the program declined during the economic downturn, but developers are showing more interest of late, according to officials with the Department of Housing Preservation and Development.
Texas OKs Historic Tax Credit
Apartment Finance Today (07/13) Anderson, Bendix
In Texas, the rehabilitation of certified historic structures placed in service on or after Sept. 1 will be eligible for the state’s new historic tax credit. Texas Gov. Rick Perry signed a law on June 14 that provides a tax credit equal to 25 percent of eligible costs and expenses incurred in a certified rehabilitation that totals more than $5,000. The tax credit may be applied against franchise tax obligations starting on Jan. 1, 2015. State historic tax credits can be transferred several times, and unused credits can be carried forward on up to five consecutive franchise tax reports. Entities that pay Texas franchise taxes can claim the credit by first applying to the Historical Commission to certify their rehabilitation. A state sales tax exemption on labor is also available for work to buildings listed in the National Register of Historic Places. County and local taxing authorities may grant property tax exemptions for buildings with state or local historical designations. A federal historic rehabilitation tax credit has also been a key tool in preserving landmark buildings. Developers in many cases use state and federal credits to finance the conversion of buildings into affordable housing.
Section 8 Housing Cuts Affecting Maine Landlords
Maine Public Broadcasting Network (08/05/13) Porter, Tom
In Maine, more than 30,000 households are eligible for Section 8 Housing vouchers due to their low-income status. However, the program faces a funding crisis due to federal spending cuts linked to sequestration. At the same time, people now residing in Section 8 housing may see the value of their vouchers reduced, in some cases by nearly $100 a month. Some landlords have been asked by their local housing authority to consider rent reductions for Section 8 tenants, which may prompt landlords to stop renewing leases of their Section 8 tenants, suggests Brit Vitalius, president of the Southern Maine Landlords Association. Bill Marceau, a landlord in western Maine managing 200 properties, says there is less incentive now for landlords to take on Section 8 tenants than there was when the program was fully funded. Denise Lord with state housing authority MaineHousing says the agency lost roughly $1.3 million in federal funding this year due to sequestration, and is examining what it needs to do to stay within funding levels. MaineHousing administers rental assistance to those communities not covered by local housing authorities.
Green Building
Building Green Increases Demand for Traditional Materials
Forbes (07/30/13) Hicks, Jennifer
The global market for green construction materials is expected to grow from this year's peak of $116 billion to more than $254 billion by 2020, according to a report from Navigant Research. Europe is expected to lead the green construction wave, making up about half of the market by 2020. Recognizing the cost-effectiveness of green building techniques creates more demand for green building projects. Navigant's Eric Bloom says building materials that are bio-based, quickly renewable, use less energy, and create less carbon, such as timber structures and cladding, straw-bale construction, lime renders and mortars, cellulose insulation, bamboo flooring, and natural mineral and fiber floor coverings are gaining popularity. Materials science innovation also is creating more versatile and affordable green building materials, such as photovoltaics, thermochromic and electrochromic glass and windows, heat-exchange systems, and electronically controlled drives and motors. Wood is emerging as a green construction material, and in Finland, Rakennusliike Roponen is building the largest wooden apartment block with 181 apartments in seven stories.
Rural Development Related Activity
37 Rural Reasons to Save LIHTCs
Affordable Housing Finance (08/13)
Advocates for rural affordable housing are making sure federal lawmakers understand the value of the federal low-income housing tax credit (LIHTC) program as Congress considers comprehensive tax reform. The LIHTC program, which began in 1986, is the most important program for generating new affordable housing in rural areas. On Aug. 13, Rapoza Associates released a report demonstrating the success of LIHTCs in rural areas through 37 detailed case studies of successful LIHTC rural properties, organized by state and Congressional district. Since the program's inception, LIHTCs have been used to develop and preserve more than 7,600 rental housing communities in rural America, or more than 270,000 units of housing, according to the report. Developers who create and preserve affordable housing in rural areas obtain nearly half of their financing from LIHTCs, according to a recent survey of National Rural Housing Coalition (NRHC) members. "The data and outcomes in this report demonstrate the effectiveness of LIHTC, which we hope will help inform policymakers as they proceed with tax reform efforts," said Peter Carey, president and CEO of Self-Help Enterprises in Visalia, Calif., and NRHC board member, in a statement. Rapoza Associates' collection of case studies was prepared in partnership with five NRHC members, including Self-Help Enterprises, Coachella Valley Housing Coalition, Peoples’ Self-Help Housing Corporation, South County Housing, and Community Housing Improvement Program of California.
Industry Trends
The Interest Rate Surge and Its Impact on Multifamily
Housing Finance (08/18/13) Berton, Brad
Over a two-month period, mortgage rates rose a full percentage point, triggering concerns among apartment professionals. From early May to early July, the benchmark 10-year Treasury yield increased by more than 100 basis points, from about 1.6 percent to more than 2.7 percent. At the same time, lender spreads have also broadened over the course of the year. Certain borrowers may adjust by using various strategies, such as opting for floating-rate debt over fixed, using five-year loans instead of 10-year mortgages, or choosing interest-only periods over full-term amortizations. “If we see more pressure on all-in coupons, it’s going to affect the private high-leverage investor’s ability to buy at prevailing cap rates,” observes Elliott Throne at HFF. Conversely, however, “the low-leverage investors stand to benefit from the movement in rates, because it will eliminate some of the competition from buyers who have been able to bid so aggressively” under the ultra-low–rate environment, he says. As for active apartment lenders, Fannie Mae and Freddie Mac’s mandate to reduce balance-sheet exposure and reduce originations will help create more opportunities for other players, experts suggest. It is unlikely there will be significant upward movement in mortgage rates through the balance of the year and into 2014. Moreover, the bond market is aware that the Fed is likely to relax its "quantitative easing” and allow for general interest-rate escalation as the job market improves, likely spurring renter demand.
Association News
It's Not Too Late to Order the Affordable Housing Education Session Recordings!
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 four 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.
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.
9/4/13 - Mike Whaling: Get Your 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
Click on the link below for more details.
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, 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.
To learn more about CAMnesty, click on the link below.
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.
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.
Abstract News © Copyright 2013 INFORMATION, INC.
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