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Announcements
NAAEI’s Certificate for Apartment Maintenance Technicians (CAMT) Earns ANSI Accreditation
On June 23, 2010, NAAEI received notification that it’s Certificate for Apartment Maintenance Technicians (CAMT) program had been accredited by the American National Standards Institute (ANSI), a private non-profit organization that administers and coordinates the U.S. voluntary standardization and conformity assessment system.
ANSI accreditation means that a neutral, third-party attests that the Certificate for Apartment Maintenance Technicians (CAMT) meets the rigorous standards they have set for organizations that issue education and training certificates to U.S. workers and that the CAMT program promotes better educated and qualified apartment maintenance technicians.
Already, ANSI accreditation has proven beneficial. In Jacksonville, FL, the Construction Trade Qualifying Board (CTQB) recently approved the ANSI accredited CAMT program as meeting the
appropriate competency requirement for its Property Maintenance Craftsman (PMC) licensure. The Board felt that the integration of standardized training will result in a better qualified workforce, increase participation and compliance by the property maintenance community and be a cost effective, progressive and sustainable regulatory model for the CTQB. Prior to the adoption of CAMT, PMC licensure required maintenance technicians to take an exam that had little relevance to the scope of work they actually performed on the job.
Since NAAEI received ANSI accreditation for CAMT, more community and technical colleges and construction trade training organizations have expressed interest in offering CAMT. ANSI accreditation should help NAAEI develop the pipeline of maintenance talent that the rental housing industry so desperately needs.
To learn more about CAMT or to find a CAMT course near you, please click on the link below.
Headlines
Association News
National Apartment Leasing Professional (NALP) Goes Online
Specialist in Housing Credit Management Webinar Coming Soon
Bed Buginar Coming Soon
Transition to R-410A Webinar Coming Soon
NAHMA Offers Tax Credit Housing Management Publication
Industry News
"Affordable Housing Lenders to Focus on Preservation Deals in 2011"
"Syndicators Report Improved LIHTC Market"
"What's Next for Financing Affordable Rental Housing?"
"Affordable Rental Housing Overlooked Amidst Foreclosure Crisis"
"Investors Show Increased Interest in Bond Deals"
"U.S. Role at Heart of Housing Debate"
"Bad Economy Hampers Efforts to Improve Housing"
"Fannie Mae, Freddie Mac Losing Political Support as U.S. Reshapes Housing Finance System"
"No More 'Slum, Slumming' for Section 8 Recipients"
"Bronx Sees Affordable Housing Surge"
"Google Creates $86 Million Fund for Low-Income Housing"
"Study Shows Economic Impact of LIHTC Development Along Transit Corridors in Metro Denver"
"HUD Wants to Green Low Income Housing"
"Stalled Legislation Puts Tax Credits in Limbo"
"Property Compliance Newsbriefs"
"Family-Size Apartments in Urban Areas Could Help Smart-Growth Communities"
"Expanded Roundtable: HFA Executives Assess Equity Scene"
"Making It Work"
Association News
National Apartment Leasing Professional (NALP) Goes Online
On October 1, NAAEI’s NALP Online Course will take advantage of the online medium to create an engaging, effective learner experience. Leasing professionals who enroll in NALP Online learn primarily by practicing real-life skills in a simulated, immersive environment, where they are provided with online coaching and feedback. The course will:
• Follow an interactive scenario-based approach that engages and challenges learners;
• Focus on applied skills training rather than solely on facts and information, thus truly preparing students for the job of a leasing professional; and
• Enhance the current NALP classroom content by adding up-to-date social media and interactive content, including vendor internet-base programs.
The course includes over 12 hours of highly-interactive, engaging, realistic training, covering the following modules:
1. Keys to Success in Leasing
2. Telephone Presentations
3. Leasing and the Internet
4. The Leasing Interview and Qualifying Residents
5. Leasing Demonstration and Resolving Objections
6. Rental Policies and Procedures
7. Legal Aspects
8. Market Survey
20% Discount During October: During the month of October, those who enroll in NALP Online will receive a 20% discount. The entire course, which usually sells for $299, will cost $232. $39 modules will sell for $31. To enroll click on the link below.
Specialist in Housing Credit Management Webinar Coming Soon
“Key Housing Credit Compliance Issues”
When: Wednesday, November 3, 2010, at 2 p.m. ET (the program will last approximately 90 minutes)
Registration details:
The live Webinar is being offered free of charge to SHCM certified professionals (your registration will be verified via the SHCM certificant database). To qualify for free registration, SHCM certificants must be current in their annual renewal requirements.
For all other non-SHCM professionals, the registration fee is $75.
SHCM Members (FREE) - Register Online (click below)
Featuring Three Experts:
Anita Moseman, FHC, SHCM, NAHP-H
Vice President, Monfric, Inc., Clifton, CO
LIHTC Trainer, Housing Credit Productions
Gianna Solari, SHCM, NAHP-e
Vice President, Operation, Solari Enterprises, Inc., Orange, CA
LIHTC Trainer, Housing Credit Productions
Greg Proctor, SHCM, NAHP-e
President, Windsor Group, LLC
LIHTC Trainer
The Webinar will provide an hour of instruction, followed by about 30 minutes Q&A (presenters providing verbal answers to written questions from the audience).
Bed Buginar Coming Soon
In partnership with Orkin, NAAEI hosts “Bed Bug-inars” on how to prevent and identify bed bug infestations, as well as what to do if bed bugs are found in an apartment.
Who Should Attend: Onsite Property Managers, Leasing Consultants, Maintenance Professionals, Regional Managers, Corporate Executives and Legal Professionals
When: October 13, 2010 at 2 p.m. ET. Register Online (click below)
Cost: $69 members and $89 for nonmembers (SHCM designates register at member rate)
Speaker: Orkin's Director of Technical Services, Dr. Ron Harrison
Topics will include:
• Introduction to Bed Bugs
• Resident Responsibilities
• Prevention
• What to do in the event of a Bed Bug sighting
• How to work with residents
• How to avoid litigation
Downloadable resources will be made available to attendees. NAAEI Designates and Certificate Holders will earn one CEC/PDA for attending this Webinar.
Transition to R-410A Webinar Coming Soon
In partnership with Wilmar, NAAEI will host Webinars on the HVAC industry’s transition from Refrigerant R-22 to R-410A.
Who should attend: Maintenance Supervisors, Onsite Maintenance Personnel and Owners/Managers
When: November 8, 2010 at Noon ET - Register Online (click below)
The Webinar is expected to last one hour, plus time for Q&A.
Cost: $69 for NAA members and $89 for non-members. (SHCM designates register at member rate)
Speaker: Wilmar’s National Trainer Tom Sadley
Topics will include:
• Overview of the changes and EPA Regulation
• How repairs can be made
• Operation of the new equipment and what it will mean for existing equipment
• Installation of new equipment
• Impact on your current budget
• Suggested implementation practices
Downloadable resources will be made available to attendees. NAAEI Designates and Certificate Holders will earn one CEC/PDA for attending this Webinar.
NAHMA Offers Tax Credit Housing Management Publication
The comprehensive "A Practical Guide to Tax Credit Housing Management" is available from NAHMA. The 74-page spiral-bound book is an informative yet easy-to-read primer on tax credit housing management.
The user-friendly guide will help you understand key concepts in the Low Income Housing Tax Credit (LIHTC) program, including Fractions and Credits, Eligible Basis, Qualified Basis, Minimum Set-Aside, Rules of Calculation of Income, Student Households, Amenities and Services, Non-Transient Occupancy, and more.
In addition, the book is designed as a referencew guide for the Specialist in Housing Credit Management® (SHCM®) certification. The SHCM program is unprecedented as the only national certification program supported by three national trade associations and their members. Joining NAHMA in the strategic alliance are the National Apartment Association Education Institute (NAAEI) and the American Association of Homes and Services for the Aging (AAHSA).
“As experienced affordable housing management professionals know, the tax credit program is the primary production tool for creating new affordable housing properties across every state in the country, and it is also the most important tool for rehabilitating and preserving the nation's existing stock of aging affordable housing,” said NAHMA President Daniel Murray, NAHP-e. “To maximize their careers, management professionals in the affordable housing industry must be able to demonstrate their experience and expertise in mastering the complex requirements of the tax credit program.” The publication can be ordered at NAHMA’s webstore via the link below.
Industry News
Affordable Housing Lenders to Focus on Preservation Deals in 2011
Apartment Finance Today (09/10) Ascierto, Jerry
Fannie Mae and Freddie Mac, along with the Federal Housing Administration, are adjusting their underwriting to capture the wave of expiring Section 8 and tax-credit properties expected over the next few years. "The focus on 2011 from a market perspective is on preserving the affordability of existing units," says Bob Simpson, vice president of multifamily affordable lending within Fannie Mae's Housing and Community Development division. "There's a tremendous preservation market opportunity out there that we think is only going to grow over the next five years." FHA's underwriting changes give the most favorable treatment to projects with 90 percent or more of rental assistance. Freddie Mac, meanwhile, is now allowing properties with long-term Section 8 contracts, and loan terms of 10 years or more, to use above-market Section 8 rents when sizing a loan. Capital providers see preservation deals as taking governmental risk rather than real estate risk.
Syndicators Report Improved LIHTC Market
Affordable Housing Finance (09/10) Kimura, Donna
A higher volume of low-income housing tax credit (LIHTC) equity triggered a better-than-expected first six months of 2010 for many tax credit syndicators. For builders, that means prices will go up or, at the very least, remain steady through December, according to a survey of 17 U.S. and regional syndicators. Between April and June, the average price paid per dollar of credit was $0.71, according to Affordable Housing Finance's mid-year poll, an increase of approximately 3 percent from the $0.69 average in late 2009. Developers witnessed an even larger increase in the leading CRA markets. The syndicators who participated in the survey raised a capital sum of $3 billion in the first half of 2010. The higher pricing is linked to heightened investor demand. As corporate profits rebound, companies have more discretionary funds to invest in tax credits. New investors lured by strong returns have also entered the market. Yields distributed to investors in the second quarter averaged 10.5 percent, the survey found. A third factor, the recent Tax Credit Exchange Program, which allowed developers to exchange unused credits for cash, wiped a good number of LIHTCs off the market. "In 2010, there is substantially more equity in the market and a shortage of available deals, causing an increase in credit price and a reduction in investor returns," said Raoul Moore, senior vice president of syndication at Enterprise Community Investments, Inc.
What's Next for Financing Affordable Rental Housing?
Bank Loan Report (09/20/10) Vol. 34, No. 50, P. 4 Deyo, Thomas; Ferguson, Frances
For developers of affordable rental housing, the Low Income Housing Tax Credit (LIHTC) and other tools are becoming less efficient in the absence of key investors like Freddie Mac and Fannie Mae. It is now necessary to think about new ways to secure additional financing similar to those used by the private sector development market. This includes the concept of enterprise-level financing rather than project-level financing. Experts agree that it is essential to invest in the nonprofit itself in addition to the housing project. It is also necessary to have a standardized way of accounting for and assessing owners of affordable rental housing portfolios. To this end, the Housing Partnership Network, NeighborWorks America, and Stewards of Affordable Housing for the Future launched an initiative called Strength Maters in 2009. Funded by the John D. and Catherine T. MacArthur Foundation, Strength Matters seeks to form a standardized and transparent reporting model that enables investors to better compare investments and underwrite them. Ideally, the amount of permanent capital will increase, although the cost of capital will vary because some investors will seek below-market rates of return while others will look for market-based returns.
Affordable Rental Housing Overlooked Amidst Foreclosure Crisis
Mortgage News Daily (09/20/10) Quinones, Adam
Though the mortgage crisis and foreclosure rates continue to dominate the headlines, big gains in the multifamily housing sector are quietly slipping under the radar, asserts David Stevens, commissioner of the Federal Housing Administration (FHA). Programs run by the FHA's Office of Multifamily Housing are seeing record-breaking levels of business volume, because FHA funding is an increasingly attractive avenue for developers of both market-rate and subsidized rental homes. In fiscal year 2008, the Office endorsed 457 loans for the development of approximately 49,000 rental housing units totaling $2.46 billion, while in 2009 they issued 456 loans for 58,000 units, totaling almost $3.40 billion. For the 2010 fiscal year ending Sept. 9, 2010, the Office of Multifamily Housing oversaw the endorsement of 888 loans, an increase of 95 percent over the previous year. Nearly 148,000 housing units will be constructed from the projects insured so far this year, which is over two-and-a-half times as many as were insured in 2009. The FHA predicts the total amount insured for 2010 will exceed $10.2 billion, a three-fold increase over 2009.
Investors Show Increased Interest in Bond Deals
Novogradac Journal of Tax Credits (09/10) Hill, Jennifer
The 4 percent low-income housing tax credits (LIHTCs) associated with bond-financed developments represent a growing share of LIHTC investments, according to banks and attorneys. The activity level of 4 percent LIHTC investments is still low compared to their 9 percent counterparts, but 4 percent credits remain attractive to investors who need to meet Community Reinvestment Act requirements. "Every syndicator is looking at bond deals this year and has a limited appetite for them," says Erik Hoffman, an attorney at Klein Hornig LLP. He estimates that 4 percent credit pricing in urban markets has risen to the low 80 cents, up from roughly 70 cents in 2009. PNC Real Estate provided approximately $400 million in LIHTC equity in 2009, of which an estimated 15 percent went to 4 percent credits, says Todd Crow, the firm's vice president and manager of tax credit capital. Crow anticipates that PNC will close about $650 million in LIHTC investments in 2010, with 4 percent LIHTCs comprising about 20 percent of the total. Meanwhile, because Citi Community Capital focuses on major urban areas, the company tends to see more 4 percent action than typical investors, says managing director Andrew Ditton. He says Citi invested in more 4 percent credits this year than in 2009, but the bank's numbers have been impacted by a $210 million investment the bank provided in a major deal with the New York City Housing Finance Agency in March 2010.
U.S. Role at Heart of Housing Debate
Washington Post (DC) (08/18/10) P. A9 Goldfarb, Zachary A.
At a recent conference on housing finance reform, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan said the government's role in the housing market must shrink. Some Obama Administration officials noted the reform plan could rely more on private firms to provide funding for house loans, but a government backstop for the loans could still apply. This concept differs from participant proposals that range from complete nationalization of Fannie Mae and Freddie Mac to complete privatization of the housing finance market. The consensus from the summit is that Fannie and Freddie should be maintained as heavily regulated firms that offer government guarantees to investors in high-quality mortgage loans. This model would enable the firms to charge mortgage originators a fee for the guarantee, and the fee would partially cover mortgage investments that incur losses. Meanwhile, the conference emphasized a new administration push for rental housing. Donovan said, "It means ensuring that financing is available for those who will build the rental housing that we need to provide choices for those families for whom homeownership may not be the best option."
Bad Economy Hampers Efforts to Improve Housing
Chronicle of Philanthropy (08/07/10) Wallace, Nicole
One of the key obstacles for the Gulf Coast region is the lack of low-cost housing. "The one tool you were given that could advance the cause became unusable," says Kathy Laborde, president of the Gulf Coat Housing Partnership, referring to low-income housing tax credits (LIHTCs). The federal government allocated $323-million in LIHTCs in the wake of Hurricane Katrina to Alabama, Louisiana, and Mississippi, but the market for those tax credits declined significantly due to the worldwide financial crisis. Many projects had to locate other sources of funding after housing organizations received less per dollar in credits than they had anticipated. The market for tax credits started improving in 2010, but the tax credits that were allocated required that housing projects be completed before the end of 2010. "You can't go ahead and close on these deals and begin construction because you can't guarantee that you're going to be done by December," observes Jim Kelly, co-president of Catholic Charities Archdiocese of New Orleans and head of a charity called Providence Community Housing. An amendment to extend the completion requirement to the end of 2012 has been included in multiple bills, but none have yet been passed by Congress. Without such an extension, some 6,200 units of housing are at-risk across the region.
Fannie Mae, Freddie Mac Losing Political Support as U.S. Reshapes Housing Finance System
Washington Post (DC) (08/07/10) P. A8 Goldfarb, Zachary A.
With the bailout of Fannie Mae and Freddie Mac during the 2008 financial crisis, the Obama Administration and Congress are under increasing pressure to reform the $12 trillion U.S. mortgage market. Affordable housing advocates are pushing lawmakers to modify the housing finance system to beget more funding for rental housing, with funds siphoned from the profits of housing companies and charges paid by mortgage borrowers. National Low Income Housing Coalition Deputy Director Linda Couch says, "If we are going to have a strong housing market, any other financial institution that is generating revenue and is somehow backed by the federal government should have to do something that results in greater public benefit. The administration is not only clearly interested in preserving the affordable housing that we have but is open to other ways to expand inventory of units assisted with public dollars." However, some critics are concerned that having specific affordable-housing goals could distort the system and damage the overall financing market.
No More 'Slum, Slumming' for Section 8 Recipients
Wall Street Journal (08/02/10) Wotapka, Dawn
The dramatic shift in the housing market has landlords looking for renters who have some or all of their rent paid by the government. In Las Vegas and other hard-hit markets, Section 8 renters are able to negotiate lower rent, demand rental discounts mid-lease, and pick up freebies such as carpet scrubbing. Some Section 8 renters even have an opportunity to upgrade to the grandiose homes of the boom-era that have trickled down to the rental supply. Such homes once sold for hundreds of thousands of dollars and might have swimming pools, backyard barbecue grills, and walk-in closets. And some Section 8 renters are requesting everything from Jacuzzi tubs to parquet floors. Section 8 renters also have an opportunity to score newly built homes. "You can't go out and buy a property in a bad area and expect to [rent to] a Section 8 tenant anymore," says Richard Cupelli, president of GoSection8.com, which connects tenants and landlords. Mike Gonyea, head of Mike Gonyea Real Estate in Las Vegas, adds: "It's no longer slum, slumming."
Bronx Sees Affordable Housing Surge
Real Estate Finance and Investment (09/06/10)
The Bronx is experiencing a surge in development stemming from New York City's plan to create or maintain 165,000 affordable housing units by 2014. On top of the city's programs, developers are attracted to the Bronx because returns are higher than in other boroughs. "In Upper Manhattan, the average is a 7.2 percent cap rate," said Shimon Shkury, a partner at brokerage firm Massey Knakal. "If you look at the Bronx, it's closer to 8 percent." In the years prior to the financial meltdown, the Bronx experienced a wave new non-subsidized multifamily apartment and condominium development. "That stopped as the market deteriorated," Shkury said. The development now underway is either being financed by non-profit organizations or developers taking advantage of Low-Income Housing Tax Credits, he added. The successes of the programs are already materializing in some neighborhoods. When affordable housing developments begin popping up, especially in blighted neighborhoods, they tend to be the nicest property in the area and then other development soon comes in, said Ron Orgel, co-founder and managing director at Phoenix Realty Group.
Google Creates $86 Million Fund for Low-Income Housing
Black Web 2.0 (08/30/10) Smith, Sherri
Google has created an $86 million Low-Income Housing Tax Credit fund which will be a major source of funding for the construction of 480 rental housing units located in seven communities throughout the West and Midwest. The fund will be managed by U.S. Bancorp Community Development Corporation (USBCDC), a division of U.S. Bank. Brent Callinicos, Google vice president and treasurer, says, “In recent years there has been a void in affordable housing investment. Our investment with USBCDC allows us to further our goal of providing relief to people who otherwise may not have access to quality housing.” The housing will be earmarked for both low-income families and senior citizens.
Study Shows Economic Impact of LIHTC Development Along Transit Corridors in Metro Denver
Novogradac Journal of Tax Credits (09/10) Burdick, Josh
A new study indicates that affordable housing built with low-income housing tax credits (LIHTCs) in the Denver metro area helped create millions of dollars in local income, taxes, and local jobs. The study was commissioned by the Urban Land Conservancy (ULC) and Home Builders Association of Metro Denver and conducted by Elliot Eisenberg, senior economist at the National Association of Home Builders. Eisenberg examined the impact of building new LIHTC apartments in a 10-county Denver metropolitan statistical area (MSA), especially along transit corridors. The MSA included the counties of Denver, Adams, Arapahoe, Jefferson, Douglas, Broomfield, Elbert, Park, Clear Creek, and Gilpin. In the Denver metro area in 2010, a family of four earning 60 percent of area median income would have a household income of $45,540. The income and rent restrictions are enforced via a land use restriction agreement that is recorded against the property. Eisenberg estimated that the yearly recurring economic impact beyond the first year was $16.7 million in local income, $2.3 million in taxes and other revenue for local governments, and 192 local jobs. These results represented the effect of the new apartments being occupied, residents paying taxes, more property taxes being generated, and residents taking part in the local economy year after year. "The demand for affordable housing around transit stops will continue to grow and understanding the economic impact of building LIHTC housing near transit is critical for policymakers, housing advocates and other community leaders," asserts Aaron Miripol, ULC's president and CEO.
HUD Wants to Green Low Income Housing
Earth Techling (09/03/2010) DeFreitas, Susan
On Sept. 3, the U.S. Housing and Urban Development Department announced the first winners of energy efficiency grants under the American Recovery and Reinvestment Act's Green Retrofit Program for the Multifamily Housing program. The program makes $100 million for "green" renovations available to multifamily housing owners to reduce energy costs, reduce water consumption, and improve indoor air quality. The first grants will enable 100 affordable housing developments to renovate their properties; additional grants will be rolled out through Sept. 30. Upgrades, which can include replacing faucets and toilets and installing more efficient heating and cooling systems, are expected to save $33,000 per property in energy expenses per year and about $250 per renter.
Stalled Legislation Puts Tax Credits in Limbo
National Real Estate Investor (08/01/10) P. 76 Mattson-Teig, Beth
If Congress fails to extend the Tax Credit Exchange Program, both developers and investors will be impacted significantly. For investors, the situation has caused the delay of low-income housing tax credit (LIHTC) allocations, and fewer financially viable transactions have been produced, says Todd Crow at PNC Real Estate. Many in the industry believe that the legislation will not be extended as lawmakers seek ways to curb government spending. This has prompted states to change their tax-credit allocation plans. "It is just not clear what is going to happen, and how many of these transactions are going to be able to move forward and close," says Crow. "That has creating a scarcity of tax credits, and that is part of the reason that the investor demand feels so robust." On the development side, the Tax Credit Exchange Program is important because it allows qualified projects to swap housing credits for cash backed by government funds instead of having to sell tax credits to banks or insurance company buyers. The exchange program was launched in 2009 as part of the American Recovery and Reinvestment Act in response to the gap left by the departure of large investors like Freddie Mac and Fannie Mae. It is uncertain if legislation to extend the program will be reintroduced after Congress reconvenes in September.
Property Compliance Newsbriefs
Novogradac Journal of Tax Credits (08/10) Vol. 1, No. 8,
Supported by the National Multi Housing Council (NMHC), a June report from the Blanck Group suggests alternatives to current federal fair housing accessibility standards for multifamily housing. The report's areas of study included running and cross slopes; reach ranges relative to environmental controls; centering in kitchens and bathrooms; and methods of measurement. NMHC reports that findings from "Accessibility Standards for Multifamily Housing: Report on Approaches with Focus on Slope, Reach, Tolerance and Measurement" call into question the state of the science in the accessibility standards development area. The report recommends alternatives to the current standards, notably the use of tolerances in place of strict measurement protocols as defined in various safe harbors.
Family-Size Apartments in Urban Areas Could Help Smart-Growth Communities
Washington Post (DC) (08/28/10) P. E3 Lewis, Roger K.
Traditional families often have a difficult time locating apartments in urban areas that are large enough and affordable. Additionally, school quality becomes a concern that deters families from settling in urban locations. Smart-growth experts hope to change current trends that market urban apartments almost exclusively to people without families. Small, walkable communities with higher densities and access to transit, jobs, and affordable housing have focused primarily on people without children to reduce the need for additional schools and with the aim of increasing tax revenue benefits. More family-size units would require some counties to subsidize development by reducing the per-unit cost of land and providing tax breaks for developers and occupants.
Expanded Roundtable: HFA Executives Assess Equity Scene
Affordable Housing Finance (08/10) Kimura, Donna
In a roundtable on the equity market, Stephen Auger, executive director of Florida Housing, said the creative deployment of Tax Credit Assistant Program (TCAP) and Tax Credit Exchange Program funding was the best move the agency has made in the last 12 months. Tim Kenny, executive director of the Nebraska Investment Finance Authority, said his agency adopted a dynamic supply allocation model for its four low-income housing tax credit (LIHTC) programs, which helped to optimize the utilization of resources as applications for resources arrived. Doug Garver, executive director of the Ohio Housing Finance Agency, said TCAP and the exchange program helped get critical affordable housing projects moving in his state; while Kim Herman, executive director of the Washington State Housing Finance Commission, said the programs have delivered big time for affordable housing in his state as well. Susan Dewey, executive director of the Virginia Housing Development Authority, said the LIHTC market might be better in her state this year than in 2009; banks still find the state attractive for CRA purposes, and investors are very active, well-funded, and committed to the tax credit program. Auger says the biggest change Florida has made to its qualified allocation plan is to encourage development in certain geographic regions, but Kenny says Nebraska will make little change as possible to bring a sense of stability and predictability to the LIHTC community. Looking to the second half of the year, Garver says his biggest concern is making sure all projects in the pipeline move forward in Ohio, while Dewey cites the general state of the economy. Herman adds that Washington will learn whether or not its investment opportunities have resulted in actual and adequate equity commitments.
Making It Work
Apartment Finance Today (08/10) Shaver, Les
Workforce rental housing geared toward teachers, firefighters, and other professionals is less widely available compared to low-income housing. For instance, the Low Income Housing Tax Credit (LIHTC) is specifically meant for people earning less than 60 percent of area median income (AMI), while workforce housing usually covers people who earn between 60 percent to 120 percent of AMI. But Ten Fifty B is a 184-unit LIHTC project in high-cost San Diego developed by Affirmed Housing Group that serves workforce needs. Jim Kroger, a partner at Novogradac & Co., notes that, "Tax credits and bonds don't go over 60 percent levels. But I see some projects targeted at 60 percent AMI that don't hit 30 percent and 40 percent levels [targeted at the poor]." The usual drivers of workforce housing are the federal HOME Investment Trust Funds and Community Development Block Grants (CDBG) rather than LIHTC funds. City governments may also facilitate workforce housing by supplying space or land, but may have to adjust a development's AMI requirements based on a community's preferences. Workforce housing deals might also turn to soft second mortgages in the form of a cash flow mortgage or one that is below the market interest rate.
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