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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. Watch for the 2014 schedule of events coming out soon.
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
Tax Issues and Tax Reform
"Four Percent LIHTC Developments Take Advantage of Unusually Low Taxable Mortgage Rates"
IRS-Related Activities
"IRS Announces 2014 LIHTC, Bond Caps"
State and Local Activities
"Tax Credits Serve Vermont’s Very Low-Income Renters"
"Springfield Affordable Housing Projects to Get State Funding, as Gov. Deval Patrick Signs $1.4 Billion Housing Bond Bill"
"Advocates Say Subsidies for Developers Misdirected"
HUD-Related Activity
"Raleigh’s Affordable Housing Landlords Affected by Federal Cuts"
Green Building
"A Fresh Set of Grades Measures Energy Use in Residential Buildings"
Management and Compliance
"Moisture Control: How to Limit, Remediate Mold Exposure"
Association News
NAAEI Offers "CAMnesty" Program
Free Continuing Education Webinar with LIHTC Noted Experts Offered to SHCM Certificants
Are you looking for CEUs for your SHCM designation?
NAHMA 2014 Calendars Now Available For Purchase!
NAHMA Announces 2013 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Tax Issues and Tax Reform
Four Percent LIHTC Developments Take Advantage of Unusually Low Taxable Mortgage Rates
Novogradac Journal of Tax Credits (11/13) Vol. 04, No. 11 Gerwitz, Richard
Low-income housing tax credit (LIHTC) developers have been increasing their use of a new financing structure for the past two years that merges a taxable conventional loan with equity from 4 percent LIHTCs. At least 50 percent of a 4 percent LIHTC development’s aggregate basis must be financed with tax-exempt private activity bonds for the developer to secure the LIHTCs. The growing popularity of this structure can be attributed to high grade taxable rates that have been lower than comparable tax-exempt multifamily rates, GNMA’s bonds trading extremely tight to Treasury bonds, Freddie Mac and Fannie Mae aggressively seeking to finance low-income developments, and the Federal Housing Administration simplifying its approval process for certain loans. The hybrid structure was initially used only in connection with conventional FHA/GNMA loans, but pricing improvement at Freddie Mac and Fannie Mae has resulted in taxable loans from both agencies being combined with the short-term cash-backed bond financing structure. However, it only works effectively with the agencies' immediate funding programs rather than their forward loan programs. The short-term cash backed bond structure allows developers to secure an allocation of 4 percent LIHTCs and lock in the long-term rate available in the credit markets using either the FHA, Freddie Mac, or Fannie Mae conventional loan alternative. The developer needs to submit a private activity bond allocation request, and the agencies need to process the conventional loan request at the same time as the bond allocation request.
IRS-Related Activities
IRS Announces 2014 LIHTC, Bond Caps
Affordable Housing Finance (10/31/13)
The U.S. Internal Revenue Service (IRS) has published the low-income housing tax credit (LIHTC) and private-activity bond caps for 2014. The amount used to determine each state's LIHTC ceiling will be the greater of $2.30 multiplied by the state population or $2,635,000. This represents an increase from this year’s $2.25 multiplied by the population and the small state minimum of $2,590,000. The IRS also announced in Revenue Procedure 2013-35 that the private-activity bond cap will be the greater of $100 multiplied by the state population or $296,825,000. This is an increase from this year’s $95 multiplied by the state population or $291,875,000.
State and Local Activities
Tax Credits Serve Vermont’s Very Low-Income Renters
Affordable Housing Finance (11/01/13) Anderson, Bendix
Vermont largely consists of rural towns and small cities, and residents in the state who live in low-income housing tax credit (LIHTC) developments earn an average of 33 percent of the area median income (AMI). This figure is well below the 60 percent of AMI that is allowed under the program, according to an assessment by the Vermont Housing Finance Agency (VHFA). LIHTC units cannot serve residents who earn more than 60 percent of AMI, but the apartments can be rented to people earning much less than that provided developers can make the numbers work. The average household income of Vermont’s tax credit residents is $18,400, and half of residents are considered extremely low-income, or earning less than 30 percent of the AMI. Researchers are seeing similar findings nationwide. More than 40 percent of residents at communities financed with LIHTCs have extremely low incomes, according to an initial analysis by the Furman Center for Real Estate and Urban Policy at New York University. In Vermont, very low-income residents usually pay for their housing using some form of rental subsidy. Sixty-one percent of LIHTC residents in the state receive rental subsidies, according to VHFA. More than 5,300 units of housing financed by LIHTC are occupied by 9,300 people, or 6 percent of all the renters in Vermont. VHFA does not allow its competitive 9 percent LIHTC to be used to build age-restricted housing for seniors unless the property provides extensive service that justifies the subsidy.
Springfield Affordable Housing Projects to Get State Funding, as Gov. Deval Patrick Signs $1.4 Billion Housing Bond Bill
The Republican (MA) (11/14/13) Schoenberg, Shira
A $1.44 billion housing bond bill signed by Massachusetts Gov. Deval Patrick will underwrite improvements to existing public housing and the development of new affordable housing and housing for disabled people, while another $73 million in subsidies and tax credits will be funneled toward specific affordable housing projects, including two in Springfield. The bill invests $500 million over five years for grants for renovating and modernizing housing authority buildings. It also reserves $140 million to help people with disabilities access appropriate housing via loans or subsidies to let homeowners modify their homes for accessibility and through loans to develop community-based housing for individuals with mental illness and other handicaps. In addition, $440 million is deposited into trust funds used to construct affordable housing for low and moderate income households. More money goes toward developing state-assisted multifamily developments, building residential and mixed use development in commercial areas, and other housing-related efforts. Also included in the bill is $45 million to enhance facilities that house early education and after-school activities for low-income kids.
Advocates Say Subsidies for Developers Misdirected
Wall Street Journal (11/04/13) Barbanel, Josh
Developers in New York City are increasingly building housing intended for residents with middle or low incomes. More than 500 subsidized apartments under currently under construction or planned. Developers say as construction and land costs rise, they can no longer afford to build market-rate rental buildings without government subsidies linked to affordable housing. These subsidies include tax-exempt bonds, federal tax credits, property tax exemptions, and zoning bonuses. Under a state-run program known as 80-20, for instance, developers allocate 20 percent of apartments in a building for affordable rentals, with the remainder of units rented at market rates. Tenants are chosen via lotteries and are screened to ensure they meet income requirements. Joseph Moinian's company is constructing a 656-foot high tower in Manhattan featuring retail space, a basketball court, and indoor and outdoor swimming pools that will have 236 below-market rate apartments. Meanwhile, TF Cornerstone is seeking approval to erect a 45-story building nearby that would include 238 affordable units. Jon McMillan, an executive vice president at TF Cornerstone, says the building received a city-zoning bonus for including below-market-rate units and also anticipates state support from the state's 80-20 program that would make it eligible for a 20-year partial tax exemption.
HUD-Related Activity
Raleigh’s Affordable Housing Landlords Affected by Federal Cuts
Raleigh Public Record (NC) (11/11/13) LaMotte-Kerr, Jeanna
Federal spending cuts known as sequestration have had on impact on affordable housing landlords and their low-income tenants in Raleigh, North Carolina. The Raleigh Housing Authority was compelled to deal with $1.6 million in federal budget cuts, making it more difficult to provide housing to low-income families and paying landlords full Fair Market Rents (FMRs). FMRs are used by the U.S. Department of Housing and Urban Development (HUD) to set limits on how much housing assistance can be paid to low-income families. FMRs reflect the maximum amount of money housing authorities can pay landlords as part of HUD’s Housing Choice Voucher program for low-income families, and are based on the U.S. Census, telephone surveys, HUD’s American Housing Survey, and a public comment process. HUD recently published its 2014 FMR numbers, which are slightly lower than last year. Raleigh Housing Authority Spokeswoman Allison Hapgood says the only way HUD allows FMR limits to be exceeded is to verify that local residents cannot find housing at that particular rate. The City of Raleigh uses FMRs for its housing assistance program, and the numbers are also used in the Low-Income Housing Tax Credit Program that allocates tax credits that can be used to fund affordable housing. Hapgood notes that some landlords will return during the next couple of months after encountering difficulties in the private rental market, and new landlords are being frequently being added to the program.
Green Building
A Fresh Set of Grades Measures Energy Use in Residential Buildings
New York Times (10/01/13) Navarro, Mireya
New York City Mayor Michael Bloomberg's administration recently released energy efficiency grades for the city's large multifamily dwellings. The publicly available energy consumption data enables residents to see how their buildings compare with others in the city. The grading system is based on source energy-use intensity with a score of 109 or lower receiving an A, and scores over 160 receiving a D, the lowest rating. Buildings receiving an A include the Dakota and Washington Heights. The Trump World Tower received a C, and the Solaire and TriBeCa Green received Ds. Some feel the grading system should take into account efforts building owners make to conserve water and other green enhancements. For example, the Solaire has a treatment plant to recycle wastewater and fresh-air systems to improve indoor air quality. The enhancements also require more energy use. Making the scores and grades public helps consumers make informed decisions about where to live, and encourages building managers to employ energy saving measures. Energy efficient buildings use three to six times less energy than inefficient buildings, and buildings built in the 1970s tend to use more energy than buildings built in the 1930s that have thicker walls and fewer windows. The zip codes with higher median incomes tend to use the most energy per square foot, which is likely due to the heavier use of computers, electronics, and lights.
Management and Compliance
Moisture Control: How to Limit, Remediate Mold Exposure
Multifamily Executive (11/06/13) Isaacs, Linsey
Even some green-building techniques can help create a humid environment where mold thrives. Now as cold weather rapidly approaches, mold spores are likely to get locked in humid environments in any sort of apartment setting. With the number of lawsuits ticking upwards, many property managers need to ensure the building envelope does not allow conditions that promote mold growth. Proper water-proofing and ensuring that plumbing systems are functioning appropriately are key. Furthermore, while its important to pick the best roofing, windows, and draining systems, some things are not clear to the naked eye. "We've had instances in new construction where a nail would penetrate a waste line or a water line, and we don't know about it until you see a condition that reaches the surface material," said Skip Szymanski, deputy executive director and COO with the Housing Authority of the City of Santa Barbara. The key for apartment owners is to outline potential issues and educate residents from the get-go so they understand their responsibility. But Szymanski said it is also a good idea for maintenance teams to perform annual inspections for any mold issues in order to catch problems early.
Association News
NAAEI Offers "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.
To learn about CAMnesty, click on the link below
Free Continuing Education Webinar with LIHTC Noted Experts Offered to SHCM Certificants
On Nov. 21, NAAEI, NAHMA and LeadingAge offered their semi-annual free continuing education webinar to SHCM certificants. The webinar featured four experts:
• Grace Robertson, Program Analyst, Examination Specialization & Technical Guidance, Internal Revenue Service, Washington, D.C.
• Karen Newsome, CPO, SHCM, NAHP-e, Vice President, Compliance, WinnResidential, Boston, MA
• Stacy Day, SHCM, Vice President, Compliance, Ambling Management, Mason, OH
• Greg Proctor, SHCM, NAHP-e, Vice President, Business Development, Windsor Compliance, a RealPage Company, Wilmington, NC
The webinar, which provided 90 minutes of CEUs (an hour of instruction, followed by about 30 minutes of question and answers), will be available to view as a PDF within the next month at the link below. The next free webinar will be offered in spring 2014.
Are you looking for CEUs for your SHCM designation?
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
NAHMA 2014 Calendars Now Available For Purchase!
NAHMA is pleased to announce that the 27th edition of its Drug-Free Kids Calendar is now available for purchase. The calendars feature outstanding original artwork by children and seniors and special needs adults living in affordable housing.
In addition to the drug-free message, this year’s contest had a sub-theme that reinforces a message about positive uses of time. The theme was “We are One Family” and the sub-theme was “Friends Make the World a Nicer Place.”
The full-color calendars feature the artwork of children and seniors who reside in affordable, multifamily housing all across the country. Children (grades K-12), seniors (age 62 or older) and special needs residents competed in the national calendar contest and winners were selected by a panel of independent judges. Children and seniors competing in the national contest are selected from the thousands who participate in the regional poster contests sponsored by local Affordable Housing Management Associations (AHMAs) across the country.
The grand-prize winner receives a $2,500 scholarship from the NAHMA Educational Foundation, national winners receive $1,000 scholarships and Honorable Mentions receive a $100 scholarship. In addition, the grand-prize-winning artwork is printed on the cover of the 2014 calendar, with the other artwork appearing inside and on the back cover.
Calendars are $5.50 each and can be ordered from NAHMA’s website at http://www.nahma.org/store/index.html, or by calling (703) 683-8630 ext. 115. Because of its strong anti-drug message, the calendar is an allowable project expense for managers of housing subsidized by HUD and the Department of Agriculture. Tax credit properties that purchase calendars benefit twofold: by supporting the drug-free message and their own commitment to social services, and potentially obtaining more points in the funding-allocation process.
Below is a complete list of contest winners (along with the name and location of their apartment complex, the name of the housing management company, and the local AHMA). For more information about the contest or to contact a local AHMA, see NAHMA’s website at www.nahma.org
GRAND-PRIZE WINNER
* Anna Wen, Grade 12, Kukui Tower, Honolulu, HI, EAH Housing, AHMA NCNH
WINNERS
* Toni Gilbert, Senior, Lenola School Apartments, Moorestown, NJ,
Moorestown Ecumenical Neighborhood Development, Inc. (M.E.N.D.), JAHMA
* Daniah Alzubaidy, Grade 3, Casa Mesa Estates, Mesa, AZ, Biltmore Properties, AHMA PSW
* Christian Vera, Grade 10, The Fairways, Worcester, MA, First Realty Management, NEAHMA
* Kenny Camacho, Special Needs, Winteringham Village, Toms River, NJ, Interstate Realty Management, JAHMA
* Marissa Ibarra, Grade 12, Strathern Court Apartments, Sun Valley, CA, Thomas Safran & Associates, AHMA PSW
* Jamaurio McMillian, Grade 8, Winteringham Village, Toms River, NJ, Interstate Realty Management, JAHMA
* Zoe George, Grade 6, Casa Mesa Estates, Mesa, AZ, Biltmore Properties, AHMA PSW
* Melvin Stevenson, Grade 9, Eastgate Schoolhouse Road Estates, Clarksdale, MS, Southland Management Corp., SAHMA
* Jennifer Lauzon, Grade 7, Bay Village, Fall River, MA, First Realty Management, NEAHMA
* Vivianna Salcido, Grade 9, Strathern Park Apartments, Sun Valley, CA, Thomas Safran & Associates, AHMA PSW
* Claudemyre Benoit, Grade 12, Davis Commons, Brockton, MA, First Realty Management, NEAHMA
* Katherine Camacho, Special Needs, Winteringham Village, Toms River, NJ, Interstate Realty Management, JAHMA
* Vivian Lee, Grade 12, Kukui Tower, Honolulu, HI, EAH Housing, AHMA NCNH
HONORABLE MENTIONS
* Gamalia Cruz, Grade 7, Kensington Townhouses, Philadelphia, PA, The Michaels Organization, PennDel AHMA
* Delores Johnson, Special Needs, Irving Apartments, Denver, CO, Archdiocesan Housing, Rocky AHMA
* Marte Craig, Grade 9, Southpark Apartments, Columbus, OH, American Apartment Management Company, MAHMA
* Tayah Teel-Sullivan, Grade 4, Greene Hills Estate, Springfield, VA, NDC Real Estate, Inc., Mid-Atlantic AHMA
* Janice Mendoza, Grade 1, Sherwood Apartments, Edinburg, TX, Wedge Management, SWAHMA
* Betty Rodkey, Senior, Leonard Court Apartments, Clearfield, PA, Central PA Development Corp., Inc. and Central PA Community Action, Inc., PAHMA
* Jazmin Moreno, Grade 10, Fawn Ridge Apartments, The Woodlands, TX, BSR Trust, AHMA ET
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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