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LeadingAge's 2014 PEAK Leadership Summit
Join in executive education and expert-led strategy sessions at the LeadingAge 2014 PEAK Leadership Summit, March 17-19, in Washington, DC. This is THE annual legislative/Hill advocacy conference for non-profit senior housing providers. Registration opens in January 2014. Find more details at the weblink below.
Among session offerings profiled:
3/17/14 - Leadership General Session (and Leadership Forum - Transforming Habits: A Framework for Success) featuring Charles Duhigg*
3/17/14 – HUD Management Update:
- Housing with Services Partnerships
- Legal Issues in Fair Housing
3/18/14 - Affordable Housing Policy Forum
- Livable Communities: A Movement to Redefine Senior Living
- Technology Forum
- Livable Communities
*Charles Duhigg’s "The Power of Habit" has spent over a year on the New York Times bestseller list. His journalistic accomplishments have made him an in-demand speaker for organizations from the UCLA School of Management to The Johnson Foundation and the National Association of Science Teachers. He is a prize-winning investigative reporter for the business section of The New York Times, where he contributes to the newspaper and the Time Magazine.
State and Local Activities
"Rhode Island Lawmakers Revisit Affordable Housing Law"
HUD-Related Activity
"HUD Provides $14.8 Million for Senior Housing"
"Obama Administration Expands Better Buildings Challenge to Multifamily Housing, Launches New Programs to Boost U.S. Energy Efficiency"
Management and Compliance
"The Importance of Compliance in Asset Management"
"Property Management: Winter Maintenance Important in Preserving Value"
Market and Program Trends
"Surprise Windfall Threatens Affordability"
"Meet the Challenge of Aging Affordable Housing"
"The Rental Housing Affordability Crisis"
Association News
LIHTCs Classified as Investments under GAAP Accounting Amendments
Success of Low Income Housing Tax Credit Touted on its 27th Anniversary
Are you looking for CEUs for your SHCM designation?
NAHMA 2014 Calendars Now Available For Purchase!
NAHMA Publishes 2013 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
State and Local Activities
Rhode Island Lawmakers Revisit Affordable Housing Law
Providence Journal (Rhode Island) (12/01/13) Marcelo, Philip
Rhode Island plans to study the effectiveness of the state's affordable housing law. Lawmakers will form an oversight commission, which will include housing industry experts, to review the 2004 Low and Moderate Income Housing Act. Cities and towns must be able to deem at least 10 percent of their housing stock as affordable. The state defines affordable housing as residences whose costs do not exceed 30 percent of the gross income of a household earning less than 120 percent of the area median income. Six communities met or exceeded the requirement as of September 2012, according to the most recent data available from the state Division of Planning. The commission could possibly suggest changes to the law.
HUD-Related Activity
HUD Provides $14.8 Million for Senior Housing
Housing Wire (12/17/13) Swanson, Brena
HUD has dedicated nearly $15 million to maintain affordable rental aid for the elderly. The department's Senior Preservation Rental Assistance Contracts (SPRACs) help support affordable rent for older tenants living in more than 1,700 HUD Section 202 properties in half a dozen states. Without SPRACs and other resources, HUD calculates that maturing home loans will mean the loss of affordability protections for some 19,000 low- and very-low-income seniors in this country.
Obama Administration Expands Better Buildings Challenge to Multifamily Housing, Launches New Programs to Boost U.S. Energy Efficiency
U.S. Department of Energy (12/03/13)
The U.S. Departments of Energy and Housing and Urban Development have expanded the Better Buildings Challenge to multifamily housing such as apartments and condominiums and rolled out three new Better Buildings Accelerators to support state- and local government-guided initiatives to reduce energy waste and remove market and technical obstacles to greater building efficiency. The Obama Administration also announced that it will challenge federal agencies to broaden use of performance-based contracts through 2016 to upgrade the energy efficiency of federal buildings at zero cost to taxpayers. The Challenge expansion entails the commitment of 50 multifamily partners, representing about 200,000 units and more than 190 million square feet, to slash their energy use by 20 percent in a decade. This will save about $7 billion in energy costs annually and cut greenhouse gas emissions by 430 million tons of carbon dioxide. The multifamily partners will highlight innovative strategies to raise energy efficiency, including lighting enhancements, heating and cooling system upgrades, installing rooftop solar systems, and supporting new funding for energy retrofits and green construction. In addition, they will share best practices and lessons learned with other Challenge participants. The new Better Buildings Accelerators include an Energy Data Accelerator, under which more than 30 cities and utilities will devise simplified approaches to help building owners access whole-building energy use data. The Performance Contracting Accelerator will involve 16 states, cities, and school districts entering into $1.2 billion worth of performance-based contracts, helping to drive economic development, use private sector innovation, and boost efficiency at minimum cost. Finally, under the Industrial Superior Energy Performance (SEP) Accelerator, nine U.S. utilities and manufacturers will employ a SEP certification program to confirm energy efficiency improvements and practices.
Management and Compliance
The Importance of Compliance in Asset Management
Novogradac Journal of Tax Credits (12/13) Vol. 04, No. 12 Taylor, Kimberly
Today's affordable housing developers must rely on layered funding, making it essential to comprehensively monitor compliance and ensure staff are aware of these requirements and the ramifications of non-compliance. Compliance implies meeting the exact regulations for each funding source, including the Low-Income Housing Tax Credit (LIHTC) program. For LIHTCs, both federal and state regulations must be adhered to, and the state’s regulations are likely to be stricter. Failing to comply with the program can result in a loss of dollars or tax credits, which can mean the owner must return any investment or the investor could withdraw its capital. In the LIHTC compliance arena, maximum rent schedules are a common area of discussion and monitoring. An asset manager makes certain assumptions annually, and if rents cannot be raised, this will negatively impact cash flow at the property. At the same time, charging a household rent above the maximum limit is deemed noncompliant, so it is essential to stay in compliance with the specific rent requirements. Other areas of compliance to consider when an asset manager is working with property management include the length of affordability periods; occupancy requirements, such as “good cause” evictions only; specific LIHTC lease provisions; record-keeping requirements; and reporting.
Property Management: Winter Maintenance Important in Preserving Value
Santa Fe New Mexican (11/30/13) Goodman, Ryan
Building managers are urged to perform routine fall and winter maintenance as soon as possible if they haven't already done so. It is not too late to save money, not to mention the overall headache of long-term and potentially very costly problems that can occur. Tops on the checklist should be cleaning downspouts and gutters. This helps ensure proper drainage and extends the life of a building's roof. Roof repairs and replacements can result in displaced tenants and disrupted cash flow. Next, check for cracks around all windows and doors and install weather-stripping and caulk where needed. This will help keep occupants happy and warm. A third rule of thumb is to make sure all outdoor plumbing and irrigation is drained and properly winterized. "Next to roof replacement," the article's author writes, "replacing broken pipes and irrigation can be very expensive." Additionally, it is very important to have any and all gas-fired heating equipment inspected by a professional who can check for lethal carbon monoxide levels and service systems. Finally, be sure to check smoke detectors and carbon-dioxide monitors. Many heating sources can malfunction and be fatal to building occupants. The article's author is chief marketing officer at Kokopelli Property Management.
Market and Program Trends
Surprise Windfall Threatens Affordability
Housing Finance (12/13/13) Anderson, Bendix
Many limited partners of low-income housing tax credit (LIHTC) properties are seeking to profit unexpectedly by selling them, and are striving for high sales prices for these properties. For the majority of LIHTC properties, the partnership agreement clearly states that any proceeds from a sale of the property will be split between the partners, with 20 percent of the proceeds going to the limited partner and 80 percent to the general partner. The general partner in an LIHTC partnership is typically the developer of the property, while the LIHTC investor is usually the limited partner. If the affordability of the property is not safeguarded by an extended-use agreement, the limited partner could put pressure on the general partner to allow the affordability restrictions to expire at the property. As a result, a sale that carried little weight with these limited partners can turn into millions of dollars in surprise profits, and these limited partners are motivated to push for the highest sale price amid an overheated market for apartment properties. Before the proceeds of a liquidation of an LIHTC partnership can be divided between partners, however, the proceeds must be used to balance the accounts for the property, such as the closing costs of the sale, replenishing reserves, and settling any loans. “The market is very strong,” said Spencer Hurst, national director of the Tax Credit Group of Marcus & Millichap. “Multifamily is very much in favor as an asset class.” The average LIHTC property sold during the year ending in October had an actual capitalization rate of 6.7 percent, according to Marcus & Millichap; this rate represents the income for a property as a percentage of the sale price.
Meet the Challenge of Aging Affordable Housing
Affordable Housing Finance (12/02/13) Anderson, Bendix
At the recent AHF Live: The Affordable Housing Developers' Summit, experts in affordable housing presented strategies to deal with aging affordable housing properties. Roughly 10,000 properties built with low-income housing tax credits (LIHTCs) have reached their 15th year in operation, said Jenny Netzer, CEO of Tax Credit Asset Management. "The vast majority of these properties are awaiting their next phase of life," she said. Amid the strong real estate market, speculative buyers are spurred to buy older apartment properties and raise rents. "Multifamily is extraordinarily hot right now," said Todd Crow, executive vice president and manager of tax credit capital for PNC Real Estate. But affordable housing developers typically must wait to close the deal to purchase a property until they win a new round of government funding, such as housing tax credits. At the same time, developers may be able to access new forms of capital that can help recapitalize certain types of affordable housing, such as the federal Choice Neighborhoods program and the Rental Assistance Demonstration program. A key challenge is creating new housing in rural markets. "One way is to let an aging LIHTC development out of the program at the end of 15 years," said R. Lee Harris, president and CEO of Cohn-Esrey Real Estate Services. A new reservation of LIHTCs that might have been used to recapitalize the old LIHTC property could be used instead to finance a brand new LIHTC property.
The Rental Housing Affordability Crisis
Mortgage News Daily (12/11/13) Swanson, Jann
A new study from the Harvard Joint Center on Housing Studies and the McArthur Foundation examined the rising importance of rental housing in the United States. Between 2007 and 2011, the number of very low-income renters increased by 3.3 million, but the number able to receive subsidies expanded by only 225,000, while the share of eligible households receiving assistance declined from 27.4 percent to 23.8 percent. The number of renters with worse case needs receiving no assistance rose by 2.6 million to 8.5 million. Approximately $26 million in capital investments for public housing remains unfunded, and privately owned housing is rapidly aging and assistance contracts are expiring. Mandatory budget cuts under sequestration could reduce vouchers by 125,000 this year. The Low Income Housing Tax Credit (LIHTC) program has so far been spared from sequestration, but its subsidies are insufficient to make units affordable for extremely low-income tenants. As a result, the program is frequently mixed with other forms of assistance. The program may become at-risk as debate about tax reform intensifies. The study said other issues likely to impact rental housing include aging housing stock, hurdles to construction, and upcoming reform of government-related sources that now supply the bulk of financing for rental units. But the study also says there are promising approaches from both the government and advocates, but it is crucial for rental housing concerns not to overlooked amid the debate.
Association News
LIHTCs Classified as Investments under GAAP Accounting Amendments
The Financial Accounting Standards Board’s Emerging Issues Task Force (EITF) proposed and FASB agreed December 11 that LIHTCs should be classified as investments and not deferred tax assets and that the primary source of economic benefit should determine the pattern of amortization. The guidance will not be applied to other types of tax credit investments at this time. The Accounting Standards Update (ASU) is expected to be issued by early January 2014.
Success of Low Income Housing Tax Credit Touted on its 27th Anniversary
To mark the 27th anniversary of the Low Income Housing Tax Credit (LIHTC), the Bipartisan Policy Center (BPC) recently held an online Housing Expert Forum. During the discussion, the BPC posed two questions about the LIHTC: What lessons have we learned? What key components continue to make it a successful program? Commentors include respected housing policy and preservation experts such as Conrad Egan, David Smith, Ali Solis and Michael Bodaken. Read the blog posts at the weblink below.
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 Publishes 2013 Affordable 100 List
Earlier this year, the National Affordable Housing Management Association (NAHMA) published 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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