AFFORDABLE HOUSING INDUSTRY

The federal bank and thrift regulatory agencies announced a series of public hearings on modernizing the regulations that implement the Community Reinvestment Act (CRA). Interested parties are invited to provide testimony and written comments. The agencies will consider how to update the regulations to reflect changes in the financial services industry, changes in how banking services are delivered to consumers, and current housing and community development needs. While the agencies recognize public comments may discuss matters requiring statutory changes, the agencies' focus is on potential regulatory changes. Planned hearing dates and locations are August 6 in Atlanta, Ga.; August 12 in Chicago, Ill.; and August 17 in Los Angeles, Calif. Anyone wishing to submit testimony or attend the hearings must register five business days in advance at www.ffiec.gov/cra/hearings.htm. Specific information is available on the web site and in the June 23 Federal Register notice. In addition, the agencies are encouraging any individual to provide written comments on the CRA regulations to any of the agencies through August 31.

A report from the National Housing & Rehabilitation Association (NH&RA) noted that grantees of weatherization work under the Weatherization Assistance Program (WAP) have drawn down less than 8 percent of the total award as of February 2010. "Improving the Implementation of the Weatherization Program" lists recommendations for improving WAP's efficacy and efficiency, including the implementation of an emergency rule by the Department of Energy permitting WAP funds to be issued in the form of loans as well as grants. The report also found that certain rules and regulations are preventing widespread utilization, and expressed concern that many states are at risk of failing to meet the American Recovery and Reinvestment Act's March 2012 deadline and returning the unused funds to Treasury. The full report is available at www.housingonline.com.

Finalists of the 2010 Pillars of the Industry Awards competition honoring the nation's best in the multifamily housing industry are now posted online. Presented by the National Association of Home Builders (NAHB) multifamily group, the awards recognize achievement in more than 30 categories, including apartment and condo design, marketing and management, development and corporate leadership. Finalists and winners will be able to link their web sites to a new virtual awards ceremony featuring animations and videos of the award-winning projects to share the presentation with their development teams and residents. Winners in the marketing and individual achievement categories will be announced on October 21; the builder and firm category winners will be announced on December 7. To view the finalists and find out more about the awards, visit www.nahb.org/pillarsawards.

The National Affordable Housing Management Association (NAHMA) announced the winners of its first annual Affordable Housing Vanguard Awards, created to recognize newly developed affordable multifamily housing communities that showcase quality design and financing. The five winners in four categories are: Gratiot Woods Co-op, in Detroit, Mich., and Terraces on Tulane, in New Orleans, La., for New Construction; Viewpoint Senior Apartments, in Sandusky, Ohio, for Major Rehabilitation of an Existing Rental Housing Community; Loft 27, in Lowell, Mass., for Major Rehabilitation of a Non-Housing Structure into Affordable Rental Housing; and the Hollander Foundation Center, in Hartford, Conn., for Major Rehabilitation of a Historic Structure into Affordable Rental Housing. More information about the winning properties is available on NAHMA's web site at www.nahma.org.

The National Low Income Housing Coalition (NLIHC) received a $5 million donation in April to advance its affordable housing public policy mission. The donors, who wished to remain anonymous, said they had put NLIHC in their will but decided to make the gift instead because so many people were suffering in the recession. NLIHC does not receive any government funds and depends on membership dues, contributions and foundation grants to support its $2.6 million annual budget. NLIHC is currently working to establish a National Housing Trust Fund to provide communities with grants to build, rehabilitate or preserve affordable rental homes. One of NLIHC's most widely-cited reports is "Out of Reach," which documents rental housing costs as compared to incomes in every jurisdiction in the country.

Seventy-six percent of consumers favor renting over homeownership, according to a survey conducted by the National Apartment Association (NAA). This represents a 5 percent increase from 2008. The survey also revealed that both renters and homeowners are not eager to make any changes in their housing status within the next year, which NAA says demonstrates continued uncertainty in the housing market. Harris Interactive surveyed more than 2,000 adults on behalf of NAA.

DEALMAKERS

Mid-Peninsula Housing held a groundbreaking ceremony in June for its $40 million Station District Family Housing complex in Union City, Calif. Situated across from the Union City Bay Area Rapid Transit (BART) station, the development is the first phase of a transit-oriented community that will provide 100 affordable rental homes, 8,600 square feet of commercial space, outdoor gardens, a pool and children's play areas. Phase two will bring the total number of units to 157, and all units will be available to households earning less than 45 percent of the area median income (AMI). Station District Family Housing received commitments of $1.2 million in federal low-income housing tax credits (LIHTCs) and $4.6 million in state LIHTCs. Built to provide workforce housing in Alameda County, the development is expected to open in late 2011.

The Menominee Tribal Housing Department (MTHD) of Keshena, Wis. received two LIHTC awards of more than $400,000 each from the Wisconsin Housing and Economic Development Authority (WHEDA) for its seventh and eighth housing developments. MTHD will use the awards to rehabilitate 48 affordable homes in Keshena and Neopit, according to Travois Inc., which provided consulting services for the LIHTC applications. More than $5.39 million in equity is expected to be raised through the sale of LIHTCs. Construction of both developments is expected to be complete by November 2012.

Maryland officials and Enterprise Homes Inc. celebrated the company's 25th anniversary with a flag-raising ceremony at The Greens at Liberty Road, a $15.6 million planned senior community in Randallstown, Md. When completed, The Greens at Liberty Road will house low- and moderate-income seniors in a 105-unit, four-story building with energy-conserving fixtures, appliances and windows, a community room, fitness center, media center, walking paths and a garden. The site is near retail shops, health-care providers, a senior center and a recreation center.

Boston Capital and general partner The Humanities Foundation Inc. invested in Grandview Apartments, a 72-unit multifamily development in Charleston, S.C. The three-story building will feature 48 one-bedroom and 24 two-bedroom units for residents ages 55 and older who earn 60 percent of AMI. Amenities will include a community room with a kitchen, a fitness center, a craft room, a card room, computer systems, covered parking and a covered picnic area. All units will have central air conditioning and sunrooms.

STATE

Kentucky Housing Corporation (KHC) announced the latest 2010 low-income housing tax credit (LIHTC) recipients. Twenty projects will receive a total of more than $8 million in allocations, which will assist 644 affordable housing units. KHC also awarded nearly $5 million in HOME Investment Partnership program funds and $1.3 million in Affordable Housing Trust Fund dollars. A full list of recipients is available at www.kyhousing.org under Housing Production, Rental Production Programs and 2010 Rental Production Award List.

Colorado Housing and Finance Authority (CHFA) released a list of Letters of Intent it has received in the second round of LIHTC allocations. CHFA received 25 letters totaling $25,506,947 in requests for annual LIHTCs. In this round, $1.25 million has been set aside for Denver Housing Authority's proposed project at 1099 Osage Street, leaving $5,022,867 in annual credit available for this round's remaining applicants. See the agency's web site at www.chfainfo.com for a list of applicants and Tax Credit Assistance Program supplemental requests that CHFA received.

Massachusetts voters in a November referendum will decide the fate of the state's affordable housing law, known as the Comprehensive Permit Law, or Chapter 40B. The law allows flexibility in zoning restrictions and incentivizes towns and cities to provide at least 10 percent of their housing supply for affordable housing development. Nixon Peabody LLP says passage of the initiative would repeal Chapter 40B, making it difficult to develop multifamily housing or small homes on small lots in most parts of Massachusetts due to the lack of appropriate local zoning. A coalition called the Campaign to Protect the Affordable Housing Law has been organized to fight the ballot initiative. For more information about the campaign, visit www.protectaffordablehousing.org.

PEOPLE IN THE INDUSTRY

Rick Slagle joined Raymond James Tax Credit Funds Inc. as director of acquisitions in June. He is responsible for property acquisitions in Virginia, West Virginia, Pennsylvania, Maryland, Delaware and Washington, D.C. Slagle has experience working with developers and investors to identify, structure and finance real estate transactions, with a specific concentration in low-income housing and historic tax credit projects. Prior to joining Raymond James, he was founder and president of Development Capital Advisors and previously spent seven years at RBC Capital Markets as regional director and vice president. Slagle holds a business administration degree from University of Mary Washington and a master's degree in business administration from George Mason University.

Kentucky Housing Corporation (KHC) appointed Tammy Stansbury as its business development officer in June. Her responsibilities include meeting with partners, identifying resources to support multifamily development, developing solutions to project development problems, meeting with local officials to review projects and offering support for developers. KHC is encouraging developers and community officials to obtain Stansbury's assistance with projects throughout the development process.

R. Lee Vanderpool joined Pepper Hamilton LLP in June as counsel in its financial services practice group. His practice concentrates on banking and financing, including acquisition financings, real estate financings, restructurings, commercial paper financings and syndicated loan transactions. Prior to joining Pepper Hamilton, Vanderpool was a senior associate in the Paris and New York offices of Clifford Chance. He received a juris doctor from Tulane University Law School, a master's degree in business administration from the A.B. Freeman School of Business at Tulane and a bachelor's degree from Emory University.

Minnesota Housing in June named Marcia Kolb its assistant commissioner for multifamily business. Kolb has worked for Minnesota Housing for 28 years in multiple divisions, including single family, multifamily and operations. In her new role, she will lead the multifamily division to refocus on internal processes, personnel, strategic management, and fill key leadership roles. Kolb completed a master's degree in business administration last year at Bethel University.

BONDS

Freddie Mac announced credit enhancements of more than $31 million in bonds issued under the New Issue Bond Program (NIBP) to support the development or renovation of four affordable multifamily properties. Working with Freddie Mac, Prudential Mortgage Capital Company originated a multifamily mortgage under NIBP for Highlands Apartments, in Newnan, Ga., and Village at Chesapeake, Webster Gardens and Fort Stevens Place, in Washington, D.C., thus keeping 332 apartments affordable to low-income tenants. Freddie Mac uses credit enhancement to guarantee mortgages to be financed by tax-exempt housing bonds that qualify for funding under NIBP, which provides a long-term fixed rate at a favorable level, generating a lower cost of funds to the owner and in turn keeping rents at a reasonable level.