Department of Housing and Urban Development News Briefs - April 2015

Wednesday, April 1, 2015

Great Lakes Capital Fund (GLCF) announced a $10.5 million tax credit bridge loan and $14.5 million in equity Feb. 13 for the renovation and new construction of Central Park Towers, a Rental Assistance Demonstration (RAD) program property in Elgin, Ill. Additional funding was provided through the Illinois Housing Development Authority’s LIHTC program, and Capital Fund Services, a GLCF-family company, partnered with Love Funding to secure a $6.7 million U.S. Department of Housing and Urban Development’s (HUD) 221(d)(4) mortgage. Renovation costs are expected to total $33 million. The 11-story building, which will be renovated, and the newly constructed six-story building adjacent to it will provide 150 affordable housing units and 14 market-rate units for seniors. Construction is expected to finish late this year.

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HUD announced more than $651 million in grants to 586 Native American tribes in 34 states Feb. 18. Allocations ranged from $50,282 to $83.8 million. The allocations are available through the Indian Housing Block Grant (IHBG) program and are for a variety of affordable housing activities such as housing development, assistance to housing developed under the Indian Housing program of the 1937 Housing Act, housing services to eligible families and individuals, housing management services and crime prevention and safety. HUD’s proposed fiscal year 2016 budget requests $748 million for critical housing and community development needs in Native American communities, as well as $660 million for IHBG allocations.

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On March 2, HUD released Notice H 2015-02, “Required Actions for Multifamily Housing Projects Receiving Failing Scores from HUD’s Real Estate Assessment Center (REAC).” The notice provides the required actions that HUD must take for multifamily projects receiving failing REAC scores. The notice also provides guidance to ensure compliance. Notice H 2015-02 supplements Notice H 2012-16, “Extension of Housing Notice H 2011-24: Reissuance of Revised Protocol for Placing a Flag in the Active Partners Performance System (APPS) when a Property Receives a Physical Inspection Score below 60 but Above 30.” Notice H 2015-02 is available at www.hudresourcecenter.com.

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HUD announced March 2 it awarded $150.4 million in rental assistance to 25 state housing agencies. Funding will go toward the development of permanent affordable housing for individuals with disabilities and extremely low-income individuals. The funding is made available through the Section 811 Project Rental Assistance (PRA) program. Awards ranged from $2 million to $12 million.

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On Feb. 16, the Columbia Housing Authority announced the $22 million rehabilitation of Paquin Towers in Columbia, Mo. HUD awarded Columbia Housing Authority $869,000 from its Capital Fund Program. The renovation of Paquin Towers will also use 4 percent LIHTCs. Development is made available through the RAD program. Renovations are expected to begin in May or June and will include 200 units at Paquin Towers and 76 additional public housing units. Paquin Towers will receive a new elevator system and units will get receive new cabinets and kitchen appliances.