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Department of Housing and Urban Development News Briefs - June 2017

The White House announced April 28 that President Donald Trump would nominate Pamela Patenaude to serve as deputy secretary for the U.S. Department of Housing and Urban Development (HUD). Patenaude was the president of the J. Ronald Terwilliger Foundation for America’s Families. Before joining the Terwilliger Foundation, she was director of the Bipartisan Policy Center’s housing commission. She also served as executive vice president of the Urban Land Institute. Patenaude served as HUD deputy secretary for community planning and development under President George W. Bush, as well as HUD’s White House liaison under President Ronald Reagan. 

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HUD released April 14 income limits for fiscal year 2017 (FY 2017). The limits are used to determine income eligibility for HUD-assisted housing programs, including public housing, Section 8, Section 202 and Section 811. HUD said the U.S. median income increased 3.5 percent to $68,000 in 2017, so the cap for increases in limits for income and respective rent limits for multifamily tax-subsidized properties will be 7 percent. The income limits used to determine qualification levels and maximum rent for low-income housing tax credit (LIHTC) or tax-exempt bond properties are calculated separately from the Section 8 income limits. Novogradac & Company has updated its Rent & Income Limit Calculator© to include 2017 data.

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Love Funding, a provider of Federal Housing Administration multifamily, affordable and health care financing, announced May 1 the closing of a $5.2 million loan for a mixed-income multifamily community in Traverse City, Mich. The financing for the preservation of Bay Hill II Apartments was secured through HUD’s 223(f) loan insurance program. The property offers 36 affordable apartments available to residents earning 60 percent of the area median income (AMI), as well as 36 market-rate apartments. There are one-, two- and three-bedroom apartment homes.

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HUD published in mid-April the report, “Understanding Whom the LIHTC Program Serves: Data on Tenants in LIHTC Units as of December 31, 2014.” This is the third annual report on demographic and economic data for LIHTC residents. HUD reports that the AMI of LIHTC residents in 2014 was $17,152 and that approximately 47 percent of tenants earned 30 percent or less of the AMI. The 26-page report is mandated by the Housing and Economic Recovery Act (HERA) of 2008. The report is available at www.taxcredithousing.com.

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The groundbreaking for Woodlawn Station in Chicago was April 19. The property will be a four-story, mixed-use, mixed-income complex. The property will be developed by Preservation of Affordable Housing (POAH) and when complete, will provide 55 apartments and 15,000 square feet of retail in the main building, as well as provide 15 rental apartments in two nearby buildings. 

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The Preservation of Affordable Housing (POAH) announced April 28 that a Jewel-Osco supermarket will be built in La Grange Park, Ill. Construction plans include a 48,000 square foot, full-service grocery store and drive-through pharmacy. The development is a joint venture of Terraco and DL3 Realty. Completion is scheduled for late 2018 and is expected to create more than 200 new jobs. This development is part of a community revitalization funded with a $30.5 million HUD Choice Neighborhood Grant awarded to the POAH and the city of Chicago in 2011. In addition to the Jewel-Osco grocery store, construction began April 19 for Woodlawn Station, a new transit-oriented development adding 70 mixed-income rental apartments and 15,000 square feet of retail space. 

Journal Category:

Department of Housing and Urban Development

Authors:

Novogradac

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