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Department of Housing and Urban Development News Briefs - May 2015

Sens. Rob Portman, R-Ohio, and Jeanne Shaheen, D-N.H., introduced the Energy Savings and Industrial Competitiveness Act of 2015 (S.720) March 11. The bipartisan bill is designed to promote energy savings in residential buildings and the industry. S. 270 would authorize a pay-for-success (PFS) demonstration within the U.S. Department of Housing and Urban Development (HUD) to improve the energy efficiency of government-supported multifamily properties. The bill would also allow HUD to enter into PFS contracts with outside entities that would then raise private capital and work with energy service companies and others to make appropriate and economically justifiable upgrades.

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On March 19, HUD Secretary Julián Castro announced proposed policy changes to the Section 3 program, which fosters local economic development, neighborhood economic improvement and individual self-sufficiency. The change would increase opportunities for businesses that hire local public housing residents for HUD-funded projects. The program requires that recipients of certain HUD financial assistance provide, to the best of their abilities, job training, employment and contracting opportunities for low- or very-low income residents. Castro also announced the launch of a National Section 3 Business Registry, a searchable online database that local housing authorities, government agencies and contractors can use to find firms that are self-certified as employing at least 30 percent public housing residents or low-income workers. In addition, the proposed rule would recognize new HUD programs established since 1994 that are required to meet low-income and public housing resident hiring goals. More information is available at HUD's website.

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ROEM Corporation, in partnership with the Housing Authority of San Luis Obispo, Calif., (HASLO), held the groundbreaking March 19 for theSouth Street Family Apartments. The development is financed with 9 percent low-income housing tax credits (LIHTCs), along with financial support from the city of San Luis Obispo, Citi Community Capital and AEGON Group. HASLO provided $1.08 million in project funds, while the city and the county of San Luis Obispo provided a combined $1.3 million in federal funds from HUD. Designed by KTGY Group Inc., South Street Family Apartments will be available to families with annual incomes at or below 60 percent of the area median income (AMI). South Street Family Apartments will be located on a 1.53-acre urban infill site and will yield 43 affordable units. There will be one-, two- and three-bedroom rental homes. Amenities will include a community room with a kitchen, a laundry facility, a homework center, a courtyard area with a barbecue and an outdoor playground. Costs will total $14.1 million. Construction is expected to be complete in spring 2016.

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On March 2, HUD announced $150 million in rental assistance to 25 state housing agencies across the United States to provide permanent affordable rental housing and needed supportive services. This support is expected to benefit an estimated 4,600 households that are extremely low-income persons with disabilities. The award was made through Section 811 Project Rental Assistance (PRA) program. Awards ranged from $2 million to $12 million. The Wisconsin Housing and Economic Development Authority (WHEDA) received $2.5 million. This award is expected to serve an estimated 170 households for extremely low-income people with disabilities across the state. Properties will be selected for PRA assistance, identify individuals to integrate into mainstream housing and provide community-based support services to those individuals. HUD received 35 applications for rental assistance.

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Red Mortgage Capital LLC, the mortgage lending entity of comprehensive capital provider Red Capital Group LLC, announced April 2 the completion of an $11.4 million HUD 223/232(f) loan to refinance a balance sheet bridge loan for the acquisition of Livewell at Courtyard Plaza in North Miami, Fla., and Livewell at Coral Place in Margate, Fla. Livewell at Courtyard Plaza is a 68-unit assisted living facility that provides 102 assisted living beds and 18 memory care beds. Livewell at Coral Plaza provides 100 units of assisted living, with 120 assisted living beds and 20 memory care beds.

Journal Category:

Department of Housing and Urban Development

Authors:

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