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Department of Housing and Urban Development News Briefs - November 2013

On Sept. 16, the U.S. Department of Housing and Urban Development (HUD) released a notice in the Federal Register regarding certain operating cost adjustment factors (OCAFs) for 2014. The notice establishes OCAFs for Section 8 Housing Assistance Payment (HAP) contract renewals. The notice is applicable to project-based assistance contracts for eligible multifamily housing projects having an anniversary date on or after Feb. 11, 2014. The notice is available at www.hudresourcecenter.com.

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On Sept. 27, HUD released a notice announcing the allocation of $28.75 million in grants to public housing authorities, resident associations, Indian tribes and non-profit organizations. The grants were given to help hire and retain service coordinators so that they can help public housing residents secure jobs and economic and housing independence. Funding will also aid the elderly in connecting with supportive services. New Jersey was awarded the largest amount at $1.96 million and Guam Housing and Urban Renewal Authority was allocated the smallest amount at $175,000. The notice is available at www.hudresourcecenter.com.

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HUD released a notice on Sept. 30 concerning the annual factors for determining public housing agency administrative fees for the Section 8 Housing Choice Voucher and Moderate Rehabilitation programs, including single-room occupancy during calendar year (CY) 2013. The notice outlines the methodology HUD used to determine the CY 2013 administrative fees rates by area. This information will be used to compensate public housing authorities for administering the housing choice voucher programs. The notice of availability can be found at www.hudresourcecenter.com.

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HUD released a notice on Oct. 3. inviting public comment on a survey of market absorption of new multifamily units. Comments will be accepted until Dec. 2. The proposed Survey of Market Absorption (SOMA) of New Multifamily Units would be used to measure the rate at which new rental apartments and new condominium apartments are absorbed, or taken off the market, for the first 12 months following the completion of a building. The survey would also collect estimates of certain characteristics, including asking rent and price, the number of units and the number of bedrooms. Starting April 2014, the survey will shift from paper questionnaire to computer-assisted personal interviewing (CAPI). The notice is available at www.hudresourcecenter.com.

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On Oct. 3, HUD published final fair market rents (FMRs) for the Housing Choice Voucher program and Moderate Rehabilitation Single Room Occupancy program for fiscal year (FY) 2014. The notice provides final FY 2014 FMRs for all areas with the estimated 40th and 50th percentile rent levels. The FMRs published were effective Oct. 1. There will be 19 50th percentile FMR areas in FY 2014. Areas include, but are not limited to, Honolulu, Hawaii, Las Vegas-Paradise, Nev., Orange County, Calif., New Haven-Meridan, Conn., Richmond, Va. HUD has also updated the information used to calculate FMRs in Puerto Rico, which are now based on 2007-2011 Puerto Rico Community Survey data. The notice is available at www.hudresourcecenter.com.

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Sens. Mark R. Warner, D-Va., and Tim Kaine, D-Va., sent a letter to HUD Secretary Shaun Donovan requesting that HUD aid Virginia housing authorities in streamlining program operations and help guide housing authorities after recent budget cuts due, in part, to sequestration. In the letter, dated Sept. 13, the Senators said housing authorities across Virginia have contacted them about funding constraints caused by recent sequester cuts. In the letter, the Senators said that historically low funding levels for HUD programs jeopardize these vital contributions, and that they believe there are steps HUD could take to help authorities streamline program operations while ensuring resident and community needs are met. These steps include, but are not limited to, ensuring assessment systems and processes reflect the tight budgets housing authorities are working in, working with Congress to allow housing authorities to use operating reserves for capital improvements and streamlining the rulemaking process related to public housing authorities to ensure rulemaking is fast-tracked but still allows for public comment. The letter is available at www.hudresourcecenter.com.

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Centerline Capital Group, a subsidiary of Centerline Holding Company, announced on Sept. 20 that it provided an $8.45 million Freddie Mac Targeted Affordable Housing (TAH) loan to refinance Steinbeck Commons, an affordable, age-restricted apartment community. The property, located in Salinas, Calif., has one three-story building containing 100 rental apartments available to residents 62 years of age and older. Centerline Capital Group, a provider of real estate financial and asset management services for affordable and conventional multifamily housing, provided a fixed-rate loan with a 10-year term and a 30-year amortization schedule. Amenities include a community room, an exercise room, a laundry facility, a study, a picnic area, on-site management and video security system. The property has a long-term Section 8 housing assistance payments contract that provides project-based rental subsidy for 100 percent of the units.

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On Oct. 7, RICHMAC Funding LLC, a mortgage banking firm and member The Richman Group of Companies, secured $12.3 million in financing for Douglas Knoll Apartments, an affordable housing property located in Washington, D.C. The 184-unit property received a 35-year term, fully amortizing 223(f) HUD loan. RICHMAC Funding LLC aided the borrower with a parcel subdivision and plat recording.

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On Sept. 27, Centerline Capital Group announced that it provided a $5.1 million Fannie Mae DUS Supplemental Mortgage Loan for the Faircliff Plaza East Apartments, located in the Columbia Heights community in Washington, D.C. Containing 80 units, the complex is within two, four-story walk-up buildings. The property was originally purchased and renovated in 2002, and still operates with LIHTC guidelines of 100 percent of the units available at or below 60 percent of the AMI. All of the units are covered by a Section 8 HAP contract. Also included is an office that serves as the onsite management and leasing office, a community room and computer lab.

Journal Category:

Department of Housing and Urban Development

Authors:

Novogradac

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