Low-Income Housing Tax Credits News Briefs - April 2015

Wednesday, April 1, 2015

AFFORDABLE HOUSING INDUSTRY BRIEFS

On Feb. 27 the Office of the Comptroller of the Currency (OCC) issued its second quarter 2015 Community Reinvestment Act (CRA) evaluation schedule. The first evaluation date is scheduled for May 15, with the last evaluation scheduled for June. The schedule is available at www.occ.gov.

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On March 10, the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) announced the next phase of their joint pro-apartment campaign. This phase includes an updated website, www.weareapartments.org, and the development of a calculator to create custom reports about any new developments or existing communities. The data provided in this phase is provided by the George Mason University’s Center for Regional Analysis, through a partnership to quantify the apartment industry and its residents’ contribution to the national, state and local economies.

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The OCC released CRA evaluations for the period of Feb. 1 to Feb. 28. The list of entities evaluated includes national banks, federal savings associations and insured federal branches of foreign banks. Of the 15 evaluations given, four rated outstanding, 10 rated satisfactory, one rated as needs to improve and none rated as substantial noncompliance.

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STATE BRIEFS

The Ohio Housing Finance Agency (OHFA) board announced Feb. 20 the approval of more than $40 million for the development and rehabilitation of affordable housing located throughout the state. OHFA’s Capital Improvement program (CIP), which provides funding for minor renovations and maintenance on aging properties, provided $1.1 million; the Housing Development Assistance program (HDAP), which provides flexible, low-interest financing for affordable housing developments across the state, provided $1.3 million; the Housing Development Loan (HDL) program, which provides financial assistance for the development and rehabilitation of affordable housing, provided $29 million; and the Multifamily Lending Program (MLP), which provides funds for affordable rental housing properties that are not readily available in the private market, provided $2.3 million. In addition, the board approved the issuance of more than $500,000 in Housing Development Gap Financing (HDGF) and the board approved $6.1 million in multifamily bonds.

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On Feb. 17, the Georgia Department of Revenue released an information bulletin on determining fair market value of qualified low-income housing tax credit (LIHTC) properties. The Georgia Department of Revenue developed an appraisal procedures manual (APM) in order to streamline the uniform appraisal of real property across the state. The guidance stated that due to the unique nature of LIHTC properties, there has been difficulty in the uniform valuation of these properties from county to county. The APM directs appraisal staff to consider the sales comparison approach, cost approach and income approach when determining fair market value. The guidance also states that passage of H.B. 954, which relates to general provisions regarding ad valorem taxation of property so as to change the definition of fair market value of property, clarifies that appraisal staff must apply rent, use and other restrictions on properties when appraising property eligible for income tax credits or receiving any other state or federal subsidies with respect to the use of the property as residential rental property. The information is made available to county appraisal staff in their assessment of the fair market value for ad valorem tax purposes. The information bulletin is available at dor.georgia.gov.

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The California Tax Credit Allocation Committee (TCAC) announced March 6 that the organization received the LIHTC applications for the first round of 2015. The deadline was March 4. TCAC received 81 of the 9 percent applications and nine of the 4 percent applications. The applicant list is available at www.taxcredithousing.com.

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On Feb. 26, the Indiana Housing and Community Development Authority (IHCDA) announced the winners of the 2015 LIHTC awards. There were 52 applications submitted requesting $43.3 million in credits and $16 million in supplemental IHCDA funding. Fifteen were selected to receive $12.5 million in LIHTCs and $5.1 million in IHCDA funding. A total of 800 affordable housing units will be constructed or rehabilitated. Allocations ranged from $411,550 in LIHTCs to $1.2 million. More information is available at www.taxcredithousing.com.

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DEALMAKERS

On Feb. 19, Delaware Community Investment Corporation (DCIC) announced $9 million in LIHTC equity and a partnership with the Buccini/Pollin Group for the renovation of Market Street Apartments in downtown Wilmington, Del. This development is the first to receive funding from DCIC Capital Fund I, which is the first Delaware-focused equity investment fund since DCIC was acquired by Great Lakes Capital Fund (GLCF) in late 2013. Rob Buccini, co-founder of the Buccini/Pollin Group, said in a press release that the organization had not worked on a development involving both low-income housing tax credits (LIHTCs) and historic tax credits (HTCs), and that part of the decision to work with DCIC on Market Street Village was DCIC’s experience and the value the organization could add through local knowledge and statewide accomplishments. Market Street Apartments will be converted from three historic commercial buildings into 76 affordable apartment homes. Of those units, 61 apartments will be reserved for residents earning at or below 40 or 60 percent of area median income (AMI). The remaining 15 apartments will be rented at market rate. DCIC Capital Fund I is also scheduled to provide investment for two more Delaware developments, one more in Wilmington and another in Seaford. A total of 176 units of affordable housing will be provided to families and individuals with special needs through DCIC’s Capital Fund I.

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U.S. Bank announced Feb. 18 the groundbreaking of Forest Ridge Apartments, an affordable senior housing complex in Citrus County, Fla. The U.S. Bank Community Lending Division provided a $12.1 million construction loan, while U.S. Bancorp Community Development Corporation, the community development subsidiary of U.S. Bank, invested $14.7 million in equity raised from federal LIHTCs. Additional financing came from the Citrus County State Housing Initiatives Partnership, which provided in $200,000 in State Housing Initiative Partnership funds. The Federal Home Loan Bank of Atlanta committed $500,000 of Affordable Housing Program funds. Development costs are expected to total $17.5 million. Forest Ridge Apartments will provide 119 affordable units to seniors age 55 and older earning between 45 percent and 60 percent of the national non-metro median income. There will be one- and two-bedroom units, with 12 units reserved for veterans or other underserved residents. Amenities will include a clubhouse, a cyber café, a community garden, a salon and a dog park.

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U.S. Bank announced March 2 the investment of $15.8 million in tax credit financing for the construction of Hamline Station. The 108-unit affordable apartment complex in St. Paul, Minn., will be available for families and the homeless. U.S. Bank’s Community Lending Division provided $15 million in construction loans and USBCDC, the community development subsidiary of U.S. Bank, invested $15.8 million in LIHTC equity. Total construction cost is $28.2 million. Hamline Station will feature 15 studio units, 36 one-bedroom, 44 two-bedroom and 13 three-bedroom units. Of these, units, 14 will be reserved as permanent, supportive housing for formerly homeless or disabled persons. The remaining units will be made available to individuals and families earning between 30 and 60 percent of the area median income (AMI). The units will be located in two, four-story buildings. The building will also provide shops and a restaurant. Construction is expected to be complete by January 2016.

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Enterprise Community Investment Inc. announced March 5 the investment of $10 million in LIHTCs for the development of Bowman Senior Residences. The affordable housing community in Santa Cruz County, Ariz., will provide 48 units to seniors earning less than 60 percent of the AMI. Of those, 20 units will receive Section 8 rental assistance. The new building will replace the two dilapidated properties, the De Anza Hotel and the Bowman Hotel, while preserving the façade of the latter, the oldest hotel in Nogales. A move-in date is scheduled for the end of this year.

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On Feb. 3, Boston Capital announced its investment in the rehabilitation of San Diego Square. Located in downtown San Diego, the 156-unit senior development will be rehabilitated with LIHTC equity. The San Diego Housing Commission (SDHC) authorized a state multifamily housing revenue note of up to $17.8 million for the acquisition and rehabilitation of the property. San Diego Square provides 154 one-bedroom apartments and two managers’ units in a 12-story building. Renovations will include air conditioning, updated kitchens, baths, flooring and additional interior upgrades. Amenities include a community room with a commercial kitchen, a central laundry and a landscaped patio. Renovations will add a fitness center, a computer lab and a conference room. San Diego Square is available to seniors earning 60 percent or less of AMI. The rehabilitation of San Diego Square will produce $10 million in local salaries and create about 107 construction jobs.

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The groundbreaking for Immanuel Senior Housing in Long Beach, Calif., was March 6. The former church will be rehabilitated and renovated into an affordable senior housing development with the help of LIHTC equity from Union Bank. Additional funding included an Infill Grant from the California State Department of Housing and Community Development; a loan of U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnership program; HOME funds from the city of Long Beach/Long Beach Community Investment Company; and a loan from the Community Development Commission of the County of Los Angeles. Costs will total $12.1 million. Constructed in 1922, the three-story apartment complex will consist of 25 one-bedroom units for seniors 63 and older. The existing sanctuary space will be converted into a community room, a kitchen and a library. Redevelopment is expected to be complete in summer 2016.

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Construction on Ruby Hill Residences, an affordable housing complex in Denver, began Feb. 19 with the help of a $1.25 million LIHTC allocation from the Colorado Housing Finance Authority. Costs are expected to total nearly $20 million. The complex will be four stories located on 112,000 square feet, and will provide 78 one-bedroom apartments and 36 two-bedroom apartments. Of those units, 75 percent will be Section 8 units.

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On Feb. 26, the Indiana Housing and Community Development Authority (IHCDA) announced a $4 million award for the construction of Benet Hall, a senior housing center at the St. Benedict Monastery in Ferdinand, Ind. Additional funding will come from $411,550 in LIHTCs. Benet Hall will provide 15 two-bedroom units and a resident recreation room will also be constructed. Total costs will be $2.9 million.

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EAH Housing Core Affordable Housing, an affiliate of the Core Companies, announced the groundbreaking for Willow Housing Feb. 10. The affordable housing complex will be built with LIHTC equity and will be located on the Menlo Park Campus of the Department of Veteran Affairs in Menlo Park, Calif. The development will provide 60 affordable units for veterans. Amenities will include a gym and a business center. Construction costs will be $18 million, with construction expected to be complete late this year.

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On March 10, Catholic Charities Housing Development Corporation, a subsidiary of Catholic Charities Hawaii, held the groundbreaking for Meheula Vista 1, the first phase of the senior affordable rental housing development in Mililani Mauka on Oahu. Construction is funded with $1.8 million in state and federal LIHTCs. The first phase will include 75 one-bedroom units and a multipurpose building. Units will be available to individuals earn 60 percent or less of the AMI. The first phase will be completed fall 2016.

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The development of Apperson Waty Apartments, an affordable housing complex in Kokomo, Ind., was announced March 2. The three-story, 69-unit complex will be built with $932,001 in LIHTCs provided by the IHCDA. Plans for the complex also include a playground, a community garden and a picnic area. Costs are expected to total $9.5 million.

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A construction update for Castillo del Sol in Ventura, Calif., was announced Feb. 19. LIHTCs provided by the California Tax Credit Allocation Committee financed the construction of the 39-unit affordable housing development. Units will be available to individuals with special needs and seniors earning less than 30 percent of the AMI. Construction is expected to be complete in January 2016, with a move-in date of June 2016. Development costs are expected to total $11.6 million.

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On Feb. 2, the Virgin Island Housing Authority announced applications are being accepted for the Sugar Estate senior housing complex on St. Thomas. Applicants must be 62 or older and must be eligible for Section 8 Housing Choice Vouchers. The development will yield 80 affordable units–76 one-bedroom units and four two-bedroom units–as well as a community center and outdoor gardens. Construction will cost $31 million and the development is expected to be complete by December, with a move-in date of the first quarter of 2016.

PEOPLE IN THE INDUSTRY

Bellwether Enterprise Real Estate Capital LLC, the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc., announced Feb. 12 the appointment of Doug Taylor as senior vice president. Taylor will work from the Irvine, Calif., office and will be responsible for the origination of multifamily and commercial real estate debt financing. Before joining Bellwether Enterprise, Taylor was senior vice president for Capital One Multifamily Finance, and before that, he was senior vice president at Walker & Dunlop. He was also director and senior loan officer for Deutsche Bank Berkshire Mortgage.

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Nixon Peabody announced Feb. 17 the promotion of three tax credit finance and syndication attorneys to partnership. Nathan Bernard advises clients in low-income housing (LIHTC) and new markets (NMTC) tax credits issues. Christopher Perkowski, is co-leader of the NMTC team and manages transactions for major firm clients focused on NMTC and community development financing. Katie Tenney focuses on LIHTC transactions. She is a co-leader of the firm’s LITHC team and represents many active investors in the LIHTC market. She attended Georgetown University.

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On Feb. 19, Hunt Mortgage Group, a subsidiary of national developer, investor and manager of real assets Hunt Companies Inc., announced the addition of Jeffrey Rutishauser as a managing director to raise capital for the firm’s debt and equity platforms. Rutishauser will be based in the New York office, but will spend time working for Hunt Investment Management. Previously, Rutishauser worked at Berkshire Capital Group, where he served as a senior managing director. Before that, he was senior managing director at Palladian Capital Advisors and he was chief executive officer at Amstar Global Partners Ltd. He also held positions at AIG Global Real Estate, DaimlerChrysler Capital Services Corp., Northstar Capital Investment Corp., Westbrook Real Estate Partners, Price Waterhouse LLP, GE Capital Corporation and Booz-Allen & Hamilton.

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In early February, Boston Financial Investment Management LP announced the appointment of Peter Canny and Mark Matasic to its syndication team. They are directors of environmental and construction risk management. Canny joined the firm after providing management services for several transportation-oriented developments through his company Real Estate Perspectives LLC. Before that, Canny was vice president of asset dispositions at Lend Lease Real Estate Investments. Matasic will be responsible for evaluating environmental and construction risks and monitoring construction activity. He previously worked as a development risk manager and construction asset manager for RBC Capital Markets Tax Credit Equity Group.

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The National Housing and Rehabilitation Association (NH&RA), an association of companies and individuals involved in affordable housing, announced March 4 the election of Jerome “Jerry” Breed to chairman of the NH&RA board of directors. Breed’s election was announced at the NH&RA’s annual meeting Feb. 18-22. Breed is a partner at Bryan Cave, a law firm. He received a J.D. from Harvard University. Breed succeeds Bernie Husser, executive vice president of Richman Group Affordable Housing Corporation.

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City Real Estate Advisors announced March 2 the addition of Mike Boyle as vice president of acquisitions. He will be based in the St. Petersburg, Fla., office. Boyle will be responsible for identifying, structuring and closing affordable housing equity opportunities. Before joining City Real Estate Advisors, Boyle was vice president at Churchill Stateside Group, and before that, he was associate director of acquisitions at Raymond James Tax Credit Funds