Sign Up For Novogradac Industry Alert Emails

Low-Income Housing Tax Credits News Briefs - April 2018

LIHTC Industry

The Office of the Comptroller of the Currency (OCC) released Community Reinvestment Act (CRA) performance evaluations Feb. 7 for 16 national banks and federal savings associations. Of the 16 evaluations made public in January, 15 rated as satisfactory and one rated as outstanding. 

***

The National Low Income Housing Coalition (NLIHC)  issued a newsletter Feb. 13 announcing a sign-on letter to Congress urging increased funding to the National Housing Trust Fund (HTF) to at least $3.5 billion annually through comprehensive housing finance reform. Nearly 1,300 organizations signed the letter. The HTF is a new federal housing resource exclusively targeted to build and preserve homes affordable to people with the lowest incomes.

***

The OCC issued the second and third quarter 2018 CRA evaluation schedule Feb. 27. The OCC encourages public comment on the national banks and federal savings associations scheduled to be evaluated under the CRA. The OCC will consider all public comments received before the close of the CRA evaluation. The schedule is available at www.novoco.com/cra.

***

The National Low Income Housing Coalition (NLIHC) recognized the winners of its 2018 Housing Organizing Awards at its 2018 NLIHC Housing Policy Forum March 19-21 in Washington, D.C. The winners were the Right to Counsel NYC Coalition, the Metropolitan St. Louis Equal Housing and Opportunity Council and Empower Missouri. NLIHC selected the winners for outstanding achievements in organizing efforts that advance NLIHC’s mission of achieving socially just public policy that ensures people with the lowest incomes in the United States have decent, affordable homes.

***

Enterprise Community Partners Inc. announced Feb. 20 the four Enterprise Rose Architectural Fellows. Nicholas Forest will spend his fellowship with Quest Community Development Organization Inc. in Atlanta. He will assist the property development team in their efforts to stabilize Atlanta’s Westside communities by developing 100 new affordable homes as well as retail and office spaces. Jason Minter will join the buildingcommunityWORKSHOP, a Texas-based nonprofit community design center seeking to improve the livability and viability of communities through the practice of thoughtful design. He will work in the Houston office to focus on understanding the complexities of disaster recovery in Texas and along the Gulf Coast. Dawn Hicks will join Venice Community Housing (VCH), where she will serve on the housing development team as VCH initiates two new developments focused on increasing affordable and permanent supportive housing options in Venice, Calif., as well as reinvest in several older properties. Seema Kairam will be hosted by The Trust for Public Land, which works with urban communities throughout the United States to create parks and preserve public spaces. She will conduct research, collect case studies on how park development can successfully engage questions of housing equity and displacement and test those ideas on the ground with local developments in St. Paul, Minn., and Cleveland. Since its launch in 2000, the fellowship has supported 73 fellows who have helped produce or preserve 11,000 affordable, sustainable homes and design more than 80 community spaces tailored to the specific needs of individual communities.

***

The Federal Housing Finance Agency (FHFA) issued March 6 a proposed rule amending the Federal Home Loan Banks’ (FHLBanks’) Affordable Housing program (AHP) regulation. FHFA is seeking comments on the proposed amendment, which would authorize the FHLBanks to redesign their project selection systems and create special targeted funds. This would allow the FHLBanks more flexibility to align their AHP funds with the distinct affordable housing needs in their districts. The amendment would also reduce regulatory requirements that are redundant with other federal programs. FHFA invites comments on the proposed amendment via FHFA.gov  within 60 days of publication in the Federal Register.

LIHTC State

The Wisconsin Housing and Economic Development Authority (WHEDA) announced the allocation of $134 million in low-income housing tax credits (LIHTCs) to 31 developments throughout the state Feb. 27. The 31 developments will include 1,162 rental apartments, 1,066 of which will be affordable. The tax credits will help finance affordable apartments in Brown, Calumet, Crawford, Dane, Dodge, Door, Grant, Jefferson, Kenosha, Milwaukee, Oconto, Pierce, Sawyer, St. Croix, Walworth, Washington, Waupaca, Winnebago and Wood counties. WHEDA received 51 applications requesting $276 million.

***

The New Jersey Housing and Mortgage Finance Agency announced March 6 that applications are being accepted for the 2018 round of federal 9 percent LIHTCs. There is $280 million in LIHTCs available, which are expected to help finance an estimated 1,400 affordable rental apartments throughout the state. The application deadline for family, senior and supportive housing developments is noon July 24. Applications for mixed-income developments will be accepted on a rolling basis July 24 through noon Aug. 31. LIHTC award winners will be announced in early November. 

LIHTC Dealmaker

The grand opening and ribbon cutting of Nelsonville School Commons was March 2. The Woda Group Inc. worked with the Nelsonville High School Restoration Foundation and the Hocking Athens Perry Community Action program to rehabilitate and renovate a partially condemned 1900s school in Columbus, Ohio, into an affordable apartment complex. There will be 33 affordable rental homes for workforce families and seniors. Nelsonville School Commons is available to residents earning at or below 60 percent of the area median income (AMI). The school’s original auditorium was repurposed into a community room with kitchenette, property management office and a fitness center. The $9.6 million redevelopment was funded with Ohio historic preservation tax credits administered by the Ohio Development Services Agency, federal historic preservation tax incentives through the National Park Service and low-income housing tax credits (LIHTCs) made available through the Ohio Housing Finance Agency (OHFA). In addition, a bridge loan was made available through OHFA’s home development loan program. 

***

Hunt Capital Partners, in partnership with the Volunteers of America National Services, announced Feb. 7 the closing of $1.8 million in LIHTC equity for the acquisition and rehabilitation of Autumn Trace Apartments in Kingfisher, Okla. The development will update Autumn Trace’s four residential buildings, and when completed, will provide 31 renovated affordable apartments for seniors 62 and older earning up to 50 and 60 percent of the AMI. Autumn Trace will offer amenities such as an expanded community room, community garden, shuffleboard court, fitness room, outdoor exercise areas and dedicated space for supportive services. Hunt Capital Partners’ multi-investor fund, Hunt Capital Partners Tax Credit Fund 24, facilitated the LIHTC financing. Development costs were $3.6 million. Rehabilitation is scheduled to be completed Aug. 8. 

***

Hunt Capital Partners, in collaboration with Roundstone Development LLC, announced Feb. 13 the closing for The Pines, a LIHTC development for families in DeLand, Fla. The Pines will provide 100 affordable apartment homes in six, two- and three- story residential buildings, as well as one single-story community building. There will be 24 one-, 32 two-, 24 three- and 20 four-bedroom apartments, which will be set aside for households earning up to 40 and 60 percent of the AMI. Of those 100 apartments, five will be have a preference for a family that is considered homeless, a survivor of domestic violence, a person with a disability or youth aging out of foster care. Amenities will include a clubhouse with kitchen, business center, library/meeting room, fitness room, laundry room, swimming pool and playground. Development costs reached $18.6 million. Hunt Capital Partners facilitated a $13.4 million investment in federal LIHTC equity through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 27. Construction will be completed in January 2019.

***

The Massachusetts Housing Finance Agency (MassHousing) announced $14.3 million in financing Feb. 8 to the nonprofit Fenway Community Development Corporation for the renovation and preservation of Fenway CDC’s Burbank Gardens community in Boston. Financing will enable major renovations at the four-story, 52-apartemnt development. MassHousing provided Fenway CDC with a $3.8 million construction and permanent loan, a $5.5 million bridge loan and $5 million from the agency’s Opportunity Fund, which provides financing for MassHousing’s Workforce Housing Initiative and 13A Preservation Initiative. DHCD provided $3 million in financing and allocated LIHTCs that generated $4.8 million in equity for the $20.8 million transaction. Burbank Gardens has 28 studio, 22 one- and two two-bedroom apartments. In addition, MassHousing closed on $16.4 million in affordable housing financing Feb. 12 to the WinnCompanies for the rehabilitation of the historic Wellington Community in Worcester. The 180 apartments will be rehabilitated with $16.4 million in permanent financing from MassHousing and the tax-exempt financing generated $9.1 million in LIHTC equity for development. Other financing sources included $2.4 million federal historic tax credits (HTCs), $1.5 million from an allocation of state HTCs and a $22.3 million construction loan from Bank of America.

***

MassHousing announced $135.5 million in financing Feb. 12 to an affiliate of the nonprofit Retirement Housing Foundation for the renovation of Symphony Plaza in Boston. Refinancing for the 404-apartment property was completed through the Federal Housing Administration’s Housing Tax Credit Pilot program. MassHousing issued $61 million in short-term tax-exempt construction financing, to facilitate the use of federal LIHTCs. The Symphony Plaza transaction also involved approximately $40.3 million in LIHTC equity. In addition, MassHousing announced $10.6 million to the East Boston Community Development Corporation Feb. 14 for the acquisition, renovation and preservation of a 111-apartment scattered site in Boston. The transaction refinances and consolidates two existing affordable housing communities, the Landfall Apartments, with 15 apartments, and East Boston Rehab portfolio, with 96 apartments. MassHousing provided a $5.7 million permanent loan, a $4.7 million bridge loan and a capitalized 13A payment loan of $134,401. MassHousing financing generated $5.8 million in LIHTC equity. 

***

MassHousing announced Feb. 15 $13.9 million in financing to an affiliate of the Cambridge Housing Authority for the renovation of the Russell Apartments. The 52-aprtment affordable housing community in Cambridge serves low-income senior citizens and disabled residents. MassHousing is supporting the rehabilitation of the Russell Apartments with $13.9 million in financing through the agency’s Conduit Loan program. The MassHousing conduit loan generated $8.2 million in LIHTC equity, and MassHousing will also issue tax-exempt housing revenue bonds.

***

The grand opening of Ivy II at College Park in Chino, Calif., was Feb. 9. There are 200 apartments for families, and the property is affordable to households earning 50 percent to 60 percent of AMI. The property borders Ivy’s first phase of 135 affordable apartment homes and is on a 9-acre site within the 200-acre College Park master plan area. The completed second phase brings the number of affordable homes to 335. Financing for the $41.6 million project was provided by the city of Chino, Bank of America NA, National Affordable Housing Trust, J.P. Morgan, PGIM Real Estate Finance, Freddie Mac Multifamily, the California Tax Credit Allocation Committee, the California Debt Limit Allocation Committee and the Housing Authority of the County of San Bernardino. The developer BRIDGE Housing and the architect is KTGY Architecture + Planning.

***

Boston Capital announced Feb. 7 its investment in the construction of Bidwell Pointe. The Folsom, Calif., mixed-use development will provide 140 apartments. There will be 100 affordable apartments and 40 market-rate apartments, with affordable apartments available to families and individuals earning 60 percent or less of the AMI. Bidwell Pointe will feature 74 one-, 58 two- and eight three-bedroom apartments in seven three-story residential buildings. Amenities will include a 2,800-square foot clubhouse featuring a business center, community room with kitchen and management offices. Additional amenities will include a barbecue and sundeck, and a playground. Bidwell Pointe will be built with LIHTC equity.

***

The North Carolina Housing Finance Agency awarded LIHTCs to Asheville Housing Authority and Mountain Housing Opportunities Jan. 26 for the rehabilitation and new construction of Lee Walker Heights in Asheville, N.C. The LIHTC allocation will generate more than $12 million in equity for the new mixed-income community, which will rehabilitate 96 and construct 116 new affordable, energy-efficient, transit-oriented apartments. Construction on the 1950 building is expected to cost $36.5 million and employ more than 500 workers during the 18- to 24-month construction period. Work is scheduled begin in 2019.

***

R4 Capital announced $6.7 million in LIHTC equity Jan. 31 for the rehabilitation and new construction of Historic Sullivan Lofts. The adaptive reuse and conversion of two historic structures will provide 40 apartments for seniors in Sullivan, Ind. In addition to the 9 percent LIHTC and HTCs provided by R4 Capital, funding was provided by Salin Bank and the Indiana Housing and Community Development Authority. Development will consist of 13 scattered sites on 4.2 acres. One parcel will be set aside for a park. The façade of the two historic properties, built between the late 1800s and 1930s, will be restored to their period aesthetic. Historic Sullivan Lofts will house residents 55 and older earning up to 60 percent of the AMI. Services provided will include health screening, quarterly resident meetings, holiday events, physical therapy, medication delivery and home health care.

***

A grand opening for Saint Francis Apartments at Cathedral Square in Denver was Feb. 18. The property provides 49 apartments and was developed with $9.5 million in LIHTC equity from Boston Capital via the Colorado Housing and Finance Agency. The remaining $1.2 million in funding came from a Housing Development Grant through the Colorado Division of Housing and from Denver’s Office of Economic Development.

***

LDG Development announced in early February that financing was secured for the construction of Meadows at Nicholson in Baton Rouge, La. The property will provide 204 apartments that are affordable for households earning 60 percent or less of the AMI. Amenities will include a 3,800-square-foot clubhouse, swimming pool and fitness center. The financing package included approximately $38 million in bonds, LIHTCs and HOME funds through the Louisiana Housing Corporation. Capital One Community Finance invested in $15 million of 4 percent LIHTCs through syndicator Enterprise Community Investment, while Capital One Multifamily Finance closed a $19.9 million FHA 221(d)(4) tax-exempt bond. The remainder of the financing included a $2 million HOME loan from the Louisiana Housing Corporation and a $1 million letter of credit from LDG Development.

LIHTC People

The National Council of State Housing Agencies (NCSHA) board of directors announced March 5 the appointment of Stockton Williams as NCSHA executive director. Williams comes to NCSHA from the Urban Land Institute (ULI), where he serves as executive vice president of content and executive director of the Terwilliger Center for Housing. Before joining ULI, Williams was managing principal of HR&A Advisors’ Washington, D.C., office. Before that, he served as senior advisor in the U.S. Department of Housing and Urban Development and the U.S. Department of Energy. He has also held senior leadership positions at Enterprise Community Partners and Living Cities. Williams is chairman of the board of Groundswell, a community solar organization serving low-income communities. Williams’ appointment was effective April 2.

***

The John F. Kennedy Library Foundation announced Feb. 8 that its board of directors unanimously elected David Gasson, vice president and director of Boston Capital Corporation, as a new member of the board. Gasson also serves as the executive director of the Housing Advisory Group, an organization comprised of industry professionals from around the country founded to advocate on behalf of housing issues. The nonprofit organization founded in 1984 provides financial support, staffing and creative resources for the John F. Kennedy Presidential Library and Museum.

***

Nixon Peabody announced Feb. 20 Matthew Mullen was elected partner of its tax credit finance and syndication practice. Mullen structures, negotiates and closes transactions involving low-income housing tax credit (LIHTC), historic rehabilitation tax credit and new markets tax credit investments. 

***

Pennsylvania Developers’ Council announced Feb. 13 the election of Andrew B. Cohen, senior vice president of The Woda Group Inc., to the board of directors. Cohen will serve a two-year term. Cohen is responsible for Woda’s acquisitions and development in Pennsylvania and Maryland. He joined Woda in 2011. Before that, he was administrator of the LIHTC program in Maryland and development officer with Enterprise Community Investment. Pennsylvania Developers’ Council is an advocacy organization work to promote and provide adequate public and private resources for affordable housing. 

***

Massachusetts Gov. Charlie Baker announced the appointment of Patricia A. McArdle to the MassHousing board of directors Feb. 14. McArdle heads the Law Office of Patricia A. McArdle and Associates PC. McArdle has expertise in property and real estate law, family law, business law and estate planning and probate law. She is a member of the American Bar Association and the Association of Trial Lawyers of America. MassHousing board members are unpaid volunteers appointed by the governor, typically to seven-year terms.  

***

Hunt Mortgage Group announced March 5 the addition of Kevin Deegan as director of the company’s affordable housing/FHA group. He will be focused primarily on originating and closing affordable and FHA multifamily loans nationwide, but will also serve clients using Hunt Mortgage Group’s balance sheet products and agency executions. Before joining Hunt, Deegan was director, real estate advisory services at National Valuation Consultants. Before that, he held positions with Harmony Housing/Greystone & Co., and Centerline Capital Group. 

***

Douglas Wilberding joined Pembrook Capital Management LLC’s (Pembrook’s) national loan origination team as senior originator. His hiring was announced March 5. Wilberding will be based in Washington, D.C., and will source, price and structure loans for the firm’s Mid-Atlantic and Northeast regions. Wilberding brings more than 25 years of experience to Pembrook and was responsible for acquiring, financing, leveraging, managing and disposing of more than $4 billion in all asset classes throughout his career. Before joining Pembrook, Wilberding served as senior vice president with the National Community Reinvestment Coalition. 

LIHTC Bonds

Steele Properties, in partnership with the Fort Worth Housing Authority, doing business as Fort Worth Housing Solutions, announced Feb. 21 the $10.8 million acquisition and rehabilitation of Sabine Place Apartments in Fort Worth, Texas. Renovations will include both interior and exterior work. Amenities will include a renovated community room with computer lab, a new playground and a picnic table, as well as accessibility improvements in parking and common areas. Monroe Group Ltd. will oversee property management of the affordable family complex. Financing includes 4 percent low-income housing tax credits allocated by Texas Department of Housing & Community Affairs, tax-exempt bonds issued by an affiliate of Fort Worth Housing Solutions, permanent and construction financing provided by Citibank, and tax credit equity from Raymond James. The property, built in 1968, comprises 12, two-story buildings and 72 apartments with a mix of two- and three-bedroom apartment homes on 5.5 acres.

Journal Category:

Low-Income Housing Tax Credits

Authors:

Novogradac

Learn more about Novogradac's expertise and many services