Sign Up For Novogradac Industry Alert Emails

Low-Income Housing Tax Credits News Briefs - January 2016

AFFORDABLE HOUSING INDUSTRY BRIEFS

The National Association of Home Builders (NAHB) released its latest Eye on Housing newsletter Nov. 16. This issue provides an update on the Low-Income Housing Tax Credit (LIHTC) program. According to the analysis, NAHB estimated that as of 2013, approximately 13.3 million people had resided in homes financed by the LIHTC program. According to data collected from the National Council of State Housing Agencies (NCSHA), 2.8 million rental residences were financed under the LIHTC program from the start of the program in 1987 through the end of 2013. NAHB stated that the LIHTC plays a critical role in the housing market by ensuring a supply of affordable rental housing, and has been responsible for financing the development of more than 2.7 million rental homes. More information is available at www.eyeonhousing.org.

***

Enterprise Community Partners Inc. was recognized as the Organization of the Year at the 12th annual Stevie Awards for Women In Business. The Stevie Awards for Women in Business recognizes the achievements of women executives, entrepreneurs and the organizations they run. Enterprise’s goal is to help provide opportunity to 1 million low-income families through quality affordable housing and connections to good schools, jobs, transit and health care by 2020. In addition, Enterprise leaders Alazne Solis, senior vice president of public policy and corporate affairs, and Amalia Kastberg, vice president of marketing and communications, were also honored. Solis and Kastberg were recognized with Silver Stevies as Female Executive of the Year, Government or Non-Profit, and Woman of the Year, Advertising, Marketing and Public Relations, respectively. The ceremony was Nov. 13 at the Marriott Marquis Hotel in New York.

***

STATE BRIEFS

New York Gov. Andrew M. Cuomo announced Nov. 10 the start of construction on Veterans Housing for Canandaigua. The 48-unit affordable housing complex in Canandaigua, N.Y., will provide affordable housing and on-site services for veterans and their families who are homeless or at risk of becoming homeless. The $10.7 million supportive housing development was financed with $2.5 million in New York State HOME funds and $5.2 million in low-income housing tax credits (LIHTCs) over a 10-year allocation, from the office of New York State Homes and Community Renewal. Veterans Housing for Canandaigua will include five, two-story residential buildings. A separate community building will house a maintenance garage, a laundry room, and a Veterans Affairs service delivery office. Of the 48 units, 25 units will be for veterans eligible for benefits from the Canandaigua VA Medical Center who are homeless or at risk of homelessness, and their dependents. The development is a partnership with New York State Homes and Community Renewal, the New York State Office of Temporary and Disability Assistance, Rochester Housing Authority, The Finger Lakes Addictions Counseling & Referral Agency Inc., Geneva Housing Authority and the Canandaigua Veterans Administration.

***

The Georgia Department of Community Affairs announced Dec. 1 the award of $25.8 million in federal LIHTCs for construction or rehabilitation of 33 affordable rental housing properties. The developments, located throughout the state, will provide 2,399 units of affordable housing for working families, seniors and persons with disabilities. The 33 developments were selected from 75 applicants. The properties are expected to produce more than $280 million in local income, more than $52.8 million in local government revenue and nearly 3,900 jobs from construction expenditures.

***

On Nov. 25, the Louisiana Housing Corporation board of directors awarded $12.1 million in funding for the construction and rehabilitation of 952 housing units of affordable housing through the state. Of the units that will be developed, 402 will be newly constructed housing units and 550 will be rehabilitated units. The funding includes $9.7 million in LIHTCs and $2.4 million in tax credit assistance. This investment is estimated to have a statewide economic impact of $161.5 million and will create 1,162 jobs within the first year. There were 26 applications for funding and 17 developments were funded.

***

DEALMAKERS

On Oct. 28, Boston Capital announced its investment in the rehabilitation of Skyline Crest Apartments in Vancouver, Wash. The 137-unit apartment community is available to families. Skyline Crest Apartments will be rehabilitated with $10.3 million in LIHTC equity. Of the 137 units, there will be 40 one-bedroom, 29 two-bedroom, 54 three-bedroom and 14 four-bedroom homes in 55 one-story buildings. Units will be available to families earning 60 percent or less of the area median income (AMI). Amenities will include a playground and a proposed health care facility. Improvements to the apartment community will include structural rehabilitation, exterior finishing and water infiltration detailing, as well as landscaping work and upgraded patios. The rehabilitation of Skyline Crest Apartments is expected to produce nearly $8.3 million in local salaries and create nearly 89 new jobs in the Vancouver area.

***

Greenhouse17, an advocacy agency committed to ending intimate partner abuse in families and the community, announced Oct. 14 that funding was secured for the construction of 24 new housing units for survivors of domestic violence. Funding sources include $3.4 million in LIHTC equity, $499,000 in federal HOME funds and a $560,000 loan from the city’s affordable housing fund. There was also a $3.3 million low-interest construction loan from HOPE of Kentucky. There will be 12 single-story cottage-style duplexes on Greenhouse 17’s 40-acre campus in Fayette County, Ky. Units will be available to residents earning 60 percent or less of the AMI. Developments are expected to be complete in late 2016. Construction cost is expected to total $4.6 million.

***

On Oct. 28, WNC announced the completion of the second phase of Malden Mills, Loft Five50, in Lawrence, Mass. WNC, a national investor in real estate and community development initiatives, provided $12.7 million in LIHTC equity for the adaptive reuse of the former Malden Mills manufacturing site that will be transformed into affordable housing. Loft Five50 will provide 62 units of affordable housing. Loft Five50 will have a mix of studio, one-, two- and three-bedroom units. Amenities will include on-site management, a clubhouse and community area, a fitness center, a theater, a Wi-Fi lounge, a laundry facility, a playground and a picnic area.

***

U.S. Bancorp Community Development Corporation (USBCDC) announced Nov. 25 the investment of $17.4 million in LIHTC equity for the development of Park Place Family in Chicago. Park Place Family will provide 78 units of affordable housing to residents earning between 50 and 60 percent of the AMI. The units will range from one to three bedrooms. Of these units, two will be designed for the vision or hearing impaired. Development costs are expected to total $27 million and construction is expected to finish February 2017.

***

On Nov. 24, the Georgia Department of Community Affairs awarded $6.5 million in LIHTCs for phase two of the Trinity Walk development in Decatur, Ga. Trinity Walk will occupy the site of the previous Gateway Manor Apartments. Phase two will provide 52 units of affordable housing to families. Construction will begin in June, with a completion date of 2017. Phase one will provide 69 units and is scheduled for completion in May 2016. The Decatur Housing Authority is planning a third phase, which will involve redeveloping 34 units.

***

On Nov. 4, the New Jersey Housing and Mortgage Finance Agency awarded $15.6 million in LIHTCs for the development of the Lena Frances Edwards Apartment in Jersey City. The 64-unit apartment complex will be reserved for low- and moderate-income housing. There will be 12 one-bedroom units, 36-two bedroom units and 16 three-bedroom units. Of the units, five will be dedicated to housing homeless veterans.

***

Greystone announced Nov. 10 the closing of an $88 million multifamily transaction for the acquisition and rehabilitation of affordable housing throughout the state. A total of 20 properties providing 793 units will be renovated. The $88 million included $28 million in tax-exempt bond financing and $16 million in LIHTCs.

***

The South Rome Development Corporation announced $7.7 million in LIHTCs Nov. 23 for 84 units of affordable housing in Rome, Ga. The Georgia Department of Community Affairs awarded state LIHTCs for three developments sites. The buildings at Etowah Terrace will provide two, three-story buildings with a combined total of 23 apartments for seniors 55 and older. The second property will replace the former McCall Hospital and will provide two, three-story buildings with 27 units. The last site will replace the former Anna K. Davie Elementary school. This site will consist of 17 duplexes providing 34 units to single families. Development costs are expected to total $12 million. Construction is scheduled for summer 2016.

***

The Guam Housing and Urban Development Authority board Nov. 23 approved $26.8 million in LIHTCs for the development of Summer Town Estates. The affordable housing property will provide 93 units, with 18 one-, 18 two-, 47 three- and 10 four-bedroom units. Community amenities will include access to a fitness center and a swimming pool. Units are available to families and individuals earning 60 percent or less of the area median income (AMI).

***

On Nov. 13, Raymond James Tax Credit Fund announced the syndication of its largest multi-investor LIHTC fund. The national sponsor of affordable housing syndicated Raymond James Tax Credit Fund 41 LLC (Fund 41), a $279 million LIHTC fund. Fund 41 is financing the construction or rehabilitation of 2,296 units in 40 housing properties across 18 states. Affordable housing will be provided to approximately 6,400 low-income families and seniors.

***

On Nov. 24, BRIDGE Housing announced the acquisition of four affordable housing properties in San Francisco. The 360 units in the Mission, Castro and Bernal Heights districts were acquired under phase one of the citywide Rental Assistance Demonstration (RAD) program. BRIDGE Housing will extensively rehabilitate the properties, focusing on safety upgrades and modernization efforts. Holly Courts, built in 1940, provides 118 units for families, while 25 Sanchez provides 90 units for seniors and disabled residents, 462 Duboce provides 42 units for senior and disabled residents, and 255 Woodside provides 110 units for senior and disabled residents. Renovations are expected to take between 14 and 16 months and will cost $55.6 million. Bank of America Merrill Lynch provided phase one with approximately $310 million in LIHTC equity, $360 million in a tax-exempt bond construction loan, $20 million in subordinated, forgivable debt and $80 million in permanent debt in partnership with Freddie Mac. BRIDGE will have an additional 357 units in three properties for the second phase under RAD.

***

PEOPLE IN THE INDUSTRY

KeyBank’s Community Development Lending and Investment group announced Nov. 12 a six-member assembly that will focus on the expansion of KeyBank’s affordable housing platform, work to double the size of the business in the next three years and lead a team of more than 50 professionals. The six senior-level members will work under Robert Likes, national manager of the investment group. Banking solutions will include construction, acquisition, bridge-to-resyndication and preservation loans, as well as lines of credit and equity investments for low-income housing developments, especially low-income housing tax credit (LIHTC) financing.

***

WNC announced Nov. 5 the addition of Howard M. Heitner to the company’s advisory board. Heitner began his career at the Federal Reserve Board in Washington in 1976. He has also served as president and a member of the investment committee of JRK Residential America, as chief operating officer of SunAmerica Affordable Housing Partners and was a partner with O’Melveny & Myers LLP. In addition, WNC announced Oct. 17 the promotion of Wendy Yan to vice president of underwriting. Yan had worked in the affordable housing industry for 20 years, and joined WNC, a national investor in real estate and community development initiatives, in 2011. She joined as senior project manager of underwriting and was later promoted to the role of director of underwriting.

***

National Church Residences announced the appointment of Derrick A. Jordan Oct. 28 as senior project leader. Jordan will focus on the construction and rehabilitation of affordable senior housing developments, as well as permanent supportive housing for veterans and formerly homeless individuals. He will also work to expand and strengthen National Church Residences’ community relationships, health care partnerships and philanthropic efforts. Jordan will direct his efforts to Fulton and DeKalb counties. Before joining National Church Residences, he was with the Atlanta Department of Planning and Community Development. In December 2011, Jordan was named the Director of the Office of Housing for Atlanta. National Church Residences is a nonprofit organization involved in integrating housing, health care and supportive services, serving seniors and families.

***

On Nov. 16, Hunt Mortgage Group announced the appointment of Barry Polen as the firm’s managing director, capital markets. Polen will focus on expanding Hunt Mortgage Group’s capital markets activities and its commercial lending business nationwide. Before joining the financier of commercial real estate, Polen was managing director at Guggenheim. He has also serves as a managing director at Credit Suisse, and a vice president with Donaldson, Lufkin & Jenrette. Polen will operate out of the firm’s New York office.

***

On Nov. 23, California Gov. Jerry Brown announced his new appointments for state officials. Ben Metcalf was appointed director of the California Department of Housing and Community Development.

Metcalf had been deputy assistant secretary in the Office of Multifamily Housing Programs at the U.S. Department of Housing and Urban Development (HUD) since 2013. Michael Gunning was reappointed to the California Housing Finance Agency board of directors, where he has served since 2009. Elaine Gallagher was appointed to the California Housing Finance Agency board of directors. Gallagher had been managing director at Stifel’s San Francisco public finance office since 2011. Benita Baines was appointed special assistant to the deputy director of workforce services at the California Employment Development Department. Baines was deputy director of regional office operations at the California State Council on Developmental Disabilities since 2014. Dawn Akel was appointed to the California Professional Fiduciaries Advisory Committee. Akel was president, chief executive officer and principal fiduciary at Akel Fiduciary Inc. since 2008. George Famalett was appointed to the California Board of Accountancy. Famalett was a tax partner at PricewaterhouseCoopers LLP since 2005. Janet Falk was been reappointed to and designated chair of the California Housing Finance Agency board of directors, where she has served since 2012. A complete list of appointees is available at www.gov.ca.gov.

Journal Category:

Low-Income Housing Tax Credits

Authors:

Novogradac

Learn more about Novogradac's expertise and many services