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Low-Income Housing Tax Credits News Briefs – January 2019

The Internal Revenue Service Nov. 19 published Revenue Procedure 2018-55, announcing the amounts of unused low-income housing tax credit (LIHTC) carryovers allocated to qualified states for calendar year 2018. The $2.69 million of unused LIHTC carryovers was placed in a national pool and reallocated to 32 qualified states and Puerto Rico. Revenue Procedure 2018-55 is available at www.taxcredithousing.com.

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The Federal Housing Finance Agency (FHFA) announced Nov. 6 that Fannie Mae and Freddie Mac each have $35 billion multifamily lending caps for 2019. Those figures are unchanged from 2018 and are based on FHFA’s projections of the size of the 2019 multifamily originations market. The FHFA will review its estimates of the multifamily loan origination market each quarter and will adjust caps if necessary, although it will not reduce the caps.

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The Office of the Comptroller of the Currency (OCC) released Nov. 1 Community Reinvestment Act (CRA) evaluations for 37 national banks and federal savings associations. The evaluations were for October. Of the 37 evaluations made public, 30 were rated as satisfactory and seven were rated as outstanding.

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The OCC released November CRA performance evaluations Dec. 4. Twenty-eight CRA evaluations were released for November. Of the 28 evaluations, 25 rated as satisfactory and three rated as outstanding. 

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The OCC released Nov. 29 the CRA evaluation schedule for the first and second quarters of 2019. The OCC invites public comment on national banks and federal savings associations scheduled for CRA evaluation. The OCC said it would consider all public comments received until the close of the CRA evaluation. The evaluation schedule is available at www.novoco.com/cra.

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Moody’s Investors Service announced Nov. 27 that it is maintaining its stable outlook for the U.S. state housing finance agency (HFA) sector for 2019. According to Moody’s, HFA multifamily performances will remain solid in 2019 given strong demand for affordable housing among the low-to-median-income population. Moody’s notes limited supply and high demand from large pools of eligible tenants will keep vacancy levels low for HFAs, and that demographic trends will be a major driver of demand for both affordable single family homes and multifamily rental homes. In addition, Moody’s stated that HFAs are also well positioned to meet the imminent surge in demand for affordable senior rental housing.

LIHTC State

Montana Gov. Steve Bullock announced $30.6 million in federal LIHTCs Nov. 20 for the development or preservation of five affordable housing properties throughout the state. Chapel Court in Billings received $8 million for a new-construction development of 50 apartments for seniors. Oakwood Village in Havre received $3.8 million for acquisition and rehabilitation to preserve 60 apartments for families. Red Alder in Helena received $7.8 million for a new-construction development of 37 apartments for families. Meadowlark Vista in Ronan received $4.2 million for new construction of 24 apartments for families. Whitefish HA-HW Project in Whitefish received $6.8 million for new construction of 38 apartments for families.

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North Dakota Housing Finance Agency (NDHFA) awarded $34 million in federal LIHTCs Nov. 19 to four affordable housing properties that will offer supportive services to help senior tenants age in place. The tax credits are expected to generate more than $30 million in equity. NDHFA also awarded $2.8 million from the National Housing Trust Fund and $1.6 million from the state’s Housing Incentive Fund. Century Cottages in Bismarck, N.D., received $7.9 million in LIHTCs. The Schuett Companies was awarded $9 million in LIHTCs to support the acquisition and renovation of Patterson Place Apartments in Bismarck. The Housing Authority of Cass County was awarded $8.5 million in LIHTCs to develop The Monterey, the first phase of a planned replacement of its ND1-1 and ND1-2 properties. Phase two of the Housing Authority of Cass County’s planned replacement of the ND1-1 and ND1-2 properties was also awarded $8.5 million in LIHTCs. NDHFA received 25 applications for 12 developments in the 2018 funding round.

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Minnesota Housing announced Nov. 1 the investment of $87.5 million in the creation and preservation of affordable housing. Fifty-five developments will provide 374 single-family homes with more than 1,300 affordable homes throughout the state. 

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The Indiana Housing and Community Development Authority (IHCDA) announced Nov. 19 the winners of its 2019 LIHTC funding round, as well as recipients of the remaining 2018 LIHTCs. More than $17.6 million was available for the 2019 funding. Nineteen developments throughout the state benefited from the funding. Allocations will help to develop or preserve more than 1,000 affordable apartment homes for families, seniors and households with special needs in 12 counties. In addition, $8.1 million in IHCDA funding, including Development Fund, HOME and Housing Trust Fund dollars, was awarded to 14 of the developments.

LIHTC Dealmaker

Boston Capital announced Nov. 14 its investment in the construction of Aria Grand in Austin, Texas. Developer partners O-SDA Industries and Saigebrook Development LLC will provide 70 apartments. Of those, 30 will be available to families and individuals earning 60 percent or less of the area median income (AMI), 24 apartments will be available at 50 percent of the AMI and six apartments will be available at 30 percent of the AMI. There will be seven apartments set aside for permanent supportive housing for very low- and extremely low-income adults with disabilities. The remaining 10 will be available to families at market rental rates. Aria Grand will provide 12 one-, 30 two- and 28 three-bedroom apartments. The property will be located on nearly 1.5 acres, and amenities will include a two-level 2,500-square-foot clubhouse, community room, computer center and on-site management offices. Aria Grand will be built with low-income housing tax credit (LIHTC) equity.

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Dominium, an apartment owner, developer and manager, announced Nov. 13 the closing of a combined $250 million deal to acquire four affordable properties. The properties, in Minnesota and Florida, will provide more than 1,200 affordable apartment homes. The Legends of Minnetonka in Minnetonka, Minn., is made up of 262 new affordable, independent senior living apartments and will combine with The Preserve of Shady Oak, Minnetonka, Minn., which has 220 new apartments. Genesis apartments will provide 372 workforce apartment homes in Clearwater, Fla. Village Green will provide 196 affordable apartments in Fridley, Minn., and Bluffs at Liberty Glen will provide 180 affordable units in St. Cloud, Minn.  

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Bellwether Enterprise Real Estate Capital LLC, closed Nov. 13 on $45.2 million in loans for affordable properties in Georgia, Texas and Utah. The loans will help create and preserve more than 600 affordable apartment homes. The Preserve at Wells Branch in Austin, Texas, will provide 308 multifamily apartments. Artesian Springs Phase III in Millcreek, Utah, will provide 120 multifamily apartments. Peaks of Oakwood in Oakwood, Ga., will provide 84 new apartments. Northwinds Place Senior Living in Carrollton, Ga., will provide 102 apartments.

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Boston Capital announced Nov. 28 it is investing in the construction of Little Saigon, a 69-apartment community for families in Seattle. Developer Low Income Housing Institute (LIHI) will use LIHTC equity to build six studios, 43 one- and 20 two-bedroom apartments in a six-story, elevator-equipped building. Little Saigon apartment homes will be available to families earning 60 percent or less of the AMI. Amenities will include a second-floor community lounge, a 1,300-square-foot community space with a kitchenette on the first floor and common laundry facilities on each floor. The building will also have two retail spaces and one two-level office space. The office will be the new headquarters for LIHI and its subsidiary management company. 

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Regions Affordable Housing announced Dec. 4 its partnership with Emerald Housing Partners and Hoosier Housing Group Inc., for the acquisition and rehabilitation of Sycamores Terrace in Nashville, Tenn. The existing 128-apartment independent living community for seniors will provide affordable housing through the LIHTC incentive. Updated amenities will include an exercise center, picnic areas, dining areas for residents, a barber/beauty shop, meal services and shuttle transportation for residents. Regions Bank provided the construction and equity bridge loans and also secured Fannie Mae M.TEBs financing. Rehabilitation is expected to be complete by mid-summer 2019.

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Massachusetts Housing Finance Agency (MassHousing) announced $45.7 million in financing Nov. 26 to Jamaica Plain Neighborhood Development Corporation (JPNDC) for the acquisition and rehabilitation of 21 scattered sites in Dorchester and Roxbury, Mass. The funding will renovate 201 affordable apartment homes, part of the Lorenzo Pitts Portfolio. MassHousing provided JPNDC with a $26 million construction and permanent loan, an $18 million LIHTC equity bridge loan and a $1.7 million Section 13A preservation loan. The MassHousing financing yielded $24.3 million in LIHTC equity for the project. The transaction also included $5.7 million in equity from state and federal historic tax credits. Of the 201 units in the Pitts portfolio, 175 apartments are affordable to households earning at or below 60 percent of the AMI, with 165 of those apartments supported by project-based rental subsidy. The remaining 26 apartments are affordable to households earning at or below 80 percent of AMI. Planned renovations include masonry repairs on all building facades, roof and window replacement at selected buildings, accessibility upgrades, kitchen and bathroom upgrades at selected units and upgrades to life safety, mechanical, electrical and plumbing systems. 

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The groundbreaking for the construction of The Village at Nauset Green in North Eastham, Mass., was Dec. 7. The $23 million mixed-income housing property will provide 65 apartments for families in townhouse-style buildings. Of those 65 apartments, 11 will be for families earning less than 30 percent of AMI, and 15 will be workforce apartments. Financing included $10 million in LIHTCs from MassHousing. 

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The groundbreaking for the Canal Plaza housing complex in Binghamton, N.Y., was Nov. 28. The affordable housing complex will have 48 apartments. Of those, 12 will have supportive services for the mentally ill. There will also be 15,000 square feet of commercial space. The $20.5 million development was financed with $12.8 million in LIHTC equity and a $1.1 million in Community Development Block Grant and Disaster Recovery funding from the Governor’s Office of Storm Recovery. Construction is expected to be complete by 2020. 

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The Garfield Park Lofts in Grand Rapids, Mich., groundbreaking was in mid-November. The affordable housing complex will be a three-story building with 36 apartments. There will be 34 two- and two three-bedroom apartments, with 15 reserved for households earning 30 percent or less of the AMI. The $9.4 million development was financed with $9.3 million in LIHTCs from the Michigan State Housing Development Authority.

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The ribbon-cutting for Residences at Fairmount Station in Boston was Nov. 15. The Residences at Fairmount Station is a $12 million four-story building that provides 27 affordable apartments. A total of 24 apartments are available to families earning 60 percent or less of the AMI. The property contains a studio, one-, two- and three-bedroom apartments. The remaining three apartments are available to families earning up to 70 percent of the AMI. Financing for the development includes $4.7 million in LIHTC equity and more than $2.5 million from the state’s Department of Housing and Community Development.

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Construction began Nov. 30 on the $26.2 million Harbor View Square in Oswego, N.Y. The mixed-income, mixed-use property will comprise 75 rental homes and 10,000 square feet of commercial space for shops and eateries. There will be 57 apartments in a five-story building and 18 two-story townhomes. Of those 75 apartments, 11 will be reserved for persons with physical disabilities or traumatic brain injuries, and nine will be available at market rate. Amenities will include a fitness center, a rooftop terrace, a resident lounge, a media center and a conference room. Financing for the development includes $13.2 million in LIHTC equity, $3 million from the state Community Investment Fund and an additional $6.8 million subsidy. 

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Maine State Housing Authority awarded two Portland properties a combined $14 million in LIHTCs in mid-November for renovations of the affordable housing complexes. West End Apartments, a 64-apartment complex, received $8.6 million, and Thornton Heights Commons, a 42-apartment complex, received $5.4 million. Construction is expected to start in late summer or early fall 2019 and be completed summer 2020.

LIHTC People

BRIDGE Housing announced Nov. 5 the addition of Kurt Creager as executive vice president, effective immediately. Creager will oversee BRIDGE’s real estate development activity in Washington state. Before joining BRIDGE, Creager was director of the Portland Housing Bureau. Before that, he served as director of housing and community development for Otak, a Portland-based architecture and engineering firm. Creager serves on the board of the Housing and Development Law Institute in Washington, D.C., and has received the M. Justin Herman Award from the National Association of Housing and Redevelopment Officials, as well as the Friend of Housing Award from the Washington State Housing Finance Commission. 

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The National Low Income Housing Coalition (NLIHC) Nov. 1 announced the 2019 Housing Leadership Awards honorees: Rep. Emanuel Cleaver, D-Mo.; Emma Clifford, executive director of the Oglala Sioux Tribe Partnership for Housing and NLIHC board member; and Dr. Mitchell Katz, president and CEO of NYC Health + Hospitals. Cleaver will receive the 2019 Edward W. Brooke Housing Leadership Award for his years of leadership in Congress, commitment to addressing the needs of the lowest-income people in the U.S. and support for federal affordable housing and homelessness programs. Clifford will receive the Dolbeare Lifetime Service Award for her many years of leadership and dedication on behalf of Native Americans and her work to secure decent, safe and affordable homes for the lowest-income people living on Pine Ridge reservation. Katz will receive the Crowley Award for elevating public and policy-maker awareness about the connections between health, housing, and homelessness and for implementing solutions to meet the need for affordable housing for the lowest-income people. These leaders will be recognized at the 37th Annual Housing Leadership Awards Reception March 28 in Washington, D.C.  

Journal Category:

Low-Income Housing Tax Credits

Authors:

Novogradac

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