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Low-Income Housing Tax Credits News Briefs - July 2012


The Federal Housing Finance Agency (FHFA) has proposed changes to its 2012, 2013 and 2014 housing goals for Fannie Mae and Freddie Mac. According to the proposed rule, the low-income housing tax credit (LIHTC) market has recovered and the Office of Management and Budget has forecast an increase in LIHTC equity investments. As LIHTC investments return to pre-2008 volumes, FHFA expects opportunities for Fannie Mae and Freddie Mac to finance LIHTC properties to increase and, therefore, goals-eligible units should increase. Written comments must be received by July 26.


The Office of the Comptroller of the Currency (OCC) released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of April 15 through May 31. National banks, federal savings associations and federally-insured branches of foreign banks receive these ratings. Of the 37 evaluations, four were rated outstanding, 32 were rated satisfactory, one was rated needs to improve, and none received a substantial noncompliance. View the evaluations at


The president’s fiscal year 2013 budget proposal to increase multifamily mortgage insurance premiums (MIPs) is counterproductive, testified the National Association of Home Builders (NAHB) before a Housing Financial Services subcommittee. According to the organization’s testimony to the Subcommittee on Insurance, Housing and Community Opportunity, the need to raise MIPs in order to reduce defaults has not been demonstrated, and the U.S. Department of Housing and Urban Development (HUD) has not provided an analysis of how the proposed higher MIPs would affect borrowers, lenders or renters who live in properties insured under the program. NAHB also urged Congress to support efforts to fully fund Section 8 project-based rental assistance contract renewals, and to back HUD’s legislative efforts to expand financing availability for small multifamily rental properties and provide a secondary market outlet for those loans.


Enterprise Community Partners launched a green business service called Partner Portfolio Retrofit Engagement Platform (PartnerPREP), designed to help owners of affordable multifamily housing developments retrofit their buildings. PartnerPREP is a fee-based program that provides owners with energy planning and building management advice, energy efficiency and building performance technical support, and assistance in identifying resources to support energy efficiency upgrades and improvements during the course of a two-year engagement. To launch the service, Enterprise used a portion of a U.S. Department of Housing and Urban Development Energy Innovation Fund grant, a $200,000 grant from Morgan Stanley, and $100,000 grant from the New York Community Trust. More information on PartnerPREP is available at


Mercy Housing Northwest in May dedicated Evergreen Vista I, a rehabilitated affordable housing community in Olympia, Wash. The developer renovated the 104-unit property to extend the life of the buildings as well as implement energy efficient upgrades that include low-flow toilets and fixtures, 24-hour fans, all-wood cabinetry, and low-VOC paints and carpets. Through its on-site community center, Evergreen Vista offers free resident services such as support for tenants transitioning out of homelessness, a homework club, a computer lab, employment training and financial and wellness classes. U.S. Bank provided $8.3 million in permanent funds consisting of low-income housing tax credit (LIHTC) equity and funds from the purchase of tax-exempt bonds to support the $13.8 million redevelopment.


Four syndication firms announced recent multi-investor LIHTC fund closings. WNC & Associates in June closed the $50 million WNC Institutional Tax Credit Fund X, California Series 10. The fund will finance eight affordable properties in California for a total of 445 units. R4 Capital also closed last month on the initial $80 million of the $100 million R4 Housing Partners LP Fund, which comprises 15 properties in 10 states and will create 1,459 affordable units. City Real Estate Advisors (CREA) closed on the $39 million proprietary CREA Corporate Tax Equity Fund XXVIII LLC in May. This was a secondary sale of 11 properties, some of which are still under construction. Also in May, Great Lakes Capital Fund closed its Fund 26, with $128 million raised to support 23 deals in Illinois, Indiana, Wisconsin, Michigan and upstate New York. Eight investors contributed to the fund.


Enterprise Homes celebrated the grand reopening of Harper House, a nine-story multifamily building in Columbia, Md. that underwent a $21 million rehabilitation. Renovations included a nine-story addition that increased the living space by approximately 9,000 square feet, a new roof, elevator upgrades, energy efficient windows, additional common areas and a covered entry. Each unit was upgraded with new bathrooms, kitchens, flooring, lighting and ventilation systems, and Enterprise ensured that none of the building’s residents were displaced by the renovations. The property contains 42 one-bedroom and 58 two-bedroom apartments that serve households earning 60 percent of the area median income (AMI) or less. The redevelopment was financed with tax-exempt bonds issued by the Maryland Department of Housing and Community Development under the New Issue Bond Program, LIHTC equity provided by Enterprise Community Investment, a Multifamily Energy Efficiency and Housing Affordability Grant from the Maryland Community Development Administration, and developer contributions.


Kentucky Housing Corporation (KHC) announced the six developments that will receive a total of $2.1 million in 2013 LIHTC allocation from the April 2012 application round. The recipients are Jenkins High School Apartments in Jenkins, Frontgate Apartments in Louisville, Woodleigh Homes and Maysville High School Apartments in Maysville, Clarktown Landing in Hopkinsville, and Mt. Sterling – Main Cross LLC in Mt. Sterling. More information is available at


North Dakota Housing Finance Agency (NDHFA) conditionally committed $6.3 million through its Housing Incentive Fund (HIF) to support the development of nine multifamily affordable housing properties in seven cities. The HIF is capitalized by contributions from taxpayers, who in exchange receive a dollar-for-dollar state tax credit. The credit may be fully claimed in the year the contribution is made, and can be used to offset state income or financial institutions tax liability. Previous contributions have ranged from $100 to $2.5 million. NDHFA issues credits on a first-come, first-served basis until the program’s $15 million annual cap is reached. More information on HIF is available at


Colorado Housing Finance Authority’s (CHFA’s) Tax Credit Allocation Committee awarded more than $6.9 million in low-income housing tax credit (LIHTC) reservations to eight affordable housing developments during round one of its competitive allocation process. The committee reviewed 21 applications requesting a total of $17.5 million in LIHTC allocation. The selected developments are Canterbury Apartments in Englewood, Lamar Station Apartments in Lakewood, Pueblo West Gardens II in Pueblo West, Renaissance Stout Street Lofts and University Station in Denver, Silverthorne Family Housing in Silverthorne, Village Park in Grand Junction and Windshire Apartments in Windsor. Further details about the first round recipients are available at


The New Jersey Housing and Resource Center’s web site has moved to No other changes have been made to the site.


Wanda I. DeLeo was appointed deputy director of the Federal Housing Finance Agency’s (FHFA’s) newly created Office of Strategic Initiatives. DeLeo will be responsible for coordinating and overseeing activities associated with the strategic plan for Fannie Mae and Freddie Mac conservatorships, which established objectives and steps that FHFA will take to meet its conservator obligations. DeLeo will be the agency’s central point of contact for all strategic plan-related matters. She most recently served as deputy director of the agency’s Division of Examination Programs and Support.


City Real Estate Advisors (CREA) has announced the hiring of Sanjeev Jaipurar as vice president, acquisitions. Jaipurar will be responsible for low-income housing tax credit (LIHTC) investment acquisitions and closing activities of lower tier partnerships. He has been active in tax credit investment acquisition, underwriting and asset management since 1998. Jaipurar previously served as vice president of the board of trustees for a not-for-profit affordable rental housing provider. Scott Hubbard has also joined CREA, as senior vice president, risk management. Hubbard has more than 20 years of experience in affordable housing and real estate finance with an emphasis in real estate syndication, real estate and partnership taxation, and the low-income and historic rehabilitation tax credit programs. Prior to joining CREA, he was a vice president for an affordable equity corporation and executive vice president and chief financial officer for a national multifamily capital corporation.


Kenya Purnell joined First Sterling as assistant vice president, asset management. She will help oversee the affordable housing syndicator’s corporate and third-party asset management services. Purnell has a background in affordable housing development, asset management, investment and lending. She most recently worked in acquisitions at a national syndication firm, and has held positions at Abyssinian Development, Arbor Realty and Chase. Purnell holds a bachelor’s degree in finance from Hampton University and is pursuing further studies at New York University.

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Low-Income Housing Tax Credits



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