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Low-Income Housing Tax Credits News Briefs - July 2018

A group of senators sent a letter May 25 to three federal banking agencies regarding reform of the Community Reinvestment Act (CRA). The letter, sent to the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board and the Federal Deposit Insurance Corporation, urged the regulators to amend the CRA to increase opportunities for minorities. The letter states that changes to the implementation of the CRA are long overdue. Sen. Mark Warner, D-Va., led the group of senators. The letter is available at www.novoco.com/cra.

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The California Tax Credit Allocation Committee in June issued two memos with guidance for prospective applicants for the state’s low-income housing tax credit (LIHTC) allocation. One memo provides guidance on a variety of issues for all applicants, while the other indicates what needs to be included in the applications for first-round applicants who are reapplying for the second round. The guidance is available at www.taxcredithousing.com.

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The Terner Center released May 11 its report, “The Links Between Affordable Housing and Economic Mobility, the Experiences of Residents Living in Low-Income Housing Tax Credit Properties.” The analysis focuses on how living in LIHTC properties impacts low-income residents, particularly with regard to housing stability, economic mobility and access to education. Interviews were conducted with more than 250 residents living in 18 properties throughout California. Responses indicated affordability was the greatest benefit reported by LIHTC residents. A common term used to describe new homes was “safe haven.” Fifty-eight percent of working-age residents surveyed were employed, while nearly 60 percent of college-aged children were enrolled in college. However, results indicated many of the residents’ jobs lacked good wages, benefits and opportunities for advancement. Despite the study’s positive findings, broader housing market and labor conditions were found to likely to keep most residents in LIHTC properties for the foreseeable future as constrained supply and low wages make it nearly impossible for LIHTC residents to find similar quality housing they can afford on the private market. The report is available at www.taxcredithousing.com.

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The OCC released June 1 a list of 32 CRA performance evaluations that became public during May. Of the 32, four rated as outstanding and 28 rated as satisfactory. The list contains only national banks, federal savings associations and insured federal branches of foreign banks.

LIHTC State

Colorado Gov. John Hickenlooper signed into law May 22 Senate Bill 2018-007. The bill extends the state’s affordable housing tax credit program through Dec. 31, 2024. The Colorado tax credit was reintroduced Jan. 1, 2015, after a 13-year hiatus and is taken over six years with a $5 million annual cap. SB 18-007 is available at www.taxcredithousing.com.

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Wisconsin Gov. Scott Walker signed Act 176 into law May 17, enacting a new state LIHTC program, which will be administered by the Wisconsin Housing and Economic Development Authority. The Wisconsin LIHTC largely mirrors the federal program and can be matched with the federal 4 percent LIHTC. Act 176 provides $42 million in allocation at $7 million per year for six years and gives a preference to qualified developments in municipalities with populations less than 150,000. There is no program sunset date. Act 176 is available at www.taxcredithousing.com.

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The Ohio Housing Finance Agency announced May 16 the $280 million allocation for the 2018 LIHTC funding round. LIHTCs were awarded to 37 developments to create or preserve 2,122 apartments. The complete list is available at www.taxcredithousing.com.

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The WHEDA announced May 17 the modification of the 2017-2018 qualified allocation plan (QAP). The modification allows for the administration of the new Wisconsin Housing Tax Credit. In addition, WHEDA published a draft 2019-2020 QAP. Public hearings for the draft QAP were held May 30, with written comments accepted until June 1. The modified QAP and the draft QAP are both available at www.taxcredithousing.com.

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CTCAC adopted May 16 the final proposed emergency regulation changes relating to income averaging. CTCAC also released a matrix with the comments, including an explanation of the proposed revisions. Both documents are available at www.taxcredithousing.com.

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CTCAC released May 31 a new, streamlined affordable housing application. The process will permit, for the first time, an applicant to submit a single application for what formerly required two. To be eligible for 4 percent LIHTCs awarded by CTCAC, developers must use tax-exempt bonds awarded by the California Debt Limit Allocation Committee (CDLAC). Until now, applicants have had to submit separate applications for the same property to both CDLAC and CTCAC. The new process allows applicants to submit a single application for both. The combined application is available at www.taxcredithousing.com.

LIHTC Dealmaker 

Hunt Capital Partners announced $13.3 million in low-income housing tax credit (LIHTC) equity financing May 9 for the acquisition of affordable housing developments. The four properties are Windsor Pointe in Memphis, Tenn., and three Cypress Grove Homes properties in Lake Village, McGehee and Warren, Ark. Windsor Pointe provides 50 single-family homes, while Cypress Grove Homes provide 36 homes at each Arkansas location. All homes are available to residents earning up to 50 and 60 percent of the area median income (AMI). Hunt facilitated 9 percent LIHTC investments for each property, providing $2.9 million in LIHTC equity for Windsor Pointe, $3.2 million for Cypress Grove Homes of Lake Village, $3.5 million for Cypress Grove Homes of Warren and $3.6 million for Cypress Grove Homes of McGehee. 

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Boston Capital announced May 8 its investment in the construction of Southgate House in Scarborough, Maine. The 1805 two-story farmhouse building will be rehabilitated and converted into eight one-bedroom apartments. In addition, new construction will provide a four-story residential building with 30 apartments. There will be four studios and eight one-, 10 two- and eight three-bedroom apartments. Renovations will include new stairs, doors, windows, roofs and new electrical and plumbing systems. The new building will feature a community room, office and laundry space. Southgate House will be available to families earning 60 percent or less of the AMI. In addition, Avesta Housing will provide supportive services. Financing includes LIHTC equity and historic rehabilitation tax credits (HTCs).

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MassHousing announced May 7 the closing of $5.1 million for the redevelopment of the 1925 Central Building in Worcester. MassHousing provided a $3.7 million permanent loan and $1.4 million in workforce housing funding from the agency’s $100 Million Workforce Housing Initiative. Financing also included approximately $12 million in federal and state LIHTCs, more than $3 million in direct affordable housing funding, $1.2 million in HOME funds and approximately $5.3 million in federal and state HTC equity. The Central Building Development Group will transform the vacant former office building into a new mixed-income housing community. There will be 55 apartments, with one studio apartment, 17 one-, 34 two- and three-three bedroom apartments. Apartments will be available between 50 and 70 percent of the AMI. 

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Woda Cooper Companies Inc. held a grand opening and ribbon-cutting ceremony May 10 for Portland School Apartment in Portland, Mich. Portland School Apartment features 29 new, one-, two- and three-bedroom apartments affordable for seniors and working singles/families who earn up to 60 percent of the AMI. The 1919 Portland School building will include amenities such as a community room, fitness center, outdoor barbecue space and gazebo. The $7.4 million development was made possible through LIHTCs allocated by Michigan State Housing Development Authority, as well as and HTCs from the National Park Service. 

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CAMBA Housing Ventures and CAMBA celebrated May 3 the grand opening of 603 Mother Gaston Boulevard in Brooklyn, N.Y. This $56 million, 101-apartment affordable and supportive housing development is available to households earning no more than 60 percent of the AMI. There are 44 one-, 57 two-bedrooms and a two-bedroom apartments, with 30 apartments set aside for formerly homeless families, as well as 45 apartments set aside for those on the New York City Housing Authority site-based waitlist. Seventy-one construction jobs were created, as well as 10 permanent jobs. The New York City Housing Development Corporation provided more than $28.5 million in tax-exempt bonds and $5 million in corporate reserves. In addition, $24.6 was provided in LIHTC equity.

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Gorman & Company began construction May 3 on The Elisabetta in Denver on Laradon’s west campus. The $27 million development will offer 91 new apartment homes and 12,500 square feet of commercial space. Laradon, a service provider serving more than 650 children and adults with developmental disabilities each year, will occupy the space on the first floor to provide on-site programming and support to adults with disabilities. The new community will feature one-, two- and three-bedroom apartments for residents earning 30, 50 and 60 percent of the AMI. UnitedHealthcare provided $14.7 million in LIHTC equity while the Colorado Housing and Finance Authority awarded federal and state LIHTCs. The development is expected to open in late 2019. 

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The Affordable Housing Alliance, in partnership with the Alpert Group, announced May 3 the start of construction of a development on Cindy Lane in Ocean Township, N.J. The property will provide 48 two- and three-bedroom apartments affordable to households with incomes up to 60 percent of the AMI, as well as a community room. Of those 48 apartments, five will be set aside for households with special needs. Construction of the Cindy Lane development was financed with $4.2 million in LIHTC equity and $8 million in CDBG disaster recovery funds from the state. The development is expected to be completed and occupied in fall 2018.

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The grand opening celebration for The Willows at Rahway was held May 1. The Rahway, N.J., property will provide 58 one-, two- and three-bedroom apartments in a four-story building for residents earning up to 60 percent of the AMI. Of those 58 apartments, five will be set aside for homeless individuals or families. Financing included $9 million in LIHTCs awarded by the New Jersey Housing and Mortgage Finance Agency, as well as $2.9 million in permanent and construction funding. Other funding included approximately $800,000 from Union County HOME Investment Partnership funds and $225,000 from the Rahway Redevelopment Agency.

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WinnCompanies announced in early May the completion of $69 million renovation of two apartment complexes in Washington, D.C. Atlantic Gardens and Atlantic Terrace were transformed into Atlantic Apartment Homes, a $69 million development with the help of federal LIHTCs. In addition, the D.C. Department of Energy and Environment awarded a $1.3 million grant from its Solar for All program for the solar installation. The properties have been completely modernized, with rehabilitation work done on the kitchens, bathrooms, appliances, flooring, doors, lighting and plumbing, among others. New learning centers were built at both properties and a new community room was created at Atlantic Gardens while the community room at Atlantic Terrace was expanded. In addition, two new playgrounds were built at Atlantic Gardens and a third was upgraded at Atlantic Terrace. Supportive services at both properties will include providing financial and employment coaching, job placement coordination, family support and parenting education.

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The ribbon-cutting ceremony for SPARKwest in Boulder, Colo., was May 9. SPARKwest is the first phase of the larger SPARK development, an 11-acre, mixed-use, mixed-income development. The first phase will provide 45 apartments, 26 two- and 19 three-bedroom apartments, with 36 of the homes restricted for those making no more than 50 percent of the AMI and the nine remaining homes restricted at 60 percent of the AMI. Financing included $3.8 million from the city of Boulder, federal LIHTCs, state LIHTCs and the proceeds from the sale of tax-exempt private activity bonds issued by the Colorado Housing and Finance Authority. 

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Hunt Capital Partners, in collaboration with Sulzbacher, celebrated May 24 the grand opening of Sulzbacher Village. Located in Jacksonville, Fla., the property provides 70 permanent LIHTC apartments for single women, female veterans, children and families who are homeless earning up to 33 and 60 percent of the AMI. There are an additional 54 apartments, of which 36 are short-term stay apartments for women and families, 10 are respite apartments for women recently released from local hospitals who need follow-up care and eight are apartments for homeless veteran women. There will be medical, educational and vocational services on-site. Sulzbacher Village provides a 7,000-square-foot health center that offers primary care, dental, vision and behavioral services for women and children. The Florida Housing Finance Corporation provided $9.2 million in 9 percent federal LIHTCs and $3.5 million in State Apartment Incentive Loan funds. Hunt Capital Partners facilitated an $8.4 million equity investment through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 24. The $21 million construction of the 92,000-square-foot Sulzbacher Village was completed in a year. 

LIHTC People

Advantage Capital announced May 11 that Stephanie Hiatt joined the financial services firm as senior vice president. Hiatt has experience with low-income communities, low-income housing, historic preservation and renewable energy. Before joining Advantage Capital, she was director of advisory services at Dudley Ventures. Before that, she worked for Wells Fargo Bank and First Security Bank. 

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Hunt Mortgage Group announced May 10 the hiring of Kevin Chadwick as managing director. In his new role, Chadwick is responsible for conventional loan production and origination of the company’s debt and equity products for multifamily and other commercial assets in the Rocky Mountain and Western regions of the United States. Before joining Hunt, Chadwick was a principal at Terrix Financial Corporation. Before that, Chadwick held positions at Lincoln Property Company and NorthMarq Capital. 

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KeyBank Real Estate Capital announced May 9 three appointees to its affordable housing platform. Tabare Borbon joined Key’s commercial mortgage group, Stephen Sparks joined as a senior banker and Hector Zuñiga Jr. joined as a Southwest regional manager. Borbon will be based in New York City. Before joining KeyBank, he was a senior customer account manager in the affordable housing group of Fannie Mae’s multifamily business. Sparks will be based in Chicago. Before joining KeyBank, he was a senior vice president for Bank of America. Zuñiga will be based in Austin, Texas. Before joining KeyBank, he was as asset manager for Wentwood Capital Advisors. 

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Riverside Capital announced May 24 the appointment of three executives of the company. Drew Ries was hired as the chief financial officer (CFO) and chief operating officer. He will have primary oversight of Riverside’s financial operations and operating platform. Before joining Riverside, he was CFO of Pareto Captive Services. Joshua Levy was named senior vice president, investor relations. Levy will provide national oversight and strategic direction to Riverside’s Investor Relations team. Before joining Riverside, he was managing director at Candlebrook Properties LLC. Matthew Haas was appointed vice president, investor relations. Haas will oversee investor relationships, largely focusing on the west. Before joining Riverside, he was director of investor relations at Merritt Community Capital Corporation. 

Journal Category:

Low-Income Housing Tax Credits

Authors:

Novogradac

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