Low-Income Housing Tax Credits News Briefs – June 2019

Monday, June 3, 2019

Herb Collins, co-founder of Boston Capital, died in March after a lifetime of contributions to affordable housing. Collins co-founded Boston Capital in 1974 and championed the passage of the low-income housing tax credit (LIHTC) in 1986. Collins was 89.

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The National Housing Conference (NHC) released April 16 its 2018 Paycheck to Paycheck report and database. NHC highlights housing affordability challenges for workers in 81 occupations living in 259 metropolitan areas in the United States. The annual report focuses on the affordability challenges of workers in five vocational categories and provides average rent and homeownership costs for each profession in these metropolitan areas. The report recommends a multi-track policy solution to resolve the shortage of affordable housing, including the LIHTC, the Community Development Block Grant and HOME Investment Partnerships programs, and Federal Housing Administration and United States Department of Agriculture home loans. The report also addresses how opportunity zones (OZs) could be instrumental in developing affordable housing in low-income areas and how OZs may be used with other federal programs. NHC’s report states that the five specified vocations are critical to the growth and sustainability of any community and that, although federal programs are crucial to helping low- and middle-income workers, current resources are not enough to meet the need for affordable housing.

LIHTC State

The Connecticut Housing Finance Authority awarded $10.3 million in LIHTCs April 25 to support the development of seven affordable multifamily housing properties throughout the state. The developments will create 439 apartments, with 348 designated as affordable and 91 designated as market rate. The properties will be in East Lyme, Griswold, Hartford, New Haven, Norwalk, Shelton and West Hartford. Awards ranged from $959,207 to $2.2 million. A complete list of awards is available at www.taxcredithousing.com.

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The Wisconsin Housing and Economic Development Authority April 4 awarded more than $32 million in LIHTCs to eight affordable housing developments. Awards ranged from $448,446 to $24.8 million. The complete listing is available at www.taxcredithousing.com.

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The Iowa Finance Authority board of directors awarded $8.6 million in federal LIHTCs April 3 to 12 affordable housing developments. Awards ranged from $3.9 million to $8.4 million. The full list of awards is available at www.taxcredithousing.com.

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The Colorado Department of Revenue amended Colo. Code Regs. Section 39-22-210 regarding the state affordable housing tax credit, effective April 14. The statute renames the state LIHTC as the Colorado affordable housing tax credit and extended the expiration of the period during which the Colorado Housing and Finance Authority may allocate the credits from Dec. 31, 2019, to Dec. 31, 2024. Technical changes were also made to the regulation that provide clarification for pass-through entities making an allocation of the credit. The statute was amended to conform to legislative changes made by L. 2018, S 7.

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The California Tax Credit Allocation Committee amended Regulation 10325: Application Selection Criteria–Credit Ceiling Applications. The amended provisions concern the scoring of LIHTC applications for applications that were impacted by the temporary shutdown of the federal government in early 2019. The amended regulation was filed March 14, and was effective Feb. 27.

LIHTC Dealmaker

Hunt Capital Partners, in collaboration with Plesko Properties LLC, announced April 30 the closing of $15 million in federal and state low-income housing tax credit (LIHTC) equity for the new construction of Fitchburg Senior Apartments in Fitchburg, Wis. Hunt Capital Partners facilitated the federal LIHTCs through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 27. The Wisconsin Housing and Economic Development Authority provided $23 million in taxable and tax-exempt construction and permanent financing, as well as $1.5 million in soft financing. Development cost for Fitchburg Senior Apartments will be $34.4 million. Fitchburg Senior Apartments will comprise one four-story building providing 80 one- and 80 two-bedroom apartments available to seniors 55 and older. The development will offer a community center and fitness studio. Apartments will be restricted to households who earning between 30 and 80 percent of the area median income (AMI). The development team broke ground on Fitchburg Senior Apartments in March and is scheduled to be complete in July 2020.

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Woda Cooper Companies Inc. held the grand opening and ribbon cutting of Shepard Greene in Zebulon, N.C., April 8. Shepard Greene is an affordable apartment community with age-in-place features for seniors 55 and older. There are 50 apartments for those earning 60 percent of the AMI. The three-story building includes amenities such as a multipurpose room with kitchenette, central laundry, fitness center, computer room and management office. Financing for Shepard Greene includes LIHTCs from the North Carolina Housing Finance Agency. Bank of America Merrill Lynch was the LIHTC equity investor and provided construction financing. 

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The Michaels Organization held a ceremonial groundbreaking for Cooper Plaza Townhomes April 26. The property in Camden, N.J., will provide 64 rehabilitated historic affordable apartments. There will be 32 two- and 32 three-bedroom apartments available to households earning 80 percent of the AMI. The $14 million substantial rehabilitation will modernize interiors and exteriors of the 64 town homes. Major upgrades will include new HVAC and mechanical systems, construction of new drainage and waterproofing systems throughout the community and renovated kitchens and bathrooms. Financing for the rehabilitation and preservation of Cooper Plaza includes $4.1 million in LIHTC equity, as well as $6.8 million in permanent conduit bond financing from the New Jersey Housing and Mortgage Finance Agency. Construction is expected to be complete by year’s end.

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Love Funding announced April 4 the closing of a $4.7 million loan for the refinancing of Victory Centre of Bartlett Senior Apartments, an age-restricted community in Bartlett, Ill. The loan was secured through the U.S. Department of Housing and Urban Development’s 223(f) loan insurance program. Victory Centre of Bartlett Senior Apartments offers 104 apartments for residents 55 and older. Amenities include a library, dining area, clinics, salon and a fitness center. 

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New York Gov. Andrew M. Cuomo announced April 2 the start of construction for Apple Blossom Apartments in Cheektowaga, N.Y. The $37 million supportive housing will offer 110 affordable apartments, with 48 reserved for individuals with mental illness who will have access to supportive services on-site. Apple Blossom Apartments will feature three buildings, with two under construction and a third being renovated and expanded to include additional apartments. The apartments will be affordable to households with incomes at or below 60 percent of the AMI. Financing for Apple Blossom Apartments includes $19.2 million in tax-exempt bonds from New York Homes and Community Renewal, $9.7 million in LIHTC equity and nearly $12.8 million in Supportive Housing Opportunity Program subsidy. Apple Blossom is part of the governor’s $20 billion, five-year Housing Plan to make housing accessible and combat homelessness. 

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The groundbreaking for Cascade Garden Independent Senior Living Apartments in Moorsville, N.C., was April 10. The development will provide 68 apartments to seniors 55 and older. Financing included $7.5 million in 2017 LIHTCs from the North Carolina Housing Finance Agency.

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The New Jersey Housing and Mortgage Finance Agency (NJHMFA) held a ribbon-cutting ceremony in mid-April for the opening of the Cindy Lane Apartments in Ocean Township, N.J. The property will provide two three-story buildings with 48 one- to three-bedroom apartment homes for families earning up to 80 percent of the AMI. There are five apartments available to homeless individuals and families and the development includes a community room and laundry facilities. To help meet the need for affordable housing after Superstorm Sandy, Cindy Lane Apartments received $8.1 million in federal Community Development Block Grant Disaster Recovery assistance financing through the Fund for Restoration of Multifamily Housing. NJHMFA also awarded the $14.8 million development 4 percent LIHTCs, generating $4.2 million in LIHTC equity, as well as $7.6 million in construction and permanent financing.

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The groundbreaking for Sheridan Station Apartments in Denver was April 22. There will be 133 affordable apartments for households earning between 30 and 60 percent of AMI. Development costs for the transit-oriented apartments is $40.5 million. Financing included $13 million in federal LIHTCs and $16 million in state LIHTCs from the Colorado Housing and Finance Authority. Completion is expected in fall 2020.

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WNC announced April 29 the closing of WNC Institutional Tax Credit Fund 46 LP (WNC Corp. 46). The $109 million institutional LIHTC fund will be used to develop and renovate more than 1,300 affordable apartments throughout the United States. Six investors participated in WNC Corp. 46 and the properties that will be funded are located in Arkansas, Connecticut, Kansas, Minnesota, Montana, North Dakota, Nebraska, New Mexico, South Carolina and Texas. The closing of this fund brings WNC’s total equity raise since inception to $5 billion.

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The grand opening and ribbon cutting for Conrad Lofts in Plainview, Texas, was April 24. An abandoned hotel built in 1929 was transformed into affordable apartments. The eight-story building provides 29 apartments and amenities such as computer work stations, a fitness center, extra storage, outdoor barbecue areas, an on-site staff and a restored grand ballroom. Financing included $4.6 million in LIHTCs from the Texas Department of Housing and Community Affairs.

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Hunt Capital Partners announced April 17 the closing of $2.1 million in federal LIHTC equity financing for the new construction of Penobscot Elder Homes. The property will be located on Indian Island within the Penobscot Nation Reservation in Maine. There will be 24 affordable housing apartments for seniors 55 and older with 16 one- and eight two-bedroom apartments. Apartments will be available to households earning up to 50 and 60 percent of the AMI. The two-story development will also include a lobby with a common area, as well as a community kitchen, community room and laundry rooms. The development cost is $5.8 million. Hunt Capital Partners facilitated the investment of federal LIHTC equity by JPMorgan Chase through its proprietary investor fund, Hunt Capital Partners Tax Credit Fund 30. The Penobscot Nation provided $3.4 million in soft construction to permanent loans. MaineHousing provided a $3 million construction loan. Construction is scheduled for completion in November. Penobscot Nation is the sponsor, developer and property management agent for Penobscot Elder Homes. 

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Palo Alto Housing (PAH) celebrated April 11 the groundbreaking of 2821 ECR Apartments in Redwood City, Calif. The affordable housing community is for low-income families, veterans and those with special needs. There will be 67 apartments for households earning up to 70 percent of the AMI. Amenities will include a community kitchen, computer lab and a picnic area. Financing for the $42 million development is provided by the San Mateo County, Wells Fargo Bank, N.A., Federal Home Loan Bank of San Francisco and California Community Reinvestment Corporation.

LIHTC People

The Colorado Housing and Finance Authority (CHFA) announced April 5 the appointment of Thomas Bryan as chief financial officer (CFO). Bryan has served as the organization’s controller/director of accounting since 2014. As CFO, Bryan will lead CHFA’s finance, accounting and information technology teams. Before joining CHFA, Bryan served as the controller for the city of Centennial and the town of Parker, as well as a senior accountant for FirstBank Holding Company. He succeeds Patricia Hippe who retired and served as CHFA’s CFO since 2011. Bryan’s appointment was effective May 6.

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National Equity Fund April 8 named Matthew Reilein as its next president and chief executive officer. Reilein joined National Equity Fund after working briefly at Cresset Partners. Before that, he worked as managing director and head of impact investing at O’Brien-Staley Partners and managing director of community development banking at JPMorgan Chase. He succeeds Joe Hagan, who retired after 19 years. Reilein’s appointment is effective June 1.

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RED Mortgage Capital announced April 30 the hiring of D. Edward Greene as chief underwriter for affordable housing. Greene will be in the company’s Reston, Va., office. He will be responsible for overseeing all affordable housing credit and loan underwriting. Greene was formerly the senior managing director of underwriting and credit for Freddie Mac. Before that, he was with Greystone Servicing Corporation Inc., Cushman and Wakefield, and before that, he had a role with Red Capital Group as vice president in multifamily and senior health care underwriting. 

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Cinnaire announced April 18 the promotion of Josh Ghena and the hiring of Ainsworth Thompson. Ghena was promoted to vice president, asset management, in the company’s Grand Rapids, Mich., office. Thompson joined Cinnaire as an underwriter in the company’s Chicago office. As vice president, asset management, Ghena will oversee Cinnaire’s stabilized asset managers and asset stabilization experts. Before this promotion, he held positions of increasing responsibility in the company. He joined Cinnaire in 2014. Before joining Cinnaire, Ghena provided technical assistance to distressed U.S. Housing and Urban Development grantees. In his role as underwriter, Thompson will be responsible for financial modeling, risk analysis, reviewing due diligence, leading due diligence calls, preparing investment committee reports and performing site inspections. Before joining Cinnaire, he served as a community investment operations specialist at the Federal Home Loan Bank of Chicago.

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