Low-Income Housing Tax Credits News Briefs – March 2019

Friday, March 1, 2019

The Office of the Comptroller of the Currency released January Community Reinvestment Act performance evaluations Feb. 1. The list of 48 evaluations contained national banks, federal savings associations and insured federal branches of foreign banks. A total of 37 rated as satisfactory and 11 rated as outstanding.

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Enterprise Community Partners Inc. launched Jan. 24 Health Begins with Home, a national initiative to harness the power of affordable homes to create healthier families and stronger communities. Health Begins with Home will use $250 million over a five-year period to promote health as a top priority in the development and preservation of affordable homes, as well as to elevate homes as an essential tool for improving resident and community health. Health Begins with Home will involve health systems, health insurers, housing developers, policymakers, public health associations, community development organizations, social impact investors and foundations. There will be four key areas: conducting research to learn and leverage the connection between affordable homes and healthier outcomes; awarding grants to local nonprofits; providing technical assistance; and connecting capital from healthcare organizations.

LIHTC State

The California Tax Credit Allocation Committee (CTCAC) announced Jan. 15 that 4 percent noncompetitive CTCAC applications no longer require a Local Reviewing Agency evaluation. The CTCAC application fee is now $1,000. 

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The North Carolina Housing Finance Agency (NCHFA) released Jan. 18 the 2019 low-income housing tax credit (LIHTC) preliminary applications. The NCHFA received 153 preliminary 9 percent applications in 50 counties. There are applications for 141 new construction properties and 12 rehabilitation properties. Also received were 16 tax-exempt bond applications. The list of preliminary applications is available at www.taxcredithousing.com.

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The Guam Housing and Urban Renewal Authority announced Jan. 25 that two affordable housing properties received LIHTC allocations. Ironwood Villas Phase II received $29.9 million in LIHTCs and Summer Town Estates IV received $33.6 million in LIHTCs. Ironwood, in Toto, will provide 88 apartments and Summer Estates in Lada, Dededo, will provide 64 apartments. Amenities between the two developments will include an after-school program, work programs and access to swimming pools and fitness facilities.

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A bill introduced Feb. 4 in the Oklahoma Legislature would modify the state low-income housing tax credit, eliminating a requirement that qualifying developments be in counties with a population of less than 150,000 and shortening the credit period from 10 to five years for properties placed in service after the effective date of the bill. Oklahoma’s state LIHTC has a $4 million statewide cap. If enacted, the bill would be effective Nov. 1. The bill is available at www.taxcredithousing.com.

LIHTC Dealmaker

The Massachusetts Housing Finance Agency (MassHousing) announced $50 million in affordable housing financing Jan. 16 to Related Companies for the renovation of Chestnut Park Apartments in Springfield, Mo. MassHousing is providing $45 million in tax-exempt financing through the agency’s conduit loan program, in partnership with Wells Fargo. An additional $5 million is also being provided through the agency’s $100 million Workforce Housing Initiative. The Massachusetts Department of Housing and Community Development provided federal and state low-income housing tax credits (LIHTCs), generating $42.4 million in equity. There are 489 affordable apartments and as part of the transaction, Related Companies will create 77 workforce-housing apartments. Four hundred twelve apartments will remain affordable to households earning at or below 60 percent of the area median income (AMI). The remaining 77 workforce housing apartments will be affordable to households earning at or below 85 percent of the AMI. The development includes a 33-story tower, an 18-story building, a nine-story building, a five-story building and 19,000 square feet of commercial space. Chestnut Park features 207 one-, 264 two- and 18 three-bedroom apartments. Renovations planned for Chestnut Park include improvements to apartments, streetscapes, communal spaces and building amenities, systems upgrades, bringing 25 apartments up to Americans with Disabilities Act standards for mobility-impaired households and 10 apartments for hearing-impaired households. 

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Hunt Capital Partners, in collaboration with The Vestcor Companies, announced Jan. 17 the closing of $7.7 million in federal LIHTC equity financing for the rehabilitation and new construction of Ambar Key Homes I and II in Florida City, Fla. Hunt facilitated the LIHTCs through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 27. The development will provide 249 two-, three- and four-bedroom affordable townhomes to low-income and workforce families. Seventy-eight existing apartments will receive substantial renovations and 171 apartments will be created. When complete, Ambar Key Homes will provide 109 apartments available to residents earning between 28 and 60 percent of the AMI. There will also be 140 workforce-housing apartments available to residents earning up to 80 percent of the AMI. Ambar Key Homes will be completed concurrently in two phases, with Phase I construction underway and scheduled for completion July 2020. The development cost for both phases is $53.9 million.

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CREA LLC (CREA) announced its 2018 investment totals Jan. 28. Results include $809 million in equity closed, as well as an additional $317 million in equity raised or committed. This represented 73 property closings for CREA to further its affordable housing mission. CREA’s 2018 efforts spans 29 states, where approximately 7,000 affordable homes will be preserved or created. In addition, in 2018, CREA closed its largest National Fund, Fund 66, with commitments of up to $258.7 million. The fund supported the development of 32 developments with capital from 17 investors. CREA also closed Fund 61, a $156.6 million national fund, and Fund 58, an $86.5 million California fund. 

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MassHousing announced $25 million in affordable housing financing Feb. 5 to Lena New Boston to support the latest phase of rental housing development at Olmsted Green in Boston. Lena New Boston, a partnership between Lena Park Community Development Corporation and the New Boston Fund, will advance the latest phase of Olmsted Green. One hundred mixed-income apartments will be built, including 40 new workforce-housing apartments. Of the 100 new apartments, 16 will be affordable for households earning at or below 30 percent of the AMI, 24 will be affordable for households earning up to 60 percent of the AMI, 40 will be workforce housing apartments affordable for households earning up to 100 percent of the AMI and 20 will be rented at market rates. There will be 10 one-, 84 two- and six three-bedroom apartments in two, three-story buildings and 22 townhouses. MassHousing is providing $21 million in financing for the new rental development through the agency’s conduit loan program. The conduit loan generated $4.9 million in LIHTC equity. MassHousing is also contributing $4 million in workforce housing financing through the agency’s $100 million Workforce Housing Initiative, for the creation of 40 new workforce-housing apartments. Additional financing included $2.9 million in from the Department of Housing and Community Development. When complete, all four development phases of Olmsted Green will provide more than 500 mixed-income apartments and condominiums at the site of former Boston State Hospital. 

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Boston Capital announced Jan. 9 its investment in the construction of two affordable apartment communities in North Carolina. Fieldcrest in Farmville, N.C., will provide 56 apartments to families. The Reserve, in Albemarle, N.C., will provide 80 apartments for families. Fieldcrest and The Reserve will both be built with LIHTC equity. Fieldcrest will be situated in three two-story buildings and will be available to residents earning 60 percent or less of the AMI. The development will feature 12 one-, 32 two- and 12 three-bedroom apartments. The Reserve will feature four two-story buildings with 12 one-, 48 two- and 20 three-bedroom apartments available to residents earning at or below 60 percent of the AMI. Both developments will each have amenities such as a 1,500-square-foot community building with a community room, kitchen and rental office, as well as a playground and a covered picnic area. 

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Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. (Enterprise), announced Jan. 9 the closing of $49.3 million for two affordable housing properties in Austin, Texas. A $34.3 million acquisition loan went to Northwest Hills, a 314-apartment complex. A $15 million acquisition loan went to The Place at Terracina, a 170- apartment complex. Fannie Mae financed both loans with its special public purpose financing. Both properties set aside 51 percent of apartments for residents making 80 percent or less of the AMI.

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Hunt Capital Partners announced Jan. 23 the closing of $7.2 million in LIHTC equity for the acquisition and rehabilitation of Anna Dupree Terrace in Houston. The property is a single three-story building with a 12,600-square-foot multipurpose building. Once completed, Anna Dupree Terrace will feature modern 42 studio apartments, 102 one-, and six two-bedroom apartments. There will also be an apartment for on-site management. All apartments will be available to seniors 62 and older earning up to 60 percent of the AMI. Hunt Capital Partners facilitated the investment through its Hunt Capital Partners Tax Credit Fund 27. Financing for the $23.8 million rehabilitation also includes a $12 million tax-exempt construction loan from Compass Bank, an $8.8 million permanent loan from the U.S. Department of Housing and Urban Development (HUD) and a $5.1 million acquisition loan from the Eliza Johnson Center for the Aging. Bill Elsbree, J. Allen Affordable Housing Development LLC, and Jeshurun Development LLC are the developers. Rehabilitation plans include updating common areas and building systems, as well as the grounds and exterior paved areas. Additionally, a new office and community space will be constructed. Amenities will include tenant lounges, a computer lab, an on-site beauty salon and programming space for administration of tenant supportive services. Construction is scheduled for completion May 2020. 

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KeyBank announced $50.4 million in combined financing Jan. 24 for the construction of Diagonal Crossing in Boulder, Colo. KeyBank’s Community Development Lending & Investment team provided a $24.7 million construction loan and $10.4 million in LIHTC equity. Koelbel & Company will use the financing to develop 105 garden-style apartments for families earning at or below 60 percent of the AMI. Additionally, KeyBank Real Estate Capital arranged a $15.3 million permanent loan through a forward commitment for Fannie Mae to issue a mortgage-backed security.

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North Branch Construction announced Jan. 21 the recent completion of the $13 million renovation of Rockingham Village Apartments in Seabrook, N.H. The complex, formerly known as Cimarron Apartments, provides 388 apartments in six, four-story buildings. There is also a 2,400-square-foot community building. Renovations include improvements to kitchens and bathrooms, replacement of all windows and exterior doors, new fire alarms and landscape improvements. Financing included $14.7 million in LIHTC equity.

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MassHousing announced Jan. 31 the closing of $14 million in financing to Beacon Communities LLC for the rehabilitation and preservation of affordability of Camden Apartments in Boston. MassHousing provided Beacon Communities with a $5.9 million tax-exempt construction and permanent loan, as well as an $8.1 million tax-exempt bridge loan. The MassHousing financing also generated $6.8 million in LIHTC equity. Beacon Communities plans an estimated $14.3 million renovation that will include window and door replacement, new plumbing and hot water systems, new electrical systems, unit upgrades, and exterior masonry repairs. Camden Apartments provides 72 apartments, with 36 one-, 19 two- and 17 three-bedroom apartments. Of the 72 apartments, eight will be reserved for households earning at or below 30 percent of the AMI and 64 apartments will be for households with incomes at or below 60 percent of the AMI. Additional financing includes approximately $4.2 million in federal and state historic tax credit equity, $5.8 million in state public housing funds from DHCD, a $5.6 million seller note and $500,000 from the Federal Home Loan Bank of Boston. Development is expected to create more than 60 full-time jobs and is scheduled for completion in June 2020.

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The White Swan Hotel in Uniontown, Pa., was nearing completion in early February. The apartment complex for seniors 62 and older underwent extensive renovations that required everything to be gutted inside the exterior walls. Work also included adding a new solar-paneled roof, a new elevator, library room, wellness room, laundry room and a large community room with an adjacent kitchen. Forty-seven affordable apartments are available. The 1925 building was able to undergo renovations thanks to $12 million in LIHTCs from the Pennsylvania Housing Finance Agency. 

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Bellwether Enterprise announced Jan. 23 fourth quarter loan closings. Bellwether handled more than $532 million on 46 loans in properties throughout the United States. The closing of these loans will help secure the creation and preservation of more than 5,884 apartments. Of the 46 loans, two support public housing rehabilitation under the HUD Rental Assistance Demonstration program.

LIHTC People

National CORE announced Jan. 22 the addition of Patricia Whitaker to the company as vice president of asset management. Before joining National CORE, she was the president and chief executive officer of Innovative Housing Opportunities Inc. Whitaker also served as executive vice president and chief operating officer for Abode Communities, as well as executive director of the Community Development Agency in Santa Ana. 

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The board of directors for Ohio Capital Corporation for Housing (OCCH) announced Peg Moertl as the new president and the promotion of Lori McMillan to director of underwriting in the fund management department. Before joining OCCH, Moertl served as president of HCDC (formerly the Hamilton County Development Co.), and before that, she was senior vice president of community development banking at PNC. She also served as director of development for the city of Cincinnati. Moertl was recognized as one of Cincinnati Magazine’s 2019 Most Powerful Business Leaders, a YWCA Career Woman of Achievement and among the Top 15 Ohio Women Business Leaders by the Ohio Women’s Conference. Moertl will succeed Hal Keller, OCCH’s president of 25 years, when he retires. Moertl will become president April 1. McMillan joined Ohio Capital Corporation for Housing June 2011 as a development analyst and was promoted to vice president of fund management July 2015. Before joining OCCH, she was a consultant for developers of affordable housing. She also worked as a vice president project manager at Column Capital for three years and as vice president of underwriting at Paramount Financial Group. 

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Merritt Community Capital Corporation announced three new members Jan. 22. Chuck Cornell, Bob Williams and Karen Smyda will join the organization’s board of directors. Cornell was the executive director and CFO of Burbank Housing Development Corporation. He is also a former board member of the Non-Profit Housing Association of Northern California. Williams is a past partner and current of counsel of Sheppard, Mullin, Richter & Hampton LLP. Smyda was the acquisitions director for Merritt Community Capital Corporation. Before that, she was with TRI Financial Corporation (PNC Multifamily Housing), Bank of America and the San Francisco office of the U.S. Department of Housing and Urban Development (HUD). 

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National Equity Fund Inc. (NEF) announced Jan. 14 that Joseph S. Hagan, president and CEO, will retire at the end of the year. Hagan oversaw the organization’s transformation into one of the top syndicators in the country since he joined in 2000. Under his leadership, NEF closed more than $15 billion in equity, providing nearly 177,000 affordable homes for low-income individuals and families. Hagan will continue to lead NEF while the board of directors conducts a national search for his successor. 

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Nixon Peabody announced Feb. 5 the election of three new partners. Ed Campbell, Nate Cushman and Susanna Mitchell were elected to affordable housing and real estate practices. Campbell handles regulatory and transactional matters involving the acquisition, financing, development, asset management, rehabilitation and preservation of affordable and multifamily housing developments using low-income tax credits, HUD subsidy programs and Federal Housing Administration loan products. Cushman focuses his practice advising affordable housing clients across the country on regulatory and transactional matters involving multifamily affordable housing acquisition, ownership, development, financing, rehabilitation and preservation. Mitchell works with nonprofit and for-profit real estate developers and owners to develop and preserve multifamily and seniors housing. 

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CHN Housing Partners announced Feb. 4 the joining of Janet Reed-James to the organization as director of human resources. Reed-James is experienced in financial, real estate and retail institutions. Before joining CHN Housing Partners, she was senior human resource business partner at the Federal Reserve Bank of Cleveland. Before that, Reed-James served as the director of human resources at Forest City Enterprises. Earlier in her career, she worked for Progressive Insurance, Cole Vison and National City Bank.

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