Low-Income Housing Tax Credits News Briefs - May 2018

Tuesday, May 1, 2018

The Housing Advisory Group announced a new website March 19. Housing Advisory Group says the interactive platform is designed to provide timely and critical information as well as foster a seamless avenue to advocacy information for affordable housing. The new URL is www.housingadvisorygroup.org.

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Jeffrey Woda and David Cooper, Jr. announced March 12 the start of Woda Cooper Companies Inc., a partnership of The Woda Group Inc. and its affiliates. Woda Cooper Development Inc., Woda Construction Inc. and Woda Management & Real Estate LLC will operate under the new name and will be dedicated to the development, construction and management of affordable housing. The company has been restructured to become the first vertically integrated affordable housing company in the nation to be owned by an employee stock ownership plan.  In addition, Woda Cooper Companies headquarters is now at 500 S. Front Street, 10th Floor, Columbus, Ohio 43215. The renaming was effective Jan. 1. 

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The Office of the Comptroller of the Currency released April 4 a list of Community Reinvestment Act performance evaluations for March. Of the 24 evaluations, 20 rated as satisfactory and four rated as outstanding. The list contains only national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings. 

LIHTC State

The Colorado Housing and Finance Authority (CHFA) released March 14 its 2017 Community Report. CHFA provided achievements and highlights on affordable housing investments throughout the state. In 2017, CHFA invested nearly $2.4 billion in affordable housing and community development needs and 6,322 affordable rental apartments were preserved or developed with multifamily loans and/or low-income housing tax credits (LIHTCs). 

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The Iowa Finance Authority (IFA) awarded $72.6 million in LIHTCs March 14 for the construction or preservation of 12 affordable properties with 514 apartments for families and seniors. The properties are located in Black Hawk, Jasper, Jefferson, Johnson, Linn, Muscatine, Polk and Woodbury counties. IFA received 29 applications requesting more than $192 million in LIHTCs. The awards ranged from $2.7 million to $8.2 million. A complete list of the awards is available at www.taxcredithousing.com.

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The California Tax Credit Allocation Committee (CTCAC) announced March 21 a new joint California Debt Limit Allocation Committee (CDLAC)-CTCAC online application for developments seeking tax-exempt bonds and 4 percent LIHTCs. The joint application allows a single application to be submitted to both CDLAC and CTCAC simultaneously through CDLAC’s online application webpage. Joint application submissions will be approved by CDLAC and CTCAC Committee members. Submission deadlines for 2018 are May 18, Aug. 17, Sept. 14 and Oct. 12.

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CTCAC announced March 26 that any additional credits added by the recently enacted federal omnibus bill will be added to the second round of 2018 LIHTCs. The first-round credit estimate remains unchanged. The additional credits are due to the federal omnibus appropriations bill, which includes a 12.5 percent increase to each state’s 9 percent tax credit allocation for years 2018 through 2021. 

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CTCAC held public forms March 22 and 23 to receive feedback on the tax credit tiebreaker concept. Neither CTCAC staff nor the committee has taken any position on the concept, which will not be considered in the 2018 regulation change cycle. CTCAC is assessing the stakeholder community’s level of interest in some day replacing the current tiebreaker with something based on this new concept. Comments were due April 27.

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The Connecticut Housing Finance Authority announced $80.8 million in LIHTCs March 29 to support the development of affordable housing in the four Connecticut communities of East Haven, Hartford, Montville and Norwalk. There are six proposed affordable multifamily housing properties that will provide 377 rental apartments. Of those, 296 are designated as affordable and 81 will be market rate. Awards ranged from $6.9 million to $18 million. The properties are East Haven High School Apartments in East Haven, The Hub on the Park in Hartford, Oxoboxo Lofts in Montville, Washington Village, Phase Two in Norwalk and Westbrook Village I in Hartford, Willow Creek Apartments Phase III in Hartford. The full award details are available at www.taxcredithousing.com.

LIHTC Dealmaker

Boston Capital announced March 14 its low-income housing tax credit (LIHTC) equity investment in the construction of Old Dowlen Cottages in Beaumont, Texas. Located on more than 8 acres, Old Dowlen Cottages will feature 24 one-bedroom and 48 two-bedroom apartments in 18 single-story fourplex buildings. Amenities will include a 2,626-square-foot community building featuring a leasing office, common room with kitchen, business center, laundry facility and fitness area. The 72 affordable apartments will be available to seniors 55 and older. Of those 72 apartments, 42 will be available to families and individuals earning 60 percent or less of the area median income (AMI); 13 apartments will be available at 50 percent of the AMI; and seven apartments will be available at 30 percent of the AMI. The remaining 10 apartments will be available at market rates.

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Hunt Capital Partners announced March 8 a $10.1 million LIHTC equity investment for the construction of Spruce Ridge in Pawcatuck, Conn. Hunt Capital Partners facilitated the investment of LIHTCs through its multi-investor fund Hunt Capital Partners Tax Credit Fund 24. Spruce Ridge will provide 86 apartments for families. Construction for the development occurred in two phases. The first phase produced 43 apartments that were completed in April 2017. Construction for Phase 2 and the final 43 apartments began in January. Construction of Phase 2 will be completed in December. Spruce Ridge will provide four, garden-style residential buildings. There will be 67 LIHTC apartments for households earning up to 60 percent of the AMI. Seventeen apartments will be reserved for workforce housing for families earning up to 120 percent of the AMI. Amenities will include a fitness center, two playgrounds and two community rooms with full kitchens. Development cost was $23.9 million. 

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Community Preservation Corporation (CPC) announces Feb. 26 a partnership with Xenolith Partners LLC. CPC is committing up to $3 million to Xenolith, a New York City certified minority- and women-owned business enterprise company. Xenolith was formed in 2016 by Andrea Kretchmer and Terri Belkas-Mitchell. The company is focused primarily on the development of affordable, mixed-income and mixed-use properties that revitalize communities and provide quality housing opportunities. Xenolith will be targeting affordable, workforce and/or mixed-income multifamily rental properties in New York City of approximately 50 to 150 apartments, which may include both ground-up development and acquisition-rehabilitation developments. 

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R4 Capital provided $6.7 million in LIHTCs and historic tax credits in early February for the rehabilitation of Sullivan Lofts in Sullivan, Ind. Sullivan Lofts will be an adaptive reuse and conversion of two historic structures. Flaherty & Collins Properties will develop the 40-apartment affordable senior housing community. The scattered-site development will be on 4.2 acres. Developers will restore the historic facades of the two properties, constructed between the late 1800s and 1930s. Historic Sullivan Lofts is slated to include 40 senior apartments and will provide free social services, including health screening, physical therapy, medication delivery, home health care, transportation to off-site services, and exercise and nutrition classes to residents 55 and older earning up to 60 percent of the AMI. 

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The Detroit Catholic Pastoral Alliance, in partnership with MHT Housing Inc., broke ground in mid-February on Gratiot Central Commons in Detroit. MHT Housing Inc. secured $6.5 million in LIHTCs to build the 52,000-square-foot, four-story building. Gratiot Central Commons will be a mixed-use building with 36 affordable apartments and ground-floor retail space. Construction is expected to cost $8.3 million and be complete by the end of 2018.

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The NHP Foundation announced March 6 the $44.6 million acquisition of Woodmont Crossing Apartments in Washington, D.C. The District of Columbia Housing Finance Agency provided a $25.5 million acquisition loan for NHPF through HUD. In addition, the Royal Bank of Canada provided $12.1 million in LIHTC equity on behalf of the NHPF. The 176-apartment affordable complex is available to residents earning 60 percent of the AMI. Five percent of the apartments will be fully handicap accessible. 

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The groundbreaking for the Memorial Hills senior living facility in Joplin, Mo., was March 13. The property will feature 54 apartments and will be available to those earning 40, 50 or 60 percent of the AMI. Leasing is scheduled to start in January 2019. Parker Development was awarded $16 million in LIHTCs for construction of the $9.4 million facility. 

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Affirmed Housing, together with PATH Ventures, broke ground on Villas on the Park in San Jose, Calif., March 16. Villas on the Park will provide permanent supportive housing and supportive services for chronically homeless individuals. There will be 83 apartments in the six-story building. Amenities will include a large community room and teaching kitchen. Funding sources include LIHTCs.

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McCann Village in Newton, Iowa, will undergo rehabilitation thanks to $7.3 million in LIHTCs from the Iowa Finance Authority (IFA), announced March 14. McCann Village was one of 12 properties to receive federal LIHTCs from IFA. McCann Village, a senior apartment complex, provides 80 apartments and serves seniors 62 or older. McCann Village was selected out of 29 applications requesting more than $19.2 million in LIHTCs. There will be 514 rental homes for families and seniors received funding in Black Hawk, Jefferson, Johnson, Linn, Muscatine, Polk and Woodbury. The complete award listing is available at www.taxcredithousing.com.

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Carrfour Supportive Housing, in partnership with Green Mills Group, announced March 27 the co-development of Karis Village in Miami. The $30 million affordable housing complex, now open, provides 88 apartments for low-income families and formerly homeless veterans. Of those 88 studio, one- and two-bedroom apartments, 74 are reserved for tenants earning at or below 60 percent of the AMI, with the remaining 14 apartments reserved for those earning at or below 33 percent of the AMI. Amenities including a children’s playground, library, computer lab, fitness center and an outdoor barbecue and patio area. In addition to affordable housing, Trinity Empowerment Consortium, a HUD-affiliated agency that provides homebuyer and financial literacy education, will occupy 3,000 square feet of ground-floor community service space at the building for its Miami headquarters. Financing for the development includes Capital One Bank NA provided $8.5 million in construction financing, Florida Housing Finance Corporation provided a $4.3 million SAIL loan, as well as $18.1 million in LIHTCs.

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Boston Capital announced March 28 its investment, made with North Shore CDC, in the renovation of Harbor and Lafayette Homes in Salem, Mass. Harbor and Lafayette Homes will feature 22 studio and five one-bedroom apartments, which will be available to individuals with incomes at or below 60 percent of AMI. The substantial rehabilitation will transform the two low-rise residential properties into supportive affordable housing for formerly homeless, low-income youth aging out of the Massachusetts foster care system and other low-income individuals. YouthBuild Salem will provide residents with supportive services. Renovations will include new heating and hot water systems, new doors and windows, new kitchenettes and bathrooms, energy-efficient lighting and a new common laundry room as well as community room/classroom and supportive service space. The properties will be renovated with LIHTC equity. 

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JEMCOR Development Partners announced March 28 the construction of Ageno Apartments in Livermore, Calif. The mixed-income, transit-oriented property will provide 171 one-, two- and three-bedroom apartments, 35 of which will be affordable to very low-income families earning up to 50 percent of the AMI. Designed by KTGY Architecture + Planning, the development will comprise four, three-story residential buildings and a single-story clubhouse. Financing for the $60 million development includes a $45 million loan from Citi Community Capital, while Alliant Capital, Ltd., syndicated the LIHTC equity. Ageno Apartments is the final phase of Vineyard Crossing, a 34.5-acre community of 465 single-family homes, townhomes and apartments. Construction is expected to take approximately 22 months, with lease-up starting summer 2019.

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Steele Properties, in partnership with Community Housing Concepts, announced March 29 the $7.6 million acquisition and rehabilitation of Kirkwood Senior Complex in Sand Springs, Okla. Kirkwood is a project-based Section 8 affordable complex providing 76 apartments. Each apartment will undergo renovations including new windows, paint and flooring. There will also be exterior renovations including new roofs, siding, plumbing, electrical and health/safety upgrades. Full ADA conversions also will be completed on seven apartments. There are eight, one-story walk-up garden-style buildings with one- and two-bedroom apartments on a 4-acre fenced community. Renovation of Kirkwood is financed with 9 percent LIHTCs allocated by Oklahoma Housing Finance Agency, with construction and permanent financing provided by Bank of Oklahoma and tax credit equity provided by Raymond James.

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Merritt Community Capital announced March 30 the working relationship with Candeur Group to underwrite, acquire and close LIHTC investments and provide investment structuring for Merritt Community Capital Fund XX, the company’s next LIHTC fund. Candeur Group started providing the transition of services March 31, after the retirement of Karen Smyda, longtime director of acquisitions at Merritt Community Capital. Merritt Community Capital Fund XX is expected to raise $70 million for Fund XX, with an anticipated fund closing date of September. Per Merritt’s company mission, there will only be investments in California-based LIHTC properties.

LIHTC People

The Affordable Housing Tax Credit Coalition announced March 15 that housing and public policy expert Emily Cadik was named executive director. Cadik previously worked for Enterprise Community Partners, as senior director of public policy, leading policy and advocacy with the LIHTC. Before that, she was a presidential management fellow at the U.S. Department of Housing and Urban Development, where she was a program coordinator for the Moving to Work demonstration and worked in the Office of Intergovernmental Affairs. Her appointment was effective April 9.  

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Smith’s Research & Gradings awarded Patricia Hippe with the Smith’s Lifetime Achievement Award March 15. Hippe is the chief financial officer for Colorado Housing and Finance Authority. Before that, she spent 16 years at the Minnesota Housing Finance Agency, the first five years as finance director and later as the deputy commissioner and chief financial officer. The award recognizes individuals who made a lasting impact on the affordable housing finance market.

LIHTC Bonds

The grand opening celebration for the Baltimore Gardens and Cleveland Gardens Apartments in Las Vegas was March 27. The two properties provide a combined 201 affordable apartments in 21 buildings for households earning up to 60 percent of the AMI. Extensive upgrades were made to building systems. There were also interior and exterior renovations. Rehabilitation costs were $27 million. Financing included tax-exempt bonds issued by the Nevada Housing Division and 4 percent LIHTC equity, as well as HOME funds from the city of Las Vegas. 

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Hunt Mortgage Group announced Feb. 19 a $20.9 million HUD 223(f) loan program to finance the acquisition and rehabilitation of two affordable multifamily properties, Raymond Watkins Apartments and John Guy Prindle Apartments, in New York. Raymond Watkins Apartments is a 112-apartment, age-restricted affordable Section 8 subsidized multifamily property in Saratoga Springs, N.Y. Hunt Mortgage Group provided a $14 million loan for this property. The complex sits on a single 2.3-acre parcel and was built in 1979. The property offers 111 one- and one two-bedroom apartments. Of those, 13 are designated as handicap-accessible apartments. Amenities include on-site leasing and management office, community room areas and a community kitchen. John Guy Prindle Apartments is 112 age-restricted and affordable Section 8 subsidized multifamily apartments in Ilion, N.Y. Hunt Mortgage Group arranged a $6.9 million loan for the property. The complex was built in 1979 and sits on a single 2.4-acre parcel of land. The facility offers 111 one- and one two-bedrooms. Of those, 13 apartments are designated as handicap-accessible apartments. Amenities include on-site leasing and management office, community room areas, community kitchen as well as an exterior gazebo sitting/picnic area. Rehabilitation costs will be $3.3 million and $3 million for Raymond Watkins Apartments and John Guy Prindle Apartments, respectively. There will be interior and exterior work. The borrower was awarded tax-exempt bond volume cap and an allocation of 4 percent LIHTCs.