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Low-Income Housing Tax Credits News Briefs - November 2016

LIHTC Industry

The Office of the Comptroller of the Currency (OCC) published Sept. 9  its most recent edition of its Community Development Investments newsletter, “Housing Financing in Indian Country: Spotlight on HUD’s Title VI Program.” The newsletter describes the Department of Housing and Urban Development’s (HUD) Title VI loan guarantee program. In addition, examples are presented of how banks have used the program to extend financing for housing in Indian Country. Also discussed are activities that may be eligible for Community Reinvestment Act consideration. The newsletter is available at www.occ.gov.

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The United States Department of Agriculture (USDA) Rural Development on Sept. 19 released the USDA Rural Development Multifamily Housing program exit data. The data is designed to aid communities and advocates in identifying affordable housing developments at risk of leaving USDA’s portfolio once the property’s USDA loan matures. The exit data provides loan-level information on when USDA Section 514 and 515 properties are projected to pay off their loans and exit USDA’s Multifamily Housing program. Also included are estimated property exit year, whether and when the loan is prepay eligible, loan amount, original loan term and remaining term days, borrower characteristics, property location and characteristics. USDA estimates that 74 properties consisting of 1,788 apartments will leave their portfolio each year through 2027. At that time, losses are expected to increase to 556 properties, with 16,364 apartments, each year through 2032. The USDA Rural Development Multifamily Housing program exit data is available at www.sc.egov.usda.gov.

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The National Housing Conference (NHC) on Sept. 14 released the report, “Paycheck to Paycheck: A Snapshot of Housing Affordability for School Workers.” The 2016 report focuses on the affordability challenges teachers and non-instructional school workers face. Highlighted are five occupations: bus driver, child care teacher, groundskeeper, social worker and high school teacher. NHC found that none of these five occupations earned salaries high enough to guarantee either renting or owning a home in every metro area included in the report. NHC stated that creating affordable housing to meet the needs of these workers requires considering the full range of policies and programs. The report is available at www.nhc.org.

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On Sept. 2, the Office of the Comptroller of the Currency (OCC) released a list of Community Reinvestment Act (CRA) performance evaluations for August. The list contains national banks, federal savings associations and insured federal branches of foreign banks that have received ratings. Of the 30 evaluations released, seven rated as outstanding, 22 rated as satisfactory and one rated as substantial noncompliance. A complete list of this month’s evaluations is available at www.occ.gov.

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The Federal Housing Finance Agency (FHFA) published on Sept. 23 a notice in the Federal Register inviting comments on an information collection related to the Affordable Housing Program (AHP). Among other uses, AHP funds can be used to support the development of affordable rental housing and are often combined with low-income housing tax credits (LIHTCs). FHFA uses the information collection in question to verify that the funding decisions and the use of funds awarded by banks are consistent with statutory and regulatory requirements. Comments must be submitted by Nov. 22. The notice is available at www.hudresourcecenter.com.

LIHTC State

The Colorado Housing and Finance Authority (CHFA) announced the completion of the second round of 2016 low-income housing tax credit (LIHTC) allocations. The total of 9 percent LIHTC allocations available in 2016 was $13 million. More than $41 million in allocation authority was requested by 43 applicants in Round 2. ACHFA allocated LIHTCs to 13 developments for the new construction or preservation of 692 affordable rental housing apartments. The developments are in Aurora, Basalt, Boulder, Buena Vista, Cañon City, Colorado Springs, Denver, Littleton, New Castle and Pueblo. A complete list of the developments is available at www.taxcredithousing.com.

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A ribbon cutting was held Sept. 15 for Towne Square Apartments, an affordable housing development in Dardenne Prairie, Mo. Costs for the 48-apartment property will total $8.8 million. Construction will be financed with $6.2 million in state LIHTCs and $6.2 million in federal LIHTCs. Amenities include a playground and a clubhouse with a library, fitness center, club room, fireplace, kitchen and lounging porch.

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The Kentucky Housing Corporation (KHC) announced Sept. 30 the release of the final 2017-2018 multifamily qualified allocation plan (QAP) and the 2017 guidelines, application and scoresheet. The documents are available at www.taxcredithousing.com.

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The Iowa Finance Authority adopted amendments to Iowa Administrative Code Section 265–12.1-12.2, effective Nov. 2. The amendments replace the single QAP for LIHTC program with two updated QAPs, one for the 9 percent LIHTCs and the other for 4 percent LIHTCs. The amendment is available at www.taxcredithousing.com.

LIHTC Dealmaker

The Woda Group Inc. announced Aug. 31 the beginning of rehabilitation construction for Terrapin Park in Parkersburg, W.Va. The affordable housing community, designed by Architect PCI Design Group, will provide 49 apartments. There will be 10 one-, 15 two- and 24 three-bedroom apartments. Amenities will include a community building with a manager’s office and computer room, a playground, benches and a gazebo. Acquisition and rehabilitation costs will be $7 million. The West Virginia Housing Development Fund allocated approximately $5.2 million in LIHTCs for the development, $5.5 million in construction financing and permanent debt financing. RBC Capital Markets is investing approximately $5.2 million in LIHTC equity. 

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Boston Capital announced Sept. 6 that it is investing in the construction of Centennial Park Apartments, an apartment community for families in Longmont, Colo. With developer Summit Housing Group, 140 apartments will be built with LIHTC equity and will be available to families earning 60 percent or less of the area median income (AMI). Centennial Park Apartments will offer 14 one-, 66 two-, 46 three- and 14 four-bedroom apartments in 13 two- and three-story buildings. Amenities will include a clubhouse with a community room, fitness center, computer center, playground, community garden and picnic area. 

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Alden Capital Partners announced financing Sept. 6 for Las Gladiolas, a mixed-financed development in San Juan, Puerto Rico. The Puerto Rico Housing Finance Authority awarded $25.7 million in federal LIHTCs for the Las Gladiolas development. Alden Capital Partners facilitated the investment of nearly $24 million in LIHTC equity through its proprietary tax credit investment fund, Alden Capital Partners Tax Credit Fund 19. Additional financing for the development was provided through a public partnership with the Puerto Rico Department of Financing. Financing closed Aug. 2. Development costs are expected to total $33.5 million. The property will provide 140 apartment homes in 17 buildings on 7.2 acres of land. Amenities will include a community center, indoor exercise facility, computer room, swimming pool, playground, garden area and barbecue grills. There will also be 4,500 square feet of commercial space. Approximately 80 percent of homes will be restricted to households at or below 60 percent of the AMI. Construction is underway and scheduled for completion in March 2018. In addition, Alden Capital Partners announced Sept. 13 the financing of Magens Junction, an affordable housing development in St. Thomas in the U.S. Virgin Islands financing closed June 23. The Virgin Islands Housing and Finance Authority awarded Magens Junction $24.3 million in federal LIHTCs. Development costs are expected to total $26.3 million. Alden Capital Partners facilitated the investment of $23.8 million in LIHTC equity through its proprietary fund, Alden Capital Partners Tax Credit Fund 19. The transaction will fund the new construction of 48 apartments in two six-story buildings on 2.31 acres. Of those apartments, 43 will be restricted to households at or below 60 percent of the AMI, with five apartments restricted to households at or below 30 percent AMI. Additionally, five apartments will be available for individuals with disabilities. Construction began earlier this summer and is slated for completion in July 2017. 

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Dominium announced Sept. 7 that the company has reached a portfolio milestone of surpassing 25,000 owned or managed apartments. Dominium’s growth goal is to reach more than 40,000 apartments by 2025.

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Nonprofit developer BRIDGE Housing and the city of Portland, Ore., celebrated the grand opening Sept. 16 of The Abigail in Portland. The Portland Housing Bureau, Oregon Housing and Community Services, National Affordable Housing Trust, Wells Fargo and Energy Trust of Oregon provided financing. The six-story mixed-income development will provide 128 affordable apartments for families earning 30 percent to 60 percent of the AMI and 27 market-rate apartments. There will be studios, one-, two- and three-bedroom apartments. Amenities will include a courtyard, a children’s play area, a community room, laundry rooms on each floor and underground car parking. The Abigail is named for Abigail Scott Duniway, a Portland businesswoman and activist who fought for voting rights for women in Oregon in 1912.

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On Sept. 15, Somerset Memorial Partners announced the completion of Linden Park Apartments in Bolton Hill in Baltimore. Somerset Memorial Partners is a joint venture between Somerset Development Company and New Community Partners, and the renovation of the $26.5 million development was completed in partnership with Memorial Apartments Corporation (MAC). Built in 1967, Linden Park Apartments in Bolton Hill will provide 266 affordable senior apartments. 

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On Sept. 8, ROEM Corporation, in partnership with the Housing Authority of the San Luis Obispo (HASLO), celebrated the grand opening of South Hills Crossing, a new affordable apartment community in San Luis Obispo, Calif. South Hills Crossing was designed by KTGY Architecture + Planning, and consists of three buildings with a mix of urban-industrial and craftsman-style architecture. There are 43 one-, two- and three-bedroom apartments available to families with annual incomes at or below 60 percent of the AMI. The $14.1 million development was financed with 9 percent LIHTCs and solar investment tax credits (ITCs), with additional financial support from the city and county of San Luis Obispo, HASLO, San Luis Obispo County Housing Trust Fund, Citi Community Capital and AEGON Group. 

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The Arkansas Development Finance Authority (ADFA) announced Sept. 7 the award of $3.6 million in federal LIHTCs, generating $3.3 million in LIHTC equity, for the substantial rehabilitation of Larkspur Gardens Apartments in Walnut Ridge, Ark. Larkspur Gardens is an assisted senior living complex with 30 one- and two-bedroom apartments. Rehabilitation work is expected to begin in January 2017, with an anticipated completion date of March 2018. Construction costs are expected to total approximately $3.8 million.

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On Sept. 14, the Alabama Housing Finance Authority (AHFA) announced $8.2 million in LIHTCs for Flint River Apartment Homes in Huntsville, Ala. Financing also included a $325,000 HOME loan from the city of Huntsville’s Community Development Department. Flint River Apartment Homes will provide 72 one-, two- and three-bedroom apartments to families with low- to moderate-income levels in the Huntsville area. The $10 million, 100,000-square-foot development is designed for residents whose incomes are at or below 60 percent of the AMI. Amenities include a clubhouse, pool, a computer center and a fitness room. 

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The Concern for Independent Living on Sept. 19 closed on $11.8 million in affordable housing revenue bonds for the construction of veteran housing on Coney Island, N.Y. Financing will include $26 million in LIHTCs from National Equity Fund and BNY Mellon. Additional funding sources include a $13.8 million state Office of Mental Health grant, a $9.4 million loan from the city Department of Housing Preservation and Development’s Supportive Housing Loan program and $6 million from a state Homeless Housing and Assistance program grant. The $69 million, 120,000-square-foot building will have 82 of its 135 apartments reserved for homeless veterans. The remaining 53 apartments will be reserved for residents earning 60 percent of less of the AMI. Case management services will be provided, as well as vocational training to help veterans operate an on-site bakery. Construction is anticipated to take 18 to 20 months. The building is the first phase of a development that is expected to bring more than 400 affordable and market-rate apartments to the area. 

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On Sept. 18, Integrated Services and Fairfield Homes, co-developers on the preservation of Beasley Mill and Sheltering Arms in Athens, Ohio, announced the future relocation of approximately 70 tenants starting April 2017. The relocations will be done so Beasley Mill and Sheltering Arms can undergo a $9 million rehabilitation. Financing for the rehabilitation will come from LIHTCs and HTCs. The renovations will include upgrades to life and safety systems, accessibility, energy efficiency systems, health service provisions and new kitchens and bathrooms. Rehabilitation of the National Register of Historic Places-listed apartment complexes will be completed in summer 2018.

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On Oct. 4, Alden Capital Partners announced that financing was secured for the rehabilitation of Kamana Elderly Apartments, an affordable housing development for seniors in Hilo, Hawaii. Kamana Elderly Apartments was awarded $5.2 million in federal LIHTCs and $2.6 million in Hawaii state LIHTCs from Hawaii Housing Finance and Development Corporation. Alden Capital Partners facilitated the investment of federal and state tax credit equity through its multi-investor fund, Alden Capital Partners Tax Credit Fund 10. The transaction closed Aug. 4. The financing will fund renovations for all 62 apartments. Construction is being performed in phases, with rehabilitation scheduled for completion in December. All of the apartments will be available to seniors earning at or below 60 percent of the area median income (AMI). 

LIHTC People

Natalie Gubb, partner and colleague of Gubb and Barshay LLP and an affordable housing advocate, died Aug. 27. Gubb and Scott Barshay started the law firm in 1993, specializing in assisting nonprofit organizations develop and finance affordable housing. Notably, Gubb was on the team that drafted the initial legislation in 1986 for the California low-income housing tax credit (LIHTC). She was awarded the lifetime achievement award by the Non Profit Housing Association of Northern California in 2010 and posthumously received an award Oct. 13 from Enterprise Community Partners as a superhero in affordable housing at the 2016 Soiree by the Bay. Memorial services were Sept. 8 in Oakland, Calif. 

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On Sept. 16, Hunt Mortgage Group announced the appointment of James P. Flynn as president. Flynn retained his role as chief investment officer. Recently, Flynn served as the company’s executive managing director/chief investment officer. He also served as a portfolio manager for the firm’s commercial mortgage REIT, raised public equity capital and served in several critical advisory roles for the firm’s CMBS and high-yield debt funds. Before joining Hunt Mortgage Group, Flynn practiced law at Gibson, Dunn & Crutcher and before that was an investment banker at Lehman Brothers.

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Dominium announced the hiring of Brianna Chabot and David Schlosser Sept. 12 as a financial reporting accountant and a property accountant, respectively. Chabot will oversee and record value event transactions such as acquisitions, refinances, resyndications, sales and buyouts. She will also manage cash flow forecasting and investment management reporting. Before joining Dominium, she was with Sherman Associates. Schlosser will produce monthly financial reports for multiple properties, approving invoices for payment and working with community managers to ensure a professional environment for residents. Previously, he was with Westport Properties. 

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Margaret Salazar was appointed director of Oregon Housing and Community Services (OHCS) Sept. 27. Salazar joins the agency from the Department of Housing and Urban Development (HUD), where she has been director of the Portland field office for the past two years. Salazar joined HUD in 2006 and has helped finance the development of multifamily rental housing units across California, Hawaii and Nevada. She later served as associate deputy assistant secretary for multifamily housing in HUD headquarters in Washington, D.C. She began her career as a foundation program officer and housing advocate working with community-based organizations in the San Francisco Bay Area. Salazar is scheduled to begin her new job Nov. 1. She replaced Margaret Van Vliet, who left the agency earlier this year.

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On Sept. 26, Conifer Realty LLC announced that Susan Sturman Jennings received a Top Counsel Award. The Daily Record’s Attorneys of the Year Awards honor outstanding attorneys who show dedication to the legal profession and commitment to the community. Jennings was acting senior vice president and general counsel for Conifer since 2000. Before joining Conifer, she represented developers, nonprofit organizations and lenders in Federal Housing Administration, Federal National Mortgage Association and conventional financing transactions. Jennings is a member of the New York State and District of Columbia bars and is also a member of the American Bar Association’s Forum on Affordable Housing and Community Development Law and sits on its membership committee.

 

Journal Category:

Low-Income Housing Tax Credits

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