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Low-Income Housing Tax Credits News Briefs - November 2018

Reps. Jeb Hensarling, R-Texas, and John Delaney, D-Md., released draft legislation Sept. 6 that would wind down Fannie Mae and Freddie Mac over a five-year period and create a mortgage insurance program run through Ginnie Mae. Under the legislation, Ginnie Mae would leave the U.S. Department of Housing and Urban Development and become a stand-alone agency. Hensarling and Delaney released the text of the legislation, as well as a section-by-section summary and an overview and summary, which are all available at www.taxcredithousing.com.

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The Federal Housing Finance Agency (FHFA) Oct. 3 invited public comment on proposed modifications to Fannie Mae and Freddie Mac’s 2018-2020 duty to serve underserved markets plan. Fannie Mae’s proposal includes modifying actions to reflect revised rural investment targets based on enhanced market insight and experience since re-entering the low-income housing tax credit (LIHTC) equity market. Fannie Mae proposes to make LIHTC equity investments in 20 properties in 2018, 30 properties in 2019 and 30 properties in 2020. Comments on the proposal are due Nov. 2. FHFA will publish any approved modifications December. The request for input is available at
www.taxcredithousing.com. 

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The Office of the Comptroller of the Currency released a list of Community Reinvestment Act performance evaluations Oct. 2 that became public in September. Thirty evaluations were made, with 23 rated satisfactory, five rated outstanding, one rated needs to improve and one rated as substantially needs to improve. The list contains national banks, federal savings associations and insured federal branches of foreign banks. The list is available at www.novoco.com/cra.

LIHTC State

The Colorado Housing and Finance Authority (CHFA) announced Sept. 21 the second-round 2018 low-income housing tax credit (LIHTC) awards. There were 33 applications requesting $35.9 million in 9 percent federal LIHTCs. CHFA awarded $17.1 million to the development of 15 properties, where 814 rental apartments will be constructed. The increase allowed CHFA to support two additional developments with 181 more affordable rental apartments, compared to 2017. The temporary increase will be available each year through 2021. The complete list of developments that received awards is available at
www.taxcredithousing.com.

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The 2018 Maryland LIHTC awardees were announced Aug. 30. Twenty-one properties were awarded $30.2 million in LIHTCs that will create or preserve more than 1,100 affordable rental apartments, including 167 apartments to be specifically set aside for individuals with disabilities. The department received 44 applications. The complete list of awardees is available at www.taxcredithousing.com.

LIHTC Dealmaker

Boston Capital announced Sept. 5 its investment in the construction of Stone Spring Apartments. Developers Flatiron Partners LLC, Van Metre Stone Springs Apartment Investment LLC and Good Works LP will build the 128-apartment community for families in Dulles, Va. Stone Springs Apartments will include 32 one-, 84 two- and 12 three-bedroom apartments in two four-story buildings. The apartments will be available to families earning 60 percent or less of the area median income (AMI). Amenities will include a 2,992-square foot clubhouse/office building that will feature a community room, business center, grilling area and a playground. Stone Springs Apartments will be constructed with low-income housing tax credit (LIHTC) equity.

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MassHousing announced Sept. 26 the closing of $24.7 million for Concord Highlands in Cambridge, Mass. There will be 98 affordable apartment homes in a six-story building. There will be 32 one-, 45 two- and 21 three-bedroom apartments available to individuals earning between 30 percent and 100 percent of the AMI. Of those apartments, 38 will be workforce housing. MassHousing provided an $8.9 million permanent loan, an $11.9 million LIHTC equity bridge loan and $3.8 million in workforce housing funding from the agency’s $100 million Workforce Housing Initiative. The city of Cambridge is providing $8.1 million from the city’s Affordable Housing Trust and $2 million in HOME funds. The Massachusetts Department of Housing and Community Development is providing the project with $1.5 million in direct subsidy from the Housing Stabilization Fund. 

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Hunt Capital Partners, in partnership with Urban Housing Communities LLC, announced Sept. 20 the closing of $26 million in federal LIHTC equity and $12.9 million in Hawaii state tax credit equity financing for the new construction of Kaiwahine Village in Kihei, Hawaii. Located on the island of Maui, Kaiwahine Village will provide 118 affordable two- and three-bedroom apartment homes to families earning up to 30, 40 and 60 percent of the AMI. Amenities will include recreation areas with a clubhouse, and a courtyard. Development costs are expected to total $62.8 million. Hunt Capital Partners committed $31.5 million in federal and state LIHTC equity, while Citibank provided a $33.2 million construction loan and a $7 million permanent loan. Hawaii Housing Finance and Development Corporation provided a $19.7 million Rental Housing Revolving Fund loan, and the county of Maui provided a $2.3 million HOME loan as well as $1.4 million from the Rental Housing Trust Fund program. Construction is expected to be completed in early 2020.

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Community Preservation and Development Corporation broke ground Sept. 25 on the Jackson Ward development in Richmond, Va. This is the second of three phases. The first phase was completed last year. This $30 million mixed-income, mixed-use property will provide 154 apartment homes, as well as 6,000 square feet of new commercial retail space. One building in the development, Jackson Ward Senior Homes, will provide 72 homes for low-income seniors. The other, mixed-income building, Jackson Ward Multifamily Homes, will provide 82 apartments, including 36 affordable apartments reserved for workforce housing. The final phase will begin next year when the former Baker School will be converted into additional apartment homes. Development was made possible with LIHTCs and HUD’s Rental Assistance Demonstration program. 

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Barbara Jordan I affordable housing complex in Providence, R.I., was completed Sept. 14.  The scattered-site complex consists of 193 Section 8 housing apartments spread across 82 buildings. Developer Omni New York LLC used $16.5 million in LIHTC equity for construction. Renovations cost $50 million and are scheduled to be complete by next summer.

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Bethel Development Inc. announced in mid-September a $10.5 million LIHTC allocation for the construction of Canyon Walk Apartments in Los Alamos, N.M. The complex will feature 70 one-, two- and three-bedroom affordable apartments available at no more than 60 percent AMI. Amenities will include in-house supportive services for the residents, such as financial counseling, as well as a community space and a playground. Construction is expected to begin in March 2019 and cost $14 million.

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Developer Monarch Development Group LLC and Paxton Ministries broke ground Sept. 17 on Paxton Place, a senior affordable housing development in Harrisburg Va. The $8.6 million development will provide 37 apartments homes, with 35 one-, and two two-bedroom apartments for seniors 62 and older. The three-story, 43,928-square-foot building will include a health care room, coffee corner, demonstration kitchen, community room, family room and fitness room. The development is being financed with LIHTC equity. Construction is set for fall 2019.

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Union Gospel Mission of Tarrant County broke ground Sept. 25 on The Vineyard on Lancaster in Fort Worth, Texas. The affordable housing for low-income and formerly homeless residents will feature 104 apartments and ground-level retail space. There will be 88 one- and 16 two-bedroom apartments. Of the 104 apartments, 22 will be available at 30 percent AMI, 42 will be available at 50 percent AMI, 34 will be available at 60 percent AMI and the remaining six will be market rate. Financing includes $12 million in LIHTCs. Development is expected to cost $19 million and be complete by the end of 2019.

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A groundbreaking ceremony was held Sept. 20 for Kulana Hale. The affordable apartment community in Kapolei, Oahu, Hawaii, will be a $64 million, three-phase development. The first phase will provide 154 apartment homes and ground-floor commercial retail space in a single 13-story tower. Apartments will be available to seniors earning 60 percent or less of the AMI. Phase 2 will add a second tower with 143 apartments available to families earning 60 percent or less of the AMI. Amenities include a meeting room, picnic area and community workspace. Phase 3 will provide additional single-story retail space. The development will be financed with a combination of tax-exempt bonds, LIHTC equity and a $10.7 million Rental Housing Revolving Fund loan from the Hawaii Housing Finance and Development Corporation. Construction is expected to begin in April 2019.

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Oxford Development and S&A Homes held the ribbon-cutting ceremony for Susquehanna Homes in Pittsburgh Sept. 20. The $13 million development was funded with $10.8 million in LIHTCs provided by the Pennsylvania Housing Finance Agency. There will be 45 apartments available to families earning no more than 60 percent of the AMI.

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The Ohio Housing Finance Agency (OHFA) approved Sept. 19 approximately $22.5 million in LIHTCs for the Dayton Arcade. OHFA also provided a $4 million low-interest housing development loan. Additionally, in 2016, the Dayton Arcade was awarded close to $20 million in LIHTCs. The multiphase development will provide both apartments and retail space. Construction scheduled to start by the end of this year, with the housing portion of Dayton arcade to be open early in the second quarter of 2020. 

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SVN Affordable Levental Realty announced Sept. 19 that developer Omni America LLC has acquired and will rehabilitate Garden Spires and Spruce Spires. The two properties in New York City will undergo interior and exterior improvements thanks to LIHTC equity. Improvements will include new roofs, kitchen cabinets, appliances, bath enclosures, building mechanical systems including hot water heaters and parking lot repairs. There are also plans to construct a community room and laundry facility for residents at Garden Spires. Rehabilitation is expected to take approximately 12 to 18 months. Garden Spires provides 544 apartments in two 20-story buildings. Spruce Spires comprises 113 apartments in four four-story buildings and one five-story building.

LIHTC People

Dominion Due Diligence Group (D3G) announced in September the hiring of Jenn Krieher as housing preservation manager. The Housing Preservation Services department was recently created to support the widened scope of services that D3G provides. Krieher will be responsible for providing technical assistance for the Rental Assistance Demonstration program and Special Applications Center Section 18 programs. Krieher joins D3G from the U.S. Department of Housing and Urban Development. 

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Palo Alto Housing (PAH) in California announced Oct. 3 that Randy Tsuda was named president and chief executive officer. Tsuda is the community development director of Mountain View, Calif. He was also the assistance community development director for Los Gatos, Calif. He will begin at PAH Nov. 14. Tsuda succeeds Candice Gonzalez.

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CHN Housing Partners in Cleveland announced Sept. 28 that Kevin J. Nowak is CHN’s next executive director. Nowak serves on CHN staff as the director of strategic initiatives and general counsel. Before joining CHN staff, he was on the organization’s board of directors as treasurer. Before that, he was the national equity investment manager of Key Community Development Corporation, a subsidiary of KeyBank. Nowak will become the executive director after Rob Curry’s departure in June 2019.

Journal Category:

Low-Income Housing Tax Credits

Authors:

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