Low-Income Housing Tax Credits News Briefs - October 2015

Thursday, October 1, 2015

AFFORDABLE HOUSING INDUSTRY BRIEFS

The U.S. Department of Housing and Urban Development (HUD) released the fiscal year 2016 (FY 2016) proposed fair market rents (FMRs) Sept. 3. FMRs are used to determine payment standards for the Housing Choice Voucher (HCV) program, initial renewal rents for some expiring project-based Section 8 contracts and initial rents for housing assistance payment contracts in the Moderate Rehabilitation Single Room Occupancy (SRO) program. FMRs also serve as rent ceilings in the HOME Investments Partnerships program. A preamble addressed the upcoming publication of FMRs in the Federal Register, as well as the advance notice of proposed rulemaking on small area FMRs that was published June 2. HUD also posted the proposed FY 2016 small-area FMRs for five demonstration participants and the proposed FY 2016 exception FMRs for manufactured home spaces in the HCV program.

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On Aug. 17, the Poverty & Race Research Action Council (PRRAC) issued the report, “Building Opportunity II: Civil Rights Best Practices in the Low Income Housing Tax Credit Program (2015 Update).” The report analyzes the qualified allocation plans (QAPs) of each state, as well as New York City and Chicago as of Dec. 31, 2014. This report also reflects recent trends in LIHTC requirements and state and federal housing policies. The analyses include site and neighborhood standards, including racial and/or economic concentration/deconcentration; tenant targeting standards, including efforts regarding affirmative marketing and outreach to low-income and otherwise vulnerable populations; and reporting standards, including that each state tax credit allocating agency provide HUD with information on residents’ race and ethnicity. PRRAC states that the presence or absence of particular provisions in the QAP is not determinative of its overall effectiveness in advancing civil rights, as QAPs must be evaluated in their entirety and also in their implementation.

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On Aug. 31, the Office of the Comptroller of the Currency (OCC) released its schedule of Community Reinvestment Act (CRA) evaluations of national banks and federal savings associations to be conducted in the fourth quarter of 2015. The OCC is encouraging public comment on the schedule. The rounds will be conducted Oct. 15; Nov. 15; and Dec. 15. A list of the evaluations is available at www.occ.gov.

STATE BRIEFS

The Oregon Housing and Community Services Department amended Rule 813-110-0010 effective Aug. 1. The amendment clarifies definition of “cap” for the Oregon Affordable Housing Tax Credit. The rule clarifies how the department calculates the tax credit availability based on the actual number of tax credits allocated at any time. The amendment is available at www.oregon.gov.

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The California Tax Credit Allocation Committee (CTCAC) released a notice on expiring difficult development areas (DDAs). The notice, sent to qualified residential program applicants, states that in order to retain current-year DDA status, an application identifying the round in which the applicant intends to seek an allocation, must be submitted to the California Debt Limit Allocation Committee (CDLAC) by Dec. 15.

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The North Carolina Housing Finance Agency (NCHFA) awarded $470 million in 2015 low-income housing tax credits. LIHTCs were awarded to 49 developments. A total of 130 applications were received. The properties will provide 3,690 units and of those, 3,081 units will be reserved for families and 609 units will be reserved for seniors. Of these 609 units, 283 will be designated for persons with disabilities. Units will be available to residents earning 60 percent or less of the area median income (AMI). Development of these properties is expected to support 9,500 jobs and yield more than $14.9 million in local tax revenue. A full list of awardees is available at www.taxcredithousing.com.

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On Aug. 20, the Arkansas Development Finance Authority (ADFA) awarded $10.9 million in federal LIHTCs for the construction or renovation of affordable rental developments throughout the state. The ADFA also awarded $161,091 in state tax credits, $3.1 million in federal HOME program fund, $1.5 million in Rural Development Preservation Revolving Loan funds, $450,000 in mortgage settlement funds and $200,000 in Finance Adjustment Factor (FAF) funds to contribute the construction or renovation of 1,069 affordable rental housing units. The units are available for families, individuals and persons with disabilities.

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The Wisconsin Housing Economic Development Authority (WHEDA) announced Aug. 31 the availability of LIHTC program documents. WHEDA published, “Modification #2” to the 2015-2016 QAPs for the LIHTC program. The modification made changes and clarifications to some of the scoring categories. WHEDA also updated the procedures for the 2016 LIHTC cycle. The development authority announced the 2016 QAP will tentatively be available Dec. 1. LIHTC program documents can be found at www.taxcredithousing.com.

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On Aug. 27, the California Housing Partnership (CHP) released a series of reports assessing the impact of increasing housing costs on lower-income households in Los Angeles, Riverside, San Bernardino and San Diego counties. The four reports detail the recent decline in state and federal resources, stating that rising rent prices have resulted in a shortfall of more than 750,000 affordable homes. In turn, CHP found that this has led to overcrowding and financial stresses that are pushing more residents into poverty. CHP offers specific actions that can be taken by state and local leaders to improve the situation. The reports are available at www.chpc.net.

DEALMAKERS

Boston Capital announced Aug. 11 an investment in the rehabilitation of Trinity Towers West Apartments in Melbourne, Fla. The 192-unit apartment community for seniors will be rehabilitated with LIHTC equity. Trinity Towers West Apartments provides 64 studio apartments and 128 one-bedroom, garden-style units in a 17-story building. Units are available to seniors 62 and older earning 60 percent or less of the area median income (AMI), with nine units reserved as market-rate units offered to residents at or below 80 percent of the AMI. Amenities include a community room with a kitchen, a computer lab and a library. The rehabilitation of Trinity Towers West Apartments is expected to produce nearly $8.3 million in local salaries and create nearly 90 new jobs.

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On Aug. 27, Greystone, a real estate lending, investment and advisory firm, announced the closing of two loans totaling $30.7 million for the acquisition and refinancing of two Las Vegas properties. Of the $30.7 million, $13 million was provided for the acquisition of Summerhill Apartments, a 221-unit community. The remaining $17.7 million was used to refinance the Villanova Apartments, a 348-unit community. Greystone provided a 35-year FHA-insured loan that includes rehabilitation costs for Summerhill Apartments. The apartment community is located in 14 two-story buildings. Amenities include an exercise room, a community room, a swimming pool and picnic/barbecue/play areas. Villanova Apartments was refinanced with a seven-year Freddie Mac loan carrying a 30-year amortization. This property is located in 44 two-story residential buildings. Amenities include a clubhouse, a fitness center, a business center and a swimming pool. The development of the Villanova Apartments was financed using 4 percent LIHTCs and units are available to residents earning 60 percent or less of the AMI.

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Alliant Capital Ltd announced Aug. 19 the closing of Alliant Tax Credit Fund 83. The $175 million, multi-investor LIHTC fund comprises 16 properties providing nearly 2,000 units. The properties will be located in 12 states and will be a mix of family and senior properties. Of these, seven are scheduled for rehabilitation and nine are new construction developments. The closing of the fund brings Alliant’s total investor equity to more than $6.3 billion.

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On Aug. 28, Mountain Housing Opportunities Inc. (MHO) and the Community Housing Coalition of Madison County (CHC) held the grand opening of Mars Hill Commons. The 48-unit property located in Madison County, N.C., was constructed with the help of $359,000 in federal LIHTCs from the North Carolina Housing Finance Agency (NCHFA) and $246,185 in HOME funds. Amenities include a community room with a kitchen, a picnic area, a computer room, a fitness center, a library and a playground.

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Boston Capital announced Aug. 25 investment in the construction of Alexander Station. The 262-unit apartment community in Gilroy, Calif., will be available to individuals and families earning 60 percent or less of the AMI. Of those units, 27 units will be available to families with incomes at or below 50 percent of the AMI. The California Statewide Communities Development Authority (CSCDA) and The Pacific Companies partnered with Citibank and the California Community Reinvestment Corporation (CCRC) Affordable Housing Partners to provide $88 million in tax-exempt multifamily affordable housing bonds for development. Situated on 6.65 acres, Alexander Station will comprise 18 one-bedroom, 110 two-bedroom, 102 three-bedroom and 32 four-bedroom units in two, five-story buildings. Amenities will include a community room with kitchen, a recreation room, a playground and tot lots. Construction of Alexander Station is expected to generate $28.3 million in local salaries and create nearly 300 local jobs.

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The ground breaking ceremony for the second phase of Reddick Street Apartments was held Aug. 18. The 65-unit affordable multifamily community in Franklin, Tenn., is available to low-income families. Unit size will range from one to four bedrooms. Amenities will include a playground and a multipurpose room. Financing for construction includes $10.6 million in LIHTC equity and $500,000 in Housing Trust Funds from the Tennessee Housing Development Authority (THDA), $512,000 from the Franklin Housing Authority and $50,000 in community development block grant (CDBG) funds. Development costs are expected to be $14.3 million, with completion slated for 2016.

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Cincinnati Metropolitan Housing Authority (CMHA) announced July 24 the groundbreaking for Cary Crossing in Mt. Healthy, Ohio. Development will be funded with in 9 percent LIHTCs and $3.5 million in housing development loan program funds from CMHA. The 36-unit property will be located in nine one-story buildings and made available to families and individuals with disabilities. Development costs are expected to total $7.8 million. Amenities will include on-site management, a clubhouse, a picnic area, a sports court, a computer center, social/supportive services and a community space.

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WNC announced Aug. 11 the completion of Hi-Lake Triangle Apartments. The development of the 64-unit affordable senior housing community in Minneapolis was financed with approximately $3.2 million in LIHTC equity from WNC. Hi-Lake Triangle Apartments is a six-story building with 53 one-bedroom and 11 two-bedroom units. Amenities include a rooftop terrace, an outdoor picnic area, a community room, a recreational facility and a common living room with a fireplace. Hi-Lake Triangle Apartments is part of a mixed-use development that provides 5,385 square feet of ground floor retail space.

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Beyond Shelter Inc., an affordable housing developer, and the North Dakota Housing Finance Agency (NDHFA) held the groundbreaking Aug. 21 for the third phase of North Sky Apartments. Development of this final phase was funded with $3.7 million in LIHTC equity and $600,000 from the North Dakota Housing Incentive Fund (HIF). Development costs for the final building are expected to total $4.6 million. The scheduled completion date is for summer of 2016.

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On Aug. 31, MassHousing announced the closing of a $15.6 million LIHTC transaction for rehabilitation and the extension of affordability of the Lincoln Woods Apartment Community in Boston. This includes a $12.6 million construction and permanent loan, and a $2.8 million bridge loan. The 125-unit mixed-income community will have 72 units reserved for low-income families. Of the 72 units, 32 will have subsidy through the Massachusetts Rental Voucher program. There are 39 one-bedroom units, 74 two-bedroom units and 12 three-bedroom units in 18 two-story buildings. Lincoln Woods Apartment Community also provides a community building and a playground. Improvements will include replacement of all windows and exterior doors, replacement or repair of wood siding, community room renovations, the addition of a fitness area, new kitchens and bathrooms, a new boiler plant, improved ventilation and the addition of solar panels.

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The grand opening for Stone Quarry Apartments in Ithaca, N.Y., was Aug. 29. Development of the 35-unit affordable apartment complex was partly funded with $638,000 in federal LIHTCs, as well as $370,345 in state LIHTCs. Additional sources of funding included a $370,000 loan from the Ithaca Urban Renewal Agency and a $200,000 grant from a city-county-Cornell University housing fund. Stone Quarry comprises 16 two-story townhouses and a 19-unit, three-story apartment building.

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On July 18, the People’s Community Development Association of Chicago Inc. (PCDAC) broke ground on Harvest Homes Apartments in Chicago. Construction is possible with the help of $1.2 million in LIHTCs. The new 36-unit affordable multifamily residential rental property is a public-private venture between PCDAC and The NHP Foundation (NHPF). Harvest Homes Apartments will offer 36 two-, three-, and four-bedroom apartment units to low- and moderate-income families. Construction costs will total $12 million and it is scheduled for completion early 2017.

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The grand opening of Maple Park Place was July 22. The 48-unit new construction senior housing development in Maple Heights, Ohio, is a three-story building featuring 38 one-bedroom and 10 two-bedroom units. Of the 48 units, 38 were built using HUD Section 202 program funds, while the remaining 10 units operate under the LIHTC program. Property amenities include a community room with kitchen, on-site property management, a computer center, an outdoor terrace/gazebo, laundry facilities, a fitness center, a craft room and a library. Development costs were $9 million. Maple Park Place was developed using a combination of LIHTCs and tax-exempt bonds, underwritten by KeyBank Capital Markets Inc. and administered through the Ohio Housing Finance Agency (OHFA). Funding was also provided through the Federal Home Loan Bank’s affordable housing program, HOME funds from the Cuyahoga County, HUD 202 Capital funds and General Partner Capital.

 

PEOPLE IN THE INDUSTRY

On Aug. 4, City Real Estate Advisors (CREA) announced Tony Bertoldi, executive vice president of the company’s Boston office, was elected to the board of directors of Victory Programs. Victory Programs is a Boston nonprofit organization dedicated to helping homeless individuals and families who may have substance use disorders. Victory Programs serves more than 2,300 people every year through its 17 operating health and housing programs located throughout Massachusetts. Bertoldi joined CREA in 2009. He is responsible for syndication of all tax credit funds and investor relations activity. In addition, CREA announced Aug. 24 the hiring of Richard Shea as senior vice president of acquisitions. Shea will be based in San Diego and will be responsible for identifying, structuring and closing affordable housing equity opportunities.

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BRIDGE Housing welcomed Dan Adams as Potrero director Aug. 31. Adams, a licensed architect with more than 20 years of experience in housing and community development, is overseeing the redevelopment of Potrero Terrace and Annex in San Francisco. Potrero Terrace and Annex is a large-scale, mixed-income, mixed-use public housing property. Before joining BRIDGE, Adams was director of housing development at MidPen Housing Corporation. Before that, he was with the San Francisco Mayor’s Office of Housing as director of program development. Adams took over the role from Emily Weinstein, who transitioned into a broader role at BRIDGE Housing.

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On Aug. 14, the Urban Land Institute Los Angeles (ULI Los Angeles) announced Charmaine Atherton as the new chairwoman. Atherton, a senior vice president with Bank of America Merrill Lynch, will fill this role for two years, during which she will focus on the lack of affordable housing in Southern California. She brings 34 years of experience in lending and investing in low- and moderate-income communities. Before joining Bank of America Merrill Lynch in 2002, Atherton was portfolio manager for a national syndication firm, asset manager for a regional developer, commercial mortgage banker for a regional business bank, community development lending officer for both a regional and a national bank, director of finance for a national tax credit syndication firm’s development arm and housing director for a local nonprofit development corporation. Atherton is the first woman to be chair of ULI Los Angeles.

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South Dakota Housing Development Agency (SDHDA) announced the appointment of Rick Hohn to the SDHDA board of commissioners. Hohn is the business manager for the Watertown School District. Before that, he was business manager of the Custer School District. He was formerly appointed by the governor as the state aide to the education task force, chairman of the school administrator’s profession practice commission and chairman of the extraordinary cost fund board for special education funding.