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Low-Income Housing Tax Credits News Briefs - October 2017

LIHTC Industry

The Office of the Comptroller of the Currency (OCC) released Aug. 29 its fourth quarter 2017 and first quarter 2018 Community Reinvestment Act (CRA) evaluation schedule. The OCC encourages public comment on the national banks and federal savings associations scheduled to be evaluated under the CRA. The OCC will consider all public comments received before the close of the CRA evaluation. The CRA evaluation schedule is available at www.novoco.com/cra. The OCC released Sept. 1 a list of CRA performance evaluations for August. The evaluations are for national banks, federal savings associations and insured federal branches of foreign banks. Of the 27 evaluations released, seven rated as outstanding, 19 rated as satisfactory and one rated as needs to improve. A full list of the evaluations is available at www.occ.gov.

LIHTC State

The North Carolina Housing Finance Agency (NCHFA) announced its 2017 low-income housing tax credit (LIHTC) awardees Aug. 10. A total of $403.6 million in LIHTCs and bonds were awarded for the construction of 43 affordable housing developments throughout the state. A total of 3,093 apartments will be constructed, with 2,660 apartments designated for families and 433 designated for seniors. Of those 3,093 apartments, 309 will be targeted for persons with disabilities. All of the apartments are affordable for households earning no more than 60 percent of the area median income (AMI). Development is expected to support 6,600 jobs and produce more than $19.5 million in total tax revenue. One hundred forty-six applications were received.

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U.S. Bancorp Community Development Corporation (USBCDC) announced $2.1 million in LIHTC equity July 12 for the rehabilitation of West Town Housing in Chicago. Developer Bickerdike Redevelopment Corporation acquired the 318-apartment, scattered-site residential development, and these properties will be rehabilitated into affordable housing. The new property, West Town Housing Preservation Apartments, will also be developed with $2.5 million in Illinois state LIHTCs.

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The Texas Department of Housing and Community Affairs (TDHCA) announced the allocation of $67 million in LIHTCs Aug. 10 for the construction of 4,817 affordable rental apartments in 69 developments. A total of 50 new properties will be built with 4,009 apartments, and 19 properties with 808 apartments will be rehabilitated. The developments will serve families, seniors and individuals with special needs.

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The Ohio Housing Finance Agency (OHFA) announced Aug. 9 the allocation of more than $27 million in LIHTCs for the construction of 34 affordable housing developments. A total of 1,759 affordable apartments will be built for families, seniors and individuals with disabilities. Eighty-three applications were submitted, requesting more than $67 million in LIHTCs.

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Massachusetts Gov. Charlie Baker announced $72 million in funding Aug. 15 for the development of 25 affordable housing properties. Included in the funding is more than $28 million in state and federal LIHTCs. The financing will create, rehabilitate and preserve 1,698 affordable apartments. The properties will serve individuals with disabilities, youth aging from foster care and low-income families or those transitioning out of homelessness. 

LIHTC Dealmaker

KeyBank Community Development Lending & Investment (CDLI) announced Aug. 23 an $8.9 million LIHTC equity investment for the development of Cornerstone Apartments in Salem, Ore. Mountain West Investment Corporation (MWIC) and its nonprofit arm, Community Resource Trust (CRT), also received a $13.6 construction loan and an $8.4 million Freddie TEL permanent agency execution. Cornerstone Apartments will provide 180 apartments, with 144 reserved for workforce families earning at or below 60 percent area median income (AMI) and 36 reserved for those experiencing homelessness. 

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Developers LDG Development and The Marian Group broke ground Aug. 8 on Riverport Landings in Louisville, Ky. Riverport Landings will include the 108-apartment Riverport Senior Living, the 240-apartment Riverport Family Apartments and the 64-apartment Riverport Scholar House. The development also will feature a 2.5-acre community park, 18,000 square feet of retail space and a 16,000-square-foot community service facility. The scholar house will serve single-parent families and young people who aged out of foster care. The development is being funded through tax-exempt bonds and LIHTCs awarded by the Kentucky Housing Corporation. Construction costs will be $71 million. Riverport Landings is expected to open January 2019.

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The groundbreaking for Polson Landing in Polson, Mont., was Aug. 23. The Montana Board of Housing awarded $6 million in LIHTCs for the construction of the affordable property. Polson Landing will provide 35 apartments and is expected to create approximately 90 jobs. Construction is scheduled to be complete in December. 

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The Arker Companies announced Aug. 18 the completed rehabilitation of Elbee Gardens. Located in Staten Island, N.Y., on approximately 8 acres, Elbee Gardens is a six-story, 178-apartment building that underwent a $38 million rehabilitation. The New York City Housing Development Corporation provided nearly $24 million in tax-exempt bonds, while New York City Housing Preservation and Development provided 4 percent LIHTCs, resulting in approximately $14 million in tax credit equity.

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The ribbon-cutting for the grand reopening of The Nest on Osage, The Nest on Thunderbird and The Nest on 30th was held Aug. 17. The three properties make up The Nest Communities, three apartment communities rehabilitated to provide affordable housing to families in Boulder, Colo. All three properties received updated kitchens and bathrooms, new flooring and new energy-efficient building systems. Financing for the acquisition and rehabilitation included $10.75 million from the city of Boulder, $20.4 million in LIHTC equity and $41.7 million in construction and permanent mortgage capital invested by Google and Red Stone Tax Exempt Funding by purchasing state issued tax-exempt bonds.

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The ground breaking of The Beacon in Long Beach, Calif., was Aug. 16. The Beacon will consist of two buildings with 160 affordable apartment homes. The seven-story Beacon Pointe will provide 120 apartments reserved for low-income seniors. The five-story Beacon Place will provide 38 apartments for lower-income veterans with special needs and homeless veterans or veterans at risk of experiencing homelessness. In addition, there will be comprehensive supportive services that will connect residents to job centers and amenities. The Long Beach Community Investment Company (LBCIC) approved more than $12 million in funding for the development. Additional funding for The Beacon includes LIHTCs from the California Tax Credit Allocation Committee (CTCAC); a Veterans Housing and Homelessness Prevention Program (VHHP) loan through CalVet and the California Department of Housing and Community Development (HCD); two Affordable Housing Program (AHP) loans through the Federal Home Loan Bank; construction financing from Wells Fargo Bank; a permanent loan from the California Community Reinvestment Corporation (CCRC). The Beacon is the final phase of the site development and is adjacent to Long Beach Senior Arts Colony and the Annex.

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The Corporation for Better Housing was finishing the first phase of The Knolls at Avenida in early August. The affordable housing development, in Atascadero, Calif., will provide 86 apartments, 60 of which will be targeted for agricultural workers. The Knolls at Avenida will comprise 22 two-, 24 three- and 14 four-bedroom apartments in three buildings located on 4 acres. Apartments are available between 30 and 60 percent of the AMI. Funding for construction included state LIHTCs and loans from the U.S. Department of Agriculture.

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Capital One announced Aug. 8 $31.1 million in LIHTC equity, as well as a $26.1 million construction loan for Gilliam Place in Arlington, Va. The property will include the concurrent construction of two developments on the same campus–Gilliam Place East and Gilliam Place West. Arlington Partnership for Affordable Housing is developing the 122,000-square-foot property, which will include 9,000 square feet of commercial space. That commercial space will be dedicated to local nonprofits. There will be 173 affordable apartments, nine of which will be reserved for people with special needs. In addition, 32 apartments will be reserved for residents earning up to 50 percent of the AMI and the remaining apartments will be reserved for those making up to 60 percent of the AMI. Gilliam Place East, which will provide 83 apartments, was acquired with $21.8 million in LIHTC equity. Gilliam Place West, which will have 90 apartments, was acquired with $9.3 million in LIHTC equity. 

LIHTC People

Gardner Capital announced Aug. 16 the hiring of Kevin Davis as manager of asset management and Corey Grab as director of construction risk management. Davis will administer Gardner Capital’s portfolio of existing housing and solar projects and ensure compliance with regulatory programs. Before joining Gardner Capital, Davis was asset manager at U.S. Bank Community Development Corporation. Grab will assess and manage construction costs and risks for Gardner Capital’s housing developments. He recently served as assistant vice president of construction risk management at U.S. Bank Community Development Corporation.

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Dominium announced Aug. 15 the hiring of Jeffrey S. Spicer as vice president and project partner to lead efforts in Texas. He will be responsible for originating and overseeing new project development, financing and acquisitions. Spicer has been a consulting partner for Dominium for more than 10 years. Before officially joining the company, Spicer was co-founder and principal at State Street Housing Development. Before that, Spicer was senior vice president and managing director of development and finance for Southwest Housing. He has also held positions at Finlay Properties and Madison Development Corporation.

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Hunt Mortgage Group announced Aug. 24 the opening of a new Boca Raton, Fla., office. Bill Papagno, director of Hunt, will lead the local effort. Papagno will focus on originating agency debt, including small balance loans under the Freddie Mac and Fannie Mae Small Balance Loan programs. In addition, he will focus on bridge financing through Hunt Mortgage Group’s Proprietary Loan group.  

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Merritt Community Capital, a provider of equity capital for affordable housing in California, announced Aug. 28 that Lisa Castillo will serve as the company’s new president. Before joining Merritt Community Capital, Castillo served as vice president of originations for WNC & Associates. Castillo worked in both the public and private sectors, including the San Bernardino County, Castillo & Company, National Community Renaissance and National Housing Development Corporation. Castillo brings more than 25 years of industry leadership to the company. She succeeds Barney Deasy, who has served as president for more than 20 years. 

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Affordable Housing Finance (AHF) announced Aug. 29 that four industry leaders will be inducted into AHF’s Hall of Fame. The 2017 Hall of Fame inductees are Michael Costa, Chickie Grayson, Mark McDaniel and Barry Zigas. Costa is president and CEO of Highridge Costa Housing Partners and Highridge Costa Investors. During his career, he has supervised the development and financing of nearly 40,000 units of multifamily affordable and market-rate housing. Grayson is president and CEO of Enterprise Homes. Grayson has helped develop more than 6,600 for-sale and rental homes for people from all walks of life. McDaniel president and CEO of Cinnaire. He has helped steer more than $3.7 billion of equity and loans to affordable housing and community developments and has been involved in the financing and development of approximately 60,000 homes for needy families and individuals. Zigas is director of housing policy for the Consumer Federation of America. As president of the National Low Income Housing Coalition from 1984 to 1993, he was instrumental in promoting the adoption of the LIHTC, the HOME program, and the Low-Income Housing Preservation and Resident Homeownership Act. AHF said in a press release that these four individuals have helped develop tens of thousands of affordable homes across the nation and advocated for better housing programs and policies.

LIHTC Bond

The grand reopening of the Colorado Park Apartments in Palo Alto, Calif., was Aug. 17. The affordable residential rental community developed by Palo Alto Housing (PAH) is a seven-building garden walkup complex with 60 apartments. There are eight one-, 24 two-, 22 three- and six four-bedroom apartments. The building façade was replaced and there is new patio fencing, roofing, paint, finishes and landscaping. There will be development and property management services, as well as resident services offered by PAH. Colorado Park LP, an affiliate of PAH, financed the renovation with $17.5 million in tax-exempt bonds, as well as loans from U.S. Bank, Union Bank, and the city of Palo Alto. Renovation costs were approximately $31.9 million.

Journal Category:

Low-Income Housing Tax Credits

Authors:

Novogradac

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