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Low-Income Housing Tax Credits News Briefs - October 2018

Three federal banking agencies issued an interim rule Aug. 22 to amend the agencies’ liquidity rules concerning certain eligible municipal securities due to the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018. That legislation requires the Federal Reserve, the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency to treat a municipal obligation as a high-quality liquid asset under their liquidity coverage rules if the obligation is considered both “liquid and readily marketable” and “investment grade.” This change enables banks to hold private activity bonds as high-quality liquid assets. The interim rule is available at www.novoco.com/cra.

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The Office of the Comptroller of the Currency (OCC) released Aug. 29 its schedule of Community Reinvestment Act evaluations for the fourth quarter of 2018 and the first quarter of 2019. The OCC encourages comment on the national banks and federal savings associations scheduled to be evaluated. Comments can be submitted to the institutions themselves or to the appropriate OCC supervisory office before or as early as possible during the month of the evaluation. The schedule is available at www.novoco.com/cra.

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The Housing Assistance Council (HAC) released a report and accompanying executive summary Sept. 6 on preserving America’s rural rental housing portfolio. HAC conducted a comprehensive assessment of the United States Department of Agriculture’s (USDA) multifamily housing investments, specifically involving USDA Section 515 rural rental housing loans. The goal of the platform is to provide strategies to help preserve affordable housing for rural communities and residents. The report recognizes that USDA Section 515 rural rental housing is a public-private partnership and that four key stakeholders and entities are extremely important within this partnership. These four are the U.S. Department of Agriculture, owners of Section 515 properties, tenants residing in Section 515 properties and the public interest created by Section 515 investments and related outlays. Both the report and executive summary are available at www.taxcredithousing.com.

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The OCC released Sept. 6 a list of Community Reinvestment Act performance evaluations that became public in August. Sixteen evaluations were made, with 14 rated satisfactory and two outstanding. The list includes national banks, federal savings associations and insured federal branches of foreign banks. The list of evaluations is available at www.novoco.com/cra.

LIHTC State

The Wisconsin Housing and Economic Development Authority (WHEDA) announced Aug. 23 the awarding of $6.6 million in state low-income housing tax credits (LIHTCs) for the development of affordable multifamily housing. Awards were given to nine developments that will provide 1,065 rental apartments. The state LIHTCs will help finance construction in Chippewa Falls, Eau Claire, Fitchburg, Green Bay, Pleasant Prairie, River Falls, Sheboygan and Superior. The new state tax credit program will be matched with $6.6 million in federal 4 percent LIHTCs. WHEDA received 15 applications requesting $10.4 million. The awards list is available at www.taxcredithousing.com.

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The Texas Department of Housing and Community Affairs announced Aug. 2 the award of $76.6 million in LIHTCs to 72 properties throughout the state. More than 5,500 affordable rental apartments will be rehabilitated or built. There will be 4,997 apartments in 64 developments constructed, with the rehabilitation of eight properties with 560 apartments. The list of 2018 awards is available at www.taxcredithousing.com.

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The Oregon Housing and Community Services released Aug. 6 the list of recipients for the 2018 LIHTC awards. Allocations arranged from $857,500 to $1.4 million. The Oregon 2018 9 percent LIHTC recipient list is available at www.taxcredithousing.com.

LIHTC Dealmaker

WNC announced Aug. 23 the closing of WNC Institutional Tax Credit Fund 45 LP. The $150 million low-income housing tax credit (LIHTC) fund will build or renovate more than 1,950 affordable rental apartments in 26 properties in Alaska, Arkansas, Arizona, California, Iowa, Maine, Minnesota, Mississippi, New Jersey, New Mexico, Tennessee and Texas. 

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A ribbon-cutting ceremony was Aug. 13 for the completion of LaGrave on First in Grand Forks, N.D. The permanent supportive housing development will provide affordable housing to 42 people who experienced chronic homelessness. The Grand Forks Housing Authority, the developer and property manager, partnered with Beyond Shelter Inc. to develop LaGrave on First. The North Dakota Housing Finance Agency provided federal LIHTCs and U.S. Bank Community Development Corporation provided nearly $7 million in LIHTC equity. Additional financing was provided by the Federal Home Loan Bank of Des Moines and the city of Grand Forks. On-site supportive and medical services will be provided. The four-story building will house administrative offices, an exam room, exercise room, computer room, commercial kitchen and dining room and lounge space. Development costs totaled $8.8 million.

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Dominium, an apartment owner, developer and manager, held the groundbreaking for The Legends at Berry and Millberry Apartments Aug. 9. The St. Paul, Minn., property will provide 362 affordable rental apartments.

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Bellwether Enterprise Real Estate Capital LLC, the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc., announced Aug. 14 the closing of $25 million in loans for two affordable housing properties. St. Johns Apartments, in San Antonio, is a historic 1920s-era Catholic seminary. A $23 million tax-exempt loan will allow for the new construction and adaptive reuse of the property. Once work is completed, the property will provide 228 apartments, 176 of which will be leased at restricted rents through the LIHTC program, while the remaining 52 will be available at market rate. A Fannie Mae loan was secured, as well as LIHTC tax-exempt bond financing and historic tax credits. Pinehurst Apartments in Palestine, Texas, is a 34,000-square-foot, three-story building that will provide studios and one-bedroom apartments. The $2.2 million FHA/HUD 223(f) loan will allow for interior and exterior renovations, including kitchen and bath remodeling, new HVAC, roof, windows, an elevator, common area floor covering, paint and lighting. The property is available to seniors and residents with disabilities. 

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The groundbreaking of Residences at Brighton Marine was June 18. The Brighton, Mass., mixed-income property, developed by WinnCompanies, will provide 102 apartment homes, with a preference for veterans. There will be 11 studio apartments, 47 one-, 33 two- and 11 three-bedroom apartments in a seven-story building. MassHousing provided a $9.4 million permanent loan, a $14 million bridge loan and $5 million from the agency’s Workforce Housing Initiative. The Massachusetts Department of Housing and Community Development provided federal and state LIHTCs, as well as $3.6 million in direct support. An additional $3.7 million is provided through the Affordable Housing Trust Fund. Bank of America invested more than $24 million in LIHTC equity. The Brighton Marine campus was originally built by the federal government beginning in 1938 to accommodate the relocation of the U.S. Marine Hospital. The $46 million construction of the 1.4-acre site is scheduled for completion by December 2019.

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The Asteri in Utica, N.Y., opened in mid-August, providing 49 affordable rental apartments. The $11 million renovation for the of the former Jeffrey Hardware store, built in 1893, was made possible with $3.5 million in 4 percent LIHTC equity, $6 million in tax-exempt bonds, $2 million from the New Construction Capital program and a  $1.3 million loan from the New York State Office for People with Development Disabilities. Federal and state historic tax credits were also provided. Of the 42 one-bedroom apartments and seven two-bedroom apartments, 12 are reserved for people with developmental disabilities. Amenities include 2,500 square feet of community space, two offices, a business center and a fitness center.

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The North Dakota Housing Finance Agency (NDHFA) announced Aug. 27 the start of construction on Edwinton Place in Bismarck. The permanent supportive housing development will provide affordable housing and supportive services for 40 people who have experienced chronic homelessness in the local area. This implemented approach is NDHFA’s Housing First plan. Financing for the $10.3 million development included $7.2 million in LIHTC equity, $1 million from the National Housing Trust Fund, $500,000 from the state’s Housing Incentive Fund and $460,000 from the Neighborhood Stabilization III program. The Burleigh County Housing Authority partnered with Beyond Shelter Inc. to develop Edwinton Place. The four-story building will have offices, meeting rooms and an exam room on the first floor, while the upper floors will have the apartments. Completion is expected by fall 2019. 

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Red Stone Equity Partners LLC announced Aug. 6 the closing of Red Stone Equity–2018 National Fund LP. The $144 million LIHTC investment fund is the eighth Red Stone Equity multi-investor fund offering to close in the last seven years and includes investments from six institutional investors. The 2018 Fund’s proceeds will be used to finance the construction and/or rehabilitation of more than 20 properties in 16 states. The properties will provide a combined 2,100 affordable rental apartments.

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CHN Housing Partners announced Aug. 12 plans to develop the McGregor Senior Assisted Living in Cleveland. The three-story 1904 building will transform into a senior assisted living facility with 90 apartments. Financing included LIHTC equity, a $2 million loan from the McGregor Foundation and a loan from Citizens Bank. The $12 million development is scheduled to open in 2019.

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Oregon Housing and Community Services announced in mid-August the award of $11.5 million in LIHTCs to Pacific Crest Affordable Housing for the construction of Canal Commons in Bend, Ore. The $15 million development will be split into two phases, with Canal Commons providing 48 apartments and the second phase providing 44 apartments. The development will produce two buildings, each with 24 apartments and a mix of one-, two- and three-bedroom apartments. Apartments will be reserved for families earning between 30 percent and 53 percent of the area median income (AMI). Additional financing includes $1.8 million in state housing tax credits, a $1 million grant from the federal HOME program and nearly $1 million from the federal Housing Trust Fund. Construction is scheduled to begin May 2019.

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Valley Community Housing Corporation received $10 million in LIHTC equity in mid-August for the construction of Parkview Corner in Chambersburg, Pa. The three-story building will provide 40 apartments for senior citizens. Amenities will include a community center, fitness room, health clinic, hair salon, library, café and movie room. Construction is expected to cost $11.5 million, with projected completion slated for May 2020.

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Gorman & Company, Vail Resorts and Summit County broke ground Aug. 15 for The Village at Wintergreen. The Keystone, Colo., property will provide 196 one- and two-bedroom apartments, 40 of which will be available to people earning between 30 and 60 percent of the AMI. Financing included $8.3 million in 9 percent LIHTCs from the Colorado Housing and Finance Authority, as well as a $300,000 loan from the county. 

Journal Category:

Department of Housing and Urban Development

Authors:

Novogradac

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