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Low-Income Housing Tax Credits News Briefs - October 2022

LIHTC Industry

BRIDGE Housing announced Aug. 4 it was awarded $6.5 million from the U.S. Department of the Treasury’s Capital Magnet Fund, a grant program dispatched by the Community Development Financial Institutions Fund. BRIDGE was one of 27 organizations to receive funding. The nonprofit plans to use its award for predevelopment, acquisition and financing of affordable housing.

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Chase announced Aug. 8 it would direct $15 million toward the Century Emerging Developers Program, a program seeking minority and women developers and preservers of affordable housing. The program, run by Century Housing, will deliver capital to developers who have had difficulties accessing financing at the same levels as larger and/or more established developers. The first loans under the program were for a $3.4 million acquisition and a $1.5 million predevelopment loan to a project in Leimert Park in Los Angeles.

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Dominium announced Aug. 16 it would distribute more than $1.4 million in scholarship awards to its residents, employees, and their dependents through Opportunity’s Front Door, its scholarship program. Two-hundred eighty-seven students will receive scholarships of $5,000 for the 2022-23 school year. Dominium launched the program in 2020.

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LIHTC State

Legislation enacted in August in Virginia will increase the annual allocation of state-level low-income housing tax credits (LIHTCs) from $15 million to $60 million and require that $20 million annually be allocated to properties in towns with populations of 35,000 or fewer. S.B. 47 also provides that the Virginia housing opportunity tax credits be taking ratably over 10 years. The Virginia state LIHTC was enacted in April 2021 with a $15 million annual cap and is effective for tax years before Jan. 1, 2026.

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The Iowa Finance Authority awarded nearly $100 million Aug. 31 in federal LIHTCs. Eleven properties throughout the Hawkeye State that are slated to build 385 homes for Iowans were awarded credits. The developments are in Adel, Audubon, Bondurant, Boone, Carroll, Cedar Rapids, Davenport, Grinnell, Hiawatha, Ottumwa and Winterset.

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The Texas Department of Housing and Community Affairs announced in August it awarded nearly $800 million in 9% LIHTCs for more than 4,000 new and rehabilitated apartments in the Lone Star State. Sixty-one properties received credits in this round.

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The Indiana Housing and Community Development Authority announced Aug. 8 it awarded $130 million in 4% LIHTCs to six properties in the Hoosier State. The largest recipient was the Plaza at Central Greens, a Radiant Communities Development Corporation-developed property in Indianapolis that received $15.2 million for a 122-apartment development.

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California Gov. Gavin Newsom signed legislation Sept. 2 to help improve the Golden State’s supply of affordable housing that allows pets. S.B. 971 seeks to disallow certain housing providers from establishing limitations on pets based on breed or weight. Furthermore, such providers will not be allowed to charge nonrefundable, pet-related fees such as “pet rent” in addition to security deposits and monthly rent.

LIHTC Dealmakers

Hunt Capital Partners (HCP) closed Aug. 11 on a $163.5 million national low-income housing tax credit (LIHTC) fund. Hunt Capital Partners Tax Credit Fund 48 looks to create more than 1,500 homes in 10 states as well as preserve or adapt homes in other locales. The fund will finance 15 developments.

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Co-developers Housing Services Alliance and Woda Cooper celebrated the Aug. 25 opening of Sparrow Ridge, a multifamily senior apartment property in Hebron, Kentucky. The $18.9 million, 96-apartment development for those 55 and older will host those earning between 30% and 80% of the area median income (AMI). CREA provided a $15 million LIHTC equity investment.

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Evergreen Imagine, a joint venture between the Imagine Group and Evergreen Redevelopment, broke ground Aug. 24 on Auburn Gresham Apartments in Chicago. The $43 million development includes 58 apartments across two adjacent buildings along with commercial space on the ground floor. Construction is expected to last 18 months. The property received $18 million in LIHTCs.

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Developers broke ground Aug. 24 on South Street Centre Apartments in Frederick, Maryland. The property, which twins 9% and 4% LIHTCs, is slated to host 152 apartments on 180,808 square feet of land. The construction involves the renovation of two buildings in downtown Frederick.

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Southern Hills Senior Homes in Topeka, Kansas, was awarded state and federal LIHTCs in August. The Excel Development Group property received $6.2 million in federal 9% LIHTCs as well as $1.5 million in state LIHTCs. The $7.3 million development will be built atop land previously owned by the New Beginning Baptist Church. The property is set to open in 2023.

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Construction is underway on Three Mile Harbor, a $33 million, 50-apartment development in the East Hampton village in Long Island, New York. Georgica Green Ventures and the East Hampton Housing Authority are developing the site, which New York State Homes and Community Renewal (HCR) estimates will generate $18 million in LIHTC equity. HCR added $3.4 million from its housing trust fund as well as $350,000 from the federal housing trust fund.

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Dominium broke ground Aug. 17 on Sandpiper Glen apartments in Orlando, Florida. The 288 one-, two- and three-bedroom apartments are reserved for seniors 62 and older. The capital stack includes federal LIHTCs.

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HCP financially closed Aug. 16 on $19.8 million in federal LIHTC equity for the rehabilitation of a pair of properties in Mississippi. Millennia Companies will redevelop and manage the 128-apartment Sunset Village in Cleveland, Mississippi, and the 64-apartment Moore Manor in Amory, Mississippi. The $52 million endeavor will serve those earning up to 60% of the AMI. HCP plans to syndicate the federal LIHTCs through Hunt Capital Partners Tax Credit Fund 43.

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Woda Cooper celebrated the grand opening Aug. 11 of Holley Pointe in Portsmouth, Virginia. The 50-apartment property named after the city’s late mayor will host those earning between 30% and 80% of the AMI and includes 6,500 square feet of commercial space on the ground floor. Wells Fargo invested in the development’s LIHTCs, while Cedar Rapids Bank & Trust served as lender for the permanent debt.

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The District of Columbia Housing Finance Agency (DCHFA) financially closed Aug. 8 on a package of funds for the construction of the 130-apartment building Terrace Manor in Washington, D.C. Co-developers WC Smith and the Anacostia Economic Development Corporation received almost $37 million in tax-exempt bonds and DCHFA underwrote $33.8 million in LITHC equity. The development will serve those earning up to 60% of the AMI, including 14 permanent supportive housing apartments for those at 30% of the AMI.

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New Mexico Inter-Faith Community Housing Development Corporation opened Siler Yard, a $17.4 million, 65-apartment property in Santa Fe, New Mexico, that is the state’s first net-zero energy multifamily property. The development received $10.4 million in LIHTCs and will serve those earning up to 60% of the AMI.

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Developer Christopher Community celebrated Aug. 2 the completion of the 60 apartments of Camillus Heights in Camillus, New York. The $17.2 million development, which consists of 16 two-story buildings, will house those earning between 30% and 80% of the AMI. The financing package included federal LIHTCs that New York Homes and Community Renewal anticipated will generate $11.9 million in equity.

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Gateway Development Corporation and Monarch Private Capital financially closed Aug. 2 on a LIHTC equity transaction for Jonesboro Road Senior Village in Fairburn, Georgia. The $27 million senior property will host 110 apartments for those 62 and older earning up to 60% of the AMI. The team expects to open the property in 2023.

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PIRHL Developers, Stewart Silk Mill Redevelopment Partners and Easton Area Neighborhood Center teamed up Aug. 1 to open The Mill at Easton in Easton, Pennsylvania, an $18 million, 55-apartment, 71,000-square-foot development that once hosted a silk mill and stainless-steel fabricator. The property hosts those earning up to 80% of the AMI. The capital stack included 9% LIHTCs, which generated $12.8 million in tax credit equity.

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Valencia Pointe, a 102-unit affordable housing property in San Diego, opened in June. CRP Affordable Housing developed the property, which will host those earning between 30% and 80% of the AMI. Financing for the $49.3 million development included $16.5 million in federal 4% LIHTCs and $6.1 million in state 4% LIHTCs in which HCP invested.

LIHTC People

Sarah Schubert was named Sept. 6 as director of real estate development in Portland, Oregon, for BRIDGE Housing. Schubert is set to lead BRIDGE’s efforts in the Rose City area, including completion of two developments and overseeing the existing and incoming pipeline for the developer. Schubert joined BRIDGE in May after managing developments and overseeing resident services and asset management for East Portland, Oregon-based Housing for Human Solutions. She brings experience in the public and private sectors.

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In August, Dominium announced the hiring of a pair of executive leaders. Kelly Johnson was named vice president of marketing, where she will oversee the firm’s marketing and branding strategy. She was previously vice president of marketing for MC Companies as well as vice president of operations at Hills Property Management. Jennifer Moulton joins Dominium as its vice president of architecture, where Moulton will oversee the company’s strategic technical direction and architectural integrity. Moulton previously served as vice president of architecture at the design firm Harrison.

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In July, Mario Robaina II was promoted to chief financial officer of Miami-based developer Housing Trust Group (HTG). Robaina will direct HTG’s accounting, budgeting and forecasting, strategic planning, cash management, and asset management. Robaina previously served as HTG’s vice president of finance.

LIHTC Bond

MDG Design + Construction Aug. 18 completed a rehabilitation of Kingsley House in White Plains, New York. The 12-story, 163-apartment property, built in 1968, serves those 62 and older. The $36 million rehabilitation included new finishes in the library and common room was well as energy efficiency upgrades. New York State Homes and Community Renewal (HCR) estimated the federal LIHTCs would generate $10.5 million in tax credit equity. The development also received $13.9 million in permanent, tax-exempt bonds from the state and $2.4 million in subsidy from HCR.

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Paisano Housing Redevelopment Corporation, a subsidiary of the Housing Authority of the City of El Paso, financially closed Aug. 18 on $14.9 million in federal LIHTC equity for the rehabilitation of Cielo Tower in El Paso, Texas. The seven-story, 123-apartment property will serve seniors earning between 50% and 60% of the area median income. The property includes 79 Section 8 project-based vouchers. Construction is expected for completion on the $37.4 million property in April 2024. Hunt Capital Partners planned to syndicate the LIHTCs through a proprietary fund it holds with JPMorgan Chase. Citi Community Capital provided $15 million in tax-exempt construction bond financing and $4 million in tax-exempt permanent bond financing. The development also received more than $15 million in loans.

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Atlanta Housing broke ground in August on the Juanita H. Gardner Village in Atlanta, a senior property named for a local activist. The three-story, 108-apartment property will sit atop a previous vacant site. The development received tax-exempt bonds as well as 4% LIHTCs.

Journal Category:

Low-Income Housing Tax Credits

Authors:

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