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Low-Income Housing Tax Credits News Briefs – September 2019

A report issued July 15 by the Multifamily Research Center at Freddie Mac found that the percentage of multifamily rental units affordable to very low-income (VLI) households fell from 56 percent in 2010 to 39 percent in 2017, representing a loss of 2.4 million affordable rental homes. The report, “Diminishing Affordability–Inescapable,” also said that metropolitan areas with the greatest population growth experienced a greater loss in the share of rental homes affordable to VLI households.

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The Office of the Comptroller of the Currency (OCC) July 31 issued a bulletin including guidelines for requesting a designation as a wholesale or limited-purpose bank for Community Reinvestment Act (CRA) purposes. OCC Bulletin 2019-40 applies to national banks, federal savings associations and federal branches of banking organizations subject to the CRA. The bulletin also offers guidelines on how to request confirmation of an exemption as a special-purpose bank under CRA regulations.

LIHTC State

Oregon Housing and Community Services announced funding awards of more than $45 million July 16 to build and preserve more than 600 homes through federal 9 percent low-income housing tax credits, HOME and National Housing Trust Fund resources. Eleven properties received the LIHTC allocations, with awards varying from $8.7 million to $17.7 million. The listing of awards is available at www.taxcredithousing.com.

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Pennsylvania Gov. Tom Wolfe announced LIHTC awards of $41.6 million and $7.7 million in PennHOMES funding July 11. The funding will go to 39 affordable multifamily apartments in the state and will create 1,708 rental-housing units. A list of awards is at www.taxcredithousing.com.

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Massachusetts Gov. Charlie Baker announced the 2019 Affordable Rental Housing Awards July 18 at a ceremony in Swampscott, Mass. The awards will support the preservation and production of 1,581 rental apartments, 1,349 of them affordable–including 273 for extremely low-income households. The awards included three transit-oriented developments, five senior properties and two developments to rehabilitate public housing. The awards include $38 million in state and federal LIHTCs.

LIHTC Dealmaker

The nonprofit Just-A-Start Corporation will use LIHTC equity and other funding to build 23 new apartments and renovate 65 others in Cambridge, Mass., according to a July 11 announcement. The 45-apartment Linwood Court and 20-apartment Squirrel Brand communities will be combined, with the 23 new homes added to a community that will be named Squirrelwood. Funding includes $14.9 million in LIHTC equity, $4.1 million from the city of Cambridge’s affordable housing trust, a $2.6 million seller note, $700,000 in state historic tax credit (HTC) equity and funding from the Cambridge Redevelopment Authority and the Cambridge Historic Commission. Renovations on the existing units include replacements of the kitchens, bathrooms and flooring, as well as new siding, roofs, hot-water pipes and windows. 

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Market Heights, an 80-apartment affordable housing development in Norfolk, Va., received an $11.7 million LIHTC allocation for developer the Lawson Companies and will be built adjacent to a separate 84-apartment complex that is financed with 4 percent LIHTCs, according to a July 10 announcement from Lawson. All Market Heights apartments will meet universal design requirements, with 17 homes meeting Americans with Disabilities Act requirements. There will be a playground, tot lot, urban park, dog park, fitness center and nonprofit community room. The property will also provide dedicated space for Hope House, the supportive service provider. Both properties on the site will also receive funding from the opportunity zones incentive.

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REACH Riverside received an allocation of $10 million in LIHTCs for the construction of 74 affordable homes in Wilmington, Del., in partnership with developer Pennrose LLC, according to a July 11 announcement. The master planned community will built in the Riverside neighborhood. REACH Riverside will now work with the state, city, county and the U.S. Department of Housing and Urban Development to close on all financing, with construction beginning in early 2020.

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BRIDGE Housing, a nonprofit affordable housing developer, and The John Stewart Company celebrated the groundbreaking of two properties July 9. 88 Broadway and 735 Davis will be for residents with incomes ranging from 0 percent to 120 percent of the area median income (AMI), with 125 homes for families and 53 apartments for seniors. Funding includes LIHTC equity from Bank of America. The property came from the city’s surplus land ordinance that makes developable sites available for affordable housing on public land. There will also be a child care center operated by the YMCA, a restaurant space and a public walkway connecting the site. Both complexes have expected opening dates of mid-2021.

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The Lofts at Leeson’s affordable housing complex for seniors in Elwood, Ind., was expected to begin leasing in July. The 11 patio home duplexes and one single-family home comprise a $10 million development that included $7 million of LIHTC equity. Funding also includes $1.4 million in HTC equity. Developer New Hope Services built the property, which involves duplexes scattered around the city. 

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A ribbon-cutting ceremony and open house in June began the development of an 80-unit mixed-income property in Cedar City, Utah. The Libertad complex will include 56 apartments for households earning between 25 percent and 50 percent of the AMI, plus 24 market-rate apartments. Twenty of the affordable apartments will be supportive housing. Communal areas include a recreation room with a library and full kitchen, as well as a computer room and exercise room.

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The Paris Family Apartments in Aurora, Colo., celebrated a grand opening July 12. The $13.5 million, 39-apartment complex was developed by Brothers Redevelopment Inc., with LIHTC equity from Wells Fargo. The two- and three-bedroom apartments will be available for families with incomes at 60 percent of the AMI or below.

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City and private development officials broke ground June 27 on a 51-apartment Union at Washington affordable housing complex in Kokomo, Ind. Developers received $12.9 million in LIHTCs and the city of Kokomo provided a 10-year, 100 percent tax abatement for the property. The Union at Washington is scheduled to open in summer 2020.

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HearthSide Club Lafayette, a 125-apartment senior affordable housing community in Fayetteville, Ark., opened June 27. The property, for residents 62 and older, includes 53 one-bedroom apartments and 72 two-bedroom apartments. Sixty percent are designated as affordable. SunTrust Bank invested in LIHTCs for the $44 million development.

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Northern Nevada Community Housing announced July 2 that it will build a 62-home affordable housing complex in Carson City, Nev., for veterans and their families. There will be 36 two-bedroom apartments and 26 one-bedroom apartments. Wells Fargo will invest in the LIHTCs, which are syndicated by Raymond James Tax Credit Funds Inc.

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Eden Housing, Alameda Point Partners and the city of Alameda, Calif., broke ground on the Alameda Point Senior Apartments in early July. The 60-apartment community will cost $36 million. Financing includes an equity investment from Union Bank in 9 percent LIHTCs. Alameda Point Senior Apartments is part of a $1 billion mixed-used, transit-oriented waterfront development on the site of the former Naval Air Station Alameda.

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MassHousing closed on nearly $50 million in financing to WinnCompanies to preserve affordability for low-income apartments at The Tannery in Peabody, Mass., MassHousing announced July 15. The 284-apartment affordable housing community will be rehabilitated and will remain affordable for at least 45 years. Financing includes $25.5 million in LIHTC equity, as well as funding from the city of Peabody and a deferred developer fee.

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Hunt Capital Partners announced July 25 the closing of $4.1 million in LIHTC equity for the construction of Abenaki Springs Phase II in Walpole, N.H. The property will provide 22 affordable apartments in a two-story building. Phase I of Abenaki Springs was completed in 2016 and included 21 apartments. Phase II will be finished in December and will share common amenities with Phase I. The cost of Phase II is $4.8 million.

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Optum will invest $8.8 million in LIHTC equity for the Bonneville Apartments, a 35-apartment affordable housing community in Idaho Falls, Idaho. The apartments, developed by The Housing Company, will include one-, two- and three-bedroom homes, as well as 5,000 square feet of retail space on the ground floor. The equity investment was made by Optum Bank in partnership with Enterprise Housing Credit Investments, according to a July 17 announcement. Funding also includes $2 million from The Housing Company and a permanent loan from the Public Employee Retirement System of Idaho.

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A groundbreaking was held July 30 for Susquehannock Heights, a 32-apartment affordable senior housing community in Flemington, Pa. The property received an $8 million LIHTC allocation from the Pennsylvania Housing Finance Agency. The property is for residents aged 62 and older and the monthly rent will be $550 for a one-bedroom and $660 for a two-bedroom apartment.

LIHTC People

Bellwether Enterprise announced the hiring July 10 of Jeff Bradley as senior vice president in its Affordable Housing Group. Bradley is responsible for originating commercial real estate loans with a specialization in affordable and market-rate multifamily housing. He brings more than 30 years’ experience in national commercial real estate valuation and finance to Bellwether Enterprise.

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Gayle Filo was named president of R Home Communities July 14. Filo brings 30 years of experience in affordable, market-rate and commercial property management to R Home Communities, the property management subsidiary of Enterprise Community Development. Before joining R Home Communities in January, Filo was vice president of operations for Pennrose Properties. She succeeds senior vice president Diane Edwards in her role.

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Preservation of Affordable Housing, a national nonprofit affordable housing owner and developer, added three new development team members to help oversee the organization’s major revitalization developments in four cities. Julie DeGraaf Velazquez, vice president for community relations, will work in Miami and provide technical assistance for public housing developments in Chicago, Washington, D.C., and Boston. Ronette Slamin, senior project manager, will work on predevelopment through construction of the 432-unit Barry Farm redevelopment in Washington, D.C. Sophia Transtamar, senior project manager, will work on developments from acquisition through the completion of construction and lease-up.

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The Michaels Organization announced July 22 that it opened a regional office in Puerto Rico, headed by Larry Padilla, the organization’s newly named regional vice president. Michaels will focus on the redevelopment of Michaels’ affordable housing portfolio in St. Croix and St. Thomas in the Virgin Islands, as well as on Puerto Rico. Padilla, who joined Michaels in June, previously led the development of more than $4 billion in affordable and mixed-use properties over his career.

Journal Category:

Low-Income Housing Tax Credits

Authors:

Novogradac

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