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Stephanie Vázquez Wins NAHMA’s Poster Contest
Stephanie Vázquez, a 12th-grader from Manatí, Puerto Rico, has been named the grand prizewinner in the National Affordable Housing Management Association (NAHMA)’s 29th annual AHMA Drug-Free Kids poster and art contest. Her artwork will appear on the cover of NAHMA’s 2016 calendar. Stephanie, 17, also receives an all-expenses-paid trip to Washington, D.C., for NAHMA’s Regulatory Issues fall meeting in October, as well as a scholarship of $2,500 from the NAHMA Educational Foundation. A complete list of winners can be found by clicking on the provided Web Link.
Asset Management
"LIHTC Exit Strategies: Loan Sale"
Tax Issues and Tax Reform
"Disparate Impact as Applied to LIHTC Programs"
Congress
"Affordable Housing Advocates Ask Dold to Grab 'Low Hanging Fruit'"
State and Local Activities
"State Bill Could Spur Housing Projects, Easing Crisis"
HUD-Related Activity
"HUD Issues Final Rule on Affirmatively Furthering Fair Housing"
Court-Related Activity
"Justices Back Broad Interpretation of Housing Law"
Industry Trends
"Public-Private Alliance Can Solve Affordable Housing Crunch"
Association News
RD Issues Guidance on Maturing Loans
Supporting Bills Protecting LIHTC
NAHMA Honors Vanguard Excellence
Save the Date
NAHMA Releases 2015 Affordable 100 List
Become a Specialist in Housing Credit Management® (SHCM®) Company!
Upcoming Events
Asset Management
LIHTC Exit Strategies: Loan Sale
Mondaq (07/21/15) Bossi, Mark V.
There are unique considerations involved in the sale of a loan secured by a low-income housing tax credit (LIHTC) project. There are currently two different types of federal LIHTCs: 9 percent credits and 4 percent credits. Financing for a project involving 9 percent credits is structured similarly to other conventional construction or construction-to-permanent financing, but financing for a project involving 4 percent credits will be structured through bonds issued by a local public authority. The bonds will be sold either directly to the lender or to third-parties with credit enhanced by a letter of credit issued by the lender. Governing bond documents typically limit the sale of bonds to "Qualified Institutional Buyers," "Accredited Investors," or some combination or subset of these two. Governing bond documents also usually include various documentation requirements for a transfer of the bonds, such as requiring the purchaser to execute a letter of representation certifying that it meets the transfer restrictions and makes certain other required representations. Strategic buyers are most likely to be identified through industry sources, and the sale of an LIHTC loan is more likely to occur when the borrower is cooperative and participates in the process. When bonds are involved, the issuing authority may be willing to waive or modify transfer restrictions to enable a sale of the bonds to an identified purchaser that would not otherwise qualify.
Tax Issues and Tax Reform
Disparate Impact as Applied to LIHTC Programs
Lexology (07/08/15) Breed, Jerry
In the case Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc., the Supreme Court held that a state’s Qualified Allocation Plan (QAP) violates the Fair Housing Act if it "disparately impacts" a protected minority. The Texas Department of Housing and Community Affairs (TDHCA) allocated a disproportionately large amount of low-income housing tax credits (LIHTC) to projects located in Qualified Census Tracts that qualified for an increased level of credit and were largely in predominantly minority neighborhoods. The plaintiffs contended that integration would be furthered by constructing more units in "high opportunity" neighborhoods with good schools and responsive governments, and avoiding allocations to areas with high crime rates. These "objective" standards appear tailored to shift the location of LIHTC housing to suburban locations and away from urban core neighborhoods. Allocating agencies now need to evaluate QAPs using a nuanced process that takes into account Fair Housing Act issues, views of community groups, business needs of LIHTC developers and investors, and the larger goals of the affordable housing industry. These issues should also be considered by the administrators of state housing incentive programs and by New Markets Tax Credit allocatees that invest in mixed-use projects featuring a housing component.
Congress
Affordable Housing Advocates Ask Dold to Grab 'Low Hanging Fruit'
Chicago Tribune (07/06/15) Routliffe, Kathy
At a July 1 roundtable, affordable housing advocates told U.S. Rep. Robert Dold (R-Ill.) that even simple things like a name change could curb the public stigma associated with affordable housing programs. The Low Income Housing Tax Credit program is a case in point, said Mercy Housing's Mark Angelini. "It should be called the affordable housing tax credit. You talk about low hanging fruit; that's a real piece," he says. Angelini told advocates he understands the need for regulatory flexibility and is willing to work on maintaining valuable financial and tax credit programs that are the lifeblood of developing or maintaining affordable housing. Advocates also said aligning state and federal housing assistance program regulations could help prevent developers and managers from getting stuck between competing guidelines. "Make use of regulations from programs where we know the rules already work. The more closely we align things like compliance standards, the more we can streamline and the better we can operate," said Andrea Traudt Inouye, executive director of the Illinois Housing Council. Dold hosted the roundtable for housing advocates in the public and private sector to discuss federal programs and affordable housing needs in Illinois' 10th District.
State and Local Activities
State Bill Could Spur Housing Projects, Easing Crisis
Petaluma Argus-Courier (07/13/15) Barrera, E. A.
California Assembly Speaker Toni Atkins is backing Assembly Bill 35, which would increase California's Low Income Housing Tax Credit by $300 million for the construction and rehabilitation of affordable housing units statewide. According to Atkins, it could mean an additional $600 million in funds for development of low income housing as a result of matching state funds. Atkins also said the expanded state credits under AB 35 would enable the state to leverage another $400 million through federal tax exempt bond authority. A 2014 report by the California Housing Partnership Corporation found that median rents in California increased by more than 20 percent in three years, while median income fell by 8 percent. Meanwhile, Assembly Bill 1335 calls for charging an additional $75 fee to all real estate related projects and business, excluding the sale of existing homes. The fees would be used to "leverage an additional $2 to $3 billion in federal, local, and bank investment," according to Atkins. "The bill would generate an estimated $500 million per year for affordable homes." AB 35 has been approved by the state Assembly, but is awaiting a vote in the California State Senate, while AB 1335 has yet to be voted on in the Assembly.
HUD-Related Activity
HUD Issues Final Rule on Affirmatively Furthering Fair Housing
Affordable Housing Finance (07/08/15) Kimura, Donna
The U.S. Department of Housing and Urban Development (HUD) has issued a final rule that clarifies long-standing fair-housing obligations. The rule requires all communities that receive HUD funds to engage in a dialogue and public planning process every five years to assess barriers to equal housing and the steps necessary to remove those obstacles. HUD will assist communities with the housing analysis process by providing data and mapping tools. The rules are in response to the recommendations of a 2010 Government Accountability Office report. Also, stakeholders and HUD program participants asked for additional guidance, more technical assistance, better compliance and more meaningful outcomes. Groups such as the Lawyers' Committee for Civil Rights Under Law and the Poverty & Race Research Action Council expressed support for the rules. "This important step will give local leaders the tools they need to provide all Americans with access to safe, affordable housing in communities that are rich with opportunity," HUD Secretary Julian Castro said in a statement.
Court-Related Activity
Justices Back Broad Interpretation of Housing Law
New York Times (06/26/15) Liptak, Adam
In a 5-to-4 ruling on June 25, the U.S. Supreme Court endorsed a broad interpretation of the Fair Housing Act of 1968, allowing for lawsuits under a legal theory that civil rights groups say is fundamental to fighting housing discrimination. The question at hand was whether plaintiffs suing under the housing law must prove intentional discrimination or merely that the challenged practice had produced a "disparate impact." While the first kind of proof can be difficult to establish, "disparate impact" can be proved using statistics. Justice Anthony M. Kennedy, who wrote for the majority, stated that the housing law allowed for suits relying on both kinds of evidence, citing the history of the law and of the civil rights movement as support for the broader interpretation. The dissenting opinion, held by Justice Samuel A. Alito Jr. among others, was that the majority had misconstrued the housing the law as well as the court's own precedents.
Industry Trends
Public-Private Alliance Can Solve Affordable Housing Crunch
American Banker Online (07/02/15) Retsinas, Nicolas P.
The affordable housing crisis in the country continues to escalate, but public funding needed to address the problem remains stagnant. The Low Income Housing Tax Credit program, initiated in 1986, was the last substantial housing production program. Still, an unlikely source, the private sector, offers hope, writes Nicolas P. Retsinas, chair of Community Development Trust (CDT) and former commissioner of the Federal Housing Administration. Real estate investment trusts (REITs) have been around since 1960, but only relatively recently have they been used for affordable housing projects. CDT has marshaled $1 billion to build or rehabilitate 35,000 homes at affordable rents, and several of its projects were through the U.S. Department of Housing and Urban Development's Rental Assistance Demonstration program. Uncle Sam has arranged a marriage of convenience in binding REITs to affordable housing in an unlikely alliance. Affordable housing REITs provide a bridge to desperately needed capital for housing low-income Americans, and this "marriage of convenience has the potential to become one of love," according to Retsinas.
Association News
RD Issues Guidance on Maturing Loans
The U.S. Department of Agriculture’s Rural Development (RD) issued an unnumbered letter, Management of Loan Payoffs in Multifamily Housing Properties on April 28. The letter provides additional guidance to owners and managers of Section 515 and Section 514/516 properties reaching their maturity date naturally or through paid ahead status. It also outlines possible efforts to retain properties in the RD portfolio.
The letter includes a new Borrower Notification Letter, a sample Tenant Notification Letter and an Addendum to Lease or Rental Agreement for borrowers to use in certain situations.
The memo is particularly important because once a property pays off its loan, it no longer qualifies for rural rental assistance (RA) vouchers. To read the letter, click the Web Link below.
Supporting Bills Protecting LIHTC
The National Affordable Housing Management Association (NAHMA) has submitted letters to members of Congress in support of a Senate bill protecting the Low-Income Housing Tax Credit (LIHTC) program and a companion bill in the House of Representatives.
Sens. Maria Cantwell (D-WA) and Pat Roberts (R-KS) introduced Senate bill 1193, and Reps. Pat Tiberi (R-OH) and Richard Neal (D-MA) sponsored House Resolution 1142. Both pieces of legislation would permanently establish a fixed 9 percent (for new rental construction property) and 4 percent (for existing property) LIHTC rates.
The letters said eliminating the floating rate would provide more stability and assurance in the LIHTC program. It would allow new construction developers awarded with the credit to better plan for their construction projects knowing that financing options are more predictable.
To read the letters in their entirety, click the Web Link.
NAHMA Honors Vanguard Excellence
The National Affordable Housing Management Association (NAHMA) recognized newly developed or significantly rehabbed affordable multifamily housing communities that showcase high-quality design and resourceful financing by announcing the winners of its annual Affordable Housing Vanguard Awards in June.
The excellence exhibited throughout these multifamily developments belies the notion that affordable housing cannot be assets to their communities. Vanguard Award winners deliver powerful proof that affordable housing done well can transform neighborhoods as well as the lives of individual residents.
The 2015 winners are:
- Vanguard Award for New Construction: Small Property (less than 100 units): Valley Brook Village, Basking Ridge, N.J.; Management Company: Peabody Properties, Inc.; Owner: VBV LLC, Braintree, Mass. Large Property (more than 100 units): Park 7 Apartments, Washington, D.C.; Management Company: Edgewood Management; Owner: Donatelli Development, Bethesda, Md.
- Vanguard Award for Major Rehabilitation of an Existing Rental Housing Community: Glenark Mills/Glenark Oaks, Woonsocket, R.I.; Management Company: Trinity Management Company; Owner: Trinity Woonsocket LP, Boston, Mass.
- Vanguard Award for Major Rehabilitation of a Nonhousing Structure: Voke Lofts, Worcester, Mass.; Management Company: WinnResidential; Owner: WinnDevelopment, Boston, Mass.
- Vanguard Award for Major Rehabilitation of a Historic Structure into Affordable Housing: The Commons at Imperial Hotel, Atlanta, Ga.; Management Company: National Church Residences; Owner: The Commons at Imperial Housing I Limited Partnership, Atlanta, Ga.
For more on the Vanguard Awards or about this year’s winners, click the Web Link provided.
Save the Date
Specialist in Housing Credit Management (SHCM) Blended Learning Webinar Series starts Sept. 16. The course price is $549 for members and $599 to nonmembers. The course is broken up into four webinar sessions: Sept. 16, 23, 30 and Oct. 7, each taking place 12-3 p.m. EST. To register, contact Shana@naahq.org.
NAHMA Releases 2015 Affordable 100 List
The National Affordable Housing Management Association (NAHMA) announces its 2015 Affordable 100—a list of the 100 largest affordable multifamil
y property management companies ranked by affordable unit counts—is available on its website, click Web Link below, as well as in the June issues of Affordable Housing Finance magazine and Units magazine. The NAHMA website version expands the list to the top 120 largest multifamily property management companies. In addition, the online version presents two specialty lists: the 25 largest housing credit (LIHTC) property management companies and the 25 largest Rural Development program property management companies.
Become a Specialist in Housing Credit Management® (SHCM®) Company!
The three national associations sponsoring the Specialist in Housing Credit Management® certification program invite your company to become a Specialist in Housing Credit Management® (SHCM®) Company, a corporate designation created specifically to honor management companies that successfully maintain a significant portion of their properties and staff to the high standards of the SHCM certification program.
The SHCM program, developed especially for management companies involved with properties developed and operated under the Low Income Tax Credit (LIHTC) program, is sponsored by the National Affordable Housing Management Association (NAHMA), the National Apartment Association Education Institute (NAAEI), and LeadingAge (formerly AAHSA, the American Association of Housing and Services for the Aging).
Earning the SHCM Company designation publicly demonstrates that a company is among the finest managers of LIHTC housing in the industry.
For more details on how to become a SHCM Company, click on the Web Link below.
Upcoming Events
NAHMA Regulatory Issues Forum
October 25-27, 2015
More info
LeadingAge Annual Meeting and Expo
November 1-4, 2015
More info
LeadingAge PEAK Leadership Summit
November 16-18, 2015
More info
Abstract News © Copyright 2015 INFORMATION, INC.
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