IRS Releases Population Estimates for 2017, Affecting LIHTC Ceiling and Private Activity Bond Caps

The IRS recently released Notice 2017-19, which gives states population figures used in determining LIHTC allocation amounts as well as private activity bond caps. Rev. Proc. 2016-55 specifies that for the year 2017, each state shall receive the greater of $2.35 multiplied by the state’s population or $2,710,000. Section 3.20 of the same Rev. Proc. outlines the bond cap as the greater of $100 multiplied by the state’s population or $305,315,000. The chart below is taken from the IRS Notice.

Alabama 4,863,300 $11,428,755.00 $486,330,000.00
Alaska 741,894 $2,710,000.00 $305,315,000.00
American Samoa 54,194 $2,710,000.00 $305,315,000.00
Arizona 6,931,071 $16,288,016.85 $693,107,100.00
Arkansas 2,988,248 $7,022,382.80 $305,315,000.00
California 39,250,017 $92,237,539.95 $3,925,001,700.00
Colorado 5,540,545 $13,020,280.75 $554,054,500.00
Connecticut 3,576,452 $8,404,662.20 $357,645,200.00
Delaware 952,065 $2,710,000.00 $305,315,000.00
District of Columbia 681,170 $2,710,000.00 $305,315,000.00
Florida 20,612,439 $48,439,231.65 $2,061,243,900.00
Georgia 10,310,371 $24,229,371.85 $1,031,037,100.00
Guam 162,742 $2,710,000.00 $305,315,000.00
Hawaii 1,428,557 $3,357,108.95 $305,315,000.00
Idaho 1,683,140 $3,955,379.00 $305,315,000.00
Illinois 12,801,539 $30,083,616.65 $1,280,153,900.00
Indiana 6,633,053 $15,587,674.55 $663,305,300.00
Iowa 3,134,693 $7,366,528.55 $313,469,300.00
Kansas 2,907,289 $6,832,129.15 $305,315,000.00
Kentucky 4,436,974 $10,426,888.90 $443,697,400.00
Louisiana 4,681,666 $11,001,915.10 $468,166,600.00
Maine 1,331,479 $3,128,975.65 $305,315,000.00
Maryland 6,016,447 $14,138,650.45 $601,644,700.00
Massachusetts 6,811,779 $16,007,680.65 $681,177,900.00
Michigan 9,928,300 $23,331,505.00 $992,830,000.00
Minnesota 5,519,952 $12,971,887.20 $551,995,200.00
Mississippi 2,988,726 $7,023,506.10 $305,315,000.00
Missouri 6,093,000 $14,318,550.00 $609,300,000.00
Montana 1,042,520 $2,710,000.00 $305,315,000.00
Nebraska 1,907,116 $4,481,722.60 $305,315,000.00
Nevada 2,940,058 $6,909,136.30 $305,315,000.00
New Hampshire 1,334,795 $3,136,768.25 $305,315,000.00
New Jersey 8,944,469 $21,019,502.15 $894,446,900.00
New Mexico 2,081,015 $4,890,385.25 $305,315,000.00
New York 19,745,289 $46,401,429.15 $1,974,528,900.00
North Carolina 10,146,788 $23,844,951.80 $1,014,678,800.00
North Dakota 757,952 $2,710,000.00 $305,315,000.00
Northern Mariana Islands 53,467 $2,710,000.00 $305,315,000.00
Ohio 11,614,373 $27,293,776.55 $1,161,437,300.00
Oklahoma 3,923,561 $9,220,368.35 $392,356,100.00
Oregon 4,093,465 $9,619,642.75 $409,346,500.00
Pennsylvania 12,784,227 $30,042,933.45 $1,278,422,700.00
Puerto Rico 3,411,307 $8,016,571.45 $341,130,700.00
Rhode Island 1,056,426 $2,710,000.00 $305,315,000.00
South Carolina 4,961,119 $11,658,629.65 $496,111,900.00
South Dakota 865,454 $2,710,000.00 $305,315,000.00
Tennessee 6,651,194 $15,630,305.90 $665,119,400.00
Texas 27,862,596 $65,477,100.60 $2,786,259,600.00
Utah 3,051,217 $7,170,359.95 $305,315,000.00
Vermont 624,594 $2,710,000.00 $305,315,000.00
Virginia 8,411,808 $19,767,748.80 $841,180,800.00
Virgin Islands, U.S. 102,951 $2,710,000.00 $305,315,000.00
Washington 7,288,000 $17,126,800.00 $728,800,000.00
West Virginia 1,831,102 $4,303,089.70 $305,315,000.00
Wisconsin 5,778,708 $13,579,963.80 $577,870,800.00
Wyoming 585,501 $2,710,000.00 $305,315,000.00



GAO Publishes Study on the Role of Syndicators in LIHTC Industry

The U.S. Government Accountability Office today published a report investigating the role of syndicators in the Low Income Housing Tax Credit Industry. GAO surveyed 32 syndicators, 19 for-profit and 13 nonprofit, and reports on things like the value syndicators bring to the industry and their typical fee structure. Since 1986, the surveyed syndicators have collectively raised more than $100B in tax credits equity. The report makes no recommendations.


Proposed Legislation Would Reform Mortgage Interest Deduction to Benefit Affordable Housing

Rep. Keith Ellison (D-MN) has introduced H.R. 948, a piece of legislation calling for modest reforms to the Mortgage Interest Deduction. By reducing eligibility for the Mortgage Interest Deduction from the first $1M of home indebtedness to the first $500,000 of home indebtedness, the government would realize a savings. A portion of that savings would be diverted to increase the amount of tax credit allocation for the Low Income Housing Tax Credit, 60% of the remaining revenue would go to the Housing Trust Fund, 30% of remaining revenue to rental assistance (either in the form of a new renter’s tax credit or any HUD or RD program).

There are currently no co-sponsors and no companion legislation in the Senate. In a republican-controlled congress, it may be unlikely that this legislation moves forward. This is not to say the topic of reforming the Mortgage Interest Deduction is not also being discussed in conservative circles. The Hill recently published an article on the topic written by Mark Calabria and Diane Yentel. Yentel serves as CEO of the National Low Income Housing Coalition, and, at the time, Mark Calabria served as the CATO Institute’s Director of Financial Regulation Studies. Calabria called for a complete elimination of the deduction. In the month since the article was published, Calabria was hired by Vice President Mike Pence as his chief economist.

The United for Homes Campaign has provided a fact sheet on the legislation and interested parties are encouraged to contact their members of congress and join the campaign.*


Chinese Firm Ready to Invest $2 Billion, Possible Target

A Chinese firm is looking to invest $2 billion in U.S. senior housing in 2017—and it’s not far fetched to think Brookdale Senior Living (NYSE: BKD) could be one of its targets, according to one expert.

Beijing, China-based Cindat Capital Management Ltd. is considering two investments of approximately $1 billion each into U.S. senior housing this year, Bloomberg reported Wednesday.

The Chinese investment firm already has a toehold in the U.S. senior housing market; in November 2016, Cindat partnered with China-based Union Life Insurance Co. Ltd. to purchase a 75% stake in a portfolio of 11 senior housing properties owned by Brookdale Senior Living, along with 28 long-term/post-acute assets, for $930 million.

It’s becoming more common for Chinese companies to inquire into U.S. senior housing, according to Matthew Whitlock, vice chairman in the national senior housing group at CBRE, a commercial real estate services and investment firm.

“CBRE has noticed a dramatic increase in the number of inquiries regarding available senior housing properties by Chinese-related entities,” Whitlock told Senior Housing News.

In general, Chinese buyers are interested in newer, higher-end senior housing communities located in high-barrier-to-entry markets like Los Angeles, Boston and New York, he explained. Chinese firms also frequently want to make large-scale investments, meaning they’re likelier to purchase assets from bigger senior housing players.

It’s not just the prospect of owning real estate that draws Chinese investors to U.S. senior housing, however.

“Many foreign institutional investors, especially those in China, are interested in acquiring both the real estate and the operations for the real estate,” Whitlock said.

The companies seek to use the senior housing operating platform “as a means to expatriate information technology (IT) and operating systems regarding seniors housing to China, and also as a platform for teaching Chinese workers how to operate senior housing communities,” he added.

So, does this mean Brookdale—which is rumored to be looking for a buyer—could be a potential target for Chinese investors, including Cindat Capital Management? It does, Whitlock said.

“There are several things about Brookdale that make the platform attractive to the Chinese,” he said. With about 1,100 properties, the senior housing giant is just that—giant—and it has luxury communities in high-barrier-to-entry markets, including in New York City and Chicago. Brookdale, additionally, is “amongst the most recognizable names” in the industry.

“It certainly is possible,” Whitlock concluded of Brookdale being purchased by Cindat Capital Management. “But it’s possible that there are several other Chinese entities interested in buying Brookdale and have the capacity to do so.”

Cindat Capital Management had not responded to Senior Housing News’ requests for comment as of press time.**



Events (2017)

  • Gill Group plans to attend the Crittenden Multifamily Conference March 15th – 17th in Dallas, TX.
  • Gill Group plans to attend the Maco Companies’ Annual Meeting March 16th – 19th in Biloxi, MS.
  • Gill Group plans to attend the Bank of Advance’s Annual Meeting March 16th – 19th in Norfork, AR.
  • Cash Gill plans to attend the Missouri Real Estate Appraisers Commission Quarterly Commission Meeting March 7th in Jefferson City, MO.
  • Gill Group attended National Housing & Rehabilitation Association’s Annual Meeting February 22nd – 26th in Bonita Springs, FL.
  • Gill Group attended the National Leased Housing Associations’ Mid-Year Meeting February 1st – 3rd in Naples, FL.
  • Gill Group and National Title & Escrow attended the Council for Affordable Rural Housing’s (CARH’s) Midyear Meeting (Strengthening Rural Housing with Valued Partnerships) January 23rd – 25th in Sarasota, FL.

Events (2016)

  • In 2016, Gill Group attended over 75 meetings and conferences across the entire United States.

GROWTH (2016 - Highlights):

  • Gill Group added over 20 staff members throughout our 15 national and regional offices including MAIs, General Certified Appraisers, PE Engineers and AIA Architects.
  • Gill Group’s subsidiary, National Title & Escrow (NTE), added two new underwriters: Fidelity National Title Insurance Company and Stewart Title Guaranty Company.
  • NTE also added a new sales representative, Jimmy Crace, bringing 20+ years of experience and well over 100 national relationships in commercial and multifamily title.

Events (2015)

  • In 2015, Gill Group attended over 50 meetings and conferences from California to New York, and just about everyone in between.

GROWTH (2015 - Highlights):

  • Gill Group added two offices in Michigan and one in Wisconsin, further expanding our staff of architects and engineers.
  • Gill Group and Greystone formed a Joint Venture to provide a full line of consulting and development services for Rental Assistance Demonstration (RAD) transactions. Gill Group and Greystone are utilizing each of our areas of expertise in a collaborative effort, with a mission to partner with PHAs across the nation in preserving and expanding the affordable housing inventory under the HUD RAD program. Our team fully understands the intricacies of the real estate and affordable housing industries, and our services are provided by professionals who are fully immersed in LIHTC executions, construction management, project accounting, regulatory compliance, real estate transactions, and opportunity development. We sit on national and state boards and have in-depth knowledge of industry trends and best practices. As a developer team, we operate as three individual entities, each with a unique set of previous transaction experiences that add value to the project at hand. As a collaborative unit, we draw upon those experiences to bring to the table creativity, fresh ideas and unsurpassable development advisory services.
  • Gill Group’s subsidiary, National Title & Escrow, added two new offices in Missouri and Arkansas, further expanding our ability to service our nationwide base of customers.

Events (2014)

  • Gill Group attended 40+ meetings and conferences throughout the United States in 2014.

GROWTH (2014 - Highlights):

  • Gill Group began the process of working with owners of affordable housing to develop a web-based program that will work hand-in-hand with our services. It will give the users of our appraisals, market studies, capital needs assessments and many other services easy access and real time usage.
  • Gill Group added 2 offices with appraisers, market analysts, engineers and architects.
    • Within the offices are 11 architects, one MAI appraiser, one general certified appraiser, four market analysts and 12 additional support staff. 

  Gill Group has published the following:

  • New York Real Estate Journal - How can low-income housing facilities translate into high profits?
  • New York Real Estate Journal - Up, up and away: Home mortgage interest rates and gasoline prices continue ascending.
  • Tax Credit Advisor - Boston MSA Market Snapshot
  • Tax Credit Advisor - Seattle MSA Market Snapshot
  • Northeast Industrial Development Resource Guide - What Appraisers Know About Investing.
  • Affordable Housing Finance – Urban and Rural Market Studies.
  • Tax Credit Advisor – LIHTC Appraisals 101
  • Affordable Housing Finance – Five Ways to Optimize a Market Study

Cash Gill, MAI has had the opportunity to speak on the following topics:

  • (Indianapolis, IN) National Council of Affordable Housing Market Analysts - Maximize Your Market: Understanding the Methodology Behind Market Studies.
  • (Reno, NV) Nevada Council of Affordable and Rural Housing - Don't Get Caught in the Red. New Guidelines for Audits and Inspections.
  • (Washington, DC) The Institute for Professional and Executive Development - Nonrecourse HUD Deals - So You Closed Your Nonrecourse HUD Deal. Now What? And Is It Really Nonrecourse?
  • (Arlington, VA) Council for Affordable and Rural Housing - Property Valuation: The Correct Way to Value Properties.
  • (New Orleans, LA) National Council of Affordable Housing Market Analysts - Affordable Housing Site Analysis
  • (Las Vegas, NV) Nevada Council of Affordable and Rural Housing - Auditing and Accounting Guidelines for Section 42 Low Income Housing Tax Credits.
  • (Washington, DC) Council for Affordable and Rural Housing - Rural Development Appraisals and Market Studies
  • (Miami, FL) Council for Affordable and Rural Housing - The Equity Market - Impact on Rural Housing
  • (Washington, DC) Council for Affordable and Rural Housing - How to Foster Affordable Green and Rural Housing Needs Assessments
  • (Indianapolis, IN) Affordable Housing Association of Indiana - Market Analysis – Best Ways Use Market Studies to Ensure Application Points
  • (Portland, ME) Enterprise Buyer/Seller Conference for RRH 515 Properties – Valuing the Product. What Is My Development Worth?
  • (Washington, DC) National Housing and Rehabilitation Association – Financing and Underwriting Special Needs Housing.
  • (Atlanta, GA) National Council of State Housing Agencies – Comprehensive Market Analysis.
  • (Chicago, IL) AHF Live – Strategies for Rural Deals.
  • (Dallas, TX) Crittenden Multifamily – Financing Special Use Properties.
  • (Washington, DC) Council for Affordable Rural Housing – Rural Housing Preservation
  • (Denver, CO) National Council of State Housing Agencies – Rural Housing Strategies
  • (Denver, CO) National Council of State Housing Agencies – Y15: Preservation and Disposition Seminar
  • (San Antonio, TX) Rural Rental Housing Association – LIHTC Legislative Update
  • (Key Largo, FL) Council for Affordable Rural Housing – How National Appraisal Practices Impact USDA Assisted Properties
  • (San Francisco, CA) National Council of State Housing Agencies – Changes and Challenges in Rural Housing Development
  • (Chicago, IL) AHF Live – Preservation of Older LIHTC Deals
  • (Franklin, TN) Regional Affordable Housing and RAD Training – Valuation, Feasibility and Capital Needs Assessments
  • (Columbus, OH) Council for Rural Housing & Development of Ohio – Rural Housing Market Research
  •  (South Bend, IN) Great Lakes Capital Fund’s University of Affordable Housing – Valuation Risks Using Financing for RAD Deals
  • (Chicago, IL) National Council of State Housing Agencies – Rural Development Opportunities
  • (Orlando, FL) National Association of Housing and Redevelopment Officials – Affordable Housing Appraisals, Market Studies, Rent Comparability Studies and Rent Reasonableness Studies
  • (Alexandria, LA) Regional Affordable Housing and RAD Training – Valuation, Feasibility and Capital Needs Assessments
  • (Ft. Lauderdale, FL) Southeastern Affordable Housing Management Association (SAHMA) – Rent Comparability Studies 101
  • (Indianapolis, IN) Midwest Buyer/Seller Conference – CNAs and Appraisals
  • (Chicago, IL) AHF Live – Acquisition Challenges and Opportunities (2014)
  • (St. Pete Beach, FL) CARH – Preservation Challenges and Opportunities
  • (Nashville, TN) TAHRA – Appraisals, Market Studies, Rent Comparability Studies and Rent Reasonableness Studies for LIHTC and RAD Transactions
  • (Los Angeles, CA) NCSHA – Successful Development in Challenging Markets
  • (Chicago, IL) AHF Live – Acquisition Challenges and Opportunities
  • (Seattle, WA) NCSHA – Rural and Native American Development Strategies
  • (French Lick, IN) AHAIN – Appraisals and CNAs
  • (French Lick, IN) AHAIN – Pulling it All Together
  • (Chicago, IL) AHF Live – Preservation of Older LIHTC Deals
*as seen on

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