Bellwether Enterprise Set to Acquire Capital Advisors
Bellwether Enterprise Real Estate Capital LLC, the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. announced it is acquiring Capital Advisors Inc., a privately held, full-service mortgage banking firm headquartered in Charlotte, NC, with offices in Atlanta, Birmingham, Columbia, Greensboro, Greenville, Memphis, and Raleigh.
The acquisition will add more than $1 billion in annual loan volume and $1.75 billion in servicing to Bellwether Enterprise, bringing the firm’s total annual loan volume to more than $4.5 billion and $10.2 billion in servicing.
The transaction is subject to Bellwether Enterprise and Enterprise board approval and is expected to close on or about June 30, 2015. The Principals of Capital Advisors will receive equity stake in the newly expanded Bellwether Enterprise and the 31 current employees will remain with the company. Capital Advisors will take on the Bellwether Enterprise name at the time of the close. The integration of the businesses will be done to ensure the highest quality service to the firm’s lenders, clients, and business partners.*
QAP Updates Across the Nation
California Updates 4% State Credit Application
The Tax Credit Allocation Committee announced updates to the 4% + state credit application. Special needs housing type applicants should use the current 4% + state credit application (dated May 21, 2015) for second round submissions. The previous application had an error in the calculation of the maximum state credit amount.
California Legislators Support Bills to Boost LIHTC and Invest in Rapid Re-Housing
SB 377, a complementary initiative to AB 35 that would increase the value of the state Low Income Housing Tax Credit by up to 40% without costing the state any additional revenue, passed off the State Senate floor Tuesday with a 35-0 vote and now heads to the Assembly. The legislation allows the sale of the credits separately from the sale of an interest in the property ownership entity, thereby avoiding the necessity of paying federal income tax on the state’s investment. AB 35 would increase the California low income housing tax credit by $300 million.
AB 1056, the Second Chance Program for Community Re-entry, passed off the Assembly floor on Tuesday with a 78-0-2 vote and now heads to the Senate. The bill would dedicate a portion of the budget savings realized from the implementation of Proposition 47 to reduce recidivism by investing in rapid re-housing and supportive services for formerly incarcerated Californians.
The three other bills in Speaker Atkins’ affordable housing bill package (AB 1335, AB 35, & AB 90) are currently on the Assembly floor and the bills could be taken up for votes very soon.
Colorado Announces 2015 9% LIHTC Round Three Applicant Report and Narratives
The Round Three (9%) Applicant Report And Application Narratives are now available on the Colorado Housing Finance Authority website.
Kentucky Solicits Feedback for Draft NOFA – Comments due June 8
In an effort to increase the use of Tax-Exempt Bonds and private investment in affordable multifamily housing, as well as to stimulate the construction or rehabilitation of quality affordable rental housing, Kentucky Housing Corporation (KHC) has issued a draft Notice of Funding Availability (NOFA) for Gap financing to be utilized with Tax-Exempt Bonds. KHC is soliciting public comments on the draft NOFA.
The draft NOFA is for a combined $19 million, consisting of KHC’s Equity Bridge Loan (EBL), HOME Investment Partnerships Program (HOME) Gap funding, and Affordable Housing Trust Fund (AHTF) Gap funding. The full draft of the NOFA is located on KHC’s website, under Development, Multifamily.
Kentucky Hosts Multifamily Developers Forum on 2016 QAP
Kentucky Housing Corporation is hosting an open forum to solicit feedback for the 2016 Qualified Allocation Plan (QAP). The forum will be held on Wednesday, July 15, 2015, from 1-4 p.m. ET, in the conference room of the Kentucky Higher Education Assistance Authority, 100 Airport Road, Frankfort, Kentucky. All multifamily developers, consultants, investors, or other interested parties are invited to attend. If you have any questions, please contact Andrew Hawes toll-free in Kentucky at 800-633-8896 or 502-564-7630, extension 326; TTY 711; or email email@example.com.
Kentucky Housing Corporation and Partners Form Kentucky Affordable Housing Coalition
KHC announced the creation of Kentucky Affordable Housing Coalition Inc., which is a collective body formed by the collaborative efforts of several external partners. The Kentucky Affordable Housing Coalition Inc. is open to anyone involved in creating opportunities for safe, decent, and affordable housing. KHC will introduce the Coalition and host its inaugural meeting on Wednesday, June 24, 2015, from 1-4 p.m. ET, in the conference room of the Kentucky Higher Education Assistance Authority, 100 Airport Road, Frankfort, Kentucky. All interested parties are invited to attend. KHC staff will also be present to discuss corporate priorities in the development of the 2016 QAP.
Kentucky Announces Basic LIHTC Compliance Training
Ohio Capital Corporation for Housing (OCCH) Training Academy will be providing a one-day training on Tuesday, August 11, 2015, at the Lexington Fayette Urban County Housing Authority, in Lexington, Kentucky, from 10 a.m.-4 p.m. ET. The training targets property management companies that are responsible for maintaining compliance with the LIHTC Program. The cost of the training is free, but early registration is encouraged due to limited space.
The training will cover the following topics:
The value of the credit
Unit and project requirements
On-going compliance requirements
8823-Report of non-compliance
Maryland DHCD Announces New Deputy Director for Multifamily Housing and Neighborhood BusinessWorks
John Maneval has re-joined DHCD as CDA Deputy Director for Multifamily Housing and Neighborhood BusinessWorks. In this position, John will oversee all Multifamily Housing activity as well as the growth of the Neighborhood BusinessWorks Program. John was a member of the DHCD Multifamily team from 2001 through 2012, and has spent the last 2+ years as Director of Lending for NeighborWorks Capital, a nationally-focused Community Development Financial Institution (CDFI).
Office Phone: 301.429.7714
Mobile Phone: 443.852.0496
Applications for Maryland LIHTC and Rental Housing Funds due September 8
Applications for the 2015 Competitive Funding Round are due by Tuesday, September 8, 2015 at 5:00 PM. Applications must be delivered to the mailroom on the ground floor of 7800 Harkins Road, Lanham, Maryland 20706. The 2015 Competitive Funding Round will be governed by the July 8, 2014 Qualified Allocation Plan and the May 15, 2015 Multifamily Rental Financing Guide (the “Guide”) both of which are currently available on the DHCD website at MD Housing Website. DHCD will hold a Pre-Round Information Session on July 2, 2015 from 10 am – 12 pm in the DHCD Main Conference Room at 7800 Harkins Road, Lanham, Maryland 20706. At this session, DHCD will discuss resources available for the Round, explain changes to the QAP and Guide or process, and provide an opportunity for questions and answers. Any changes to the construction cost limits listed in Section 5.4.3 of the Guide will be announced at this session.
Comments On Ohio 2016-17 QAP Due By June 4
The Ohio Office of Planning, Preservation and Development released the final draft of the2016-2017 Qualified Allocation Plan. This plan will be presented to the Board of the Ohio Housing Finance Agency on Wednesday, June 17 for final consideration and approval. Partners who wish to provide any final written comments should submit them to 2016QAPMailbox@ohiohome.org no later than Thursday, June 4, 2015. The remaining time leading up to the June 17 milestone will be used to address any substantive and/or technical issues in the draft. Please direct any specific questions to Myia Batie at firstname.lastname@example.org or (614) 387-1640.*
NAHMA’s List of Largest Multifamily Property Management Companies
The National Affordable Housing Management Association (NAHMA) announced its 2015 Affordable 100—a list of the 100 largest affordable multifamily property management companies ranked by affordable unit counts. WinnCompanies and The Michaels Organization earned the top two spots. Edgewood Management Corporation, National Church Residences, Volunteers of America, Dominium, McCormack Baron Management, Royal American Management, Related Management, Conifer Realty, Beacon Communities, Barker Management, Inc., POAH, USA Properties Fund, Lawler Wood Housing, The Community Builders, Pennrose Management Company, SL Nusbaum Realty Co, Trinity Management, Shelter Properties, Vesta Corporation, Alco Management, Corcoran Jennison Companies, and Gatehouse Management were among the others featured.
In an effort to accurately determine the portfolio of affordable units receiving federal subsidy in the United States, NAHMA publishes this annual listing of affordable units containing at least one of the following federal subsidies: HUD Project-based Section 8, Section 42 LIHTC, HOME funds, bonds and USDA Section 515.
NAHMA also compiled lists of its 25 largest housing credit (LIHTC) property management companies and the 25 largest Rural Development program property management companies.*
GE Capital Healthcare Ready to Sell, Valued at $11 Billion
General Electric Co. is reaching out to potential buyers of GE Capital Healthcare Financial Services, which lends to senior housing among other health care companies.
The company is valued at between $10 and $11 billion, according to The Wall Street Journal. JPMorgan Chase & Co. is working to sell Healthcare Financial Services, according to Bloomberg Business.
GE Capital declined to directly comment to SHN on the sale; however, the company did share that the company’s Healthcare Financial Services business provided more than $10.5 billion in financing to customers across more than 240 transactions in 2014, an increase of 20% percent from the prior year. In its 2014 year-end summary, the company did not break out senior housing from other healthcare-related properties.
For the third consecutive year, GE Capital was the No. 1 lead arranger for healthcare financings up to $1 billion in size, according to Thompson Reuters.
“The unit for sale is distinct from one that GE is keeping, which is a division of its equipment finance business that finances the purchase of medical equipment by clinics and hospitals, roughly half of which are GE’s own scanners and MRI machines,” The Wall Street Journal reports.
The company will have sold “$100 billion or more” of GE Capital’s assets by the end of the year, ahead of its earlier projection of $90 billion, Jeff Immelt, GE chairman and CEO said in a statement, according to The Wall Street Journal.
GE is motivated to exit the heavily regulated finance space and get back to its industrial roots.**
- Cash Gill plans to attend the Missouri Real Estate Appraisers Commission Quarterly Commission Meeting June 17th – 18th in Jefferson City, MO.
- Gill Group plans to attend the National Council for Affordable Rural Housing’s Annual Meeting June 14th – 16th in Washington, DC.
- Gill Group attended the National Council of State Housing Agencies’ (NCSHA) Housing Credit Connect June 1st – 4th in Los Angeles, CA.
- Cash Gill spoke on a panel entitled “Successful Development in Challenging Markets”
- Gill Group attended the Middle Atlantic Regional Council of the National Association of Housing and Redevelopment Officials’ (MARC NAHRO) Spring Conference May 19th – 22nd in Ocean Springs, MD.
- Gill Group attended the Tennessee Association of Housing and Redevelopment Authorities’ (TAHRA) Spring Workshop April 20th – 22nd in Murfreesboro, TN.
- Cash Gill presented a session Tuesday, April 21st entitled “Appraisals, Market Studies, Rent Comparability Studies and Rent Reasonableness Studies for RAD and LIHTC Transactions”
- Cash Gill attended the Missouri Real Estate Appraisers Commission Quarterly Commission Meeting April 15th – 16th in Jefferson City, MO.
- Gill Group attended Bank of Advance’s Annual Meeting March 19th – 22nd in Norfork, AR.
- Gill Group attended the Maco Companies’ Annual Meeting March 12th – 15th in Biloxi, MS.
- Gill Group attended the Council for Affordable Rural Housing’s Quarterly Board Meeting March 4th – 5th in Washington, DC.
- Gill Group attended Mississippi’s Annual Affordable Housing Conference February 23rd – 25th in Natchez, MS.
- Gill Group attended NH&RA’s Annual Meeting February 18th – 20th in Key Largo, FL.
- Gill Group attended CARH’s Midyear Meeting January 27th – 29th in St. Pete Beach, FL.
- Cash Gill spoke on a panel Wednesday, January 28th entitled “Preservation Challenges and Opportunities”
- 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 attended 22 conferences and meetings throughout the United States in 2013
GROWTH (2013 - Highlights):
- Gill Group expanded our cutting-edge market analysis software and added our own in-house developed needs assessment software for CNAs, PNAs, PCNAs, PCAs, RPCAs, and every other acronym for this type of service.
- Gill Group added 4 offices with appraisers, market analysts, engineers and architects.
- Within the offices are three architects, one MAI appraiser, two general certified appraisers, five market analysts and 10 additional support staff.
- Gill Group expanded the footprint of its subsidiary, National Title & Escrow, to cover the entire United States with a local presence.
- Gill Group attended 20 conferences and meetings throughout the United States in 2012
GROWTH (2012 - Highlights):
- Gill Group developed cutting-edge market analysis software that will allow us to do preliminary analysis that is subject-specific in any market in the United States within minutes.
- Gill Group added 11 offices with appraisers, market analysts, engineers and architects.
- The offices now employ an additional 34 people.
- Gill Group expanded coverage of its subsidiary, National Title & Escrow, to cover the entire United States.
- Gill Group expanded coverage of its subsidiary, Gill Insurance Group, to cover the entire United States.
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
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
- (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 (June 3, 2015)
*as seen on housingonline.com
**as seen on seniorhousingnews.com