Senator Announces Plan to Increase LIHTC
Senator Maria Cantwell (D-WA) announced a plan to introduce legislation calling for a 50 percent increase in Housing Credit authority and other changes to strengthen the Credit program. She has also released an accompanying report on the Housing Credit’s impact around the U.S. and in her home state of Washington.
Cantwell’s proposal would finance approximately 400,000 additional units of affordable housing nationwide over the next decade, with approximately 35,000 units in Washington State (roughly 4,200 more units than is possible under current levels of LIHTC financing).
According to the ACTION Campaign, more than 1,300 organizations, with representatives from every state, have come together to sign a letter calling on Congress to raise the cap on Low-Income Housing Tax Credit (Housing Credit) allocation authority by at least 50 percent. When Congress last raised the Housing Credit cap in 2000, huge bipartisan majorities of the Senate and House cosponsored the legislation proposing the increase.*
The Maryland Department of Housing and Community Development announced the availability of grant funds for energy conservation retrofit work in eligible properties in the Baltimore Gas & Electric utility service territory.
What is this opportunity?
This opportunity offers multifamily facilities in the Baltimore Gas & Electric utility service territory to receive Energy Conservation Retrofit funding. The Department will provide a Department-contracted project manager to act as the recipient’s project manager and as the single point of contact throughout the project. This coordinated approach will greatly reduce the legwork required by recipients to undertake and realize the capital benefit of this type of energy retrofit project.
What are the energy efficiency funds for?
The Department will grant funds to successful applicants for the cost and installation of energy conservation measures.
The 2016 Competitive Application Guidelines for the HOME Investment Partnerships Program (HOME) and the Tenant-Based Rental Assistance (TBRA) Application Score Sheet are now available. Eligible project type is TBRA activities. The 2016 TBRA Allocation is $2 Million and the maximum request is $200,000, exclusive of administrative fees.
The 2016 Competitive Application Guidelines and TBRA Application Score Sheet are available on KHC’s website, under Development, Single-Family under HOME TBRA.
The following dates and times are applicable to the competitive funding round:
- Friday, March 25, 2016 – Capacity Scorecard Opens at 9 a.m. ET
- Friday, April 1, 2016 – Application Opens at 9 a.m. ET
- Friday, April 8, 2016 – Capacity Scorecard Closes at 5 p.m. ET
- Friday, April 15, 2016 – All Capacity Scorecard Notifications Due to Applicants
- Friday, April 29, 2016 – Application Closes at 5 p.m. ET
KHC will begin accepting HOME TBRA applications on the Universal Funding Application (UFA) on Friday, April 1, 2016. Applicants must meet minimum thresholds to submit an application.
Project numbers beginning with TB14 with a Project Completion date of July 2016:
75 percent of funds must be expended no later than the application submission to KHC. All draw requests must be submitted and approved by KHC no later than the application submission deadline date of Friday, April 29, 2016.
Project numbers beginning with TB14 with a Project Completion date of December 2016:
60 percent of funds must be expended no later than the application submission to KHC. All draw requests must be submitted and approved by KHC no later than the application submission deadline date of Friday, April 29, 2016.
A minimum final Capacity Scorecard score of 60 percent.
Applicants with unexpended TBRA funds from a project assigned TB13 or earlier are not eligible to apply to this round for TBRA funds.
Applicants awarded in 2015 (project numbers beginning with TB15) are not eligible to apply to this round for TBRA funds.
There is a $100 non-refundable application fee for nonprofit organizations and units of local government and a $250 non-refundable application fee for for-profit applicants. Applicants are strongly encouraged to submit their application fee prior to submitting their application. KHC must receive the appropriate application fee no more than seven days after the application submission deadline date of Friday, April 29, 2016. If the fee is not received, the application will be rejected.
KHC must receive the appropriate application fee, via check or money order, to the following address:
Kentucky Housing Corporation
Housing Contract Administration
1231 Louisville Road
Frankfort, KY 40601
The California Tax Credit Allocation Committee updated its credit estimates, including set-asides and geographic apportionments, according to the recent release of 2016 population estimates.
The list of Qualified Census Tracts (QCTs) and Difficult Development Areas (DDAs) has been updated for 2016. Updates are effective July 1, 2016 and can be found as Tab J on the Combined Application page of the MSHDA web site:
A hearing has been scheduled to receive comments on the proposed adoption of the following permanent rulemaking: 813-013, Vertical Housing Program.
Copies of the rules can be obtained on the OHCS website at http://www.oregon.gov/ohcs/Pages/agency-public-notices.aspx, or by contacting Alison McIntosh at email@example.com or 503-986-2079. The proposed administrative rules create the program criteria for the Vertical Housing Development Program, which provides local jurisdictions with the opportunity to create vertical housing zones and developers to create vertical housing which is exempt from property taxes.
People interested in providing oral or written comments on the proposed rules are invited to attend a public hearing on April 27, 2016 at 10:00 a.m. at 725 Summer Street, Conference Room 124A, Salem, Oregon 97301.
Written comments on the proposed rulemaking may also be submitted by email to firstname.lastname@example.org or by regular mail addressed to Alison McIntosh, 725 Summer Street NE, Suite B, Salem, OR 97301-1266. Comments will be accepted through May 9, 2016.
The department currently has temporary rulemaking in place that will expire on May 27, 2016.
The meeting location for the public hearing is accessible to persons with disabilities. A request for an interpreter for the hearing impaired or for other accommodations for persons with disabilities should be made at least 48 hours before the meeting to Alison McIntosh, 503-986-2079, by TTY at 503-986-2100, or by email to email@example.com.
The 2005 Legislature passed legislation moving the Vertical Housing Program from Oregon Economic and Community Development Department (OECDD) to Oregon Housing and Community Services (OHCS) beginning in November 2005. The program encourages mixed-use commercial / residential developments in areas designated by communities through a partial property tax exemption. The exemption varies in accordance with the number of residential floors on a project with a maximum property tax exemption of 80 percent over 10 years. An additional property tax exemption on the land may be given if some or all of the residential housing is for low-income persons (80 percent of area median income or below).
Arizona Department of Housing is administering two new funding sources in 2016-2017, the National Housing Trust Fund (approx. $3 million), which will be incorporated into the 2016-2017 Annual Action Plan and the Weatherization Program Fund (approx. $1.3 million) which will have its own 2016-2017
Weatherization Assistance Program State Plan.
Both plans will be available in draft form for public review from March 22, 2016 through April 22, 2016 at the ADOH offices at 1110 West Washington Street, Suite 310, Phoenix, Arizona 85007 as well as at housing.az.gov/documents-links/publications. Paper copies of both the Action Plan and the WAP State Plan will be made available upon request.
The 2016-2017 Annual Action Plan is the annual update for the State of Arizona 2015-2019 Consolidated Plan which establishes goals, objectives, priorities, activities, outcomes, and the method of distribution for the use of approximately $20 million in the following federal funds from the U.S. Department of Housing and Urban Development (HUD): National Housing Trust Fund, Community Development Block Grant, HOME Investment Partnerships, Housing Opportunities for Persons with AIDS, and Emergency Solutions Grant programs (administered by the Arizona Department of Economic Security).
The 2016-2017 Weatherization Assistance Program (WAP) State Plan establishes goals, objectives, priorities, activities, outcomes the method of distribution for approximately $1.3 million in U.S. Department of Energy for the Weatherization Assistance Program.
The Arizona Department of Housing (ADOH) is holding a public hearing to receive input on the use of these funds on April 13, 2016 at 10 a.m. at the Arizona Department of Housing, 1110 W. Washington, Suite 250, Phoenix, Arizona 85007.
The Public Hearing provides the opportunity to review the draft plans, offer comments and recommended changes. ADOH is accepting written comments regarding the use of these funds through April 22, 2016.
The Texas Department of Housing and Community Affairs posted to its website a schedule for public hearings for purposes of taking public comment on the 2016 Competitive (9%) Housing Tax Credit here.
If you have any questions about submitting public comment or the Competitive (9%) Housing Tax Credit Cycle, please contact Sharon Gamble at firstname.lastname@example.org, or (512) 936-7834. You may also visit the TDHCA Public Comment Center webpage at: http://www.tdhca.state.tx.us/public-comment.htm*
National Housing Market Continues to Hold Steady According to Freddie Mac
Freddie Mac released its Multi-Indicator Market Index® (MiMi®), showing that many of the nation's housing markets are getting back to normal heading into the spring homebuying season. However, there are pockets of weakness, particularly in the Great Lakes Region and the South outside of Florida and Texas.
The national MiMi value stands at 82.7, indicating a housing market that's on the outer range of its historic benchmark level of housing activity, and little changed with just a +0.18 percent improvement from December to January and a three-month improvement of +1.46 percent. However, on a year-over-year basis, the national MiMi value has improved +7.57 percent. Since its all-time low in October 2010, the national MiMi has rebounded 40 percent, but remains significantly off from its high of 121.7.
Thirty-four of the 50 states plus the District of Columbia have MiMi values within range of their benchmark averages, with the District of Columbia (101.8), North Dakota (96), Hawaii (95.6), Montana (95.1) and Utah (94.5) ranking in the top five. Compared to the same time last year, 22 states and the District of Columbia had MiMi values within their benchmark ranges.
Fifty-six of the 100 metro areas have MiMi values within range, with Denver, CO (99.8), Austin, TX (99.1), Salt Lake City, UT (97.7), Honolulu, HI (97.6), and Los Angeles, CA (96.9) ranking in the top five. Compared to the same time last year, 29 of the top 100 metros had MiMi values within their benchmark ranges.
The most improving states month over month were Colorado (+1.41%), Oregon (+1.31%), Mississippi (+1.07%), New Jersey (+1.05%) and Arizona (+0.88%). On a year-over-year basis, the most improving states were Florida (+16.72%), Colorado (+15.56%), New Jersey (+14.61%), Nevada (+14.21%), and Oregon (+14.04%).
The most improving metro areas month over month were Colorado Springs, CO (+2.09%), Denver, CO (+1.53%), New Orleans, LA (+1.48%), Ogden, UT (+1.19) and Stockton, CA (+1.12%). On a year-over-year basis, the most improving metro areas were Orlando, FL (+20.39%), Cape Coral, FL (+19.25%), Denver, CO (+19.09%), Tampa, FL (+18.93%) and Portland, OR (+18.07).
In January, 44 of the 50 states and 78 of the top 100 metros were showing an improving three-month trend. The same time last year, 13 of the 50 states, and 42 of the top 100 metro areas were showing an improving three-month trend.
Quote attributable to Freddie Mac Deputy Chief Economist Len Kiefer:
"Despite a stronger jobs market and declining unemployment, wage gains have not kept pace with house prices putting a pinch on homebuyer affordability. In the top 100 metro areas MiMi tracks, Los Angeles and Honolulu have elevated payment-to-income indicators and Miami, FL, is very close to elevated. An additional six metro areas have their MiMi payment-to-income indicators over 100, indicating that the payment-to-income statistic for that area is above its historic benchmark. At the state level, the District of Columbia has an elevated payment-to-income indicator while Hawaii and California have values above 100.
"These payment-to-income indicators are high despite the fact that mortgage interest rates remain low. Mortgage rates fell at the start of the year, helping to bolster affordability heading into the spring season. But a lack of available inventory of for-sale homes has constrained many markets. We see that reflected in the MiMi purchase applications indicator, which remains weak nationwide."**
Senior Housing Investments & Transactions
Kindred to Sell 12 LTAC Hospitals in Agreement with Ventas
Kindred Healthcare, Inc. (NYSE: KND) has entered into a definitive agreement to sell 12 long-term acute care (LTAC) hospitals to Curahealth, LLC, an affiliate of a private investment fund sponsored by Nautic Partners, LLC, for $27.5 million. In connection with the sale of the hospitals, Kindred has agreed to amendments of its master lease with real estate investment trust (REIT) Ventas, Inc. (NYSE: VTR).
Seven of the 12 hospitals in the sale are under Ventas leases, and Kindred will pay a fee to Ventas of $3.5 million upon signing the lease amendments and an additional $2.96 million upon the closing of the sale. Ventas will pay Kindred 50% of the sales proceeds for the real estate attributed to the hospitals leased by the REIT.
The entire portfolio of the 12 hospitals consists of 783 beds in Arizona, Louisiana, Massachusetts, Oklahoma, Pennsylvania and Tennessee. For the fiscal year 2016, Kindred estimates that the hospitals will generate combined revenue of approximately $215 million and EBITDA at approximately breakeven.
The 12 hospitals have $14 million of annual rent expense, of which $7.7 million is with the seven facilities leased from Ventas.
Réseau Selection Commits $250 Million in Quebec for Five-Year Expansion Plan
Réseau Sélection, the largest private sector owner, operator, developer, builder and buyer of retirement residences in Quebec, Canada, has committed $250 million to five new retirement communities as part of its five-year, $2-billion expansion plan. The plan is to build 30 new communities and 18,000 units by 2020.
The five communities will be located in Rock Forest, Vaudreuil-Dorion, Deux-Montanges, Granby and Sainte-Dorothée. Construction on the Granby and Deux-Montanges properties is expected to start April 1, opening summer 2017. The Sainte-Dorothée and Vaudreauil-Dorion sites are slated for a construction start date in late summer, with a fall 2017 opening. Work began in November on the Rock Forest community, and the first residents will move in during the winter of 2017.
The company has a unique operating platform in Canada, complete with its own architectural experts, construction company, electrical and mechanical services providers and marketing agency, as well as control of its products and services.
The company plans to spend roughly $1 billion to expand into major urban centers and suburbs in Ontario, Alberta, British Columbia and the northeast United States. Roséau Sélection has been operating for more than 25 years and currently has 33 communities in operation or under construction. Close to 3,000 employees serve 7,500 residents.
CareTrust REIT Acquires Two Ohio Health Care Communities
CareTrust REIT, a publicly-traded real estate investment trust (REIT) that is engaged in the ownership, acquisition and leasing of senior housing and health care-related properties, has acquired two health care facilities in Cincinnati, Ohio.
The purchase includes two properties: Victory Park Nursing Home, a 55-bed skilled nursing facility, and Victoria Retirement Community, a skilled nursing and assisted living campus with 90 skilled nursing beds and 69 assisted living units.
The communities will be added to CareTrust’s existing lease with Pristine Senior Living, and CareTrust will supply Pristine with $500,000 to perform physical upgrades. The aggregate investment of the properties with the upgrade costs total approximately $15.2 million. The initial annual rental revenues are approximately $1.41 million. The Pristine lease has a remaining initial term of approximately 14.5 years, with two five-year renewal options and CPI-based rent escalators.
The acquisition was funded by the proceeds of CareTrust’s March 21 follow-on equity offering.
The company also recently acquired an 82-bed skilled nursing facility in Cedar Falls, Iowa. Trillium Healthcare Group took over operations of that facility April 1, 2016, and the facility will be added to CareTrust’s existing master lease with Trillium.
Civitas Senior Living Acquires East Texas Community
Civitas Senior Living has acquired Arabella of Kilgore, a community that includes assisted living, memory care and independent living townhomes. The community is located in Kilgore, Texas.
Civitas Senior Living, LLC will be the management company for the community under the direction of Wayne and Misti Powell, a team that has more than 30 years of experience operating senior living communities in Texas.
The community boasts an in-house movie theater, a courtyard with water features, beauty shop and library.
“Adding Arabella of Kilgore Assisted Living and Memory Care to our growing East Texas is exciting for the Civitas Teams,” Wayne Powell, president of Civitas, said in a statement. “Arabella of Kilgore is an amazing property with a great reputation and wonderful people—makes it a perfect fit for Civitas.”
Rockwood Pacific Closes Sale of Madonna Manor
Rockwood Pacific has closed the sale of Madonna Manor, an 85-unit assisted living facility with 68 licensed beds that has been owned and operated by the California Catholic Daughters of America Home Inc. since 1971.
Pacific Rockwood is a real estate investment firm that assists mission-based organizations in developing and executing plans on real estate deals that exclusively serve older adults. The firm was retained by the Catholic Daughters to conduct a formal solicitation process of buyer candidates and complete the purchase transaction.
Catholic Daughters is a 501c3 and part of an organization that was formed more than 100 years ago.* **
- Gill Group plans to attend Texas NAHRO’s 40th Annual Conference and Tradeshow April 19th – 21st in Houston, TX.
- Cash Gill attended the Missouri Real Estate Appraisers Commission Quarterly Commission Meeting March 22nd in Jefferson City, MO.
- Gill Group attended Bank of Advance’s Annual Meeting March 17th – 20th in Norfork, AR.
- Gill Group attended the Maco Companies’ Annual Meeting March 10th – 13th 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 the National Housing and Rehabilitation Association’s Annual Meeting February 24th – 27th in West Palm Beach, Florida.
- Gill Group attended the Council for Affordable Rural Housing’s Midyear Meeting January 25th – 27th in San Antonio, Texas.
- 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.
- 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 (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 (2015)
*as seen on housingonline.com
**as seen on multifamilybiz.com
***as seen on seniorhousingnews.com
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