The Year in Review

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3 min read

The season of holiday parties and the last minute push to close transactions will keep us all busy this month. That’s right; we made it to the end of the year, mostly intact, and not a moment too soon. Frankly, after observing our political system in action this year (or, perhaps more accurately, inaction) I was not sure we were going to make it.

Our industry and the nation were bounced from one emergency to another: the sequester, the failed appropriations and budget process, another showdown over the debt limit, and the government shutdown. These near-misses and disasters distracted from the key policy debates that I originally thought would occur in 2013 and have major long-term impacts on the sustainability of our industry, namely tax reform and housing finance reform. And forget about common-sense housing legislation like Section 8 voucher reform, continuation of the Choice Neighborhoods Initiative, public housing modernization, and tax extenders.

Thankfully, not all is doom and gloom. Even during a period characterized by unusual political dysfunction and economic uncertainty our industry has managed to soldier on – and actually have a pretty good year. Strong tax credit pricing and low interest rates have helped make up for shortfalls in federal funding. Leadership in state legislatures has resulted in the enactment of new rental housing trust funds and state tax credits (low-income, historic, new markets). Housing finance agencies, such as the Tennessee Housing Development Agency and Ohio Housing Finance Agency, have embraced new techniques to enhance equity in tax-exempt housing bond transactions that will extend the viability of their bond programs.

Next year almost certainly will be characterized once more by limited resources for our industry, and NH&RA will continue to vigorously defend our programs in Congress to ensure another generation of affordable housing. We will have to be efficient and creative to survive and thrive. Our emphasis will continue to be on exploring opportunities to combine resources in new ways, opening up new and untapped markets, and improving the performance of our existing portfolios and reducing risks.

Some of the areas of opportunity that we will explore in NH&RA and our Councils, at our conferences, and in Tax Credit Advisor, will include how to successfully develop mixed-income housing, leverage market rate know-how in affordable senior housing, port Section 8 contracts from one property to another, finance utility retrofits, combine historic and new markets tax credits with affordable housing, mitigate fair housing risk, and much more. As the market changes we will be there to help you navigate the opportunities brought on by disruption.

Absent Armageddon, I am confident that our networks, creativity, and mission will sustain us going forward. I sincerely wish you a happy holiday season and a fruitful 2014.

Thom Amdur is Associate Publisher of Tax Credit Advisor and Executive Director of National Housing & Rehabilitation Association