All posts by Darryl Hicks

Colorado Housing 2018 LIHTC Round Two Awards

Colorado Housing and Finance Authority (CHFA) is pleased to announce the Low Income Housing Tax Credit (LIHTC) awards for the second and final allocation round of 2018. CHFA is the allocating agency of federal and state LIHTC in Colorado. In this round, 33 applications requesting $35.9 million in 9 percent federal LIHTC were received.

CHFA is awarding $17,128,412 in 9 percent federal LIHTC to sponsors of 15 developments, which will support the new construction of 814 affordable rental housing units in Colorado. Earlier this year, in recognition of the severe housing crisis facing the nation, Congress approved a temporary increase to the amount of 9 percent federal LIHTC available for states to allocate. In Colorado, that increase has resulted in $2.1 million more cap available for allocation in 2018. This increase helped CHFA support two additional developments, or 181 more affordable rental housing units, this year compared to 2017. This temporary increase will be available each year through 2021.

The following developments have been awarded federal LIHTC from CHFA. Full descriptions may be viewed here.

Alpenglow Village, Steamboat Springs
Gateway North and South, Denver
Garden Walk of Gunnison, Gunnison
Kappa Tower II, Denver
Karis Permanent Supportive Housing Apartments, Grand Junction
Libretto Senior II, Brighton
Mason Place, Fort Collins
Mirasol III, Loveland
Mission Village of Evans, Evans
River Bend Residences, Idaho Springs
Sage Corner, Lakewood
Senior Residences at Three Springs, Durango
Tungsten Village, Nederland
Uplands Townhomes Phase II, Pueblo
Veterans Renaissance Apartments at Fitzsimmons, Aurora

For more information about the LIHTC program or the Round Two recipients, please contact Tasha Weaver, Tax Credit Allocation Manager at 303.297.7429 or tweaver@chfainfo.com.

TDHCA Opening of Public Comment Period for the Post Award and Asset Management Requirements Rule

The Texas Department of Housing and Community Affairs (“TDHCA”) announces the opening of the public comment period for the Post Award and Asset Management Requirements Rule in 10 TAC, Chapter 10, Subchapter E, Sections 10.400-10.408.

The public comment period begins on Sept. 21, 2018, at 8 a.m. Austin local time and ends on Oct. 12, 2018, at 5 p.m. Austin local time. Please visit the TDHCA Public Comment Center at:  https://www.tdhca.state.tx.us/public-comment.htm to access the Post Award and Asset Management Requirements Rule, which includes submission information.

Please note that staff has made a non-substantive, technical correction to the public comment period date and has replaced the beginning date of Sept. 28, 2018, with Sept. 21, 2018, the corrected date of publication in the Texas Register at: https://www.sos.texas.gov/texreg/index.shtml, giving the public an additional week of comment.

If you have any questions about this email, please contact TDHCA Senior Asset Manager Laura DeBellas at laura.debellas.state.tx.us or 512-475-0577.

Oregon Housing Technical Advisory-Site Review Process Change and Upcoming Multifamily Announcements

Partners and Stakeholders –

I’m pleased to be reaching out to let you know that Housing Finance staff have worked diligently to streamline our site review and site visit process for the upcoming funding rounds. As you may know, in recent offerings OHCS has required potential applicants to submit their development site in advance of a Notice of Funding Availability (NOFA) in order to schedule the required site visit. We were concerned that the timing of this requirement posed a barrier to applying for those sponsors who may identify a property or a fund offering after this deadline had passed.

As such, we are modifying our process. OHCS will no longer require applicants to submit a request for a site visit in advance of a NOFA being published. Instead, the site review checklist will be included in the NOFA application process. Each NOFA will include within it the required path for completing the site review checklist and submitting it to OHCS. Depending on the fund source requirements, some solicitations (like the 2019 LIHTC / HOME NOFA) will require applicants to submit the site review checklist before the final application due date, but no solicitations will require that submission before the NOFA is published.

In the coming weeks we will be updating the required site review checklist with updated information and instructions. Once this is finalized we will notify you through a Technical Advisory and make it available for anyone who would like to begin work on this part of OHCS requirements. If you have any questions, please contact John Wright at John.E.Wright@oregon.gov

Published Technical Advisories can be found here. If you haven’t already, you can sign up to receive the Multifamily Technical Advisories directly to your email address here.

Stay tuned to the October 5, 2018 Housing Stability Council as we will be presenting the funding calendar for the upcoming year, which will detail both the timing and resource availability for fund offerings in 2019. You can receive a preview of this presentation at the next Multifamily Partner Call which will be held on October 1, 2018 at 3pm; 1-877-273-4202, room # 4460912.

Sincerely,

Assistant Director for Housing Finance Julie V. Cody

Julie.Cody@oregon.gov

CA Date Extended: Round 4 Affordable Housing and Sustainable Communities Program Draft Guidelines

Affordable Housing and Sustainable Communities Program Round 4 Draft Guidelines 

Date Extended: Public Comment Period ends September 24

The Strategic Growth Council (SGC) just released the Round 4 Draft Affordable Housing and Sustainable Communities (AHSC) Program Guidelines.

The draft guidelines are open for public comment and will close at 11:59 pm on September 24, 2018.

Please send comments to AHSC@sgc.ca.gov.

We look forward to your feedback!

Associated documents that are also posted include the Narrative Scoring Rubric and Community Engagement Tracker.

The draft revised AHSC Benefits Calculator Tool and AHSC Quantification Methodology, developed by the California Air Resources Board, will be released for public comment in late August 2018.

For more information or if you have questions, please contact: Strategic Growth Council at 916.322.2318 or email sgc.info@sgc.ca.gov

OH Program Compliance Advisory Committee Meeting Notice

September 27, 2018
10:00 AM – 12:00 PM
OHFA’s Roger McCauley Board Room
57 East Main Street, Columbus, OH 43215

The purpose of this advisory committee is to provide feedback to OHFA regarding compliance policy and regulation impacting the operation of multifamily projects in Ohio.

Agenda:

  • Welcome and Introductions
  • OHFA Updates
    • Overview of Recent Changes
    • Compliance
    • Asset Management
    • Training
    • PP&D
  • VAWA Survey Results
  • RD Report
  • Income Averaging
  • 811 Project Rental Assistance Program/Asset Management Updates
    – Impact of 811 PRA Program (Video)
  • State Legislative Report
  • Newer Income Sources
  • Industry Challenges
  • Open Forum and Public Comment

The next Program Compliance Advisory Committee Meeting will take place on December 13, 2018, in the Roger McCauley Board Room.

NM Mortgage Finance Agency Announces 2019 Qualified Allocation Plan

Interested Parties:

The New Mexico Mortgage Finance Authority (MFA) is pleased to announce that its draft Low Income Housing Tax Credit Qualified Allocation Plan effective for 2019 (Draft QAP) is now available for review and download. Both a clean version and a redline comparison version to the 2018 QAP are available from the MFA website:
http://housingnm.org/developers/low-income-housing-tax-credits-lihtc

The 21-day period in which to provide public comment begins September 17, 2018 and continues through 5 p.m. on October 8, 2018. Written comments on the Draft QAP may be delivered by e-mail, mail, courier service, or by hand to MFA to the following address:

MFA
Attn: Shawn M. Colbert
344 Fourth St., SW
Albuquerque, NM 87102
scolbert@housingnm.org

Comments may also be made verbally at the following public hearing:

October 2, 2018 from 1:30 to 3:00 p.m.
MFA Board Room
344 Fourth St., SW
Albuquerque, NM 87102

This public hearing will be featured on MFA’s website as a webcast and available for viewing in real time at the following link:
http://www.housingnm.org/resources/webcasts.

The webcast is for viewing only. Therefore, webcast participants will not be able to actively engage or present their oral comments while viewing the webcast.

Thank you for your interest and participation.

 

FL Housing Announces Multifamily Portfolio Preservation Plan

Florida Housing is developing a Multifamily Portfolio Preservation Plan. We have acknowledged that we do not have enough finite resources (9% Housing Credits, SAIL or HOME) to assist in preserving every property, and yet most properties will require some level of rehabilitation and recapitalization to ensure they reach their full 50-year affordability period in good condition.

One of the strategies in the draft plan calls for Florida Housing to allow a portion of set-aside units to be increased from 60% of area median income to 80% of AMI at Year 30 to provide property owners with increased income that can then attract private financing for recapitalization.

Before Florida Housing finalizes this strategy, we are seeking information from property owners of 9% Housing Credit developments to help us build an understanding of what the financial situation is likely to be as these properties reach Year 30. As we see it, when these properties approach Year 30, there should be a good amount of accumulated equity that could be paired with 4% Housing Credits and Bonds to provide for a sufficient amount of rehabilitation and recapitalization. We would like to understand why this type of transaction will not work.

To assist us, we request interested owners to provide us with conceptual developments’ cost or rehab proforma, anticipated sources and uses of funds (general) and proforma operating budget with a detailed rent roll, using the following assumptions:

A 6.5%, 35-year amortization;
A 15-year term if need be;
92 cent pricing on the Housing Credits;
A 3.3% rate on the 4% Housing Credits;
$20,000-$25,000 in hard rehabilitation costs;
A 1.20 debt service coverage ratio; and
The estimated fees listed below.

If these assumptions do not make sense in your situation, let us know what you are assuming and why. In order for Florida Housing to review information submitted, ask questions and use these findings to make decisions about this preservation strategy as we head into our late October board meeting, we ask you to submit your information to us no later than Wednesday, October 3rd.

Please submit your information to Laura Cox at laura.cox@floridahousing.org. If you have questions, please submit them to Laura via email. Thank you.

Fees
The following fees are not the fees that will be charged, but are listed below for estimation purposes of completing your pro-forma in the Application. The actual fees will be determined based on the current contract, including any addendum, for services between Florida Housing Finance Corporation and the Credit Underwriter(s) in effect at the time underwriting begins. All Credit Underwriting fees shall be paid by the Applicant prior to the performance of any work by the Credit Underwriter.

a. Initial fee:
(1) Non-Competitive HC only……………. $12,468
(2) MMRB only………………………………… $14,835
(3) MMRB and Non-Competitive HC…. $19,464 *
*The MMRB fee plus the multiple program fee of $4,629 for the Non-Competitive HC.
(4) MMRB Subsidy Layering Review:
(a) If previously underwritten …………. $2,387
(b) If not previously underwritten …… $4,192

b. Re-underwriting fee: $177 per hour, not to exceed $7,841 for MMRB and/or HC.
If a Housing Credit Development involves Scattered Sites of units within a single market area, a single Credit Underwriting fee shall be charged. Any Housing Credit Development requiring further analysis by the Credit Underwriter pursuant to Section 42(m)(2) of the IRC will be subject to an hourly fee of $177.

Administrative Fees:
With respect to the HC Program, each for-profit Applicant shall submit to the Corporation a non-refundable administrative fee in the amount of 9 percent of the annual Housing Credit Allocation amount stated in the Preliminary Determination. The administrative fee shall be 5.5 percent of the stated annual Housing Credit Allocation for Non-Profit Applicants. The administrative fee must be received by the Corporation as stated in the Preliminary Determination. In the event the Final Housing Credit Allocation amount exceeds the annual Housing Credit Allocation amount stated in the Preliminary Determination, the Applicant is responsible for paying the applicable administrative fee on the excess amount before IRS Forms 8609 are issued for the Development.

Compliance Monitoring Fees:
The following fees are not the fees that will be charged, but are listed below for estimation purposes of completing your pro-forma in the Application. The actual fees and percentage increases will be determined based on the current contract, including any addendum, for services between Florida Housing Finance Corporation and the Compliance Monitor(s). Based on the services contract, all compliance monitoring fees (other than those collected for RD Developments) include an automatic annual increase of 3 percent of the prior year’s fee, as described below.
a. HC:
Compliance Monitoring Fee –
All Developments other than RD – The annual fee to be comprised of a base fee of $165 per month + an additional fee per set-aside unit of $10.11 per year, subject to a minimum of $258 per month, and includes an automatic annual increase of 3 percent of the prior year’s fee. Since fees for the full Housing Credit Extended Use Period will be collected at final allocation, the fee amount is discounted at a rate of 2 percent and based upon the payment stream from the Corporation to the monitoring agent.

(2) RD Developments – The annual fee is $450 per year. Since fees for the full Housing Credit Extended Use Period will be collected at final allocation, the fee amount is discounted at a rate of 2 percent and based upon the payment stream from the Corporation to the monitoring agent.
NOTE: Upon prepayment or repayment of the RD loan, the previously identified RD Development will be identified as a non-RD Development and the annual compliance monitoring fee will be adjusted accordingly. The compliance monitoring fee as described in (1) above for the remaining Housing Credit Extended Use Period will be due and payable in full upon billing sent directly to the Development.

b. MMRB (with or without HC) – Annual fee is comprised of a base fee of $165 per month + an additional fee per set-aside unit of $10.11 per year, subject to a minimum of $258 per month, and includes an automatic annual increase of 3 percent of the prior year’s fee. Where a difference exists between set-aside requirements for MMRB and HC, the fees collected will be based upon the higher number of set-aside units.
c. Follow-up Review – $177 per hour.

Tax-Exempt Mortgage Loan Servicing Fees:
a. Annual Permanent Loan Servicing Fees:

The following fee is listed for estimation purposes only; the actual fees will be determined based on the current contract, including any addendum, for services between Florida Housing Finance Corporation and Servicer(s) in effect at the time of loan closing.

• 2.3 bps of the outstanding bond balance annually, subject to a minimum of $212 per month.

b. Construction Loan Servicing Fees:

The following fees are listed for estimation purposes only; the actual fees will be determined based on the current contract, including any addendum, for services between Florida Housing Finance Corporation and Servicer(s) in effect at the time of loan closing.

• $177 per hour for an in-house review of a draw request.
• $177 per hour for on-site inspection fees, up to a maximum of $1,759 per inspection.

Additional legal, cost of issuance, bond underwriting, credit enhancement, liquidity facility and servicing fees associated with the financing shall also be paid by the Applicant.

Additional MMRB Fees:

MMRB Applicants shall be responsible for all MMRB fees as outlined in the loan documents signed by the Applicant and Florida Housing Finance Corporation.

Additional HC Fees:

HC Applicants shall be responsible for all processing fees related to the HC Program