Community Development Category Archives

Council of Development Finance Agencies Issues Report on Opportunity Zones

The Council of Development Finance Agencies has issued a new report titled, “CDFA Opportunity Zones Report: State of the States.” Recognizing that Opportunity Zones have the potential to be a transformative economic development tool in distressed areas around the country, CDFA members are actively developing Opportunity Zones strategies to attract investment, identify additional development finance tools to work alongside Opportunity Fund investments, and to align local economic development priorities with their financing capacity. It is essential that state and local agencies recognize that not every Opportunity Zone will receive investment without their leadership. Every state, district, and territory should be engaging their local stakeholders to provide consistent information and clear education about Opportunity Zones.  This report details a survey of 41 states completed in July 2018 as partC of a coordinated technical assistance webinar provided to state agencies from CDFA and the Economic Innovation Group. It also includes several examples of state Opportunity Zones strategies actively in development.  Click here to download the report.

Economic and Fixed Income Insights, September 5, 2018

Second quarter GDP surpassed expectations with an upward revision to 4.2% in the second round reading last week boosting investor confidence on the heels of the trade agreement between the U.S. and Mexico.  Markets also got a fresh reading of inflation data last week as the July PCE showed overall price growth of 2.3% year-over-year.  Overshadowing the data however, are trade talks between the U.S. and Canada. Having failed to reach an agreement to-date, officials from both countries are together in Washington today to continue negotiations.    Bond yields were mostly higher for the week.  The 10-year UST was up 2 basis points to yield 2.90% while the 30-year UST finished 3 basis points higher at 3.06%. In the tax-exempt market, 10-year MMD was 3 basis points higher to 2.46% while 30-year MMD was 2 basis points higher to 3.03%.

Interest Rate Observations

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of September 4, 2018.

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

Stifel, Nicolaus & Company, Incorporated is a broker-dealer registered with the United States Securities and Exchange Commission and is a member FINRA, NYSE & SIPC. © 2018

CDFI Fund Retires CIIS—Compliance Reporting is Live in AMIS

Earlier this summer, the CDFI Fund announced that it was integrating award recipient reporting into the Award Management Information System (AMIS). I am very happy to report that the transition is now complete and the Community Investment Impact System (CIIS), is officially retired.

Going forward, award recipients will now submit reports—including Institutional Level Reports (ILRs), Transactional Level Reports (TLRs), QEI Closeout Reports, and Sub-CDE Dissolution Reports—in AMIS.

AMIS is the CDFI Fund’s system for managing, administering, and monitoring CDFI Fund programs through each facet of their life cycle—including certification, awards and allocations, data analysis, and reporting.

AMIS will provide a more reliable and user-friendly interface for the submission of compliance reports. Improving the customer experience is a key priority. Ensuring that we provide a straightforward method for awardees to fulfill their compliance obligations is one way we can make good on our commitment to ease the “customer experience,” as outlined in the CDFI Fund’s strategic plan.

Some benefits that users should notice immediately are that the system is now reliably available, the need to synchronize organizational profiles across multiple systems is now unnecessary and the ILR reporting requirement has been eliminated for CDFIs.

To help familiarize users with the new system, the CDFI Fund has developed guidance and instructional material as well as presentations (recorded webinars will soon be available on our website) that walk CDFIs and CDEs through the process of compliance reporting in AMIS.

Questions regarding compliance and reporting should be directed to the CDFI Fund’s Help Desk via: an AMIS Service Request; e-mail at cdfihelp@cdfi.treas.gov or phone at (202) 653-0421. Questions related to the AMIS system can be directed to the Information Technology Support Help Desk through: an AMIS service request; email at AMIS@cdfi.treas.gov; or phone at (202) 653-0422. As always, we look forward to your inquiries

New Community Investment Explorer Tool Explores Impact of LIHTC & NMTC

The Federal Reserve Bank of St. Louis recently launched a new interactive tool, Community Investment Explorer (CIE). CIE aggregates customizable data from the CDFI Program, New Markets Tax Credit Program (NMTC Program) and Low-Income Housing Tax Credit (LIHTC) Program to show geographic comparisons and trends over time. CIE draws on publicly available data from over 500,000 community development transactions. Collectively, these programs are responsible for several billion dollars of investment into low- and moderate-income communities each year and support a range of activities, including affordable housing, commercial real estate development, consumer and business lending, and more.  Click here to learn more.

 

Leaked FY-18 Budget Draft Proposes Deep Cuts To HUD

A copy of a recent internal-draft of President Trump’s FY-18 Budget was obtained by POLITICO and several advocacy organizations.  The document, dated May 4, proposes significant cuts to the HUD Budget.  The expanded document reflects many of the priorities outlined in the “Skinny Budget” released earlier this year by the Trump Administration, though readers should note that it may not reflect the final spending request which is expected May 23.   The documents, as presented, would fully zero out funding for key community development programs including CDBG, HOME, Choice Neighborhoods Initiative and make dramatic cuts to Project-Based and Tenant-Based Rental Assistance, Section 811, Homeless Assistance Grants as well Public Housing Capital and Operating Funds.  The budget document proposes a modest increase to the Section 202 program.

NH&RA Executive Director Thom Amdur notes, “It is hard to imagine a more austere HUD budget proposal.  These proposed cuts, if enacted would have a devastating impact on low-income families and communities around the country.  In particular, the public housing capital backlog would be exacerbate even further and innovative programs like the Rental Assistance Demonstration (RAD), which leverage private sector financing to recapitalize aging public housing would be crippled.  Multifamily owners of Project-Based section 8 properties will also experience substantial stress in the proposed budget.”  The National Low-Income Housing Coalition estimates that more than 250,000 families would lose their vouchers under the budget proposal.

HUD PROGRAMS ENACTED FUNDING FY 2017 (in Millions) Leaked Trump FY-18 Draft 5/4/17 (in Millions) Difference between FY-18 (Leaked) and Enacted FY-17 (in Millions)
Project-Based Rental Assistance  $10,816.00  $10,351.10  $(464.90)
Tenant-Based Rental Assistance  $20,292.00  $15,317.90  $(4,974.10)
Public Housing Capital Fund  $1,941.50  $628.00  $(1,313.50)
Homeless Assistance Grants  $2,383.00  $2,250.00  $(133.00)
Choice Neighborhoods Initiative  $137.00  $-    $(137.00)
Housing for the Elderly Program  $502.40  $510.00  $7.60
HOME Investment Partnerships  $950.00  $-    $(950.00)
Community Development Block Grants  $3,060.00  $-    $(3,060.00)
Public Housing Operating Fund  $4,400.00  $3,900.00  $(500.00)
Housing for Persons with Disabilities Program  $146.20  $121.30  $(24.90)