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Webinars Available for CORES and Fannie Mae Enhanced Resident Services Initiative

Presented by Stewards of Affordable Housing for the Future (SAHF) and Fannie Mae

Enhanced Resident Services is the next stage of Fannie Mae’s Healthy Housing Rewards initiative, which aims to advance the development of sustainable communities and the availability of affordable housing by encouraging affordable multifamily borrowers to implement healthy design features and resident services that improve the health and stability of residents.

Fannie Mae is implementing Enhanced Resident Services with Stewards of Affordable Housing for the Future (SAHF). SAHF offers initial and ongoing certifications for both the organization and the multifamily affordable housing property providing quality resident services.

The Certified Organization for Resident Engagement & Services (CORES) Certification recognizes organizations that have developed a robust commitment, capacity, and competency in providing resident services coordination in affordable housing communities.

Please join us for one of two introductory webinars to learn more about the Healthy Housing Rewards – Enhanced Resident Services initiative and the CORES Certification!

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To register for the presentation on Wednesday February 21st at noon: https://attendee.gotowebinar.com/register/3511728377674540289

To register for the presentation on Tuesday February 27th at 2pm: https://attendee.gotowebinar.com/register/7362225794728162562

 

Please note: after registering, you will receive a confirmation email containing information about joining the webinar.

To learn more about CORES Certification, please visit: https://coresonline.org

To learn more about Fannie Mae’s Healthy Housing Rewards Initiative, please visit: https://www.fanniemae.com/multifamily/healthy-housing-rewards

Economic and Fixed Income Insights as of February 13, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

U.S. consumer prices rose by more than projected in January as apparel costs jumped the most in nearly three decades. The consumer price index (CPI) rose 0.5% in January, surpassing expectations of a 0.3% rise, according to Bloomberg. The 1.7% monthly gain in apparel prices, which account for about 3% of the CPI, was the biggest since 1990. Also this morning, retail sales declined 0.3% in January, significantly lower than the 0.2% rise expected, according to Bloomberg, and following no change the month prior. Bond yields continued their climb on inflation expectations. The 10-year UST note finished the week 3 basis points higher to yield 2.83% while the 30-year UST bond finished 4 basis points higher to yield 3.11%.  In the tax-exempt market, the 10-year MMD ticked up 5 basis points to yield 2.42% while the 30-year MMD was 6 basis points higher at 2.98%.

Interest Rate Observations

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.83% 2.80% 3 2.49% 34
30-Year UST 3.11% 3.07% 4 3.08% 3
10-Year MMD 2.42% 2.37% 5 2.43% (1)
30-Year MMD 2.98% 2.92% 6 3.17% (19)
Federal Funds Rate 1.50% 1.50% 0 0.75% 75
1-month LIBOR 1.59% 1.58% 1 0.77% 82
SIFMA 0.98% 1.08% (10) 0.65% 33
10-year LIBOR Swap 2.84% 2.83% 1 2.43% 41

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of February 13, 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

Economic and Fixed Income Insights as of February 7, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

Federal Reserve officials, meeting for the last time under Chair Janet Yellen, decided to maintain the target range for the federal funds rate at 1.25-1.50% while adding emphasis to their plan for more rate hikes in the coming months. The Federal Open Market Committee stated that “the committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate.” The Fed also said inflation “is expected to move up this year and to stabilize” around the 2% threshold. At the same time, the Fed repeated language saying that “near-term risks to the economic outlook appear roughly balanced.” With her term ending later this week, Chair Janet Yellen is handing the reins to Jerome Powell, who has backed her gradual approach and is expected to raise interest rates at the Fed’s next meeting in March. Both taxable and tax-exempt yields trended higher last week amid stronger economic growth and tightening labor market conditions. The 10-year UST finished the week 8 basis points higher to yield 2.80% while the 30-year UST finished 10 basis points higher to 3.07%.  In the tax-exempt market, the 10-year MMD ticked up 3 basis points to yield 2.37% while the 30-year MMD was 1 basis point higher at 2.92%.

Interest Rate Observations

 

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.80% 2.72% 8 2.34% 46
30-Year UST 3.07% 2.97% 10 2.95% 12
10-Year MMD 2.37% 2.34% 3 2.25% 12
30-Year MMD 2.92% 2.91% 1 3.03% (11)
Federal Funds Rate 1.50% 1.50% 0 0.75% 75
1-month LIBOR 1.58% 1.57% 1 0.77% 81
SIFMA 1.08% 1.16% (8) 0.65% 43
10-year LIBOR Swap 2.83% 2.74% 9 2.26% 57

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of February 6, 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

HUD Publishes Small Area FMR Implementation Guidance

January 17, 2018, HUD published notice PIH 2018-01 (HA) providing instructions on implementing Small Area FMRs as well as other changes to FMRs, payment standards, and rent reasonableness analyses that apply to all PHAs with the Housing Choice Voucher (HCV) program. Small Area FMRs are FMRs that are calculated at the zip code level instead of the metropolitan level – which will decrease or increase rents depending on the area. While HUD decided to suspend implementation of small area FMRs back in August, a recent court decision reversed that.

PHAs that are required to implement Small Area FMRs are required to implement them as quickly as possible and no later than April 1, 2018.

Leaked White House Infrastructure Document Proposes Changes to Private Activity Bonds

Earlier this week, several news agencies reported on a leaked infrastructure plan from the White House. One of President Trump’s campaign promises was to create a program to invest $1 trillion in infrastructure over ten years. Housing advocates may be disappointed to learn that affordable housing is not specifically mentioned in the leaked document. However, the document does propose changes to Private Activity Bonds (PABs), which could prove meaningful in the world of tax exempt bond financed affordable housing.

One proposed amendment is to remove state volume caps which would prove fruitful for the several states which hit their cap every year. Another amendment would eliminate the Advance Refunding prohibition on PABs. This allows not only for the issuance of new bonds to buy back outstanding bonds (thereby “locking in” lower interest rates), but further allows the new bonds to be outstanding for up to 90 days – essentially allowing two sets of tax exempt bond issues to be outstanding at the same time for one project. If this sounds familiar, this was implemented for Gulf States following Hurricane Katrina through the Gulf Opportunity Zone Act.

The White House has refused to comment on the leaked draft document, saying an official plan will be released in the near future. Whether these changes and others are included in the final plan is unclear. It is also impossible to say at this moment whether Congress will have an appetite for passing legislation similar to the President’s proposal.

Economic and Fixed Income Insights as of January 17, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

Last Friday, inflation data surprised markets as the pace of price growth unexpectedly accelerated in December on rising housing costs.  Excluding food and fuel, core consumer prices rose 1.8 percent year-over-year.  The pickup has bolstered expectations for a March rate hike and reinforces the projection for three total increases this year. Also last Friday, Commerce Department data showed retail sales increased 0.4% in December, a strong finish to the holiday season that was aided by low unemployment and steady wage growth.  Treasury yields declined with other havens as lawmakers appear to be making progress to avoid a government shut down this Friday.  The 10-year UST finished the week 1 basis point lower to yield 2.54%, and the 30-year UST fell 7 basis points to yield 2.83%. Tax-exempt yields continued to rise.  Both the 10-year and 30-year MMD finished 5 basis points higher to yield 2.10% and 2.69% respectively.

Interest Rate Observations

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.54% 2.55% (1) 2.43% 11
30-Year UST 2.83% 2.90% (7) 3.01% (18)
10-Year MMD 2.10% 2.05% 5 2.17% (7)
30-Year MMD 2.69% 2.64% 5 2.92% (23)
Federal Funds Rate 1.50% 1.50% 0 0.75% 75
1-month LIBOR 1.56% 1.55% 1 0.78% 78
SIFMA 1.31% 1.47% (16) 0.66% 65
10-year LIBOR Swap 2.58% 2.54% 4 2.31% 27

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of January 16, 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

Robinson+Cole Releases 2018 Green Tax Incentive Compendium

Robinson+Cole’s Jerome Garciano has released the January 2018 version of his green tax incentive compendium, which includes recent changes from the 2017 Tax Cut and Jobs Act.

This volume presents certain federal and state tax incentives promoting the renewable energy and energy efficiency industries. Each section outlines the basic features and regulatory requirements for a tax program that provides financial incentives for clean technology development through renewable energy and energy efficiency projects. For additional assistance with these tax incentives please contact Jerome Garciano at 617.557.5944 or (jgarciano@rc.com).

Economic and Fixed Income Insights as of January 10, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

U.S. employers added 148,000 nonfarm payrolls in December, according to last Friday’s figures. November payrolls were revised upward while the October data was revised downward.  Overall, the labor market remained on solid footing through the fourth quarter.  This week’s price data is expected to show muted inflation growth through the end of 2017.  The pivotal data point for future rate increases, inflation has stubbornly remained below the Fed’s long-term two percent target.  However, recent Fed speak suggests it may behoove officials to widen their target range for the measure to more easily accommodate policy implementation. Reports that China may slow its purchase of Treasuries have exacerbated a bond market sell-off that saw yields trend higher over the past week.   Both the 10-year and 30-year UST finished the week 9 basis points higher to yield 2.55% and 2.90% respectively. Tax-exempt yields followed suit with the 10-year MMD up 7 basis points to yield 2.05% and the 30-year MMD up 9 basis points to yield 2.64%.

Interest Rate Observations

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.55% 2.46% 9 2.37% 18
30-Year UST 2.90% 2.81% 9 2.96% (6)
10-Year MMD 2.05% 1.98% 7 2.19% (14)
30-Year MMD 2.64% 2.55% 9 2.92% (28)
Federal Funds Rate 1.50% 1.50% 0 0.75% 75
1-month LIBOR 1.55% 1.56% (1) 0.77% 78
SIFMA 1.47% 1.71% (24) 0.67% 80
10-year LIBOR Swap 2.54% 2.44% 10 2.25% 29

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of January 9, 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