On November 19, the House of Representatives voted 231-192 on H.R. 3055 to approve a continuing resolution (CR) that would fund the federal government through December 20. The new CR maintains an important adjustment for the Section 202 Housing for the Elderly program that will prevent renewal delays for Project Rental Assistance Contracts set to expire in early FY 2020. Funding expires at midnight on November 21, the Senate is expected to approve the measure before the deadline.
Kingsley Associates released an executive summary of findings from confidential interviews with 31 large institutional investors and investment advisors on the topic of affordable housing investment. They found three main reasons these investors chose not to invest in affordable housing:
The Federal Government’s “onerous rules and regulations.”
The miseducation (or under-education) of the investment community.
Investing in affordable housing solely to meet a mandate.
The National Council of State Housing Agencies (NCSHA) and the Economic Innovation Group (EIG) published three case studies of developments that incorporate Opportunity Zone investment to create new affordable homes and support community revitalization efforts in Ohio, Maryland and Florida. These are the first in a new series of Opportunity Zone Development Profiles that detail project financing, community socioeconomic data and projected economic impact. The profiles demonstrate how Opportunity Zone investments are being utilized to develop affordable homes for very-low- to moderate-income households, and how that investment is furthering community revitalization efforts and enhancing positive community impact.Read More
Representatives Jim Clyburn (D-SC), Alma Adams (D-NC) and Lacy Clay (D-MO) introduced the Opportunity Zone Reform Act (H.R. 5042) which would eliminate Opportunity Zones that are not low-income and allow states to replace those zones with ones that are low-income as defined by the New Markets Tax Credit. The bill also would prohibit investments in casinos, stadiums, parking lots and luxury apartments. The measure has been referred to the House Ways & Means Committee.
Governor Ron DeSantis (R-FL) announced full funding for affordable and workforce housing programs. Unveiled in his Bolder, Brighter, Better Future Budget, the Governor recommends providing $387 million to the affordable housing trust funds – $119.8 million for the State Apartment Incentive Loan (SAIL) program and $267.2 million for the State Housing Initiative Partnership (SHIP) program.Read More
HUD User published a case study on the Riverport Family Scholar House, one part of a larger multi-generational housing development. Riverport provides affordable housing and a network of support services to single parents and foster care alumni who are pursuing post-secondary education in Louisville, KY. Residents receive access to free or heavily subsidized child care, as well as academic coaching and support. The development’s educational services building hosts a wide variety of support services, such as food pantries, professional development seminars and mentoring for residents and members of the surrounding neighborhoods. The project won the 2019 American Planning Association/HUD Secretary’s Opportunity and Empowerment Award.
The Internal Revenue Service (IRS) released Revenue Procedure 2019-44, which sets state ceilings for nine percent LIHTCs and private activity bonds (PAB). The LIHTC cap is the greater of $2.8125 multiplied by the state population or $3,217,500. The PAB cap is the greater of $105 multiplied by the state population or $321,775,000.Read More
HUD published proposed revised forms of the Public Housing Authority Annual Contributions Contract (ACC) and Mixed Finance Amendment to the ACC (MFACC Amendment) for public review and comment. HUD also published a side-by-side comparison chart of the revisions to the ACC, and redline versions of the ACC and MFACC Amendment.Read More
Democratic presidential hopeful Mayor Pete Buttigieg (South Bend, IN) released An Economic Agenda for American Families which includes spending $430 billion on affordable housing measures. “He will enable more than 2 million more units of affordable housing to be built or restored where it is needed most, using billions of dollars of investments in the Housing Trust Fund, Capital Magnet Fund, HOME and CDBG funds, and the Low Income Housing Tax Credit.”Read More
HUD’s Office of Affordable Housing Programs (OAHP) is offering a Building HOME training series in January and February of 2020. The series will provide an overview of the HOME Investment Partnerships Program (HOME), including the latest requirements codified in the HOME Final Rule.Read More