August 25, 2010HousingOnline Weekly Newsletter
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Top Story FHA Issues Final Rule on Escrowing Tax Credit EquityHUD's Federal Housing Administration has issued final regulations for its multifamily mortgage insurance program that prohibits a requirement that tax credit sales proceeds be placed into escrow at the time of initial endorsement for assurance of project completion, and to pay the initial service charge, carrying charges, and legal & organizational expenses incident to the construction of the project. The rule extends the same treatment to the historic and New Markets Tax Credits, and does not prohibit HUD from requiring escrows of funds for other purposes, such as working capital.
NH&RA Events Fall Forum Registration Now Open!NH&RA is pleased to announce that online registration for the 2010 Fall Developers Forum is now open. Attendees may also register to attend the J. Timothy Anderson Awards for Excellence in Historic Rehabilitation Luncheon (October 19) and the Affordable Housing Vision Awards Reception (October 18).
Additional information about the Fall Developers Forum is available through our website. Interested in participating as a speaker? Contact Thom Amdur via at (202) 939-1753.
NCAHMA Early Registration Ends FridayEarly registration for the National Council of Affordable Housing Market Analysts' 2010 Affordable Housing Underwriting Conference & Annual Meeting expires this Friday, August 27. Don't delay - register now and save!
Tax Credit Advisor NCSHA Reviewing Recommended Practices for LIHTC Underwriting, Allocation
August 2010 – The National Council of State Housing Agencies is moving forward with a review, for possible changes, of its existing recommended practices for state housing credit agencies for low-income housing tax credit underwriting and allocations. Initiated earlier this year, the review is being carried out by NCSHA’s Housing Credit Task Force, which discussed the project again at the organization’s June housing credit conference in Chicago. NCSHA’s recommended practices, last revised in late 2003, are voluntary standards that state HFAs are urged to incorporate in their standards and procedures for underwriting proposed projects seeking housing credits, and in deciding how much credit to award. These so-called “best practices” include recommendations in 17 areas... Learn more about Tax Credit Advisor.
Preventive Medicine: Preparing a Tax Credit Property for the State Agency’s Physical Inspection
August 2010 – Federal low-income housing tax credit properties must ensure compliance in three major areas – affordability, eligibility, and habitability – to prevent the loss of tax credits. Rents must be properly restricted, residents must be eligible, and buildings and units must be suitable for occupancy. State housing credit agencies must inspect each LIHTC property at least once every three years. During this inspection, the HCA must review at least 20% of the tenant files, physically inspect the same 20% of units, and inspect all common and public use areas. The agency must report incidents of noncompliance to the Internal Revenue Service, which may lead to a loss of tax credits for the property. In a comprehensive way, LIHTC compliance expert A. J. Johnson provide advice to LIHTC property owners and managers on the steps that they should take to prepare for the state agency’s inspection visit, to minimize their chances of being reported for noncompliance... Learn more about Tax Credit Advisor. HUD News HUD Issues LIHTC Mortgagee Letter & NoticeThe U.S. Department of Housing and Urban Development has issued a new mortgagee letter and Housing Notice to all FHA-approved multifamily mortgagees announcing further guidance to defer submission of final architectural plans and specifications, titled "Streamlined Processing of Multifamily Mortgage Insurance Applications Involving Low Income Housing Tax Credits (LIHTC)". The letter authorizes owners associated with a MAP application for one of the FHA mortgage insurance programs to defer the submission of final architectural drawings and specifications until 30 days before the date scheduled for initial endorsement of the loan.
Urban Institute Publishes Paper on Housing Choice and MobilityThe Urban Institute, a non-partisan research think-tank, has published a new paper entitled "Why Housing Choice and Mobility Matter." The paper explores HUD's proposal for transforming federal rental assistance and summarizes research evidence concluding that:
Multifamily Finance FHFA Solicits Comments on Proposed Rule for Oversight of GSEsThe Federal Housing Finance Agency (FHFA) has issued a notice soliciting public comments regarding the implementation of a proposed rule in the Housing & Economic Recovery Act (HERA) that authorizes FHFA to initiate enforcement over Fannie Mae and Freddie Mac, as well as the Federal Home Loan Banks. The notice also provides background and synopsis of the proposed rule, a section-by-section analysis and an overview of regulatory impact. Comments on the proposed rule must be received on or before October 12, 2010. New Markets Tax CreditsOhio Launches State New Markets Tax Credit ProgramGovernor Ted Strickland and Department of Development Director Lisa Patt-McDaniel recently announced the launch of the Ohio New Markets Tax Credit program. The program is modeled after the Federal New Markets Tax Credit program and provides a 39 percent tax credit over seven years for qualified investments in low-income community businesses. Only Community Development Entities (CDE) serving Ohio that have already received an allocation of Federal New Markets Tax Credits are eligible to apply. A total allocation of $10 million in tax credits is available in the first round of funding. Applications are due on September 20 and awards will be announced by October 31, 2010.
CDFI Fund Seeks Comments on New Markets Allocation ApplicationThe Community Development Financial Institutions Fund is seeking comments on the electronic application used to apply for an allocation of federal new markets tax credits. Comments are due by October 25. Historic Rehabilitation New York State Budget Defers Rehabilitation Tax CreditsEarlier this month, the New York State Legislature passed the final bill needed to authorize the 2010 state budget. Among other things, the final budget defers New York State Rehabilitation Tax Credits earned between 2010 and 2012 exceeding $2 million. The tax credits will be deferred per the following schedule:
Low Income Housing Tax Credits Connecticut Incorporates Very Low-Income Construction Employment Policy Into Draft 2011 QAPThe Connecticut Housing Finance Authority (CHFA) Board of Directors recently approved the Authority’s Very Low-Income Construction Employment Policy and incorporated the policy into the 2011 Low-Income Housing Tax Credit Draft Qualified Allocation Plan (QAP). Under the policy, CHFA requires that applicants for LIHTCs commit to undertaking good faith efforts to hire or train very low-income persons from the area of the housing constructed or rehabilitated with CHFA funding. The draft 2011 QAP is available through CHFA’s website. CHFA is soliciting public comments on the draft through September 8, 2010 and a public hearing will be held August 26, 2010 at 999 West Street, Rocky Hill, CT.
Indiana Releases 2011 QAPThe Indiana Housing & Community Development Authority has released its 2011 qualified allocation plan. The 2011 QAP contains significant changes that promote IHCDA's four priorities:
Applications for funding through the 2011 round are due by November 1. A public forum will be held on September 16 in Indianapolis.
Maryland Releases Draft 2011 Multifamily Rental Program GuideThe Maryland Department of Housing and Community Development (DHCD) has begun the process of revising the 2011 qualified allocation plan (QAP), and has released its draft 2011 Multifamily Rental Financing Program Guide. Proposed revisions to the 2011 QAP will be released by the end of August. DHCD is soliciting public comments on the 2011 Guide and QAP by September 13, and will hold a public hearing on September 8 at DHCD offices in Crownsville, MD. The draft 2011 Multifamily Rental Financing Program Guide incorporates changes to the threshold criteria, scoring schedule and program fees, including... Continue reading at HousingOnline.com.
Utah Releases 2011 Draft Qualified Allocation PlanThe Utah Housing Corporation has released its 2011 draft qualified allocation plan (QAP). Proposed changes to the 2011 QAP include:
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NH&RA Members Only
11:00 am | NCAHMA Executive Committee Meeting Executive Session |
1:30 pm | Welcome & Introductions |
2:00 pm | Affordable Housing & Tax Credit Policy Update This Spring was one of the busiest on record for affordable housing and tax credit policy advocates. This session will convene industry experts to update our members on critical policy developments from Congress and HUD. Highlights include:
Glenn Graff, Applegate & Thorne-Thomsen LLP, Chicago, IL |
3:15 pm | State-of-the States: Tax Credit Allocators Roundtable Executives from housing finance agencies discuss trends and issues in their qualified allocation plans. Special focus on policy impacting the allocation of 9% LIHTCs, Tax Exempt Bonds and 1602/Exchange funds. |
4:30 pm | Investor Issues This panel brings key leaders from the Affordable Housing Investors Councils to discuss key developments in underwriting, risk rating, asset management and more... Gina Bender, Bank of America Merrill Lynch |
5:30 pm | Underwriting Tax Credit Equity In the wake of the financial downturn, developers, syndicators and housing finance agencies continue to seek a workable equilibrium in the equity market. This panel will bring together active syndicators and investors to discuss key issues impacting the access to tax credit equity including:
John Simon, Sidley Austin LLP, Chicago, IL |
6:30 pm | Networking Reception |
October 6, 2010
8:00 am | Committee Meetings and Networking Breakfast All participants welcome! |
9:30 am | Committee Reports |
10:00 am | Understanding The Implication of New Area Median Incomes & Fair Market Rents On Affordable Housing Development & Market Analysis Bud Clarke, Boston Financial Investment Management, Boston, MA |
11:15 am | Demographic & Census Update This panel will explore the transition that data producers and analysts will be making the 2010 Census and the American Community Survey. Julia Lavigne, Ribbon Demographics, Newcastle, CO |
12:00 pm | Networking Lunch & Regional Market Updates |
1:30 pm | Measuring and Projecting Absorption: Reconciling Conflicting Economic, Construction & Demographic Data John Prior, Prior & Associates, Denver, CO |
2:45 pm | Key Issues & Developments In Market Analysis Part II This session will explore key issues in affordable housing market analysis including defining scope of work, MAP market study guidelines and best practices. A can't miss session for analysts and users of market studies. This session is a follow-up from the Part I session held at NCAHMA 2010 Spring Underwriting Forum. |
3:45 pm | Alternative Field Work Business Opportunities: Site Inspections and Asset Management Inspection Linda Cargill, Cargill Investment Group, Boston, MA |
4:30 pm | End of Meeting |
