Anthony Marchetta, executive director of the New Jersey Housing and Mortgage Finance Agency said there is a “significant, unsatisfied demand for affordable housing” in the state. The agency allocates the low-income housing tax credits the state receives from the federal government.
He said the cost of living has risen so high in New Jersey that many people earning moderate wages have been seeking out income-based rentals in much higher numbers than before.
According to the Joint Center for Housing Studies of Harvard University, nearly half of the country’s unsubsidized rentals available for $400 a month or less in 2011 were built more than 50 years ago.
On Wednesday, drawing criticism from housing advocates, the New Jersey Council on Affordable Housing proposed new regulations that call for fewer than 31,000 units of affordable housing to be built by 2024. Units built using low-income housing tax credits would be part of that number.
– Philadelphia Inquirer
Raymond James Tax Credit Funds (RJTCF) completed syndication of a $72.5 million low-income housing tax credit (LIHTC) fund that will finance the construction or rehabilitation of affordable housing throughout California. As reported by ApartmentFinance.com, the Raymond James California Housing Opportunities Fund III was fully subscribed with 10 investors.
Shaun Donovan took over the Department of Housing and Urban Development (HUD) four years ago during a full-blown housing crisis. Now, he is at work on cleaning up another catastrophe. President Obama, in the days following his re-election, tasked Donovan to lead the Hurricane Sandy rebuilding efforts. Former commissioner of the New York City Department of Housing Preservation & Development, he is a strong choice to oversee the recovery of his home state and the surrounding region. In an interview with Affordable Housing Finance shortly after the election, Donovan discusses his first term as HUD secretary, his future plans, and how the low-income housing tax credit (LIHTC) will fare in tax reform efforts.
– Housing Finance
Utah Housing Corporation recently announced awards of its 2013 round of competition for federal Low Income Housing Tax Credits (LIHTC). As the administrator of the LIHTC program for the State of Utah, Utah Housing received applications for 24 proposed projects, requesting a total of $11,624,000 in annual housing credits. Awards were made to 14 projects and totaled over $6.1 million of annual credits. The winning projects range in size from four to 119 rental units, representing both newly constructed and existing, to-be-refurbished buildings. The rental units will provide affordable housing for seniors, veterans, refugees, and working families and individuals unable to afford market rate rents.
The Kresge Foundation (Troy, MI), Morgan Stanley and the Local Initiatives Support Corp. (NYC) have launched a $100 million investment fund — the Healthy Futures Fund — to expand access to health care and affordable housing for low-income populations and to fund social services to link the two. The intent is to spur collaboration among health care providers and housing developers, who do not often work together even when they operate in the same low-income neighborhoods and serve the same people. To raise capital, the fund is using federal LIHTCs, NMTCs, grants, loans and guarantees. Morgan Stanley is investing $63 million in equity through LIHTCs and NMTCs. It’s also joining Kresge and LISC in providing an additional $37 million in loan and grants to build 500 housing units with integrated health services and to construct eight federally qualified health centers that will serve an estimated 75,000 people across the country.
– Crain’s Detroit Business
Posted in Affordable Housing
Tagged Healthy Futures Fund, Kresge Foundation, LIHTC, LISC, Local Initiative Support Corporation, low income housing tax credit, Michigan, morgan stanley, New Markets Tax Credit, NMTC, Troy
It used to be that affordable housing emphasized cheap construction above all else. Thanks to the problems this caused (unattractive buildings, costly maintenance, and high utility costs, among others) most developers do better now. One growing trend is that of green affordable housing, designed with an eye towards the long-term benefits. In a recent report from Global Green USA, Minnesota tied for fifth (with a grade of A-) in how well it encourages green practices in affordable housing. Global Green USA examined states’ criteria for distributing federal Low-Income Housing Tax Credits (LIHTCs). The ranking is based on how well those criteria incentivize eco-friendly development and how much green housing is actually built as a result. Subcategories included Smart Growth, Energy Efficiency, Resource Conservation, and Health Protection. The report also highlighted the Minnesota Housing Finance Agency (the state body that awards LIHTCs to private, public, and nonprofit developers) for promoting green practices in existing housing rehabs.
– Twin Cities Daily Planet
Walker & Dunlop, Inc. announced today that it closed over $250,000,000 in financing for age- restricted properties nationwide in 2012. Most recently, Walker & Dunlop arranged $30,000,000 in financing for two Class A age-restricted properties located in Appleton and Green Bay, WI. Ridgeview Highlands and Parkway Highlands are designed for and marketed to seniors (55+), with an emphasis on high quality affordable rental housing. The properties were built under the WHEDA Section 42 rental tax credit program (LIHTC) and remain subject to Land Use Restriction Agreements (LURA) with varying maturities.
The newly enacted American Taxpayer Relief Act of 2102 preserves important tax credit and deductions used in affordable housing deals. Here is a summary of the relevant provisions:
- 9% Credit: Effectively a two year extension for projects receiving 2013 allocations and a one year extension for projects receiving a 2012 allocation.
- Military Housing Allowance: Extends for an additional two years the provision that a member of the military’s basic housing allowance is not considered income
- Extension of New Markets Tax Credit: Retroactively extends the new markets tax credit for 2012 and also for 2013 providing a maximum annual amount of qualified equity investments of $3.5 billion each year.
- Bonus Depreciation: Extends the current 50 percent expensing provision for qualifying property purchased and placed in service before January 1, 2014
– Nixon Peabody
There may be increasing concern about the prospects for affordable housing. Speakers at the New York Housing Conference (NYHC) and National Housing Conference’s (NHC) 39th Annual Awards program warned that the outcome of Capitol Hill fiscal negotiations may not be favorable to the industry’s production, preservation and investment programs. There are “mounting fears that negotiations to avert the fiscal cliff could leave affordable housing programs vulnerable,” said Judy Calegero, CEO of NYHC. Calegero said that one estimate places the chance for the survival of the Low Income Housing Tax Credit at a little better than 50 percent. The housing industry faces strong headwinds, and conditions demand that it charts a new course, she said.
– Commercial Property Executive