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Regional
news: January 2001
Illinois
Chicago Housing Authority to redevelop community
Chicago – The Chicago Housing Authority (CHA) will redevelop ABLA,
the New West Side public housing community, as part of its $1.5 billion
Plan for Transformation.
It plans to build a mixed-income community consisting of 1,467 CHA units,
845 affordable housing units and 966 market-rate units. The city also
plans to build a new community center, a fire station and a police station.
Funding for the $600 million project includes a $59.5 million HUD HOPE
VI grant.
The ABLA community was one of the first public housing developments
built in the city; at one time it provided 3,600 units of low-income
housing. As of this summer, approximately 1,100 families lived in the
complex.
Wisconsin
Task force to examine Year 15 tax credit issues
The Wisconsin Housing and Economic Development Authority (WHEDA) has
established an interdisciplinary task force to examine issues surrounding
the Year 15 tax credit program.
Year 15 tax credit issues involve the extended-use agreements and other
disposition and recapitalization needs of tax credit properties.
The purpose of the task force will be to find viable solutions to the
main issues facing the Year 15 tax credit program: recapitalization,
preservation, and long-term compliance in both pre- and post-land use
restriction segments of its portfolio.
Maryland
Companies acquire complex in Park Heights neighborhood
Baltimore – AHC, a Virginia residential real estate developer,
and Struver Bros. Eccles & Rouse, Inc., a local commercial real
estate developer, have acquired a 207-unit apartment complex in the
Park Heights section of Baltimore.
The two companies plan to transform the complex into 189 yet-to-be-named
affordable apartments and a new community center.
Massachusetts
State regulates project size
The state’s Department of Housing and Community Development issued
a regulation in September that limits the total size of a prospective
housing development based on the size of the town. Communities with
fewer existing housing units will have tighter caps on the size of proposed
projects.
The regulations call for new procedures for the “comprehensive
permits” that developers may obtain from the state under the state’s
affordable housing law, or Chapter 40B, if at least 10% of a town’s
housing is not “affordable.”
The regulations require developers to notify the state when they file
for comprehensive permits, and impose a “cooling off” period
to slow the pace of permit applications.
New Jersey
$2.8 million awarded in tax credits for 2001
The New Jersey Housing and Mortgage Finance Agency (HMFA) has completed
its final cycle of housing tax credit allocations for 2001, awarding
$2.8 million in tax credits. The HMFA awarded the credits to the following
developments:
The 49-unit Lincoln Hill Village senior facility in West Milford, N.J.;
The 110-unit Cherry Tree Village and 250-unit Springfield Village Apartments
in Newark, N.J.; and
The 33-unit Sierra Gardens apartment complex in Elizabeth, N.J.
The HMFA awarded nearly $13 million in 2001, financing 1,099 apartments
across the state.
New York
Wilder Balter Partners celebrate seniors project grand opening
Washingtonville – Wilder Balter Partners celebrated the grand opening
of its new seniors housing community here, the Stone Hill Senior Housing
Community.
The $12 million garden-style apartment community has 92 one-bedroom
and 12 two-bedroom units. The one-bedroom units average 800 square feet
with a monthly rent of $447, and the two-bedroom units average 1,000
square feet for $532 per month.
Community amenities include the Stone Hill Clubhouse, with a hearth
room, a library room, on-site management and laundry facilities.
The development received federal housing tax credits and low-interest
loans from the New York State Housing Trust Fund and the Federal Home
Loan Bank of New York.
Texas
TDHCA awards tax credits
The governing Board of the Texas Department of Housing and Community
Affairs (TDHCA) has awarded $27.9 million in federal housing tax credits.
The tax credits were awarded to 66 affordable housing developments to
fund 4,578 units of affordable housing.
In addition, the board approved a forward commitment of $5.5 million
from the 2002 state credit ceiling to help finance 912 units of affordable
housing.
In 2001, approximately 15.6% of the tax credits went toward the nonprofit
set-aside, 14.8% went toward the rural set-aside, 9.3% went toward the
seniors set-aside and 86.3% were for new construction projects.
“I believe we have diversified our tax credit awards this year
more than ever. Through the regional allocation formula, we were able
to shape the geographic distribution of the credits,” said TDHCA
Executive Director Daisy Stiner. “Texans from across the state
will reap the benefits of this novel funding approach that creates quality
affordable housing.”
Florida
HOPE VI plan challenged
Miami – In an attempt to forestall implementation of a HOPE VI
development, a Miami tenants’ organization filed a lawsuit against
the Miami-Dade County Housing Agency, HUD and HUD Secretary Mel Martinez.
The class action complaint, which was filed in U.S. District Court on
Sept. 6, alleges that the defendants violated the rights of African-American
residents of James E. Scott Homes and African-Americans on the waiting
list for Miami-Dade County’s public housing.
According to the complaint, the $35 million HOPE VI grant – awarded
by HUD to the Miami-Dade housing agency in 1999 to finance replacement
housing for 754 units in the James E. Scott Homes development and 95
units in adjoining Carver Homes – will be “inaccessible and
unaffordable” for the plaintiffs.
The plaintiffs hope to stop the demolition of existing public housing
units, most of which are still occupied. “We have to seek injunctive
relief before demolition,” said JoNel Newman, an attorney with
the Florida Justice Institute that is representing the plaintiffs. Demolition
is expected to begin in about 60 days.
According to the complaint, the HOPE VI development will limit the number
of African-American residents in the replacement housing, particularly
those African-Americans with large families, because the development
will only offer eight four-bedroom and two five-bedroom units. According
to public housing residents at a recent public protest, the Sec. 8 rental
vouchers will be useless to these large families because there are so
few rental units in Miami-Dade with four or more bedrooms.
Florida Housing provides funds for communities statewide
The Florida Housing Finance Corp. has made $12.5 million available at
4.95% interest, $8 million of which will provide low-interest loans
in Front Porch Florida and HOPE VI communities as part of its First
Time Homebuyers program.
An additional $4.5 million is available for mortgages in designated
urban infill areas around the state. The mortgages are 30-year, fixed-interest
loans.
Tennessee
Affordable housing commitment continues in Nashville
Nashville – Bank of America, the nonprofit Metropolitan Development
and Housing Agency (MDHA) and Residential Resources, Inc., have agreed
to buy and renovate or build 25 single-family homes in East Nashville.
The agreement contributes an important step in the city’s commitment
to create 35,000 new units of affordable housing in the next 10 years.
Habitat for Humanity, Affordable Housing Resources team up
Nashville – The Nashville Habitat for Humanity and Affordable Housing
Resources, Inc., have teamed up to develop the 70-home Rainwood subdivision
here.
Habitat purchased the 17.3-acre site for the development for an undisclosed
amount. The seller was Realtor Steve Fridrick.
Arizona
Fannie Mae to invest $15 billion
Fannie Mae has announced a new $15 billion affordable housing investment
plan for the state. This plan is an extension of its five-year housing
effort in the greater Phoenix area that provided $4.4 billion in financing
to serve more than 52,200 residents.
Three areas of emphasis under the firm’s American Dream Commitment
are workforce housing, increasing minority homeownership and neighborhood
revitalization.
Among the projects Fannie has funded are Posadas Sentinel, the site
of the former Connie Chambers public housing development, as part of
the city of Tucson’s Barrio Santa Rosa plan. Fannie provided $16
million in low-income housing tax credit equity in this HOPE VI effort.
It will replace 200 aging public housing units with new, affordable
apartments and 190 rental and single-family homes.
California
California passes predatory lending legislation
The state legislature here has passed a law banning predatory lending,
making it the second state in the nation to do so.
The new legislation is designed to offer relief to persons affected
by “predatory” lending – these include practices such
as home improvement scams, kickbacks that result in higher-priced loans
or unjustified high interest rates. Although the original version of
the bill was said to be significantly harsher on lenders in the subprime
market, it remains to be seen exactly how this new bill will impact
companies in the subprime lending market.
Passed by a vote of 22-12, California Assembly Bill 489 is similar to
legislation passed in North Carolina, which was the first state to pass
a law on subprime lending. Among other things, the new California legislation
requires:
• points and fees payable by borrowers to be limited to 6% of the
total loan amount;
• brokers and lenders may not steer borrowers to loans that offer
higher rates (when a borrower’s credit-worthiness may allow them
to qualify for a lower-rate loan); and
• lenders may not require prepayment penalties after 36 months
after the date of “consummation” of the loan.
Supporters of subprime lending practices, however, say this kind of
lending has helped provide funds to those borrowers with credit problems.
Information on the newly passed legislation can be found at www.leg
info.ca.gov/bilinfo.html.
In other housing news from California, Gov. Gray Davis signed a bill,
AB 1044, that increases the California Housing Finance Agency’s
authorization of bonds by $2.2 billion, for a total of $11.15 billion.
The money will finance affordable housing for more than 19,000 families.
Related provides funds for rehabilitation
San Diego – Related Capital Co. has provided $8.2 million to finance
the acquisition and rehabilitation of the Coronado Terrace apartments
here.
The affordable housing development sits on 14 acres. The 17 existing
buildings will be renovated into 268 two- and three-bedroom modern apartment
units. The project is scheduled for completion in August 2002.
Colorado
Construction starts on Denver mixed-use project
Denver – Hope Communities, Inc., and the Five Points Business Association,
Inc., have joined together to build The Point at 26th Ave. and Washington
St.
The $12.5 million project will include 6,000 square feet of ground-floor
retail, an office condo, 33 for-sale condos and 35 apartments. The apartments
will be affordable to people of various income levels, and 10 of the
condos will be sold to people earning 80% or less of area median income.
Construction on the project started in September, with completion scheduled
for October 2002. The project has received funding from housing tax
credits, a loan from the Colorado Housing and Finance Authority, grants
from the Colorado Division of Housing, and construction loans from US
Bank and the Mercy Housing Loan Fund.
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