MuniMae to Sell LIHTC Business

Municipal Mortgage & Equity, LLC, (MuniMae) has agreed to sell substantially all of its low-income housing tax credit (LIHTC) business to an affiliate of JEN Partners, LLC, a New York-based private equity real estate firm.

The deal involves the LIHTC assets operated by MuniMae subsidiaries, MMA Equity Corp. and MMA Financial TC Corp. other than its interests in certain guaranteed funds.
The approximately $30.7 million sale consists of $18.7 million to be paid in cash and approximately $12 million in liabilities to be assumed by the purchaser.

In a press release, officials said the sale is structured to occur in two closing. The first will cover at least 30 LIHTC funds and the operating assets of the business, inclusive of employments with a cash payment of at least $14 million plus the assumption of liabilities.

The second closing will cover the remaining assets being transferred plus the balance of cash consideration.

MuniMae said it will retain control of certain LIHTC funds in which the firm has guaranteed obligations and will engage the purchaser to manage the funds.

NYC Announces $100 Million Property Purchase

New York City took a big step toward creating the largest middle-income housing developments since the 1970s.

The development is expected to bring 5,000 new units of housing, the majority of which will be reserved for moderate- and middle-income families.

To accommodate this project, the city announced the $100 million acquisition of 30 acres at Hunter's Point South in Long Island City. It is expected that of the 3,000 affordable units planned, 1,000 will be for families with incomes at 80 percent of the Department of Housing and Urban Development income limit. Another 1,000 units will be for families at the 130 percent income limit, and the last 1,000 for those at 165 percent of the income limit.

Bill Seeks the Exchange of Disaster Credits

Sen. Evan Bayh (D-Ind.) has proposed legislation to allow Gulf Opportunity Zone and Midwestern disaster area tax credits to be eligible for the exchange program created by the American Recovery and Reinvestment Act.

"Due to the turmoil in the financial markets, developers have found it increasingly difficult to utilize the package of low-income housing tax credits that Congress approved in 2005 and 2008 to speed the rebuilding of affordable housing in designated disaster areas," said a statement from Bayh's office.

The bill ensure that the states that received disaster credits will be able to use the exchange program to convert a portion of their credits into cash grants.

"The economic downturn is making tax credit financing hard to come by, which has hindered the recovery effort in some communities," said Bayh. "By allowing our state to immediately convert these tax credits to cash, Indiana could take advantage of $230 million in federal assistance to spur construction of quality, affordable houses."

The legislation was introduced with Sen. Richard Shelby (R-Ala.).

Dallas Corruption Case Gets Under Way

There’s some court action in Dallas this week in the FBI’s high-profile corruption case that has an affordable housing developer at its center.

Jury selection was set to begin, but developer Brian Potashnik and his wife, Cheryl, were absent, fueling speculation that they may have cut a deal, reported The Dallas Morning News. The couple was behind Southwest Housing Development Co., one of the largest and most prominent affordable housing firms in Texas.

They are accused of bribing former Dallas Mayor Pro Tem Don Hill and others to support their housing projects.

The local press has called the case “Dallas’ biggest political scandal in a generation.”

Seattle Prepares to Vote on Housing Levy

The Seattle City Council voted unanimously this week to put a $145 million, seven-year property tax on the November ballot to raise money for affordable housing.

The council backed Mayor Greg Nickels' proposal after some early speculation that a smaller amount would go before voters in these hard times.

The proposed levy would cost $17 per $100,000 of assessed property value. That would be about $79 a year for the average Seattle homeowner, an increase from the current $49 housing levy.

Under the proposal, $104 million would be dedicated to building or renovating 1,670 affordable rental units. The council said that 60 percent of the $104 million would be reserved for people earning no more than 30 percent of the area median income.

If there's a community that will support a housing levy, it's Seattle. The city has voted in favor of a levy on three occasions. Will Seattle make it four?

Bay Area Welcomes Two New Developments

It was a big day for affordable housing in the San Francisco Bay Area today, with the opening of two notable developments.
In Berkeley, Resources for Community Development (RCD) celebrated the completion of Oxford Plaza, a 97-unit development for low-income families and individuals.
It is the signature project for the 25-year-old nonprofit organization, said Daniel Sawislak, RCD executive director.
Oxford Plaza is a green, transit-oriented community next to the new David Brower Center, an environmental complex that will be a hub for several nonprofit organizations. Brower was the Sierra Club's first executive director.
Mayor Tom Bates said he couldn't be happier with the outcome. "We've got 97 family units in Berkeley," he said. "That's a high accomplishment."
The project was financed with the help of low-income housing tax credits.

Arnett Watson Apartments
Across the bay in San Francisco, Community Housing Partnership (CHP) and Tenderloin Neighborhood Development Corp. held a grand opening ceremony for the Arnett Watson Apartments.
The nine-story development is named after one of CHP's original residents and a tenant leader. Watson died in 2003, but her spirit carries on.
"She was on the street and never forgot that," said homeless advocate Paul Boden, who joined others in remembering Watson. He had no doubts that she would have responded to the tribute in her usual tough manner.
It would have been "what the hell are you doing?" Boden said.
Jeff Kositsky, CHP executive director, said he hoped the new residents would continue Watson's fight for the homeless.
The 83-unit project is the first new construction deal for CHP, which has a history of rehabilitating the area's single-room occupancy hotels into housing.
Arnett Watson Apartments was also funded with housing tax credits.

Seattle Mayor Seeks New Housing Levy

Seattle Mayor Greg Nickels has proposed a new housing levy to raise money for affordable housing in the city. It comes as the current seven-year, $86 million levy is set to expire this year.

Nickels wants a new seven-year levy that's even bigger-$145 million. For the average homeowner, the property tax would be $79 a year or as the mayor likes to say just $6.60 a month. The funds will go toward several areas, including $104 million to build and preserve about 1,670 affordable rental units.

Here's a link to watch a video of his announcement:

http://www.seattlechannel.org/videos/video.asp?ID=1060934

Boston’s Henriquez Picked for HUD Post

Sandra B. Henriquez, administrator and CEO of the Boston Housing Authority, has been nominated by President Barack Obama to be assistant secretary for public and Indian housing at the Department of Housing and Urban Development (HUD).

Her appointment is the latest key move in assembling the new HUD leadership team.

An industry veteran, Henriquez is well familiar with HUD's public housing programs. She assumed her duties as the administrator and CEO of the Boston Housing Authority in April 1996. She is the chief of public housing for the city, which is a cabinet position within the administration of Mayor Thomas M. Menino. She previously served at the Boston Housing Authority in various capacities from 1977 to 1983.

She is the immediate past president of the Council of Large Public Housing Authorities (CLPHA).

“Sandi is widely recognized as a national leader on affordable housing issues, and we are confident and optimistic she will make a tremendous contribution,” said Sunia Zaterman, executive director of CLPHA, in a prepared statement. “She has a great vision for the future of public housing, proven leadership, and ability to forge critical partnerships that can help meet our nation’s affordable housing needs.”

Henriquez serves on multiple boards, including YWCA Boston and the Massachusetts Housing Investment Corporation.

Obama has picked several industry veterans from around the country to serve at HUD, starting with Secretary Shaun Donovan, who was commissioner of the New York City Department of Housing Preservation and Development. He also recently selected affordable housing developer Carol Galante of BRIDGE Housing, a California nonprofit organization, to be deputy assistant secretary for multifamily housing programs.