housingfinance

HUD Statement on GSEs Coming Soon

2010-02-01T14:36:00.000-08:00

Department of Housing and Urban Development (HUD) Secretary Shaun Donovan
said a statement on the government-sponsored enterprises (GSEs) is coming
soon.

This comment was made today during a media briefing on HUD’s proposed 2011 budget.
A reporter inquired why little was said in the spending plan about
Fannie Mae and Freddie Mac.

HUD made a commitment last summer as part of its proposal on financial
regulatory reform that it would put forward a statement on the GSEs around
the time of the budget.

“We did not say that it would be included in the budget document itself,”
Donovan said. “We continue to be on track to release a statement in the near future on the GSEs.”

Nothing should be read into the fact there isn’t a fuller statement in the
budget document, according to Donovan.

SRO Residents Can Call 311 For Help

2010-01-27T08:16:00.000-08:00

Residents living in San Francisco’s single-room occupancy (SRO) buildings can call the city’s 311 line to report building and health problems.

Local residents have typically used the 311 customer service center to report potholes, graffiti, and other outdoor issues. Housing advocates and city workers recently teamed to expand the call center to assist SRO residents, who can use the number to report building safety and health issues.

“Issues like rodents, inadequate heat or water, and block fire exits are a reality for low-income residents,” said Josh Vining, a community organizer for the Mission SRO Collaborative, the advocacy group that led the community effort. “311 now gives people a way to report unhealthy or unsafe conditions and to follow-up on the solution.”

As far as he knows, no other city provides a similar service for SRO residents. Vining says there are about 530 SRO buildings in San Francisco, housing an estimated 18,000 residents.

The call center will minimize duplicative requests to agencies and direct complaints to the appropriate department.

Mayor Gavin Newsom formed the center in 2007, and it’s been a touchy topic with some members of the Board of Supervisors, who want to cut it to save money.

Nonprofit Prepares to Close

2010-01-22T16:04:00.000-08:00

An official with Tualatin Valley Housing Partners (TVHP) tells us that the 15-year-old nonprofit group is edging closer to shutting down by selling its affordable housing properties.

Potential buyers are busy performing due diligence as they consider taking over the Beaverton, Ore. group's portfolio of about seven properties. It doesn't look like there will be one buyer to take over all the communities. Instead, several groups will acquire individual developments.

The dispositions could take place in the next 60 days or so, according to Larry Iverson, board president.

TVHP is among the businesses that have been hit hard by the recession.

Grants and development fees dried up, some residents lost their jobs and could not pay their rents, and the financial markets were a mess. In addition, a former employee looks to have taken a modest amount of funds. The impropriety involved less than $10,000 and did not play a big role in TVHP’s closing, according to group.

We wonder how many other housing firms are at the tipping point.

CTCAC Schedule Released

2010-01-22T09:56:00.000-08:00

The California Tax Credit Allocation Committee has released its proposed program schedule and deadlines for 2010.

Under the plan, applications for the first round of funding for low-income housing tax credits will be March 25. Look for application workshops throughout February.

The second-round deadline will be July 7.

For more information, visit www.treasurer.ca.gov/ctcac.

Talking Head Joins New Urbanism Panel

2010-01-21T20:37:00.000-08:00

David Byrne, former frontman of the Talking Heads, has joined the lineup for the Congress for the New Urbanism (CNU) meeting in May.

He’s taking part on an opening panel at the “Rx for Healthy Places” conference in Atlanta. The rock star may sound like an unusual choice, but Byrne is a thoughtful commentator on urban life.

Byrne's book Bicycle Diaries chronicles how his use of bicycles as his primary form of transportation (and folding bicycles wherever he travels) taught him to view the world and its cities differently. His also wrote an essay for the Wall Street Journal this fall that described his perfect city.

"Riding his bicycles through the cities of the world, David Byrne is out front among the voices from diverse worlds — the arts, economics, music, public health — who are seeing connections between how we build neighborhoods, how we get around and how well we live," said John Norquist, CNU president and CEO, in a statement. "Whether its songs such as 'Once in a Lifetime' or other forms of art and writing, he's been a shrewd observer of modern life so it's a real joy to see him turn his eye to the built environment and the communities it supports."

NSP Competitive Grants Announced

2010-01-14T16:28:00.000-08:00

Nearly 60 grantees were awarded $2 billion under the Neighborhood Stabilization Program (NSP) funds, announced the Department of Housing and Urban Development today.

Florida communities and organizations received the largest amount, nearly $349 million. California received more than $318 million, with the city of Los Angeles receiving $100 million. Michigan was next with nearly $224 million going to the Michigan State Housing Development Authority, which is working with 12 communities—Battle Creek, Benton Harbor, Detroit, Flint, Grand Rapids, Hamtramck, Highland Park, Kalamazoo, Lansing, Pontiac, Saginaw, and Wyandotte.

This round of grants is being awarded competitively to applicants with the most innovative ideas to rebuild local communities while demonstrating they have the capacity to deliver on their plans.

The grants will help build on the work being done by state and local governments and nonprofit developers to acquire land, demolish or rehabilitate abandoned properties, and/or to offer downpayment and closing cost assistance to low- and middle-income homebuyers. Grantees can also create land banks to assemble, temporary manage, and dispose of foreclosed homes.

Funded under the American Recovery and Reinvestment Act, the NSP was created to help redevelop communities hit by foreclosures and vacant homes.

Last year, federal housing officials awarded nerly $4 billion in NSP formula funds to more than 300 grantees nationwide to help communities respond to the housing crisis.
Another $50 million was awarded in technical assistance grants.

For more information, visit www.hud.gov.

Soundtrack Benefits Enterprise, United Way

2010-01-13T14:25:00.000-08:00

The next time you're on iTunes, check out the new By The People: For The People soundtrack, which features Bruce Springsteen, the Dixie Chicks, Sheryl Crow, Dave Matthews, Tim McGraw, Dashboard Confessional, John Mayer, and other artists. The proceeds benefit the United Way and Enterprise's efforts to rebuild the Gulf Coast.

Exclusively on iTunes, the soundtrack was inspired by the HBO documentary By The People: The Election of Barack Obama. The film was produced by actor Edward Norton, an Enterprise trustee.

“In many ways, By the People is a portrait of the people in Obama's campaign who believed that their individual effort could help make history," Norton said. "So, it's fitting that all the proceeds from the soundtrack support Enterprise and United Way's efforts to engage volunteers who also think that they can make a difference, restoring hope and rebuilding lives in the Gulf Coast.”

VanAmerongen Resigns as NY Housing Commissioner

2009-12-30T15:38:00.000-08:00

Deborah VanAmerongen, commissioner of the New York State Division of Housing and Community Renewal, is resigning effective Jan. 15, 2010, according to a statement from Governor David Paterson.

VanAmerongen, who has held the agency's top post since 2007, is expected to join the Nixon Peabody law firm as an adviser. Nixon Peabody has an active affordable housing practice.

Paterson praised VanAmerongen for her work in New York, including helping to author legislation and provide tens of thousands of units of affordable housing. "Perhaps her greatest achievement is helping to negotiate the recently completed refinancing of Starrett City, which will keep nearly 6,000 households affordable for an additional 30 years," he said.

VanAmerongen is the second state housing official to resign in recent weeks. Priscilla Almodovar, president and CEO of the New York State Housing Finance Agency and the State of New York Mortgage Agency, resigned in early December.

VanAmerongen is a member of Affordable Housing Finance's Editorial Advisory Board.

Texas Developers Set to be Sentenced

2009-12-29T15:55:00.001-08:00

Affordable housing developers Brian Potashnik and his wife, Cheryl, are scheduled to be sentenced in March for their roles in a prominent Dallas bribery case, according to the Dallas News.

The Potashniks had operated Southwest Housing, a large and well-known affordable housing development firm, in the city.

Brian Potashnik pleaded guilty to bribing former Mayor Pro Tem Don Hill, according to the newspaper. He testified earlier this year that he felt pressure from Hill to pay bribes to ensure that his housing projects would be approved. In October, a federal jury convicted Hill and others involved in what became known as the "Dallas City Hall Corruption Case."

Cheryl Potashnik pleaded guilty to bribing state Rep. Terri Hodge, according to the paper. Hodge, who is seeking re-election, faces trial next year.

St. Joseph's Housing Seeks Chapter 11

2009-12-29T15:48:00.000-08:00

St. Joseph's Housing Corp. in Albany, N.Y., has filed for bankruptcy protection.

The nonprofit owns 53 properties that provide affordable housing to low-income residents in the area, says attorney Marc Ehrlich.

The group filed for Chapter 11 on Dec. 19, with hopes of reorganizing.

Ehrlich was headed to court Dec. 30 to to keep the restructuring attempt on course after a motion to dismiss was filed.

CTCAC Unveils Proposed LIHTC Changes

2009-11-25T14:41:00.000-08:00

The California Tax Credit Allocation Committee has released its proposed regulation changes for 2010.

The committee has also scheduled three public meetings to solicit comments on the possible changes. The meetings will be held Dec. 4 in Los Angeles, Dec. 7 in Sacramento, and Dec. 9 in San Francisco.

The proposed changes include increasing housing goal percentages for special-needs and single-room occupancy housing types up to 15 percent each, clarifying the geographic apportionment naming styles, and starting in the second round of 2010, limiting a sponsor’s 9 percent applications to no more than four per round and no more than two per set-aside or geographic apportionment.

Officials also propose to amend the final tiebreaker to combine the ratios of (a) requested unadjusted eligible basis to total development costs, and (b) committed permanent public funding to total development costs. Officials note that they would eliminate the exceptions of land costs and developer fee in the total development cost figure.

In two other moves, minimum debt-service coverage ratio is proposed to increase to 1.15x, and an additional manager’s unit is proposed to be required for every additional 80 units in a property.

For a list of the all the proposed changes, visit http://www.treasurer.ca.gov/CTCAC.

IRS Announces Priority Guidance Plan

2009-11-25T14:06:00.000-08:00

The Treasury Department and the Internal Revenue Service announced the release of the 2009-2010 Priority Guidance plan.

The plan contains 315 projects to be completed by the IRS over a 12-month period, from July 2009 through June 2010. This year’s plan will address a variety of issues, including recent legislation, the current economic environment, and important international issues, according to officials.

Some of the priorities involve the low-income housing tax credit (LIHTC) program and include:

*Final regulations under Sec. 42 on the requirements for a qualified contract.

*Guidance for the low-income housing credit under Sec. 42 relating to sections 1404 (Tax Credit Assistance Program) and 1602(Tax Credit Exchange Program) of the American Recovery Reinvestment Tax Act of 2009.

*Regulations concerning utility allowances under Sec. 42(g)(2)(B)(ii) for sub-metered buildings. Interim guidance was issued in Notice 2009-44.

For more information, click here http://www.irs.gov/pub/irs-utl/2009_-_2010_priority_guidance_plan.pdf

L.A. Mayor Names Pick for Housing Post

2009-11-24T15:30:00.000-08:00

Los Angeles Mayor Antonio Villaraigosa has announced Doug Guthrie as his pick to become the general manager of the city's Housing Department.

Guthrie has extensive experience in affordable housing, most recently serving as president of Kimball Hill Urban Centers in Chicago, where he built mixed-income and mixed-use projects in challenged urban communities.

Kimball Hill Urban was a subsidiary of Kimball Hill Homes, which filed for bankruptcy and shut down in 2008 amid the housing and financial crisis.

Guthrie was also the inaugural president of the National Equity Fund in 1989 and was also deputy executive director and COO at the Chicago Housing Authority from 1987 to 1989. He has also held several positions with the Department of Housing and Urban Development (HUD).

L.A.'s former housing general manager, Mercedes Marquez, left earlier this year to become HUD's assistant secretary for community planning and development.

Citizens Housing Turns Over Management Duties

2009-11-16T15:04:00.000-08:00

San Francisco-based nonprofit Citizens Housing Corp. has turned over management of its properties to two other affordable housing groups. Tenderloin Neighborhood Development Corp. (TNDC), another San Francisco nonprofit, has taken over management of seven properties with about 540 units in the city. The addition of the properties represents a 30 percent increase to TNDC’s management portfolio. It also moves TNDC into neighborhoods it has not been in. The two organizations have partnered on several developments over the years.

Eden Housing, a nonprofit affordable housing developer and owner headquartered in Hayward, Calif., has taken over management of 10 properties with about 900 units. These properties are all outside of San Francisco.

Like other organizations, Citizens Housing has been facing financial challenges this year. It also lost its longtime president, Jim Buckley, who took a teaching position at the Massachusetts Institute of Technology.

Goldman Sachs to Buy Fannie LIHTCs?

2009-11-02T15:29:00.000-08:00

The Treasury Department is reportedly reviewing a proposal for Goldman Sachs to buy millions of dollars in low-income housing tax credits (LIHTCs) from Fannie Mae.

According to several news outlets Monday, the possible deal is raising scrutiny because federal officials need to make sure that it is in the best interest of taxpayers.

Goldman Sachs officials have remained mum about a potential transaction.

Fannie Mae and Freddie Mac were huge buyers of LIHTCs up to a few years ago. Freddie has also reportedly been considering a sale of its tax credit portfolio.

HUD Moves to Include Gays

2009-10-22T13:36:00.000-07:00

Federal housing officials announced a series of proposals today to ensure that their core housing programs are open to all, regardless of sexual orientation or gender identity.

The Department of Housing and Urban Development (HUD) said it will also commission the first national study of discrimination against members of the lesbian, gay, bisexual, and transgender (GLBT) community.

HUD officials said a proposed rule will:

• Clarify that the term "family" as used to describe eligible beneficiaries of our public housing and Housing Choice Voucher programs include otherwise eligible lesbian, gay, bi-sexual or transgender individuals and couples. HUD's public housing and voucher programs help more than three million families to rent an affordable home. The department's intent to propose new regulations will clarify family status to ensure its subsidized housing programs are available to all families, regardless of their sexual orientation or gender identity.

• Require grantees and those who participate in the department's programs to comply with local and state non-discrimination laws that cover sexual orientation or gender identity; and

• Specify that any Federal Housing Administration-insured mortgage loan must be based on the credit-worthiness of a borrower and not on unrelated factors or characteristics such as sexual orientation or gender identity.

The move comes at a time when activists have criticized the administration for not doing enough for the GLBT community.

CTCAC Adds More Workshop Dates

2009-09-25T08:19:00.000-07:00

The California Tax Credit Allocation Committee is requiring developers who have received a preliminary reservation of American Recovery and Reinvestment Act (ARRA) funds to attend a workshop that will provide an overview of the loan process, disbursement procedures, reporting requirements, and other key information.

Two additional workshops have been scheduled—Sept. 29 in Sacramento and Oct.1 in Los Angeles.

Applicants who have received a preliminary ARRA reservation must attend one of the committee’s workshops. Two earlier sessions have taken place.
For a registration form and more information, visit www.treasurer.ca.gov/ctcac.

Poverty Rate Hits 11-Year High

2009-09-10T14:13:00.000-07:00

In the midst of a recession last year, the nation's poverty rate rose to an 11-year high.

The rate jumped to 13.2 percent in 2008, up from 12.5 percent the year before. In other words, there were 39.8 million people living in poverty last year compared to 37.3 million in 2007, according to data released today by the Census Bureau.

The poverty rate is the highest since 1997.

The weighted average poverty threshold for a family of four in 2008 was $22,025; for a family of three, $17,163; for a family of two, $14,051; and for unrelated individuals, $10,991.

The Census Bureau also reports that the median household income fell 3.6 percent between 2007 and 2008, from $52,163 to $50,303. "This breaks a string of three years of annual income increases and coincides with the recession that started in December 2007," says the Bureau.

Pelosi Helps Celebrate Housing Project

2009-09-02T09:30:00.000-07:00

Speaker of the House Nancy Pelosi was on hand yesterday as officials began the renovation and preservation of a 245-unit affordable housing development in San Francisco's Japantown neighborhood.

Originally built in the 1970s, the seven-building Nihonmachi Terrace is undergoing a sweeping $25 million renovation that will include energy-efficiency enhancements and structural improvements. The work is scheduled to be completed in 2010.

The San Francisco Redevelopment Authority issued $26 million in tax-exempt bonds that were purchased by Citi. Enterprise Community Investment, Inc., syndicated $8.1 million in low-income housing tax credit equity. Additional funding was provided by the developer and managing general partner, Japanese American Religious Federation Housing, Inc., and the Federal Home Loan Bank of San Francisco. The Low Income Investment Fund provided a predevelopment loan. The John Stewart Co., co-general partner, is coordinating the construction work and will manage the property.

Housing Groups Turn 20

2009-08-28T13:55:00.000-07:00

In 1989, the Berlin Wall fell, the Exxon Valdez ran aground, and the B-52s took everyone on a road trip to the love shack.

New community development organizations were also blossoming around the country.
That means several prominent affordable housing developers are celebrating their 20th anniversary this year.

They include Skid Row Housing Trust in Los Angeles, Arlington Partnership for Affordable Housing in Arlington, Va., and Montgomery Housing Partnership in Montgomery County, Md.

Not to be outdone: Resources for Community Development, a Berkeley, Calif.-based nonprofit housing builder, turned 25 this year. LINC Housing in Long Beach, Calif., is also celebrating 25 years.

What other affordable housing groups are celebrating milestone anniversaries this year? Let us know.

Challengers Oust Seattle Mayor

2009-08-26T15:36:00.000-07:00

Seattle Mayor Greg Nickels conceded the election last week as two other candidates for the city’s top post led the vote count and advanced to a November general election.
Nickels, a two-term incumbent, has been a strong supporter of affordable housing and has recently pushed for a new $145 million housing levy. The City Council agreed to place the levy on the November ballot.
This last term has been a tough one for the mayor, who took much heat for the city’s botched response to a snowstorm last year.
Challenger Mike McGinn had 27.7 percent of the vote; Joe Mallahan, 26.9 percent; and Nickels, 25.35 percent, in the latest unofficial count.
With Seattle in a mood for change, it will be interesting to see how the housing levy will fare. Seattle voters have a long history of supporting the tax. They have approved one bond and three levies since 1981. Will they do it again?

Officials Tout Early TCAP Projects

2009-08-19T16:46:00.000-07:00

Much-anticipated stimulus money for affordable housing is starting to hit the streets.

New York City officials say the Big Apple is the first city in the nation to begin construction of new affordable housing with funding from the American Recovery and Reinvestment Act's Tax Credit Assistance Program (TCAP). The Act provided $2.25 billion in TCAP funds to jump-start stalled low-income housing tax credit projects.

New York City received $85 million of those funds and will use about $60 million to assist four developments in the city—three in Harlem and one in East New York—that are underway, according to officials.

One of the projects is located on two separate sites. On an East 102nd Street site, 12 deteriorated walkup buildings will be demolished and replaced by a nine-story building that will be called Hobbs Court. The new building will have 259 residential apartments. On an East 100th Street site, five vacant six-story buildings will be substantially rehabilitated and combined into a single building that will be known as The Ciena. It will have 81 apartments. These buildings will be developed by Phipps Houses Group and Urban Builders Collaborative.

On the side of the country, an affordable housing development that was under construction but came to a halt last March after losing its tax credit funding is scheduled to restart in November, according to federal housing officials.

Ron Sims, deputy secretary of the Department of Housing and Urban Development, visited the Cedar Gateway site in San Diego earlier this month. The project is also getting TCAP funds.

California was allocated $326 million in TCAP funds. About $14 million is going to restart Cedar Gateway.

Smile, You're on Camera

2009-08-04T10:55:00.000-07:00

The Chicago Housing Authority (CHA) has announced a $23 million camera initiative that will feature the installation of 3,000 cameras at its senior and family housing developments.

The funds were made available by the American Recovery and Reinvestment Act. About $19 million will be used for cameras at the family developments, and $2.8 million for the seniors housing.

Siemens Technologies was awarded the contract.

The remainder of the stimulus funds awarded to CHA—about $143 million—will be used to rehabilitate 900 units of public housing and to proceeds with needed demolition of "non-viable" buildings to improve the safety of the surrounding communities, said officials.

Buckley to Leave Citizens Housing

2009-08-03T07:52:00.000-07:00

James Buckley, the longtime president of Citizens Housing Corp. in San Francisco, is leaving the nonprofit organization in the fall for a teaching post at the Massachusetts Institute of Technology (MIT).

He will join MIT's Department of Urban Studies and Planning in September. Buckley has been a lecturer in city planning at the University of California at Berkeley for the past few years.

During Buckley's 11-year tenure, Citizens Housing has grown rapidly, with a current portfolio of more than 3,000 affordable apartments.

Noreen Beiro, chief operating officer, will step in as acting president while the board of directors searches for a permanent replacement.

Citizens Housing also announced that Andy Madeira has joined Citizens Housing as vice president of real estate development. He joins the organization from BRIDGE Housing, where he was director of development.

Citizens is the second San Francisco-based nonprofit housing developer that is searching for a new leader this year. Carol Galante left the top post at BRIDGE earlier this year after being appointed deputy assistant secretary for multifamily housing programs at the Department of Housing and Urban Development.

FMR Materials Released

2009-07-31T13:38:00.000-07:00

The proposed fiscal 2010 fair market rents (FMRs) are scheduled to be published in the Federal Register on Tuesday, Aug. 4.

However, you can see some of the tables and background materials at www.huduser.org/datasets/fmr.html.

Once the FMRs are published, there will be a 30-day comment period.

The FMRs are important because they are used in a number of housing programs, including determining payment standard amounts for the Housing Choice Voucher program.