housingfinance

TDHCA Releases Key Resources

noreply@blogger.com (Donna Kimura) — Wed, 07 Apr 2010 21:40:00 +0000

The Texas Department of Housing and Community Affairs has released two important resources—the 2010 State Low Income Housing Plan & Annual Report and the 2010 Program Guide.

The housing plan serves as an overview of statewide housing needs and reports on the distribution of the agency's resources.

The program guide briefly describes all of the department's programs as well as many others at the state and federal levels.

The documents can be found on the agency's Web site, www.tdhca.state.tx.us.

S.F. Mayor's Quote of the Day

noreply@blogger.com (Donna Kimura) — Fri, 26 Mar 2010 02:37:00 +0000

San Francisco Mayor Gavin Newsom had a good line about affordable housing today. "Shelters solve sleep, housing solves homelessness," he said at the opening of 149 Mason Street, a 56-unit project for formerly homeless individuals.

I'm not sure if Newsom is the first to deliver that line, but he said it with conviction.

149 Mason is located on the edge of San Francisco's Tenderloin neighborhood, right near Union Square.

Developed by Glide Economic Development Corp. and Tenderloin Neighborhood Development Corp., the project will be loaded with supportive services. Glide Health Services will launch its first satellite clinic to provide onsite medical services for residents.

Philadelphia Sees Huge Demand for Vouchers

noreply@blogger.com (Donna Kimura) — Wed, 24 Mar 2010 23:41:00 +0000

The Philadelphia Housing Authority (PHA) reports that it received an overwhelming 54,000 applications for its Housing Choice Voucher Program during a recent two-week period.

Using an online application system for the first time, the housing authority received 33,000 applications, or 61 percent, through the Web. Another 21,000 applications came via telephone. PHA recruited employees from all of its departments to work shifts taking calls.

The demand shows that even more families, seniors and disabled citizens need help paying their rent than initially thought, according to Executive Director Carl Greene.

PHA estimates that each year about 2,500 voucher holders leave the program, creating opportunities for those on a waiting list.

With 17,000 households, the voucher is PHA's largest program.

LIHTC Carryback Bill Introduced

noreply@blogger.com (Donna Kimura) — Fri, 19 Mar 2010 22:45:00 +0000

Sen. Jeff Bingaman (D-N.M.) introduced legislation today aimed at boosting the low-income housing tax credit (LIHTC) market.

His bill, the Low-Income Housing Tax Credit Recovery Act, introduces new flexibility into the program by allowing credits to be carried back up to five years for new housing and qualifying existing housing.

Affordable housing advocates have been pushing for this change as a way to make the credits more attractive to investors. An Ernst & Young study recently determined that this would bring in another $5 billion in private LIHTC investments.

The introduction of the bill was applauded by Enterprise and the Local Initiatives Support Corp.

"Congress’s support and passage of a carryback extension is urgently needed for developers to attract and retain the necessary investment capital to finance, build and rehabilitate affordable apartments,” Charles R. Werhane, president and CEO of Enterprise Community Investment, Inc. “Affordable housing is the cornerstone of success for people and families with low incomes across the country and so Enterprise urges Congress to quickly pass this critical legislation.”

The carryback extension is one of three consensus LIHTC proposals supported by more than 170 national, state and local LIHTC stakeholder organizations working together as part of the Affordable Rental Housing A.C.T.I.O.N. (A Call To Invest in Our Neighborhoods) campaign. For more information on the campaign, visit www.rentalhousingaction.org.

How QAPs Promote Supportive Housing

noreply@blogger.com (Donna Kimura) — Thu, 18 Mar 2010 18:54:00 +0000

Low-income housing tax credit (LIHTC) allocating agencies continue to promote the development of permanent supportive housing through the federal tax credit program.

Thirty-two jurisdiction implemented notable new policies or revised policies that encourage supportive housing development during the past two years, according to a new report by the Corporation for Supportive Housing (CSH).

Forty-six LIHTC allocating agencies provide potential scoring advantages for supportive housing, and 41 agencies provide general scoring incentives encouraging permanent supportive housing or special-needs housing, says CSH.

Fifteen agencies promote supportive housing with set-asides of credit authority. Three agencies have a threshold requirement of dedicating 5 percent to 10 percent of a development's units for permanent supportive housing, and four additional agencies have general threshold requirements that promote permanent supportive housing, says CSH.

The study looks at each state's qualified allocation plan, which is used to allocate the tax credits to affordable housing developers.

For more, visit www.csh.org.

HUD to Exam Discrimination Against Gays

noreply@blogger.com (Donna Kimura) — Thu, 18 Mar 2010 18:36:00 +0000

The Department of Housing and Urban Development (HUD)just launched a Web site to allow people to comment on the design of a new national study that will look at housing discrimination based sexual orientation and gender identity.

While there have been no national assessments of housing discrimination targeting the lesbian, gay, bisexual and transgender community, there is a body of evidence suggesting this sort of bias exists, says federal housing officials.

To learn more and to share comments on how HUD might test for discrimination, visit http://portal.hud.gov/portal/page/portal/HUD/LGBT_Discrimination_Study.

New Leaders Take Over Several HFAs

noreply@blogger.com (Donna Kimura) — Fri, 05 Mar 2010 22:44:00 +0000

Here's a scorecard of some of the recent lineup changes at state housing finance agencies across the country.

The reasons for the leadership changes vary from retirement to resignations to moves made by governors.

Cris A. White (pictured) has become executive director and CEO of the Colorado Housing and Finance Authority. White has been with the agency for more than 20 years, most recently serving as the interim executive director and COO.
His appointment was announced today after a nationwide search.
White takes over the top post from Roy Alexander, who retired at the end of the last year.

In Iowa, Joe O'Hern was appointed director of the Iowa Finance Authority (IFA) by Gov. Chet Culver at the end of last year. This moves comes after Culver plucked Bret Mills from IFA to led the Iowa Department of Economic Development. O'Hern was interim director at the economic development agency and was deputy director at IFA before that.

And, in case you missed it, Gloria Materre took over as executive director of the Illinois Housing Development Authority last fall. She's the former deputy chief of staff under Gov. Pat Quinn. Materre succeeds DeShana Forney, who resigned "to pursue other career opportunities," according to the authority.

There will also be changes at the Missouri Housing Development Commission (MHDC), where Pete Ramsel recently resigned as executive director. "I am surprised by the sudden resignation of Pete Ramsel from MHDC," said Lt. Gov. Peter Kinder in a Feb. 3 statement. "Pete has been a consummate professional during his tenure at the commission. Over the past 15 years, Pete has worked tirelessly with commissioners and public and private entities to help strengthen our state by providing affordable housing for low-income Missourians." Last year, state Auditor Susan Montee issued a critical report of MHDC. The audit criticized the agency's procurement policies and procedures.

HUD Statement on GSEs Coming Soon

noreply@blogger.com (Donna Kimura) — Mon, 01 Feb 2010 22:36:00 +0000

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

noreply@blogger.com (Donna Kimura) — Wed, 27 Jan 2010 16:16:00 +0000

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

noreply@blogger.com (Donna Kimura) — Sat, 23 Jan 2010 00:04:00 +0000

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

noreply@blogger.com (Donna Kimura) — Fri, 22 Jan 2010 17:56:00 +0000

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

noreply@blogger.com (Donna Kimura) — Fri, 22 Jan 2010 04:37:00 +0000

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

noreply@blogger.com (Donna Kimura) — Fri, 15 Jan 2010 00:28:00 +0000

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

noreply@blogger.com (Donna Kimura) — Wed, 13 Jan 2010 22:25:00 +0000

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

noreply@blogger.com (Donna Kimura) — Wed, 30 Dec 2009 23:38:00 +0000

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

noreply@blogger.com (Donna Kimura) — Tue, 29 Dec 2009 23:55:00 +0000

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

noreply@blogger.com (Donna Kimura) — Tue, 29 Dec 2009 23:48:00 +0000

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

noreply@blogger.com (Donna Kimura) — Wed, 25 Nov 2009 22:41:00 +0000

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

noreply@blogger.com (Donna Kimura) — Wed, 25 Nov 2009 22:06:00 +0000

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

noreply@blogger.com (Donna Kimura) — Tue, 24 Nov 2009 23:30:00 +0000

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

noreply@blogger.com (Donna Kimura) — Mon, 16 Nov 2009 23:04:00 +0000

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?

noreply@blogger.com (Donna Kimura) — Mon, 02 Nov 2009 23:29:00 +0000

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

noreply@blogger.com (Donna Kimura) — Thu, 22 Oct 2009 20:36:00 +0000

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

noreply@blogger.com (Donna Kimura) — Fri, 25 Sep 2009 15:19:00 +0000

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

noreply@blogger.com (Donna Kimura) — Thu, 10 Sep 2009 21:13:00 +0000

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.