Day: November 13, 2017

Why the 4% LIHTC Matters: Housing Commission of Anne Arundel County

~ Georgi Banna ~ Leave a comment

Freetown Village

The Low-Income Housing Tax Credit (LIHTC) is one of the most effective tools for creating new and critically needed affordable housing, and accounts for the vast majority of all affordable rental housing created in the United States. This is one in a series of articles that show how public housing authorities (PHAs) and community development agencies have successfully used federal tax credits and tax-exempt bonds to build and/or preserve public housing and affordable housing, and to increase the sustainability of their communities.

Housing Commission of Anne Arundel County: Freetown Village

Freetown Village is an existing community built in 1977 on 9.6 acres in Pasadena, Maryland. It is currently owned and operated as public housing by the Housing Commission of Anne Arundel County (HCAAC).  The property includes 154 family apartments, ranging in size from one-bedroom to four-bedroom apartments. The current unit mix is 24 one-bedroom units, 48 two-bedroom units, 60 three-bedroom units, and 22 four-bedroom units, contained in 15 two-story townhome-style residential buildings, and two three-story garden-style buildings.

Freetown Village needs modernization and upgrades. The Rental Assistance Demonstration (RAD) Program provides an opportunity to access private capital in order to address the property’s physical needs and secure a more stable funding source for rental assistance long-term. HCAAC will use funding from four key resources of the Maryland Department of Housing and Community Development (DHCD): Tax-Exempt Bonds, 4% Low Income Housing Tax Credits, a soft loan from Rental Housing Works loan, and a construction and permanent loan using DHCD’s Risk Share loan product totaling more than $41.5 million. This project is contingent on the use of tax-exempt bonds and issuance of 4% Low income Housing Tax Credits, which have an anticipated commitment date of early 2018.

Existing units will be upgraded with:

  • New kitchen cabinets and counters
  • New kitchen appliances (refrigerators, ranges, range goods)
  • New bathroom vanities
  • New flooring
  • New entry doors
  • R-49 attic insulation
  • Install LED lighting replacement
  • Replace bathtubs with roll-in showers for Americans with Disabilities Act (ADA) units; other ADA upgrades.

In addition system and common area upgrades will include:

  • New hot water heaters
  • HVAC upgrades
  • Upgraded landscaping features
  • Seal/stripe parking spaces
  • Added insulation
  • LED lighting replacement
  • ADA sidewalk improvements
  • New playground
  • All new flooring in common rooms.

The proposal would also add 36 new homes to Freetown Village, including 24 2BR units (approximately 720 square feet) and 12 3BR units ( approximately 980 square feet). Anne Arundel County’s Workforce Housing requirements mandate 20 of the units would be reserved for households at or below 60 percent of Area Median Income. The other 16 units could be occupied by households up to 120 percent of Area Median Income.

For more information about this project or to share your organization’s 4 percent LIHTC success story, please contact nahro@nahro.org.

HUD Updates Disaster Portability Guidance

~ Tushar Gurjal ~ Leave a comment

Earlier today, HUD’s Financial Management Center sent additional guidance for PHAs receiving porting requests from program participants from Presidentially declared Major Disaster Declaration areas. Although previous guidance had been issued in an email, this guidance gives additional details on how receiving PHAs should process ports when the initial PHA is unable to complete portability requests.

This guidance applies to receiving PHAs that are contacted directly by families that are from areas covered by Presidentially declared Major Disaster Declarations and that wish to port, but have an initial PHA that cannot complete their portability responsibilities.

HUD has published a list, which includes all PHAs in Puerto Rico and the U.S. Virgin Islands, and whether receiving PHAs should use these alternative portability guidelines. HUD will continually update this list by 5 pm EST every Thursday to reflect changes that allow initial PHAs to resume portability operations. This disaster portability guidance will be in effect until January 31, 2018, unless HUD extends this date. Questions can be emailed to the HUD Disaster Portabilty Team at DisasterPortability@hud.gov.

The PHA Portability Status List can be found here.

HUD’s updated portability guidance can be found here.

Why the 4% LIHTC Matters: New York City Housing Authority

~ S. Gimenez ~ Leave a comment
nycha
Photo courtesy of NYCHA

The Low-Income Housing Tax Credit (LIHTC) is one of the most effective tools for creating new and critically needed affordable housing, and accounts for the vast majority of all affordable rental housing created in the United States. This is one in a series of articles that show how public housing authorities (PHAs) and community development agencies have successfully used federal tax credits and tax-exempt bonds to build and/or preserve public housing and affordable housing, and to increase the sustainability of their communities.

New York City Housing Authority: Ocean Bay (Bayside) Apartments

In June 2017, the New York City Housing Authority (NYCHA), the NYS Homes and Community Renewal (HCR), and the U.S. Department of Housing and Urban Development (HUD)  announced $560 million in federal, state, city, and private investment in NYCHA’s Ocean Bay (Bayside) Apartments, including $213 million in tax-exempt bonds, to finance essential infrastructure upgrades, support state-of-the-art resiliency and security systems, and the renovation and preservation of the public housing complex that is home to nearly 4,000 residents in Far Rockaway, Queens.

The 24-building, 1,395-unit Ocean Bay (Bayside) Apartments complex in Far Rockaway, Queens, provides vital affordable housing for low-income New Yorkers. Completed and first occupied in the early 1960s, the aging development was already facing critical maintenance needs and a deteriorating infrastructure before suffering extensive damage from Superstorm Sandy, including flooding and the destruction of the central heating plant. Some of the more notable renovations needed include roof replacements, complete upgrade of elevator machinery and equipment, new boilers and heating systems.

The three-year, $327 million restoration will involve a major infrastructure overhaul, with upgrades improving the overall community. All apartments will undergo extensive kitchen and bathroom renovations. To prepare for future extreme weather events, the restoration will also include resiliency measures such as the third-largest solar panel installation at an affordable housing development in New York State, a secure flood wall, water retention swales, stand-alone electric service buildings built above the flood zone, and the conversion from one central boiler steam system to 24 individual hydronic boilers on the roof of each building. The project also aims to provide residents with a safer, more secure community with new and updated security cameras, improved interior and exterior lighting, and a new key fob entry system.

This is NYCHA’s first conversion under HUD’s Rental Assistance Demonstration (RAD), which allows housing authorities to access private capital to meet capital needs while also protecting long-term affordability. “This is government at its best and we are proud to be a part of driving investment in public housing across the state,” said New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas. “Here in New York City, the State worked with NYCHA – providing $213 million in tax-exempt bonds – to make their first RAD financing of nearly 1,400 units at the Ocean Bay complex possible. The result: Federal, local and state agencies working together to catalyze a public-private financing structure that supports vital capital improvements and respects tenants’ rights and needs.”

For more information about this project or to share your organization’s 4 percent LIHTC success story, please contact nahro@nahro.org.