Affordable Housing

HUD Releases 2018 QCTs and DDAs for the LIHTC Program

~ Jenny Hsu ~ Leave a comment

On September 11, the Department of Housing and Urban Development (HUD) published a Notice in the Federal Register designating its statutorily mandated list of qualified census tracts (QCTs) and difficult development areas (DDAs) for the purposes of the Low-Income Housing Tax Credit (LIHTC) program. Under LIHTC, projects located in QCTs and DDAs are eligible to receive up to a 30 percent basis boost while receiving Housing Credits. The 2018 QCTs and DDAs will be effective for LIHTCs allocated after December 31, 2017, and for bond-financed  properties where the tax-exempt bonds are issued and the building is placed in service after December 31, 2017.

HUD publishes QCT and DDA designations annually. While this Notice provides specific details on the methodology in determining 2018 QCTs and DDAs, the full listings and other historical data can be accessed at: https://www.huduser.gov/portal/datasets/qct.html.

Suspension of HOME 24-Month Commitment Requirement

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On June 2, HUD published a message on HUD Exchange addressing the FY 2017 Consolidated Appropriations Act’s (Public Law No. 115-31) suspension of the HOME Investment Partnerships Program (HOME) 24-month commitment requirement for deadlines occurring in 2016, 2017, 2018, and 2019. Due to this suspension, HUD will not be enforcing the program’s 24-month commitment requirement for deadlines occurring this year or in 2018 and 2019. For deadlines that occurred in 2016, HUD intends to return deobligated funds to participating jurisdictions (PJs). HUD further clarifies that this suspension does not apply to a PJ’s Community Housing Development Organization (CHDO) set-aside funds and does not apply to the 5-year expenditure deadline for FY 2014 and earlier grants. The recent HOME interim rule implementing grant-specific commitment requirements remains in effect, except HUD will not enforce the 24-month commitment deadlines discussed above. Additional HUD guidance on the effects of this suspension is forthcoming.

HOME Impact Story in Vancouver, Washington

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During National Community Development Week, NAHRO celebrates the hard work of communities across the country by sharing Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) impact stories, highlighting the importance of these federal affordable housing and community development programs at the local level.

Project name Isabella Court I IMG_3578_Isabella
Location Vancouver, WA
District WA-03
Project Year 2015
Project Description Spearheaded by REACH, one of the largest and most successful Community Development Corporations in Oregon, Isabella Court offers affordable, senior living in Vancouver, Washington. Isabella includes 46 one-bedroom and 3 two-bedroom apartments and is built to the Evergreen Sustainable Development Standard (ESDS), with its focus on energy efficiency and promotion of sustainable living. The Isabella offers vibrant living in the Fourth Plain Corridor, with nearby restaurants, shopping, movie theater, and parks.
Use of HOME Funds New construction and development costs for multifamily rental housing.
Target Population Apartments are reserved for households 62 years of age and over earning 60% or less of the area median income.
HOME Funds $2,518,734 were provided by the Washington State Department of Commerce, the City of Vancouver and Clark County Community Services.
Other Funds 10 Project-Based Section 8 vouchers valued at $331,200; LIHTC; Tax-exempt bonds; State Housing Trust Fund. Total project cost: $12,476,777.
Project Impact The investment of these HOME funds and other leveraged dollars brought one of the first rent-restricted senior developments to the City of Vancouver in almost ten years and supplied the area economy with construction jobs with a living wage. The affordable housing provided much needed apartments to a City with one of the highest percentage rent increases in the nation between 2015 and 2016. Other impacts of this project include municipal economic development, job skills training, apprenticeship and neighborhood revitalization for one of the poorest Census Tracts in Clark County.
Contact Ben Sturz – bsturtz@reachcdc.org www.reachcdc.org

CDBG Impact Story in Fort Collins, Colorado

~ Jenny Hsu ~ Leave a comment

During National Community Development Week, April 17-22, NAHRO celebrates the hard work of communities across the country by sharing Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) impact stories, highlighting the importance of these federal affordable housing and community development programs at the local level.

Project Name Redtail Ponds Permanent Supportive Housing

Redtail Ponds
Location Fort Collins, Colorado
District CO-02
Project Year 2015
Project Description Redtail Ponds is a 4-story permanent supportive housing (PSH) development that offers 60 apartments for people with disabilities who have experienced homelessness. Multiple support services for those with substance abuse or mental health issues are located on site to help people gain stability in their lives. In a recent press coverage for the development, the columnist appropriately refers to Redtail Ponds as a “window of hope” since this award winning development demonstrates that “the best thing to be done for the homeless is not soup or pallets on a barren floor, but a place to assemble one’s life in peace.” In addition to apartments, Redtail Ponds features a community kitchen, fitness area, computer room, community garden and several common areas for residents to congregate.
Use of CDBG Funds Construction of housing
Target Population Homeless with disabilities and veterans with disabilities
CDBG Funds $1,391,077
Other Funds Leveraging: LIHTC Equity Investment, Colorado Division of Housing, Colorado Housing and Finance Authority Mortgage.
Jobs Created 40 jobs
Project Impact With its inspiring scenic view of the snow-covered Front Range, this project has provided homes for 60 residents, from 19-80 years old, including 22 veterans. After one year, 95% of the residents remained stably housed, 14 enrolled in employment training and 12 rejoined the workforce.

Quote from a beneficiary:

“When I came here and saw my apartment, I cried. I felt like I had gone from being a pauper to a princess virtually overnight. The majority of us here now have become like a family to each other. We care about each other. I have a send of joy and family that I was lacking.” –Cheryl
 Contact Housing Catalyst

HUD Corrects FY16 Housing Trust Fund Allocations

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On April 13, HUD announced in the Federal Register that approximately $120,913 in Housing Trust Fund (HTF) dollars was incorrectly allocated to grantees for fiscal year (FY) 2016. HUD first announced FY 2016 HTF formula allocations to grantees, which total about $173 million, in May 2016. HUD subsequently discovered an error it its calculations for American Samoa, Guam, the Commonwealth of Northern Marina Island, and the U.S. Virgin Islands. Accordingly, allocations for the Insular Areas have been reduced while allocations for 15 states and the Commonwealth of Puerto Rico have increased slightly.

The states receiving the largest increase under the new allocation include: California ($28,296 increase), New York ($19,961 increase), and Texas ($11,112). While Florida, Illinois, Ohio, Pennsylvania, Michigan, New Jersey, Massachusetts, Georgia, North Carolina, Washington, Virginia, and Puerto Rico each receive increases that range from $1,000 to $10,000.

In the coming weeks, HUD is expected to announce the HTF formula allocations for FY 2017. Based on Fannie Mae and Freddie Mac’s (GSEs) recent SEC filings, a boost in GSE business last year means that the HTF could be receiving about $219 million for FY 2017. While we expect FY 2017 allocations to be available this year, it is possible that some Congress members may try to introduce bills to eliminate or divert HTF funding to other programs, similar to what happened in last Congress. Further more, the Federal Housing Finance Agency (FHFA) has ultimate authority over whether the GSEs continue to set aside contributions to the HTF. If the current Obama-appointed FHFA Director Mel Watt, resigns early, or if Congress and the Administration decides to move forward on housing finance reform, the status of the HTF will come into question.

National Community Development Week 2017 — April 17-22: Celebrating the Important Work of CDBG and HOME

~ Jenny Hsu ~ Leave a comment

NAHRO, along with fellow members of the Community Development Block Grant (CDBG) Coalition, will be celebrating National Community Development Week, April 17-22, 2017. Over the course of this week, communities across the country will celebrate the work of the CDBG Program and the HOME Investment Partnerships (HOME) Program.

The CDBG program provides grants to over 1,200 state and local governments and funds activities such as housing rehabilitation, business assistance, senior services, and infrastructure – to name a few. These activities are primarily targeted to low-income persons and households. Every $1.00 of CDBG leverages another $3.65 in other funding; bringing additional resources to communities that support jobs, businesses and, most importantly, the people who live in these communities.

HOME provides grants to over 600 State and local governments to create safe, decent and affordable housing, both rental and homeowner. HOME is a vital federal housing program that allows communities to leverage $4.20 of public and private dollars for every HOME dollar invested.

CDBG and HOME have been proposed for elimination in the President’s FY 2018 HUD budget and National Community Development Week provides the opportunity for Congressional Members and the community to see first-hand the results of these programs by touring projects, meeting with state and local staff and interacting directly with beneficiaries served by the programs.

NAHRO is urging members a to participate in National Community Development Week by supporting local project tours, issuing proclamations, engaging and educating Congressional Members on the programs, and reaching out to the media to promote the impact of CDBG and HOME. Here’s what you can can do:

Learn

Advocate

  • Contact and engage with your members of Congress to schedule meetings and plan a site visit of a local projects to show how these programs have helped your community. Remember –  Congress is in recess through April 23 and lawmakers will be back in their districts
  • Send letters to your legislators using NAHRO’s pre-drafted Advocacy Action Center letter telling Congress to take action today to finalize FY 2017 spending and pass a full-year Transportation, Housing and Urban Development spending bill.
  • Join over 2,000 local, state and national organizations and sign on to the CDBG support letter seeking $3.3 billion for CDBG in FY 2018. This letter will be sent to Appropriations Committee leaders in May.

Spread the Word

  • Share your impact story by writing and submitting a Letter to the Editor or op-ed to your local newspaper. Make sure to mention your members of Congress so it gets picked up in their daily clips.
  • Join @NAHROnational on Twitter and elevate awareness of the need for – and the impact of – CDBG and HOME through tweets. Make sure to use the following hashtags: #CDBG #CDBGImpact #Fight4CDBG #HOME #HOMEImpact, and to tag your House and Senate representatives.
  • Follow and share the NAHRO Blog where we will post success stories of CDBG and HOME submitted by NAHRO members throughout week.

Connect with NAHRO

  • If your impact story was published in your local newspaper or you meet with your member of Congress, let us know! Please email Jenny Hsu at jhsu@nahro.org with a description of your advocacy efforts so that we can highlight your efforts with Congress once they are back in session.

CDBG Coalition Members: NAHRO, U.S. Conference of Mayors, National Association of Counties, National League of Cities, National Community Development Association, Council of State Community Development Agencies, National Association for County Community and Economic Development, National Association of Development Organizations, American Planning Association, Local Initiatives Support Corporation, Habitat for Humanity International, Feeding America, YWCA USA, Enterprise Community Partners, Rebuilding Together, National Recreation and Park Association, National Association of Regional Councils, National Urban League, International Economic Development Council, Heartland Alliance, The Trust for Public Land, and National Development Council

Representatives Tiberi and Neal Introduce Affordable Housing Credit Improvement Act

~ Jenny Hsu ~ Leave a comment

Yesterday, Representative Pat Tiberi (R-OH) and Ways and Means Committee Ranking Member Richard Neal (D-MA) introduced the Affordable Housing Credit Improvement Act of 2017 (H.R. 1661), a comprehensive bill that would strengthen the Low-Income Housing Tax Credit (LIHTC or Housing Credit). This bill serves as the companion legislation to S. 548, which was introduced earlier this month by Senators Maria Cantwell (D-WA) and Orrin Hatch (R-UT). Rep. Hatch is Chairman of the Senate Finance Committee.

Similar to the Senate bill, H.R. 1661 seeks to improve LIHTC through provisions that would streamline and modernize the program, as well as increase financial feasibility for projects and encourage development in underserved areas. The legislation would also support the development of rental units that use the Housing Credit in conjunction with multifamily Housing Bonds, which currently provide important financing to about 40 percent of all Housing Credit apartments.

The House bill has bipartisan support and there are  16 other original co-sponsors, 13 of which are Ways and Means Committee members. Unlike S. 548, the House bill would not phase-in a 50 percent increase to the Housing Credit cap. However, H.R. 1661 takes significant steps to strengthen LIHTC and NAHRO joins the ACTION Campaign (a coalition of over 2,000 national, state and local affordable housing stakeholders) in endorsing this critical legislation, while encouraging Congress to include a cap increase in any final tax legislation.

More information on H.R. 1661 by the ACTION Campaign can found here:

Senators Reintroduce the Bipartisan Affordable Housing Credit Improvement Act

~ Jenny Hsu ~ Leave a comment

Yesterday, Senator Maria Cantwell (D-WA) and Senate Finance Committee Chairman Orrin Hatch (R-UT) introduced the Affordable Housing Credit Improvement Act of 2017 (S. 548), a comprehensive bill that would strengthen and expand the Low-Income Housing Tax Credit (Housing Credit). This legislation is very similar to the version of the Affordable Housing Credit Improvement Act (S. 3237) introduced by the same Senators last year, but with minor modifications.

Earlier this week, Senator Cantwell released a new report that chronicles the nationwide shortage of affordable housing. In her press release, Senator Cantwell said, “[w]e are facing pressures from all sides: demand for rental housing has increased by 21 percent, but we are building units at the lowest rate since the 1970s. If we do not act to increase the Low-Income Housing Tax Credit-our best way to build new affordable homes-by 2025 over 15 million Americans could be spending half of their income on rent. This is unacceptable.”

S. 548 seeks to take steps towards addressing the affordable housing deficit by increasing the overall Housing Credit authority by 50 percent. The legislation also includes other provisions that would streamline and modernize the Housing Credit, increase financial feasibility for projects, and encourage development in underserved areas. The legislation would also support the development of rental units that use the Housing Credit in conjunction with multifamily Housing Bonds, which currently provide important financing to about 40 percent of all Housing Credit apartments.

S. 548 has bipartisan support on the Hill and there are currently eleven other original co-sponsors to the bill: Senate Finance Committee Ranking Member Ron Wyden (D-OR), and Senators Susan Collins (R-ME), Dean Heller (R-NV), Lisa Murkowski (R-AK), Todd Young (R-IN), Charles Schumer (D-NY), Michael Bennet (D-CO), Cory Booker (D-NJ), Patrick Leahy (D-VT), Jeff Merkley (D-OR), and Brian Schatz (D-HI). Also recently, over 2,000 organizations across the country, including NAHRO, signed on to the ACTION Campaign’s letter to Congress in support of S. 548.

More information on the bill by the ACTION Campaign can found here:

HUD Issues Final Rule Requiring Broadband Infrastructure in New Construction and Substantial Rehabilitation

~ Jenny Hsu ~ Leave a comment

Tomorrow, HUD will publish a final rule that requires the installation of broadband infrastructure at the time of new construction or substantial rehabilitation for multifamily rental housing that is funded or supported by HUD. Since the installation of broadband infrastructure may not be feasible for all new construction or substantial rehabilitation, the rule allows limited exceptions to the installation requirements.

The following programs will be covered by this final rule:

  1. Choice Neighborhoods Implementation Grant program;
  2. Community Development Block Grant (CDBG) program, including the CDBG Disaster Recovery program;
  3. Continuum of Care program;
  4. HOME Investment Partnerships program;
  5. Housing Opportunities for Persons With AIDS program;
  6. Housing Trust Fund program;
  7. Project-Based Voucher program;
  8. Public Housing Capital Fund program;
  9. Section 8 project-based housing assistance payments programs, including, but not limited to, the Section 8 New Construction, Substantial Rehabilitation, Loan Management Set Aside, and Property Disposition programs; and
  10. Section 202 and Section 811 Supportive Housing for the Elderly and Persons with Disabilities programs.

The rule will not apply to multifamily rental housing that only has a mortgage insured by HUD’s Federal Housing Administration or with a loan guaranteed under a HUD loan guarantee program.

The final rule does not change any of the substantive requirements that were in the proposed rule (members only), but adds clarifications on the threshold for substantial rehabilitation and on the point in the planning process for new construction or substantial rehabilitation at which a project must be to not be subject to the rule’s requirements. This final rule will become effective 30 days after the rule’s publication in the Federal Register.

This new rule supports the Obama Administration’s efforts to narrow the Digital Divide in the low-income communities served by HUD. Earlier this month, HUD also issued a final rule that will “modernize” the consolidated planning process for Community Planning and Development (CPD) formula grantees by adding the concepts of broadband access and vulnerability to natural hazard risks to the Consolidated Plan’s housing market analysis.

HUD Forms that Provide Expanded Housing Protections for Survivors of Violence Now Available

~ Jenny Hsu ~ Leave a comment

As NAHRO previously reported, HUD recently finalized a rule that will provide expanded housing protections for survivors of violence and fully codifies the provisions of the Violence Against Women Reauthorization Act (VAWA) of 2013 into HUD regulations.

HUD has made available the relevant forms necessary under the new rule:

  • Notice of Occupancy Rights under VAWA  (HUD-5380) that certain housing providers must give to tenants and applicants to ensure they are aware of their rights under VAWA and these implementing regulations;
  • New Certification form  (HUD-5382) for documenting incidents of domestic violence, dating violence, sexual assault, and stalking that must be used by housing providers;
  • Model emergency transfer plan (HUD-5381) that may be used by housing providers to develop their own emergency transfer plans; and
  • Model emergency transfer request form (HUD-5383) that housing providers could provide to tenants requesting an emergency transfer under these regulations.

HUD is currently translating these forms into 8 main language.

The final rule become effective on December 16, 2016 and housing providers must now include the Notice of Occupancy Rights and the new certification form with future denials or admissions of assistance notices and future eviction or termination of assistance notices.

Additionally, housing providers have until December 16, 2017 to provide existing tenants with the Notice of Occupancy Rights and the new certification form (via the annual recertification or lease renewal process, or through other means). Compliance with the final rule’s emergency transfer provisions is required no later than June 14, 2017.

Read more about HUD’s implementation of VAWA 2013 in the October 31, 2016 edition of the NAHRO Monitor (members only).