LIHTC

Why the 4% LIHTC Matters: Housing Authority of the City of Austin

~ Georgi Banna ~ Leave a comment
North Loop Apartments
North Loop Apartments & Gaston Place Apartments. Photo: HACA

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 Authority of the City of Austin: Portfolio Modernization

The Housing Authority of the City of Austin (HACA) is fully converting its public housing portfolio to RAD, and for many properties, has used 4 percent LIHTC and Private Activity Bonds (PABs) to improve its public housing stock through HUD’s Rental Assistance Demonstration Program (RAD).

“Our ability to use 4 percent Low Income Housing Tax Credits and Private Activity Bonds has been crucial to meeting Austin’s affordable housing challenge,” said HACA President and CEO Michael Gerber. “We are fully converting our public housing portfolio to RAD, and PABs layered with 4 percent credits have provided us with the necessary financing to dramatically rehabilitate our properties – including new kitchens, bathrooms, flooring, and accessibility features.  There is intense competition in Texas for 9 percent tax credits, and winning them is difficult.  Without PABs and 4 percent credits, our RAD program would be dead in the water.”

“In just the past three years, HACA has issued $150 million in Private Activity Bonds, coupled with 4 percent credits, to develop 1,600 high-quality apartment units,” Gerber explained.” These developments would not have happened without the PAB  / 4 percent tax credit program. One thousand people a week are moving to Austin, and recent studies show that the city needs another 55,000 affordable housing units on the ground today.  Losing PAB capacity effectively kills the 4 percent tax credit.  And, without these financing tools, low-income people – seniors, persons with disabilities, veterans, and far too many children – will lose the opportunity for safe, decent housing.”

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

Why the 4% LIHTC Matters: Knoxville Community Development Corporation

~ Georgi Banna ~ Leave a comment
2009-NorthRidge-Crossing-1024x576
KNOXVILLE’S COMMUNITY DEVELOPMENT CORPORATION (KCDC) RECENTLY ANNOUNCED A $33.1 REHABILITATION INITIATIVE AT THREE AFFORDABLE HOUSING PROPERTIES: LONSDALE HOMES, NORTH RIDGE CROSSING (PICTURED) AND THE VISTA AT SUMMIT HILL. THE IMPROVEMENTS WILL IMPROVE ENERGY EFFICIENCY AND QUALITY OF LIFE FOR RESIDENTS.

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.

Knoxville Community Development Corporation: Lonsdale Homes, North Ridge Crossing and The Vista at Summit Hill Properties

Knoxville’s Community Development Corporation (KCDC) recently approved a $33.1 million rehabilitation initiative at three affordable housing properties. In total, 705 units at Lonsdale Homes, North Ridge Crossing and The Vista at Summit Hill will undergo significant improvements with an emphasis on energy efficiency and quality of life for residents. The plans include better insulation, LED lighting, energy-efficient appliances, plumbing repairs, roof replacement and new windows, flooring, cabinets and countertops. The improvements will be funded with a combination of low-income housing tax credits and multifamily housing bonds. “This initiative will yield significant benefits for the three properties and the residents we serve,” KCDC Executive Director and CEO Ben Bentley said. “The physical condition of these properties will be greatly enhanced and that, in turn, leads to lower operational and maintenance costs.”

“These improvements further our mission of providing quality affordable housing for our residents,” Sean Gilbert, KCDC’s Senior Vice President of Housing, added. “KCDC has been able to dramatically impact the quality of life for 705 Knoxville families by utilizing the LIHTC 4% credit/tax-exempt bonds.  If not for these important financing tools, low-income families would be forced to reside in aging units with deteriorating structures and without modern amenities and improved energy efficiency.  Our families will be able to focus on job growth and their children’s education without the distraction of obsolete housing structures.”

The plans are part of KCDC’s transition of its public housing stock to the rental assistance demonstration (RAD) program, which was created by the U.S. Department of Housing and Urban Development (HUD) in 2012 to help agencies continue their housing mission without dependence on federal funds. The program allows housing agencies to leverage public and private debt and equity to reinvest in their properties.

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

Why the 4% LIHTC Matters: Walla Walla Housing Authority

~ S. Gimenez ~ Leave a comment

emerald_before_after

Before (bottom) and after (top) pictures of Emerald Family Properties buildings. Photo credits: Walla Walla Housing Authority

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.

Walla Walla Housing Authority: Emerald Family Properties

Walla Walla (Wash.) County has the largest affordable housing gap in the state of Washington, and so the pressure is high to keep existing public and affordable housing. Recently, the Walla Walla Housing Authority (WWHA) used a combination of 4 percent LIHTCs and tax-exempt bonds to revitalize and preserve the Emerald Family Properties, an 84-unit family development with two- to five-bedroom units in nine neighborhoods. The financing package allowed the housing authority to upgrade both the interiors and the exteriors of the units, and to increase energy efficiency in a way that would lower the utility costs for the residents. Emerald Family Properties has project-based vouchers attached to its units, and thus is able to serve very low-income families as well as those of moderate income.

“This project never would have pointed in the 9 percent LIHTC credit round, so the 4 percent LIHTC and tax-exempt bonds are essential financing tools that we use to address our community’s housing needs,” said WWHA Executive Director Renée Rooker. “Over the past five years, we have developed 245 units serving elderly individuals, veterans, persons with disabilities, and families by utilizing 4 percent LIHTCs and tax-exempt bonds. Besides Emerald Family Properties, we will have completed 80 more units in the next couple of weeks. None of this could have transpired without these financing tools.”

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

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.

HUD, IRS Announce Disaster Assistance for Victims of Hurricane Harvey

~ Jenny Hsu ~ Leave a comment

Earlier this week, HUD announced that the Department will expedite federal disaster assistance to the State of Texas and provide support to homeowners and low-income renters that are left without a home due to Hurricane Harvey.

Currently, President Trump has issued a disaster declaration for 18 counties in Texas: Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria and Wharton. More counties may be added at a later date.

HUD’s disaster assistance will include: Continue reading →

Tell Your Senators to Support LIHTC!

~ Jenny Hsu ~ Leave a comment

In 2015, supporters of the Low-Income Housing Tax Credit (LIHTC) achieved a major victory with the permanent authorization of the 9 percent LIHTC rate, but a 4 percent housing credit rate remains unauthorized. Senators Maria Cantwell (D-WA) and Orrin Hatch (R-UT) have introduced S.548, The Affordable Housing Credit Improvement Act, to permanently authorize the 4 percent rate and expand the program’s overall allocation authority by 50 percent, allowing more public housing agencies (PHAs) and local redevelopment authorities (LRAs) to access the credit.

Affordable housing stakeholders should take action today and support Sen. Cantwell and Sen. Hatch’s critical legislation by asking your senators to join the bill as co-sponsors and urging them to include this bill in any tax reform agreement that is reached. Help NAHRO achieve its goal of sending 2,500 letters to members of Congress in August.  Continue reading →

HOME Impact Story in Vancouver, Washington

~ Jenny Hsu ~ Leave a comment

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

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: