Affordable Housing Gurus

Affordable Housing Success Story - Temple II North Gratz, Philadelphia, Pennsylvania

1260 Housing Development Corporation and the CPM Housing Group are pleased to announce the completion of the Temple II N. Gratz Street Project – the rehabilitation of 40 affordable housing units in 29 historic brownstone buildings on the 1500 Block of N. Gratz Street. A ceremony to commemorate the opening of the project will be held on the site at 11:00 AM on Thursday, November 3, 2011. More details, directions, and registration for this event are online at www.celebratetemple2.eventbrite.com. The event is free and open to the public, but registration is required.

The Project is expected to receive LEED for Homes® Platinum certification which highlights 1260’s commitment to environmental stewardship and the long-term health of its residents, and are part of the larger plan to revitalize the surrounding neighborhood. David Hahn, Director of Construction, explains, “The cost savings that tenants will realize in their energy-efficient units (with extra insulation, Energy-Star appliances, and high-efficiency plumbing) will allow for more discretionary income to be spent in the community.”

Development funding for the Project was provided by Pennsylvania Housing Finance Agency, the Redevelopment Authority of the City of Philadelphia, Enterprise Community Investment, Inc., Firstrust Bank, Community Lenders Community Development Corporation, Federal Home Loan Bank of Pittsburgh (through Firstrust Bank), Federal Home Loan Bank of New York (through M&T Bank) and The Reinvestment Fund. Rental subsidies for the Project are provided by the Philadelphia Housing Authority and the Department of Housing and Urban Development. Temple II N. Gratz will also receive funding through the sale of carbon offset through the Enterprise Green Communities Offset Fund. This is the first domestic offset program supporting carbon reducing efforts through green affordable housing. Enterprise will purchase carbon emissions reductions from this project which will be retired, measured and verified over the next ten years.

Sustainable design elements of the Project include: Forest Stewardship Council (FSC) certified lumber; additional insulation in exterior walls; no Volatile Organic Compound (VOC)-emitting finishes or adhesive materials; high efficiency plumbing fixtures; high recycled content building materials and Energy Star and hydrochlorofluorocarbon (HCFC)-free mechanical systems. New Energy-Star Low E argon filled replacement and new windows increase day-lighting. A white roof system helps reduce the “heat island” effect. All site work was conducted in a manner to minimize disturbance of native vegetation and soil within the construction area. Best Management Practices of erosion and sedimentation controls were used, and a construction waste recycling program diverted 85% of the waste from landfills to recycling facilities. 

About 1260 Housing Development Corporation

1260 Housing Development Corporation (1260) is a 501(c)(3) Pennsylvania nonprofit corporation with a mission of providing high quality affordable housing with housing related services to low income individuals with a focus on individuals with behavioral health challenges in the City of Philadelphia. Since 1988, 1260 has developed over 1,200 units of affordable housing in Philadelphia. 1260 is a member of CPM Housing Group, a group of nonprofit companies with more than 20 years of experience in developing and managing affordable rental housing for low-income individuals. The CPM Housing Group currently operates more than 2000 units of affordable rental housing in the mid-Atlantic region.

About LEED® for Homes

LEED® for Homes is a third-party certification system for building and designing high-performance green homes that are energy-and resource-efficient and healthy for its occupants. Developed and administered by USGBC, LEED for Homes awards points to projects in eight categories of environmental performance: Innovation & Design Process, Location & Linkages, Sustainable Sites, Water Efficiency,
Indoor Environmental Quality, Energy & Atmosphere, Materials & Resources, and Awareness & Education. Homes can become LEED Certified, Silver, Gold, or Platinum.

Affordable Housing Success Story – Westminster Place at Stewartstown, Stewartstown, Pennsylvania

The most recent installment of our Success Stories series highlights Westminster Place at Stewartstown, a 96-unit senior development situated in southern York County, Pennsylvania. Westminster Place at Stewartstown’s story began in 2005 when Hopewell Fypon Millworks closed its doors, leaving behind a century-old brick furniture factory which was connected to several of other buildings. In 2008, everything was demolished except the old factory building which was transformed into what is now known as Westminster Place at Stewartstown.

As for the 96 units housed in the building, 49 are reserved for very low-income seniors with the other 47 designated for low-income seniors. 20 of the 96 units are reserved for the physically disabled. The apartments are currently being leased with 52 units occupied and 16 applications in process.

What kind of amenities does the development offer? Tenants can garden their own complimentary on-site plot of land, a unique opportunity for apartment living. Other amenities include a large community room with a home theater system, hair salon, fitness center, laundry center, lending library, and a walking trail. Geothermal heating and cooling are provided throughout the development.

The development is sponsored by Springwood Real Estate Services and Presbyterian Senior Living.

You can find more information about Westminster Place at Stewartstown here.

If you would like to have a development considered for our Success Stories series, please
e-mail affordablehousing@macpas.com.

PHFA Releases Final 2012 Qualified Allocation Plan

PHFA recently released the final Qualified Allocation Plan for the 2012 Low-Income Housing Tax Credit Program. Check back for the 2012 Multifamily Housing Application Package and Guidelines.

PHFA Announces Workshop on 2012 PennHOMES and Low-Income Housing Tax Credit Funding

The Pennsylvania Housing Finance Agency (PHFA) has announced details about their information session for the 2012 PennHOMES and Low-Income Housing Tax Credit (LIHTC) Funding Round. The session will be held on Thursday, September 15, 2011, from 9:30 am – noon at the Crown Plaza Harrisburg Hotel. We anticipate this workshop to be a great source of information on the application requirements for this funding. This annual workshop historically has allowed the opportunity for questions to be asked of the PHFA staff. PHFA is urging all prospective PennHOMES and LIHTC applicants to attend this session. Click here for registration information.

There will be one funding round for the PennHOMES and LIHTC in 2012.  The application for the 2012 round will be due on October 12, 2011.  The announcement of funding for the 2012 applications is anticipated to be in April 2012.

McKonly & Asbury is a leader in preparing and consulting on low-income housing tax credit applications in Pennsylvania. Our team is passionate about making your application a success. We have a comprehensive understanding of the challenges and nuances of structuring a low-income housing tax credit deal. We are able to assist you in putting the entire application package together for submission, or we can review your application and provide suggestions for optimizing points for PHFA scoring. We will help you maximize your tax credits and, therefore, increase your equity proceeds. For more information, please contact Elizabeth Brooks at ebrooks@macpas.com.

August 15 - An Important Deadline in Pennsylvania

Today marks two important deadlines in the world of low-income housing tax credits in Pennsylvania. For developments that received a 2010 allocation of credits, 10% of the reasonably expected basis must be incurred as of today. For developments that received a 2011 reservation of low-income housing tax credits, today is the deadline for executing the Carryover Allocation Agreement.

The 10% Test deadline for developments that received 2010 low-income housing tax credits in Pennsylvania is here. These developments must have incurred 10% of their reasonably expected basis as of today and have until noon on August 25, 2011, to submit the required information  to the Pennsylvania Housing Finance Agency. This is an important test because failure to satisfy it can cause a development to lose its tax credits.

In order to meet the 10% Test for 2010 credits, a development must have incurred 10% of the reasonably expected basis by today. Reasonably expected basis is the estimated land and all depreciable property (not just basis eligible property) expected to be part of the development.

Generally, a development must be placed in service in the year that the low-income housing tax credits are awarded by the state housing finance agency (in Pennsylvania, this is PHFA). A carryover allocation can extend the placed in service date to the end of the second calendar year after the year that a carryover allocation is made.  For any development receiving an allocation of 2011 credits that will not be placed in service by the end of this year, a Carryover Allocation Agreement must be executed today and submitted to PHFA along with other required information  by August 22, 2011. Having a valid Carryover Allocation Agreement in place will give developments that received an allocation of 2011 low-income housing tax credits until December 31, 2013 to be placed in service.

McKonly & Asbury is a leader in accounting for affordable housing developments in Pennsylvania. IRS and PHFA regulations require specialized knowledge when preparing a 10% Test. This test is critical in the tax credit process and it is important to work with someone who has the experience and expertise to ensure that your Test is accurate and your credits are not lost. The M&A Team has the audit and tax expertise and experience needed to complete an accurate 10% Test. For more information, please contact Elizabeth Brooks at ebrooks@macpas.com.

The information presented in this post is intended solely for informational purposes and should not be construed as accounting advice from McKonly & Asbury, LLP.

Affordable Housing Success Story - Westminster Place at Carroll Village, Dillsburg, Pennsylvania

We are pleased to highlight Westminster Place at Carroll Village in our Success Stories series. Westminster Place at Carroll Village is located in Dillsburg, Pennsylvania, and was developed by Presbyterian Senior Living . The development was completed and began leasing up in May and is already fully occupied and has a waiting list. The development is comprised of 29 one-bedroom and two-bedroom units, averaging 658 – 867 square feet. The 29 rental units are for individuals age 55 and older with low to moderate income. The development has the unique feature of underground parking available to all residents. Westminster Place at Carroll Village includes four units designed for occupancy by persons who use a wheelchair. Other features of the development include ample storage in the units in addition to 12 square feet of storage for each unit elsewhere in the building; laundry facilities on each floor; and a community room and social space for community activities.

If you would like to have a development considered for our Success Stories series, please e-mail affordablehousing@macpas.com. 

PHFA Issues Draft 2012 Qualified Allocation Plan

The Pennsylvania Housing Finance Agency (PHFA) issued a draft of their 2012 Qualified Allocation Plan (QAP). PHFA is proposing to return to a one-application submission process for the 2012 low-income housing tax credits. According to the draft QAP, applicants will be required to submit their application on or before October 12, 2011. It appears that the requirements for the 2012 application will be similar to the application requirements for the 2011 applications. Stay tuned for further details!

McKonly & Asbury is a leader in preparing and consulting on low-income housing tax credit applications in Pennsylvania. Our team is passionate about making your application a success. We have a comprehensive understanding of the challenges and nuances of structuring a low-income housing tax credit deal. We are able to assist you in putting the entire application package together for submission, or we can review your application and provide suggestions for optimizing points for PHFA scoring. We will help you maximize your tax credits and, therefore, increase your equity proceeds. For more information, please contact Elizabeth Brooks at ebrooks@macpas.com.

PHFA Announces Conditional Awards for 2011 Funding and Low-Income Housing Tax Credits

The Pennsylvania Housing Finance Agency (PHFA) announced the conditional awards for 2011 PHFA funding and low-income housing tax credits. For a list of developments receiving this funding, click here. Congratulations to all who have received this great news!

Affordable Housing Success Story - Temple I: North 16th Street, Philadelphia, Pennsylvania

1260 Housing Development Corporation and the CPM Housing Group are pleased to announce the completion of the Temple I N. 16th Street Project – the LEED ® Gold certified rehabilitation of 58 affordable housing units in 22 historic brownstone buildings.

The sustainable design features of this project highlight 1260’s commitment to environmental stewardship and the long-term health of its residents, and are part of the larger plan to revitalize the surrounding neighborhood. David Hahn, Director of Construction, explains, “Not only will the native vegetation and run-off swales reduce flooding and contribute to the overall aesthetics of the block, but the cost savings the tenants will realize in their energy-efficient units (with extra insulation, Energy-Star appliances, and high-efficiency plumbing) will allow for more discretionary income to be spent in the community.”

Development funding for the Project was provided by the Pennsylvania Housing Finance Agency (through the ARRA Tax Credit Exchange program), the U.S. Department of Housing and Urban Development, Federal Home Loan Banks of Pittsburgh and New York, the Redevelopment Authority of the City of Philadelphia, The Reinvestment Fund, and Beneficial Bank. Rental subsidies for the Project are provided by the Philadelphia Housing Authority and the Department of Housing and Urban Development. Temple I also benefited financially from selling a carbon offset through the Enterprise Green Communities Offset Fund, the first domestic offset program supporting carbon reducing efforts through green affordable housing. Enterprise bought 822 metric tons of carbon emissions reductions from this project which will be retired, measured and verified over the next ten years.

Sustainable design elements of the Project include: Forest Stewardship Council (FSC) certified lumber; additional insulation in exterior walls; no Volatile Organic Compound (VOC)-emitting finishes or adhesive materials; high efficiency plumbing fixtures; high recycled content building materials and Energy Star and hydrochlorofluorocarbon (HCFC)-free mechanical systems. New Energy-Star Low E argon filled replacement and new windows increase day-lighting. A white roof system helps reduce the “heat island” effect. All site work was conducted in a manner to minimize disturbance of native vegetation and soil within the construction area. Best Management Practices of erosion and sedimentation controls were used, and a construction waste recycling program diverted 85% of the waste from landfills to recycling facilities.

If you would like to have a development considered for our Success Stories series, please e-mail affordablehousing@macpas.com. 

Register Now for McKonly & Asbury's Spring 2011 Affordable Housing Seminar!

 McKonly & Asbury's Spring Affordable Housing Seminar has been set for May 4, 2011. A. J. Johnson from A. J. Johnson Consulting Services, Inc. will be here for a full day of training on Low-Income Housing Tax Credit compliance. You may remember A. J. if you attended our Fall 2010 seminar and we are pleased to welcome him back due to popular demand!

Thanks to your feedback, we are pleased to announce that A. J. will be presenting on the following topics.

Income Verification and Calculation

Concentrated instruction will be provided on the required methodology for calculating and verifying income. A comprehensive discussion of employment income is a major part of the training, along with military pay, pensions/social security, self-employment income and child support. A basic discussion of asset verification and calculation is included.

Management of Low-Income Housing Tax Credit Projects

This part of the training will cover all aspects of the credit relating to on-site management, including the application process, rental calculation, income and eligibility verification requirements, requirements relating to tenant assets, and a full discussion of student issues.  Instruction will also be provided relating to minimum set-aside issues, optional fees and use of common areas.  The Available Unit Rule will be covered along with the requirements for units occupied by students.

This seminar will be held at the Radisson Hotel Harrisburg Hershey located at 1150 Camp Hill Bypass, Camp Hill, PA and will take place from 8:00am – 4:30pm. CPE credits are available and the cost to attend is $195/person, which includes lunch.

Register now at affordablehousing@macpas.com or call (717)761-7910 and ask for Diane Clapper.