Affordable Housing Gurus

PHFA Announces 2010 Conditional Tax Credit Reservations

The Pennsylvania Housing Finance Agency (PHFA) made their much anticipated announcement of the 2010 conditional low-income housing tax credit reservations yesterday. It was a very competitive round. According to information on PHFA’s website, 28 projects received conditional awards out of the 83 projects that submitted applications to receive credits in the 2010 funding round. PHFA received applications for over $74 million of credits, however only $23.7 million of credits are available for 2010. There was no stimulus funding available for the 2010 round, which in addition to an average equity pay-in of 71 cents, made for the fewest number of projects funded in the past few years. No due date has been announced at this time for the 2011 round applications, however it is anticipated to be between December 2010 and January 2011.

Tax Extenders Legislation Defeated in the Senate

On June 24, 2010, the Senate voted against passing H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, also known as the tax extenders bill.  This bill would have extended, among other things, the Section 1602 low-income housing tax credit (LIHTC) exchange program through 2010. This is a loss to the affordable housing community, as it does not allow state housing finance agencies the option to exchange tax credits for cash, which could then be used to fund projects that cannot secure equity investors in 2010. This bill also would have made Gulf Opportunity Zone LIHTCs and Disaster LIHTCs eligible for the exchange program.  It is not known at this time if the Senate will reconsider H.R. 4213.

FHLBank Pittsburgh Announces 2010 Funding Round

FHLBank Pittsburgh has announced that applications for the Affordable Housing Program (AHP) 2010 funding round will be due on September 9, 2010. This is welcome news for developers looking to fill funding gaps for projects! The applications are required to be submitted electronically. FHLBank will be holding a series of workshops to cover how to register for the 2010 funding round and how to navigate the new AHP online system as well as scoring and feasibility requirements.

McKonly & Asbury has extensive experience in preparing all types of funding applications and is available to prepare or assist you in preparing your 2010 AHP application. Please contact Elizabeth Brooks at ebrooks@macpas.com or (717)761-7910 with questions.

Date Set for McKonly & Asbury's Fall 2010 Affordable Housing Seminar

Mark your calendars for October 18, 2010, the date of McKonly & Asbury's fall Affordable Housing Seminar. The seminar will be held at the Giant Community Room in Camp Hill, Pennsylvania from 10 a.m. until 3:00 p.m. Details on speakers and topics to follow. It's sure to be another great seminar that you won't want to miss!

GAO Issues Reports to Congress on American Reinvestment and Recovery Act Funding

McKonly & Asbury had the opportunity to speak with several members of the United States Government Accountability Office (GAO) on June 18, 2010 regarding the GAO’s May 2010 report to Congress on the American Reinvestment and Recovery Act (ARRA) funding. The GAO has 16 state teams in place to monitor for and report to Congress about the ARRA funding. The Pennsylvania team, headed by Phil Herr and Mark Gaffigan, is monitoring, among other things, the use of TCAP and Exchange funds. The Pennsylvania team plans to visit five sites for GAO’s September 2010 Recovery Act report. See pages PA-21 through PA-24 of the May Report for specifics on GAO’s work in Pennsylvania.

Are You Giving Tenant Information to Census Takers?

We have heard that census takers are asking project managers for information on tenants who have not completed their census forms. Some management companies have expressed concern about the legality of providing this type of tenant information without the tenant's permission. Does anyone have any experience with this?

McKonly & Asbury Holds Spring Affordable Housing Seminar

McKonly & Asbury hosted another information-packed affordable housing seminar on Friday, May 14, 2010 at the Giant Community Room in Camp Hill. 

Holly Glauser, Director of Development at the Pennsylvania Housing Finance Agency (PHFA), talked about getting back to the new “normal” at PHFA. Holly gave an update on the status of the 2009 Tax Credit Assistance Program funds and the Section 1602 Exchange funds. Holly also gave an update on the status of the 2010 tax credit application process where she stated that over 80% of the applications were submitted with an equity investor and applications without investors or which have significant financing gaps have been put on hold. Holly stated that the average equity pay-in was $.71. According to Holly, 85 applications were received in Pennsylvania requesting  $74.7 million of tax credits while only $23.7 million of tax credits are available to the Commonwealth. Holly stated that the 2011 Qualified Allocation Plan is expected to be released in the fall of 2010 and that PHFA anticipates an application deadline of December 15, 2010 or January 15, 2011 for the 2011 low-income housing tax credit round.

Proposed Bill Includes LIHTC Carryback and Extends Exchange Program

Senator Maria Cantwell (D-WA) introduced legislation yesterday called the Job Creation and Affordable Housing Act (S. 3326). The bill would extend the Section 1602 Exchange Program for one year and increase the carryback period for low-income housing tax credits from one year to five years. Senator John Kerry (D-MA) and Senator Barbara Boxer (D-CA) co-sponsored the bill. A copy of the bill was not available at the time of this post.

To hear more about current legislation affecting the low-income housing tax credit industry, attend McKonly & Asbury’s Spring Affordable Housing Seminar on May 14, 2010.

Terry Harris Receives Housing Advocate of the Year Award

Housing Development Corporation (HDC) presented its most prestigious recognition, the Housing Advocate of the Year Award, to Terry Harris, McKonly & Asbury’s managing partner, director of affordable housing services, and original Affordable Housing Guru. The presentation was at HDC’s annual Faces of Affordable Housing banquet last evening.

A recognized expert in the real estate and affordable housing industries, Harris has a wide range of industry experience in other areas, including business consulting, construction, and manufacturing.

“I can think of few people who have spent so much time working on behalf of affordable housing,” said HDC President and CEO Michael R. Carper. “He has invested so much of his time and energy in issues that are vital to people and communities everywhere. His commitment to the mission of affordable housing – that is, ensuring that everyone has a quality home to live that they can afford – is second to none.”

McKonly & Asbury Spring 2010 Affordable Housing Seminar

McKonly & Asbury is pleased to announce the speakers and topics for our Spring 2010 Affordable Housing Seminar:

Holly Glauser, Director of Development at the Pennsylvania Housing Finance Agency, will be giving an update on what PHFA sees on the horizon for affordable housing. We will also feature a question and answer session with Ms. Glauser.

Tom Eastman, Vice President for Enterprise Community Investment, Inc., will talk about the central Pennsylvania equity market and what investors are currently looking for in deals.

Joanne Andrews, Marketing Consultant for JLA Consulting, LLC, will explain how to read a market study and what key market indicators developers should be looking for.

Mike Hoffner, leader of McKonly & Asbury’s Audit Segment, will be discussing FAS 167 as it relates to consolidation of affordable housing partnerships.

Elizabeth Brooks, one of the leaders of McKonly & Asbury’s Affordable Housing Segment, will be giving an overview recent legislative updates affecting low-income housing tax credits.

The seminar will be held on May 14, 2010 at the Giant Community Room in Camp Hill, Pennsylvania from 10:00 a.m. to 3:00 p.m. Space is limited. Register today at affordablehousing@macpas.com.