Treasury Department Extends Deadline for Disbursement of LIHTC Exchange Funds
New HUD Guidance Sheds More Light on the Tax Credit Assistance Program

McKonly & Asbury Affordable Housing Seminar Recap

Historicbrownstone McKonly & Asbury hosted another successful affordable housing seminar on Friday, September 11, 2009 at the Giant Community Room in Camp Hill.  This was the second in our 2009 seminar series.

Linda Pellegrino and Joe Mueller of Rockport Mortgage (from the Boston area) spoke about HUD financing including the 202, 221, and 223 programs. Linda and Joe also discussed refinancing options for existing HUD properties.  One of the messages that came from their presentation is the increased flexibility that HUD is exhibiting in their programs. Rockport is the 5th largest provider of HUD financing in the country, and they provided a good overview of the various HUD funding mechanisms.

Brian Shull, Senior Development Officer from Pennsylvania Housing Finance Agency discussed the upcoming 2010 tax credit application which is likely to be due in early February 2010.  Brian anticipates that the draft 2010 Qualified Allocation Plan will be available in October 2009 and encouraged the audience to provide comments to the Agency about it. Brian reviewed the current state of the tax credit market indicating that the market average for tax credit deals currently is approximately 68 cents. He also gave tips on making the 2010 application successful. Brian indicated that it is a “buyers’ market” for credits, and therefore, developers need to establish a good relationship with an investor early in a deal, in order to get their commitment to a deal before an application is submitted. The investor should become the “6th member “ of your development team. Applicants must demonstrate to PHFA an “ability to proceed” in order to be successful with their tax credit application. He also suggested having an energy audit done for Preservation deals.

The M&A team presented an overview of the tax credit process.  From TCAP to Exchange funding through ARRA, Elizabeth Brooks of the M&A team highlighted recent changes to tax credit funding as well as reviewed tax credit basics. Elizabeth also reviewed development stage accounting and offered suggestions to avoid audit findings in the first year audit.

At M&A, we began our affordable housing seminar series in 2007 to educate our clients. We have featured speakers from Pennsylvania Housing Finance Agency, the Department of Community and Economic Development, Pepper Hamilton, LLP, PNC Multifamily Capital and other experts in the affordable housing community.  McKonly & Asbury has been a provider of services to the affordable housing community since 1977, with expertise servicing HUD, PHFA, Section 42 tax credits, Rural Development and other affordable projects. Our services include audits and tax preparation, financial forecasting and modeling, cost certification services, preparation of Tax Credit and other funding applications and other services to support affordable housing developers and managers.

Are you interested in learning more about our services or in attending a future seminar or learning about future seminar topics?  E-mail affordablehousing@macpas.com and ask to be added to our mailing list.

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)