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.
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