Industry News
Upcoming Tax Credit Deadlines
After decades of providing due diligence for Tax Credit developers and state agencies across the country, Gill Group, Inc. has established a very close relationship with hundreds of individuals, companies and agencies in all 50 states. We want to provide you with a list of each state’s deadlines for the 2010 application cycle as well as information from states with upcoming deadlines each month. For additional information, please contact Mike Baker at mike.baker@gillgroup.com or (800) 428-3320.
Connecticut - 9% Low-Income Housing Tax Credits There is a limited pool of 9% LIHTC. This means that developers must apply during CHFA-specified 9% LIHTC funding rounds and be rated and ranked based upon how well their projects meet the priorities and selection criteria set forth in CHFA's Qualified Allocation Plan (QAP.) The top scoring applicants (as judged by CHFA) are awarded 9% LIHTC.
4% Low-Income Housing Tax Credits 4% LIHTC are allocated on a non-competitive basis to developments that utilize Tax-Exempt Bonds as a component of their financing. Because 4% LIHTC are awarded on a non-competitive basis, developers may apply for 4% LIHTC at any time. Common practice is for developers to apply for 4% LIHTC in conjunction with Tax-Exempt Bond financing. Click here to few details. Click here to view the QAP.
Wisconsin- The Wisconsin Housing and Economic Development Authority (WHEDA) has extended the deadline for submission of competitive 2010 Low Income Housing Tax Credit Program applications from February 5, 2010 to March 26, 2010.
California -The California Tax Credit Allocation Committee (CTCAC) has released a memo updating its proposed regulation changes for the 2010 low-income housing tax credit allocation process. In December 2009, CTCAC released 18 proposed regulation changes, and solicited comments from the public. In consideration of the comments received, CTCAC has amended 15 of the initial 18 proposals, and proceeded with the remaining three as originally proposed. A final list of regulation changes with reasons is provided through CTCAC’s website. Memo
Colorado - After several stages of draft and commenting, Colorado has finalized the 2010 Qualified Allocation Plan. We are continuing our services in Colorado after years of completing due diligence in accordance with their guidelines. Click here for the changes from 2009 to 2010. Click here for the new 2010 QAP.
Iowa - Like all other states dealing with Tax Credits, Iowa had to go through stages of draft and commenting before finalizing their 2010 QAP. Click here for the changes from 2009 to 2010. Click here for the new 2010 QAP.
Nebraska - Nebraska has a complete listing of all exhibits, forms and deadlines for the 2010 rounds. With applications due mid March, anyone who is considering an application in Nebraska should go to the LIHTC Application/Allocation Info & Forms website for information on how to successfully apply for and receive tax credit allocations!
New Hampshire - In 2009, New Hampshire successfully committed to five developments using the Tax Credit Assistance Payment (TCAP) program and nine developments for the Section 1602 (Exchange) program. For more information on NH’s TCAP Plan, please visit their site via this link. For more information on NH’s Tax Credit Program and the 2010 QAP and appendices, please click here.
Ohio - Since 1987, the Ohio Housing Finance Agency has used the Housing Credit Program to facilitate the development of over 77,000 affordable rental housing units in Ohio. Organizations committed to developing low- to moderate-income homes for Ohioans can apply for an allocation of federal housing tax credits. Due to the demand for credits, OHFA typically funds only 25-30% of the applications submitted. In addition, because of the cost of applying for the program and the extensive compliance requirements, the program is best suited for rental housing developments with 20 or more units. OHFA strongly encourages all applicants to seek experienced legal and accounting counsel in order to comply with all program requirements. Every year OHFA creates a Qualified Allocation Plan that describes the competitive application process and the procedures and policies for the distribution of the state’s allocation of housing credits. For additional information, please see the 2010 Qualified Allocation Plan. OHFA accepts applications at one time during the year—usually in the spring. Follow this link for the 2010 program calendar and 2010 Affordable Housing Funding Application.
Virginia - The federal Low-Income Housing Tax Credit (LIHTC) program, administered in Virginia by VHDA, encourages the development of affordable rental housing by providing owners a federal income tax credit. It also provides incentive for private investors to participate in the construction and rehabilitation of housing for low-income families. For a complete list of everything you will need for your 2010 application, please visit VHDA’s comprehensive website. You will get an in-depth look at the 2010 QAP, Development Information Summary, Tax Credit Program Schedule and Manual and many more forms and information sources!
2010 Federal Low Income Housing Tax Credit Allocation Schedule by State
Gill Group, Inc. is well-versed in each state’s different guidelines for their programs for LIHTC, TCAP and Section 1602. We have been providing our services to the industry for over 30 years. Below is a list of all upcoming deadlines to be aware of, and if we can be of assistance to you in your application process, please contact Mike Baker, National Marketing Director, at mike.baker@gillgroup.com or (800) 428-3320.
Section 8 HAP Contract Expiring / Current Rents too Low?
Gill Group, Inc. has been providing Rent Comparable Studies since the inception of the Section 8 program. Click here to inquire about obtaining a Rent Comparable Study from Gill Group, Inc. HUD provides Section 8 rental subsidies to the owners of certain mortgaged properties pursuant to a HAP Contract. Click here to view the contract expiration database to see if your contract is going to expire soon. The entity responsible for the administration of the Section 8 assistance pursuant to a particular HAP Contract is the designated "Contract Administrator" (click here for assistance with renewing your Section 8 Contract). Under the New Construction and Substantial Rehabilitation Programs, either HUD or a "Public Housing Agency" may serve as Contract Administrator. As defined under applicable HUD regulations, a "Public Housing Agency" is any State or local governmental instrumentality that is authorized to engage in or assist in the development or operation of housing for low-income families. Pursuant to applicable HUD regulations, HUD acts as the Contract Administrator for LMSA assistance, but has the authority to contract with another entity for the performance of some or all of its responsibilities as Contract Administrator. HUD currently serves as the Contract Administrator under the HAP Contracts for almost all the assisted Mortgaged Properties. At present, HUD intends that HAP Contract administration for the assisted Mortgaged Properties will be conducted and coordinated by the HUD offices located in Denver, Colorado, Des Moines, Iowa and Atlanta, Georgia. However, in the future, the responsibilities of HUD as Contract Administrator under the HAP Contracts may be assumed by other HUD offices or by Public Housing Agencies. Click here to read more.
CARH Plays an Active Role in Reversing RD’s Position on ROI to Exchange Transaction:
After considerable complaint, Rural Development (RD) reversed its position denying return on investment (ROI) to exchange transactions. In December of last year, RD posted a November 20, 2009, Unnumbered Letter entitled “Low-Income Housing Tax Credits (LIHTC), Tax Credit Assistance and Tax Credit Exchange Program Funds for Multifamily Properties.” Among other topics, this Unnumbered Letter contained a new regulatory interpretation that LIHTC funds that are exchanged as a result of the “Exchange Program” authorized by American Recovery and Reinvestment Act (ARRA) of 2009 are to be treated as grant funds and not equity. RD took this position even though many tax practitioners argued that funds are considered equity, and were intended to replace certain private equity sources, wherein the owner would then be liable for recapture. RD’s position was clearly contrary to the intent of Congress when the exchange program was authorized last year. Such a policy would prevent many preservation transactions from being completed throughout the country. Not only is the ROI the only source of operating revenue for the owner, but RD often limits repayment of unsecured debts and certain mortgages repayable from cash flow to the ROI.
As was discussed during CARH’s Mid-Year Meeting last month in San Francisco, California, CARH sent a letter to the Administrator of the Housing and Community Facilities program, Tammyé Trevino, urging her to reverse the position taken in the Unnumbered Letter. In addition, CARH joined with a consortium of affordable housing advocates and sent a letter to Representative Barney Frank (D-MA), Chairman of the House Financial Services Committee, apprising him of the problem.
Chairman Frank reacted swiftly and on February 4, 2010, sent a letter to the Administrator telling her that the Unnumbered Letter was contrary to the intent of creating the exchange program (click here for a copy of the letter). In the letter, Chairman Frank told the Administrator that “Congress was clear that to the maximum extent possible tax credit exchange funds were to be treated in the same manner as housing tax credits. In fact, the language from the Recovery Act that established this program states the subawards be made: ‘in the same manner and shall be subject to the same limitations (including rent, income and use restrictions on such buildings) as an allocation of housing credit dollar amount allocated by such state housing credit agency under Section 42 of the Internal Revenue Code of 1942….’” The letter concluded by asking the agency to rescind the above-referenced Unnumbered Letter and issue guidance that the exchange funds may be used as equity for projects funded by RD programs.
CARH is pleased to report that yesterday, the Administrator responded (click here for a copy of the letter) and agreed to rescind and reissue the Unnumbered Letter, allowing exchange funds to be used in a manner similar to other funding generated by LIHTC sources.
CARH has relayed our thanks to Chairman Frank and his staff for their efforts. We will continue to monitor RD’s webpage to ascertain that when the new Unnumbered Letter is published it is reflective of Congress’ intent in authorizing the “Exchange Program.” CARH also looks forward to conferring with the Administrator and her staff at CARH’s Spring Board meeting March 2-3, 2010, and in the coming weeks about expanding communications with program participants. This is extremely important so that RD and owners each have the clearest possible information needed to advance program goals of preserving the Section 515 portfolio and utilizing the Section 538 loan guarantee program.
COMPANY NEWS:
Events (2010)
· (January) Gill Group, Inc. attended the 16th Annual Tax Credit Developers Conference January 14th – 15th.
· (January) Gill Group, Inc. attended the Council for Affordable and Rural Housing (CARH) 2010 Mid-Year Meeting in San Francisco, CA January 24th – 26th.
· (February) Gill Group, Inc. attended the Rural Development 515 Preservation Roundtable on February 18th with the Affordable Housing of Indiana Association in Plainfield Indiana. (March) Gill Group, Inc. attended the Alabama QAP meeting in Montgomery Alabama on March 8th and 9th.
· (March) Gill Group, Inc. attended the annual board meeting of CARH on March 2nd and 3rd in Washington DC.
· (March) Gill Group, Inc. will be attending the Missouri Title School in Columbia Missouri on March 8th.
· (March) Gill Group, Inc. will be attending the NH&RA conference in Miami Florida March 9th – 14th.
EVENTS (2009)
- Gill Group, Inc. attended 28 conferences throughout the United States in 2009.
GROWTH (2010):
- (January) Gill Group, Inc. added Jessica Waller as the Executive Marketing Assistant!
- (February) Gill Group, Inc. added ten new employees in our marketing and operations departments!
GROWTH (2009 - Highlights):
- Mike Baker became the new National Marketing Director of Gill Group, Inc.
- William K. Duncan was appointed to the Missouri Real Estate Appraiser’s Commission. The Missouri Real Estate Appraisers Commission was created by the 85th General Assembly for the purpose of certifying and licensing qualified person’s engaged in the practice of real estate appraising. The commission consists of six appraiser members and one public member. All members are appointed by the Governor of the State of Missouri.
- Mike Baker was appointed to the Development Committee in RRHA of Texas.
- Gill Group, Inc. completed statewide market studies for the Neighborhood Stabilization Program throughout the country.
- Gill Group, Inc.’s Review Department increased coverage of the Section 8 HAP Contract Renewal Rent Comparability Study Reviews by two states.
OUTREACH:
Gill Group has published the following:
· New York Real Estate Journal - How can low-income housing facilities translate into high profits?
· New York Real Estate Journal - Up, up and away: Home mortgage interest rates and gasoline prices continue ascending.
· Tax Credit Advisor - Boston MSA Market Snapshot
· Tax Credit Advisor - Seattle MSA Market Snapshot
· Northeast Industrial Development Resource Guide - What Appraisers Know About Investing.
Cash Gill, MAI has had the opportunity to speak on the following topics:
· (Indianapolis, IN) National Council of Affordable Housing Market Analysts - Maximize Your Market: Understanding the Methodology Behind Market Studies.
· (Reno, NV) Nevada Council of Affordable and Rural Housing - Don't Get Caught in the Red. New Guidelines for Audits and Inspections.
· (Washington, DC) The Institute for Professional and Executive Development - Nonrecourse HUD Deals - So You Closed Your Nonrecourse HUD Deal. Now What? And Is It Really Nonrecourse?
· (Arlington, VA) Council for Affordable and Rural Housing - Property Valuation: The Correct Way to Value Properties.
· (New Orleans, LA) National Council of Affordable Housing Market Analysts - Affordable Housing Site Analysis
· (Las Vegas, NV) Nevada Council of Affordable and Rural Housing - Auditing and Accounting Guidelines for Section 42 Low Income Housing Tax Credits.
· (Washington, DC) Council for Affordable and Rural Housing - Rural Development Appraisals and Market Studies
· (Miami, FL) Council for Affordable and Rural Housing - The Equity Market - Impact on Rural Housing
· (Washington, DC) Council for Affordable and Rural Housing - How to Foster Affordable Green and Rural Housing Needs Assessments
Cash Gill, MAI and Mike Baker have had the opportunity to speak on the following topics:
· (Indianapolis, IN) Affordable Housing Association of Indiana - Market Analysis – Best Ways Use Market Studies to Ensure Application Points
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