Industry News:

HUD’s Office of Affordable Housing Preservation (OAHP) will begin accepting applications for the Green Retrofit Program starting June 15^th. This program was created by the American Recovery and Reinvestment Act of 2009, Implemented by Housing Notice H-09-02:

Objectives

$250 Million in loans and grants to for energy and green retrofits in the multifamily assisted housing stock. Create green collar jobs. Improve property operations by reducing utility expenses. Benefit resident health. Benefit the environment.

Energy and Green Retrofit Investments

Up to $15,000 per residential unit (with an expected average of $10,000/unit) to reduce energy costs (e.g., more efficient heating and cooling systems), reduce water use (e.g., low-flow faucets and toilets), improve indoor environmental quality (e.g., low-VOC products), and provide other environmental benefits (e.g., materials with recycled content, reflective roofing to reduce heat-island effects, etc).

Program Volume

Estimate funding about 25,000 units (approx 300-350 properties).

Implementation

Accept applications starting June 15, 2009, begin obligating funds by September 2009, and owners begin making improvements immediately thereafter (and owners must complete work within two years).

Eligible Properties

Must receive HUD project-based assistance:



                        o Section 8

                        o 202-811 Elderly/Disabled Housing

Funding Buckets

Initial applications will be allocated to project categories for Section 202, Section 811, USDA Section 515, and other Section 8 projects based on a pro rata representation of each property type among the universe of eligible properties. Further, limitations will be placed on projects under common ownership or control and projects within any one of the ten HUD regions.

Underwriting Criteria

Applications must pass an initial feasibility based on underwriting criteria consistent with origination of each project type, that uses the last three years’ financials, applies a vacancy/ rent loss factor, applies a common reserve deposit requirement, and requires a minimum debt service coverage and operating expense cushion. After passing initial feasibility, HUD will underwrite each project to determine feasibility.

Processing Timeline

HUD expects most Green Retrofit transactions to close within 120 days of being assigned for processing.

Owner Incentives

                        • Pre-Development Incentive: 1% of Green Retrofits not to exceed $10,000

                        • Energy Efficiency Incentive: 3% of Green Retrofits not to exceed $30,000

                        • Targeted Job Creation Incentive: (optional) up to $25,000

                        • Incentive Performance Fee: 3% of collected revenue annually

Owner Commitments

                        • Use Agreement for 15 years beyond existing use restricted period

                        • Green Rehab and Green Replacements for life of Use Agreement

                        • Green Maintenance

                        • Recycling/ Hazardous Waste/ Landfill Diversion

                        • Discounts, Rebates and Commissions to Project Account

                        • Resident Involvement, Outreach and Incentive Plan

                        • Integrated Pest Management Plan

                        • Green Research Cooperation

                        • Green Property Management Training

Gill Group, Inc. can take care of your Green Retrofit Physical Condition Assessments!!

Gill Group’s Green Retrofit Physical Condition Assessment (GRPCA) reports contain all of the vital information pertaining to structures and their components that are necessary for investment and financing decisions. Our LEED AP Engineers provide necessary due diligence for real estate related transactions.

While we at Gill Group have our own extremely strict standards, we also comply with industry standards such as Standard and Poor’s and ASTM. Our reports go above and beyond the requirements set forth in the industry by providing additional information about the operation of the building and its systems.

Neighborhood Stabilization Program (2)

Gill Group, Inc. is currently working with several states to provide statewide in-depth analysis of existing housing stock of foreclosed and abandoned homes. Our role is to assist the state government in deciding the appropriate measures to take in order to arrest the destabilization of the high risk neighborhoods.

Purpose of Neighborhood Stabilization Funds:

Target and reconnect neighborhoods. Invest funds in programs and projects that will revitalize targeted neighborhood(s) and reconnect those targeted neighborhoods with the economy, housing market, and social networks of the community and metropolitan area as a whole.
Rapidly arrest decline. Support NSP2 uses and activities that will rapidly arrest the decline of a targeted neighborhood(s) that has been negatively affected by abandoned or foreclosed properties.
Assure compliance with the NSP ― deep targeting requirement. HERA requires that no less than 25 percent of the funds be used for purchase and redevelopment of abandoned and foreclosed-upon homes and residential properties to house individuals and families whose incomes do not exceed 50 percent of area median income.
Ensure longest feasible continued affordability. Invest in affordable housing that will remain desirable and affordable for the longest feasible period.
Support projects that optimize economic activity and the number of jobs created or retained or that will provide other long-term economic benefits.
Coordinate planning and resources. Integrate neighborhood stabilization programs with other Federal policy priorities and investments, including energy conservation and efficiency, sustainable and transit-oriented development, integrated metropolitan area-wide planning and coordination, improvements in public education, and access to healthcare.
Leverage resources and remove destabilizing influences. Augment neighborhood stabilization programs with other firmly committed resources. Eliminate destabilizing influences, such as blighted homes, that can prevent programs from producing results.
Set goals. Set aggressive, but achievable, goals for outputs and outcomes. Ensure accountability. Ensure accountability for all programs, keep citizens actively informed, and provide all required NSP and Recovery Act reporting elements.

Income requirements for the use of NSP funds:

(1) All of the funds made available under this section are to be used with respect to individuals and families whose incomes do not exceed 120% of area median income.

(2) Not less than 25% of these funds are to be used for the purchase and redevelopment of abandoned or foreclosed upon homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50% of area median income.

Continued Affordability:

All homebuyer and rental assisted units must adhere to the provision for long-term affordability restriction meeting at least the following requirements:

The affordability term for this program is as follows:

Ø < $15,000 per unit 5 years

Ø > $15,000 < $40,000 per unit 10 years

Ø > $40,000 per unit 5 years

Ø New construction or acquisition of new constructed units 20 years

Any property acquired under Activity C-Land Banking may not be held for more than five (5) years past the initial date of acquisition.

Objectives and Outcomes

1. Objectives.

The primary objective is the development of viable urban communities, by providing decent housing, a suitable living environment, and economic opportunity, for households with incomes at or below 120% of area median (low-, moderate-, and middle-income). NSP2 recipients must strive to meet this objective in neighborhoods that are in decline (or further decline) due to the negative effects of a high number and percentage of homes that have been foreclosed upon. The first goal is to arrest the decline. Then the recipient must stabilize the neighborhood and position it for a sustainable role in a revitalized community. Among the specific objectives are:

to foster the undertaking of housing and community development activities in a coordinated and mutually supportive manner by Federal agencies and programs, as well as by communities;
a more rational use of land and other natural resources and the better arrangement of residential, commercial, industrial, recreational, and other needed activity centers; and
the conservation of the Nation’s scarce energy resources, improvement of energy efficiency, and the provision of alternative and renewable energy sources of supply.

2. Outcomes.

Measurable NSP2 short term program outcomes include, but are not limited to:

Arrest decline in home values based on average sales price in targeted neighborhoods, and
Reduction or elimination of vacant and abandoned residential property in targeted neighborhoods.

The long term outcomes may include, but are not limited to:

increased sales of residential property in targeted neighborhoods, and
increased median market values of real estate in targeted neighborhoods. (Housing and Economic Recovery Act §2301(c)(3))

For full description of the entire program, please click here

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EVENTS (2009)

(June 29-30) Gill Group attended the National Housing and Rehabilitation Officials mid-year meeting in St. Louis, MO
(June 16 - 18) Gill Group attended the National Council of State Housing Agencies annual convention and trade show in Los Angeles, CA
(June 7 - 10) Gill Group attended the Council for Rural and Affordable Housing annual convention and tradeshow in Arlington, VA
(May 27 - 29) Gill Group attended the Southeast Mortgagee Advisory Committee annual conference and MAP training in Hilton Head, SC
(May 19 - 20) Gill Group attended the Midwest Lenders annual conference and MAP training in Detroit, MI
(May 10 - 12) Gill Group attended the National Housing and Rehabilitation Association Spring Forum in Los Angeles, CA
(April 29 - 30 ) Gill Group attended the Association of United States Postal Lessors annual convention and trade show in Las Vegas, NV
(April 15 - 17) Gill Group attended the Missouri Housing Development Commission Qualified Allocation Plan meeting in Jefferson City, MO
(April 5 - 7) Gill Group attended the American Bankers Association Lending Conference in Tampa, FL
(April 2 - 3) Cash Gill, MAI attended the Council of Affordable and Rural Housing Board of Director's Meeting in Washington, DC
(March 29 - 31) Gill Group attended the Apartment Finance Today annual convention and tradeshow in Phoenix, AZ
(January 28 - 30 ) Gill Group attended the National Leased Housing Association annual convention and trade show in Fort Meyers, FL
(January 25 - 27) Gill Group attended the Council for Affordable and Rural Housing mid-year meeting in Miami, FL

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COMPANY NEWS

(June, 2009) Gill Group hired Mike Baker as National Marketing Director
(May, 2009) Gill Group extended coverage of the review of Section 8 HAP Contract Renewal Rent Comparability Studies for the 14th state
(April, 2009) Gill Group added new appraisers at headquarters to oversee HUD and RD appraisals and market studies nationwide
(April, 2009) Gill Group added new engineers and architects at headquarters to oversee MAP PCNAs, RD CNAs and OAHP GPCAs and GRPCAs
(March, 2009) Gill Group completed the Nationwide Strategic Alliance Initiative to complete the service packaging for real estate due diligence
(February, 2009) Gill Group added LEED AP engineers and architects from California, Michigan, Missouri and Indiana to increase nationwide coverage of needs assessments
(January, 2009) Gill Group added four more permanent appraisal licenses for states in the Northeast and Midwest

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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