affordable housing.pdf

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Commercial Real Estate Finance

Your Property

Our FinancingFannie MaeFreddie Mac

FHABridge

CMBSLife Company

Corporate Headquarters7501 Wisconsin Avenue, Suite 1200E

Bethesda, Maryland 20814(301) 215-5500

www.walkerdunlop.com

California loans will be made pursuant to a Finance Lenders Law License from the Department of Business Oversight.


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Juniper ApartmentsManteca, California

CFY Development and Egis Group, Inc.

Source: NAHB Housing Policy Dept: The Local Economic Impact of Typical Housing Tax Credit Developments, 03/2010. This advertisement is for informational purposes only. RBC Capital Markets is a registeredtrademark of Royal Bank of Canada. RBC Capital Markets is the global brand name for the capital markets business of Royal Bank of Canada and its affiliates, including RBC Capital Markets, LLC (member FINRA, NYSEand SIPC). Registered trademark of Royal Bank of Canada. Used under license. Copyright 2013. All rights reserved.

Contact us at 1.888.875.9223 | rbccm.com/tceg

Take Confidence in Our Approach

Commitment to Affordable Housing.

Stacie Altmann

DirectorWest [email protected]

Brian Flanagan

DirectorSoutheast [email protected]

Dan Kierce

DirectorCentral [email protected]

Dave Urban

DirectorGulf Coast [email protected]

Tom Maxwell

DirectorNortheast [email protected]

RBC Capital Markets Tax Credit Equity Group syndicated $7.7 million in LIHTC equity for Juniper Apartments,

a 153-unit affordable housing development serving families in Manteca. The project is estimated to have created

187 jobs during construction and 46 ongoing jobs in the San Joaquin county area. RBC was pleased to partner

on this property which leased up quickly and reflects the strong need for workforce housing in this northern

California community.


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2 AFFORDABLE HOUSING FINANCE 2013 LIHTC YEARBOOK

Dan Morrison Editorial Director [email protected] Ascie rto Editor in Chief [email protected]

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Affordable Housing Finance Editorial Advisory BoardBoard Chairman David Reznick, CohnReznick; Anthony Aleri, RBC Tax Credit Equity Group;Amy Anthony, Preservation of Affordable Housing; Laura Burns, The Eagle Point Cos.; Brenda Champy,

Boston Capital; Michael Costa, Highridge Costa Cos.; Conrad Egan, Affordable Housing Institute;Steven Fayne, Citi Community Capital; Jim Gillespie, Centerline Capital Group;

R. Lee Harris, Cohen-Esrey Real Estate Services, LLC; J. David Heller, The NRP Group;Robert Hoskins, The NuRock Cos.; Bill Kelly, Stewards of Affordable Housing for the Future;

Mary Kenney, Illinois Housing Development Authority; Bart Mitchell, The Community Builders;Robert Moss, CohnReznick; Patrick Nash, JPMorgan Capital Corp.;

Jeanne L. Peterson, CohnReznick; Paul Purcell, Beacon Development Group;Patrick N. Sheridan, Volunteers of America; Beth Stohr, U.S. Bancorp CDC;

Monica Sussman, Nixon Peabody, LLP; Ronne Thielen, R4 Capital, Inc.;Sean Thomas, Ohio Housing Finance Agency; Whitney Weller, Michaels Development Co.;

Charles Werhane, Enterprise Community Investment

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LIHTCYEARBOOK

2013

42

40

6A MODEL PROGRAMThe low-income housing tax credit (LIHTC)program has been the nations mostimportant and successful housing programfor nearly 30 years.

8KEYS TO SUCCESSTrue publicprivate partnership plays acrucial role in the programs achievements.

10THE NEED GROWSWhile the housing market shows signs ofrecovery, the ranks of the least fortunatehouseholds continue to rise.

13SUCCESS STORIESTwelve profiles show the diversity ofhousing being built and people being served

by the LIHTC program.

CONTENTS

ARLINGTONMILL:KGDARCHITECTURE;PARKVIEW:DONALDRASK;COV

ER:THESOLSTICE,COURTESYHOMEWORD

Arlington Mill Residences, Arlington, Va.

Parkview Senior Living Community, Racine, Wis.


5/52

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commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic

advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (Investment Banking Affiliates),

including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealersand members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured

e *>V )LPB 3>IRB e OB +LQ >KH $R>O>KQBBA s >KH LC JBOF@> LOMLO>QFLK

The power of global connections

Connecting community developers

with financial expertise and capital

to build affordable housing. Its how

people and communities thrive.

baml.com/commercialre

welcome home


6/52


A PANACEA WITHOUT PEER

T

he publication you hold in your hands is

a special edition of AFFORDABLEHOUSING

FINANCEdevoted to celebrating the outra-

geously successful low-income housingtax credit (LIHTC) program.

The program, now in its 27th year, is a

uniquely American solution to a pressing, ever-

present problem. It leverages private capital to

produce an essential public purpose, tapping

into a free-market system to provide safe, decent,

and affordable housing to Americas low-income

families.

The LIHTC itself was a stroke of brilliance,

perhaps the most shining example of the power of

publicprivate partnerships in the history of our

great nation. Its a model of efficiency and effec-tivenessdevelopers compete for the credits; de-

velopments receive only as much capital as they

need to be viable; each state tailors the program

to meet its unique needs; and the private sector

bears all the risk.

Then again, maybe risk is the wrong word

to use here: Apartment communities financed

through the LIHTC program have a foreclosure

rate of less than 1 percentthe lowest of any com-

mercial or residential real estate asset class.

In fact, the program has been so successful that

its become a solution for many problems beyondthose it was originally intended to solve: It truly

is the Swiss Army Knife of Americas housing

policy.

The program was created to produce new af-

fordable housing for low-income families, and in

that, its been wildly productive, creating about

100,000 homes every year.

But the LIHTC proved to be such a powerful

tool in raising equity to finance new development

that it was quickly expanded to include renova-

tions of existing properties, as well. All told, since

its inception, the LIHTC has created or preserved

more than 2.6 million units of affordable housing.Yet, Id be doing the LIHTC a disservice just

to quote facts and figures. The programs success

cant be measured by volume aloneit also serves

a variety of public purposes far beyond the scope

outlined in the Tax Reform Act of 1986 under

President Ronald Reagan.

Originally aimed at low-income families, the

LIHTC program is now applied to quite a multi-

tude of different populations, including seniors,

veterans at risk of homelessness, farmwork-

ers, formerly homeless families and individuals,

abused women, youths aging out of foster care,and people with special needs, such as the men-

tally or physically disabled.

The LIHTC has also been asked to step up in

times of our nations most dire need, helping to

rebuild communities throughout the Gulf Coast

after the devastation of Hurricane Katrina, as

well as the recent tornadoes and floods in the

Midwest.

Given all of these various uses, a strong argu-

ment could be made that such a powerful and

effective tool needs to be expandednot just to

keep up with the pace of obsolescence, not justto keep up with the booming demand for seniors

housing, and not just to keep more families and

veterans from the horrors of homelessnessbut,

taken all together, to keep up with all of these

needs and more.

The high-impact, low-risk program goes way

beyond the clich, If it aint broke, dont fix it.

The overriding maxim should be, If its broke, the

LIHTC can fix it.

EDITORSNOTE

By Jerry Ascierto

GIVEN ALL OF

ITS VARIOUSUSES, A STRONG

ARGUMENTCOULD AND

SHOULD BE MADETHAT SUCH A

POWERFUL ANDEFFECTIVE TOOL

NEEDS TO BEEXPANDED.


7/52

Hudson Housing Capital has long served as atrusted financial partner to tax credit investors anddevelopers alike. Our track record of delivering resultscontinues to attract a growing stream of investor capital.Hudson has consistently provided capital to itspartners through these challenging financial times.

While Hudson Housing Capital has the experience

and depth of management to understand the mostcomplicated opportunities, it is the simple thingsthat set us apart: care in dealing with our partners,thorough underwriting and meticulous asset manage-ment. And private ownership that understands thevalue of building relationships for the long term.

Talk to those who have worked with us. It really doesmatter who you choose as a partner.

IT REALLY DOES

MATTER WHO

YOU CHOOSE AS

A PARTNER.

Hudson Housing Capital LLC

630 Fifth Avenue, Rockefeller Center, 28th Floor, New York, NY 10111

Tel: 212-218-4488 Fax: 212-218-4467

www.hudsonhousing.com

7545 Irvine Center Drive, Suite 200 Irvine, CA 92618 Tel: 949-623-8563

525 B Street, Suite 1500, San Diego CA 92101 Tel: 619-297-6500

7535 Little River Turnpike, Suite 204 Annandale, VA 22003 Tel: 703-639-0880

100 Cummings Center, Suite 433A Beverly, MA 01915 Tel: 978-236-4252

251 Recinto Sur, 2nd floor San Juan, PR 00901 Tel: 787-721-7929


8/52



9/52

AFFORDABLE HOUSING FINANCE 2013 LIHTC YEARBOOK 7

KYLET.

WEBSTER

A MODEL PROGRAM

The low-income housing tax credit (LIHTC) is the most

important and successful federal program for the pro-

duction and preservation of affordable housing.

The housing credit has financed about 2.6 million

affordable housing units across the country during its nearly30-year history. Established as part of the Tax Reform Act of

1986 under President Ronald Reagan, the program has earned

strong bipartisan support throughout its history.

Thats because the model program has done what it was in-

tended to do and more, steadily producing quality affordable

housing and meeting the unique needs of different communi-

ties. It has provided critical homes for working families, se-

niors, veterans, disabled individuals, and people who have been

homeless. The LIHTC has also been a critical tool in rebuild-

ing communities after devastating natural disasters, including

Hurricane Katrina in the Gulf Coast and recent tornadoes and

floods in the Midwest.Housing credits are needed because its not economically

feasible to build affordable housing with restricted rents with-

out a way to make up the difference in what it costs to build

a property and the income that can be generated to support

the development costs. LIHTCs play a major role in a devel-

opments budget, with developers using the credits to raise the

needed equity for their projects and keep down their debt levels.

Citing the LIHTC programs history of success, the Bipartisan

Policy Centers Housing Commission this year strongly urged

that the housing credit not only be preserved but expanded.

To help address the growing demand for rental housing, we

recommend that the annual LIHTC allocation be increased by50 percent, as the resources are identified, to support a higher

level of affordable housing development, said the commission,

which is chaired by former U.S. senators George Mitchell and

Christopher Kit Bond, former U.S. senator and Department

of Housing and Urban Development (HUD) secretary Mel

Martinez, and former HUD secretary Henry Cisneros.

The housing credit is unique because it is designed with

private investment and state supervision in mind. Although

the program is regulated by the Internal Revenue Service

(IRS), each state tailors the program to meet its own particu-

lar housing needs. Developers and investors then make cer-

tain their deals draw on private-sector discipline and will sur-vive scrutiny by program officials.

All the pieces have come together in the LIHTC program.

Corporate investors have stepped up to fund developments.

States have successfully deployed the program to meet their

specific needs. The IRS has been a careful watchdog. And, most

importantly, developers have delivered affordable housing for

millions of Americans.

HOW THE LIHTC WORKS

The low-income housing tax credit(LIHTC) program works throughpublicprivate partnerships.

States receive federal creditseach year based on their population.In 2014, the per capita amount will be$2.30, with a small-state minimum of$2.64 million. With public input, statesprepare Qualied Allocation Plans that

spell out their housing priorities andhow they will allocate the credits.

Developers must compete to

win the housing credits. Typically,the demand for LIHTCs far outpacesthe supply of credits that a statehas to allocate. As a result, states

have set up competitions in whichapplications are carefully reviewedand scored, and only the highest-scoring projects win funding.

To be eligible for tax credits, aproject must set aside at least 20percent of the units for residentsearning no more than 50 percent

of the area median income (AMI) or

40 percent for people earning nomore than 60 percent of the AMI.

However, the majority of LIHTCproperties target 100 percent of unitsat 60 percent of the AMI and below.

Developments must remainaffordable to residents for manyyears. They are subject to InternalRevenue Service compliance rules for15 years, but affordability restrictionsremain for 30 years or more.

After receiving an award of

housing credits, developers sellthe LIHTCs to investors to raiseequity to build their developments.As a result, projects are reviewed

again by investors, who bring theirprivate-sector business discipline tothe process.

Credits are not earned until aproject is completed and operating,so there is minimal risk to thefederal government.


10/52


KYLET.WEBSTER

THE KEYS TO THE LIHTCPROGRAMS SUCCESS

The low-income housing tax credit (LIHTC) has fi-

nanced about 2.6 million affordable housing units

since the program was established in 1986.

The most successful affordable housing production

and preservation program in the nations history, the LIHTC

helps create approximately 100,000 homes each year. But its

more than volume that makes the program special. The hous-ing tax credit serves a wide range of needs and populations, in-

cluding working families, seniors, veterans, formerly homeless

individuals, and people with special needs.

The Swiss Army Knife of all housing programs, the LIHTC

is a tool to build new homes as well as preserve and rehabilitate

old buildings. In addition, the housing credit has been called upon

to help rebuild the Gulf Coast and other disaster-stricken areas.

Each year, about 95,000 full-time jobs are created by the

LIHTC program.

One of the reasons the LIHTC has been so successful is that

it harnesses private-sector investment capital and discipline to

make the housing developments true publicprivate partner-

ships. As a result, foreclosures have occurred in less than 1 per-

cent of all LIHTC properties, far lower than for any other real

estate asset type.

The programs keys to success are multifold:Only developments that meet federal and state hous-

ing priorities receive credits. Developments receive only the

amount necessary to make them viable.

The program is administered at the state level. With

public input, states issue a plan to allocate the credits. This al-

lows each state to adapt the program to meets its particular

housing needs. In many states, the demand from developers is

two, three, or more times the available supply of credits. As a

result, states select only the best developments.


11/52


ECONOMIC

CONTRIBUTIONS

On the surface, the low-incomehousing tax credit program createsand preserves af fordable homesacross the country. However, it does

much more than that, includinggenerating needed jobs andstimulating the economy.

Housing tax credit propertiesalso serve as important catalyst s forimproving their neighborhoods.

The programs economicbenets are impressive. The

LIHTC is a job creator, generatingapproximately $7.1 billion ineconomic income and approximately95,000 jobs per year across manyindustries. Architects, plumbers,electricians, carpenters, concretefabricators, bricklayers, roofers,and other specialties benet when

a LIHTC development is built.Property managers, maintenanceworkers, service providers, andothers then benet once a property

is occupied.The National Association of

Home Builders (NAHB) estimatesthat, in its rst year, a typical

100-apartment LIHTC developmentwill have the following impact:$8.7 million in additional

wages for local workers and prots

for proprietors of businesses;$3.3 million in additional

taxes for federal, state, and localgovernments; and

116 additional jobs, abouthalf of which are in the constructionsector.

Job creation spurred by LIHTCdevelopment continues after theconstruction phase, as well.

The NAHB estimates that afterthe homes are occupied, 30 jobsremain in the wholesale andretail trade; dining and drinkingestablishments; local government;and health, education, and socialservice sectors.

Rules compliance is closely monitored.Owners are sub-

ject to credit recapture for 15 years, and properties generally re-

main affordable for 30 years or more.

Housing credits leverage private capital. The program

was designed to provide only a portion of the development cost,

not the entire amount, so developers must compete for other

funding sources and impress each funder with the quality oftheir development.

The program employs a pay-for-performance policy,

minimizing any risk to the federal government.The private

sector bears the risk, with investors only getting to claim and

keep the tax credits if the affordable housing units are built,

leased, and maintained as affordable housing throughout the

compliance period of 15 years. Additionally, there is a 15-year

extended-use period, with many states requiring much longer

affordability.


12/52


CHARTSOURCE

:HUD-PD&RTABULATIONSOFAMERICANHOUSINGSURVEYDATA;ILLUSTRATION:KYLET.WEBSTER

THE NEED FOR AFFORDABLEHOUSING GROWS

The housing market has experienced huge swings in the

past decade, and many signs show that a market recov-

ery is under way. But not for everyone. The number of

households with housing cost burdens continues to rise.

Millions of working families, seniors, veterans, and disabled

individuals suffer severe cost burdens and need affordable

housing more than ever.

At last count, in 2011, more than 40 million householdswere at least moderately cost-burdened (paying more than 30

percent of their incomes for housing), including 20.6 million

households that were severely burdened (paying more than

half of their incomes for housing), notes the Joint Center for

Housing Studies of Harvard University in itsState of the Nations

Housing 2013report. The latest increases in the number of se-

verely burdened households represent a jump of 347,000 from

2010, 2.6 million from 2007 when the recession began, and 6.7

million from a decade ago.

For every 100 extremely low-income (ELI) renter house-

holds, there are just 30 affordable and available units, accord-

ing to the National Low Income Housing Coalition (NLIHC).

ELI renter households refer to those earning less than 30 per-cent of the area median income.

In order to close the gap between the demand for afford-

able housing and the supply, the nation would need to add

4.5 million units affordable to ELI households, according to the

NLIHC in its Out of Reach 2013report.

The number of renter households

with worst-case needs increased to

8.48 million in 2011, up from theprevious high of 7.1 million in 2009,

reports the Department of Housing

and Urban Development. Worst-

case needs are defned as renters

with very low incomes (below half

the median in their area) who do

not receive government housing as-

sistance and who either paid more

than half their monthly incomes for

rent, lived in severely substandard

conditions, or both.

CONTINUED INCREASES IN WORST-CASE NEEDS

2001 2003 2005 2007 2009 2011

RENTERSWITHWORST-CASENEEDS

(THOUSANDS)

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

5,014 5,176

5,992 5,905

7,095

8,475


13/52


CREDIT-RIGHT-NEWSGOTHICMEDIUM_

6/1

1


14/52

SUPERHEROES

have extraordinary powers.

They work to the highest standards

and protect the public interest.

Just like CHRIS HOBBS.Year after year, Chris pushed theaffordable housing industry to bebettersmarter, more forward-looking, technically sophisticatedbut never losing sight of the humanside of what we do.

National Equity Fund and so manyorganizations like it are better forher keen eye and strong voice.She spent her career setting astandard for the industry to follow.

And the impact is clear.

People live better because of thepath Chris forged. Their homes

are healthier. Their communitiesare stronger. Their kids have thechance to be kids.

It really is superhero work.Thank you Chris Hobbs.

HAPPY RETIREMENT!


15/52


SOLSTICE:COURTESYHOMEWORD;BUDBAILEY:NEILKRAUSS;MARYTAYLOR:JEFFERYTOTARO;V

ALLEYBROOK:S

HELLYHARRISONPHOTOGRAPHY

SUCCESS STORIESIN EVERY STATE IN THE NATION, THE LIHTC PROGRAM HAS

BEEN A LIFELINE FOR LOW-INCOME HOUSEHOLDS FOR NEARLY 30 YEARS.

One of the strengths of the low-income

housing tax credit (LIHTC) program

is that it meets the needs of different

people and communities. The credit

is essential in the development of safe, afford-

able homes for working families, low-income se-niors, veterans, disabled individuals, and others.

Deployed in every state, the LIHTC brings essen-

tial housing to a wide range of communities, from

large urban centers to small rural towns.

The following pages detail 12 LIHTC develop-

ments from around the country, by congressional

district, that showcase the diversity of housing the

program finances, the people it serves, and the jobs

it generates. Weve estimated how many jobs each

development has created based on data from the

National Association of Home Builders (NAHB).

In its 2010 study The Local Economic Impact

of Typical Housing Tax Credit Developments, the

NAHB found that the construction of a typical

100-unit family tax credit development createsan average of 122 local one-year jobs. The esti-

mated one-year local impact also includes $7.9

million in local income and $827,000 in taxes and

other revenue. Rehab is also important to provid-

ing affordable homes and construction jobs: For

every $100,000 spent on residential remodeling,

1.11 jobs are generated, according to the NAHBs

analysis of U.S. Bureau of Economic Analysis data.

To see a sampling of this success, turn the page.

Clockwise from top left: The Solstice in Missoula, Mont.; Bud Bailey Apartments, Salt Lake City; Mary Taylor House, West Chester, Pa.; Valley Brook Village, Lyons, N.J.


16/52


COURTES

YRICK

CAVALIERI,NORSTAR

DEVELOPMENT

VENETIAN WALK FITS INWITH VENICE, FLA.

Local officials look forward to the March

2014 opening of Venetian Walk, a new af-fordable housing community in Venice, Fla.

Im very, very proud of having it here,

says Venice mayor John Holic. It will blend in

very nicely with the city.

Venetian Walk will include a mix of public

housing and affordable apartments for seniors in

its first phase. The property replaces crumbling,

crime-ridden public housing with solidly con-

structed and attractive new housing, says Holic.

With arches over their balconies and red barrel

tiles on their pitched roofs, the four-story buildings

will match the Mediterranean architecture com-mon in the town. The units will be energy efficient,

as well, thanks to their LEED Gold specifications.

The housing authority tore down 50 public

housing apartments in 2009 to make way for

Venetian Walk. Built in the 1960s, the two-story,

cinder-block buildings had suffered serious wa-

ter damage and become locally famous for crime.

We made a commitment to the community

that those would be replaced in the new develop-

ment, says Paula Rhodes, executive vice president

for Norstar/Primerica Multifamily DevelopmentGroup, which developed Venetian Walk in part-

nership with the Venice Housing Authority.

The first phase of construction includes 25

public housing apartments and 36 units for resi-

dents earning up to 60 percent of the area me-

dian income. The developers are applying for

funding for another 52 affordable apartments,

including another 25 units of public housing.

Theres a huge demand for affordable seniors

housing, says Rhodes. More than half of the peo-

ple living in the city are over 65, according to the

2010 census, and the median household incomeis $46,646.

It cost about $12.8 million to build the 61

apartments in the first phase, almost all of which

was paid for with $12.5 million in equity from the

sale of low-income housing tax credits. The rest of

Venetian Walks funding came from Community

Development Block Grant money provided by the

city and county and a soft loan of capital funds

from the housing authority.

FLORIDA13TH CONGRESSIONAL DISTRICT

69NAHB local one-year

jobs estimate

61Number of units

$12.8 millionTotal development cost

$12.5 millionTotal LIHTC investment

Income targeting: 36 units forresidents earning 60 percentof the area median income;

25 public housing units

BY THE NUMBERS


17/52



18/52


KELLYHARMON,VILLAGE

BUILDERS

MIXED-INCOME PROJECTMEETS GROWING NEED

Nonprofit developer Community Devel-

opment Inc. (CDI) celebrated the open-ing of its latest low-income housing tax

credit (LIHTC) family development in

Rexburg, Idaho, at the end of October.

The city, with a population of more than

27,000, is located in eastern Idaho. Its popula-

tion increased substantially after Ricks College, a

junior college owned and operated by The Church

of Jesus Christ of Latter-day Saints, transitioned

to Brigham Young UniversityIdaho, a four-year

institution, in 2001.

The demand for housing in Rexburg is signifi-

cant, says Bill Truax, chief development officer forCaldwell, Idahobased CDI. The city has both af-

fordable and market-rate needs, and thats what

we tried to accomplish at Rockwell Court.

The majority of the 51 units are reserved for

residents earning between 40 percent and 55 per-

cent of the area median income (AMI); however,

five units are market rate. Truax says CDI keeps

its market-rate rents at a reasonable cost, adding

that just because an individual may not qualify for

a unit at 55 percent of the AMI doesnt mean he or

she doesnt need an affordable housing solution.The project includes three- and four-bedroom

townhomes with some flats. A community build-

ing houses a life skills center, where residents can

learn job training and budgeting skills, as well as a

fitness facility. The developer also offers support-

ive services to its residents by partnering with area

nonprofit social service providers.

The city of Rexburg was integral to the project.

The developer met early on with city leaders, who

directed CDI to the site of a failed condo deal that

was a potential liability because of its unfinished

construction. Most of the infrastructure improve-ments had been done before the deal went belly-

up. The site worked for CDI, and the development

team was able to use a significant portion of the

infrastructure that had been put in place.

CDI hopes to do another development in

Rexburg. At press time, it was waiting to hear

whether the project would receive a LIHTC res-

ervation from the Idaho Housing and Finance

Association.


jobs estimate

51Number of units

$9 millionTotal development cost

$7 millionTotal LIHTC investment

Income targeting: 3 units forresidents earning 40 percentof the area median income;2 units at 45 percent AMI;

21 units at 50 percent AMI;19 units at 55 percent AMI;5 market-rate units; and 1

managers unit

BY THE NUMBERS

IDAHO2ND CONGRESSIONAL DISTRICT


19/52

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COURTESYWERTHDEVELOPMENT

REHABBED RURALPROPERTY PROVIDESSTABILITY, COMFORT

Gabrielle Olney has a safe place to live,

thanks to her home in the OrchardPlace Manor Apartments in the rural

town of Owosso, Mich.

There are places to rent all over, but a lot re-

quire stable employment. When youre on Social

Security, youre not even close to that stable

amount per month, she says.

Olney was born with serious cardiovascular

issues, which worsened after she graduated from

the University of MichiganFlint in 2011. Orchard

Place provides her with a stable place to live and

work on writing projects.

Orchard Place should continue to provide af-fordable housing to seniors and disabled people

like Olney for years to come, after a top-to-bottom

renovation, paid for with low-income housing tax

credits (LIHTCs).

The apartments will get new roofs, new sid-

ing, and even new exterior stone finishes. And the

property will operate more efficiently, thanks to

new insulation, boilers, and LED lighting in the

common areas, and new, efficient appliances and

water fixtures that will also help residents save on

their utilities.We are very happy to have this in our commu-

nity, says Danny Miller, township supervisor for

Owosso, a small town of about 15,700 residents

between the cities of Flint and Lansing in central

Michigan. This is a nice-looking place.

Locally based Werth Development origi-

nally built Orchard Place in 1993 under the U.S.

Department of Agriculture Rural Developments

Sec. 515 program. For the $4.2 million renovation,

Werth relied on $2.6 million in equity from the

sale of federal LIHTCs.

The apartments are reserved for seniors andpeople with disabilities earning up to 60 percent of

the area median income. Rents start at $395 for a

one-bedroom. Thirty-four of the 44 apartments re-

ceive rental assistance from Rural Developments

Sec. 521 program, which pays the rent for residents

after they contribute 30 percent of their own in-

come. Most of these low incomes are based on

Social Security payments that range from $11,000

to $12,000 a year on the high end.


jobs estimate

44Number of units



Income targeting: 43 units forresidents earning 60 percentof the area median income,

including 34 rental assistanceunits; and 1 managers unit

BY THE NUMBERS

MICHIGAN4TH CONGRESSIONAL DISTRICT


21/52



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COURTESYHOMEWORD

SUSTAINABILITYSTRATEGIES SHINE ATSOLSTICE

Homeword, a nonprofit based in Mis-

soula, Mont., keeps an eye on the futurewhen building its affordable housing

developments. The developer strives to

create lasting properties by focusing on the build-

ing envelope and other sustainable features.

The intention is for the buildings to go as far

and as long as they can if they are maintained ap-

propriately, says Heather McMilin, Homewords

housing development director.

One of the reasons behind this strategy is that

the developer wont have to rehab or resyndicate

the low-income housing tax credit (LIHTC) prop-

erties at year 15 and that available funds can beused to preserve much older properties. Another

reason is the direct impact a sustainable building

has on its residents in terms of utility savings and

health benefits.

Solstice in Missoula is just one of the firms re-

cent examples of sustainable and affordable hous-

ing. The LEED Gold project, which opened in late

2011, combines 34 units of affordable workforce

housing with commercial office space on a site that

had contained a large parking lot and an old bowl-

ing alley next to a key intersection in the city.The property is the first mixed-use develop-

ment in the state to receive a graywater permit,

which helps to irrigate the green space between

Solstice and sister project Equinox. It also has

low-flow water fixtures, efficient irrigation sys-

tems, and rain gardens that treat stormwater and

recharge the Missoula Aquifer.

We focused on how you can do a dense ur-

ban project, reclaim water, and not just pump it

back into the sewer septic system, says McMilin.

We couldnt have done it without the low-income

housing tax credit and our state housing program.The $8.2 million housing development was

financed with $3.5 million in LIHTCs and $2.9

million in Tax Credit Exchange Program funds

through the American Recovery and Reinvestment

Act. The project also received state and city HOME

funds and a city Community Development Block

Grant. The commercial space, which features a

mix of nonprofit and for-profit organizations, uti-

lized New Markets Tax Credits.


jobs estimate

34Number of units



Income targeting: 4 units forresidents earning 40 percentof the area median income;21 units at 50 percent AMI;

and 9 units at 60 percent AMI

BY THE NUMBERS

MONTANA AT-LARGE CONGRESSIONAL DISTRICT


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6/1

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SHELLYHARRISONPHOTOGRAPHY

NEW JERSEY VETERANSRECEIVE NEW HOMESAND SERVICES

On Sept. 20 of this year, Bill Ehrie moved

into his new home.Ehrie, a Marine Corps veteran of

the Vietnam War, is the first resident

at Valley Brook Village, a new supportive housing

community in Lyons, N.J., for veterans at risk of

homelessness.

By the end of the month, all 62 of Valley

Brooks apartments had been leased, and another

20 veterans looking for a place to live had put their

names on the waiting list.

Valley Brook Village is truly a place to call

home, says Julia Ahmet, vice president of devel-

opment for Parsippany, N.J.based CommunityHope, which will operate the new community.

Community Hope partnered with private

developers Peabody Properties and Windover

Construction to develop the projects one- and

two-bedroom apartments.

Valley Brook Village stands on 16 acres on the

leafy, 297-acre campus of the Veterans Affairs

New Jersey Health Care System. Veterans Affairs

(VA) donated the land to the project as a 75-year

ground lease. After that, the buildings and land

will revert back to the VA. Community Hope al-ready manages 95 beds for homeless veterans on

the campus.

Vets at Valley Brook receive health and counsel-

ing services through nonprofit Affordable Housing

& Services Collaborative. Theres also on-site voca-

tional training and a job placement program.

The veterans contribute a share of their in-

come to rentoften Social Security payments.

The rest of their rental costs are paid for by the

federal Veterans Affairs Supportive Housing

(VASH) program.

The new buildings are designed to win LEEDSilver certification.

It cost $15.5 million to develop Valley Brook

Village$9 million of which came from the sale of

low-income housing tax credits. The VA provided

$4 million in capital funds, and Somerset County

contributed $100,000 in HOME funds.

Valley Brook Village will be the subject of a

documentary short film by Charlotte, N.C.based

Susie Films.

NEW JERSEY7TH CONGRESSIONAL DISTRICT


jobs estimate

62Number of units



Income targeting: 61 units forresidents earning 50 percentof the area median income(rental subsidy provided bythe federal Veterans Affairs

Supportive Housing program);1 live-in responders unit

BY THE NUMBERS


27/52



6/1

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COURTESY

HOLT

ARCHITECTS

NEW AFFORDABLEHOUSING IN HISTORICDOWNTOWN ITHACA

By the end of this year, 50 new afford-

able apartments will open in the heartof Ithaca, N.Y.

Weve gone out of our way to create

a building thats an asset, says Paul Mazzarella,

executive director of Ithaca Neighborhood

Housing Services, which developed Breckenridge

Place in partnership with Rochester, N.Y.based

PathStone Corp.

Breckenridge Place has been carefully de-

signed to fit into Ithacas historic downtown, with

old-fashioned details like a cornice along the top

of the building and bands of marble and concrete

weaving between the brickwork of the faade. Aband of granite at the base should help protect the

building from the snow and salt of winter.

The building, designed to LEED Platinum spec-

ifications, is meant to save residents energy while

providing them a healthy place to live. Tenants

also benefit from being close to the economic life

and services of downtown. The building is a few

blocks from the hub of a bus network that spreads

throughout rural Tompkins County.

Breckenridge Place is the first new affordable

housing property built in Ithacas central businessdistrict in more than 40 years, says Mazzarella.

Indeed, Ithacas downtown business asso-

ciation gave the project its formal endorsement.

Breckenridge also had a high level of support from

Ithacas mayor and city council, which provided

$1 million in financing to the development.

More than half of Breckenridges $15 million

development cost came from $8 million in eq-

uity from the sale of federal low-income housing

tax credits (LIHTCs). The project also received

$2 million in equity from New York state LIHTCs,

along with a long list of other funding sources.To build the six-story elevator building, the de-

velopers had to drive more than 200 50-foot piles

underground to help support the structure.

Residents range from those earning a fraction

of the area median income to people whose in-

comes are just slightly below the average for the

area. Four apartments are reserved for formerly

homeless people, and another four are reserved

for people with developmental disabilities.


jobs estimate

50Number of units



Income targeting: 31 units forresidents earning 30 percentof the area median income;11 units at 60 percent AMI;8 units at 90 percent AMI

BY THE NUMBERS

NEW YORK23RD CONGRESSIONAL DISTRICT


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6/1

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COURTESYMWAARCHITECTS

SENIORS HOUSING KEEPSCOMMUNITY INTACT

Northwest Housing Alternatives (NHA)

seized an opportunity during the eco-nomic downturn to create affordable

seniors housing in a New Urbanist

community in the Orenco Station neighborhood

of Hillsboro, Ore.

When the market crashed, the nonprofit hous-

ing developer acquired the site at a reasonable

price after the master developer decided it had

too much land, allowing NHA to implement some

needed affordability in a market where rents have

been on the rise. Many seniors who have lived in

the area for years with family and support systems

nearby are now at risk of getting priced out by ris-ing rents and home prices, according to Jodi Enos,

housing developer at NHA.

Alma Gardens, which held its grand opening

in mid-October, seeks to keep those communities

and families intact with its 45 apartments for in-

dependent seniors 55 and older who earn less than

60 percent of the area median income.

It is an opportunity for the seniors who have

been part of the Hillsboro community [to remain

in the area] as they age and downsize, says Martha

McLennan, NHAs executive director.The smoke-free development, which was fi-

nanced primarily with low-income housing tax

credits, HOME funds, and a permanent loan, has

been built to Earth Advantage Platinum stan-

dards with a focus on helping residents save mon-

ey on their utility bills. A solar-preheated boiler in

the building provides free hot water to each apart-

ment, and each unit contains a master electrical

switch that the resident can turn off when going

out or at night to eliminate off-line power usage

of cable boxes, televisions, and other appliances.

The transit-oriented location is a plus for theresidents, who are only 200 yards from the light-

rail platform, which provides access to downtown

Hillsboro and connects to Beaverton and Portland.

Alma Gardens also pays tribute to the agricul-

tural and cultural history of Hillsboro, which has

been home to a significant Hungarian population

since 1906 when a large group of immigrants be-

gan working for the Oregon Nursery Co., Orenco

Stations namesake.


jobs estimate

45Number of units



Income targeting: 8 unitsfor residents earning 30

percent of the area medianincome; 5 units at 50 percentAMI; 31 units at 60 percentAMI; and 1 managers unit

BY THE NUMBERS

OREGON1ST CONGRESSIONAL DISTRICT


31/52

*As of December 31, 2012

PNC, Midland Loan Services and For the Achiever in You are registered marks of The PNC Financial Ser vices Group, Inc. (PNC). Lending products and services requirecredit approval and are offered by PNC Bank, NA, a wholly owned subsidiary of PNC. Investment banking and capital markets activities are conducted by PNC through itssubsidiaries PNC Bank, National Association, PNC Capital Markets LLC, and Harris Williams LLC. Services such as public finance advisory services, securities underwri t

and securities sales and trading are provided by PNC Capital Markets LLC. Merger and acquisition advisory and related services are provided by Harr is Williams LLC. PNC CapitaMarkets LLC, and Harris Williams LLC are registered broker-dealers and members of FINRA and SIPC. Harris Williams & Co. is the trade name under which Harris Williams LLCconducts its business. PNC does not provide legal, tax, or accounting advice. 2013 The PNC Financial Serv ices Group, Inc. All rights reserved. CIB PDF 0513-017-143912

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better tomorrow.

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Bringing desirable living spaces to underserved communities takes a lender well-versed in affordable housing finance precisely what the developers of HeritageOaks found in PNC. Providing expertise in LIHTC equity, Fannie Mae, Freddie Macand FHA agency solutions, and offering a range of construction and bridge lendingoptions, PNC is here to help developers build, acquire or refinance, and overcomethe challenges of creating great communities. For those ready for a relationshipwith a lender ready to make a difference, its time to think PNC.

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C

OURTESY

NATIONAL

CHURCHRESIDENCES

PERMANENT HOUSINGFOR DISABLED, HOMELESS

In Columbus, Ohio, there are fewer chronically

homeless living on the streets and fewer peopleliving in relatively expensive nursing and group

homes, thanks to a new development by National

Church Residences (NCR), one of the nations larg-

est nonprofit affordable housing developers.

The Commons at Third features 100 studio

apartments: 60 for people who have been chroni-

cally homeless and have a disability and 40 for

disabled individuals coming from nursing- and

group-home settings.

Michelle Norris, NCRs senior vice president of

development and public policy, says the project has

been significant for those coming from the streetswho havent had permanent housing for years,

as well as for disabled residents who had been in

institutional settings because they had nowhere

else to go. All of the units receive project-based

voucher assistance payments from the Columbus

Metropolitan Authority, so residents pay no more

than 30 percent of their incomes on rent.

It is the developers fifth permanent supportive

housing development in Columbus. In that first

project 10 years ago, Norris says, the developer of-

fered only case management. Since then, its ser-vices package has evolved to include job training,

home health care, and nursing care, as well. The

Commons at Third offers a nurse practitioner.

Over the summer, NCR created an initia-

tive across the portfolio to drive job training and

placement: 100 jobs in 100 days. The nonprofit

achieved that goal, with 38 residents from The

Commons at Third finding employment.

The $11 million development, which opened

in July 2012, was financed primarily with low-

income housing tax credits (LIHTCs). It also

received funding from the city of Columbus,Franklin County, the Affordable Housing Trust

for Columbus and Franklin County, and the Ohio

Housing Finance Agency.

In addition to its supportive housing develop-

ments, NCR specializes in seniors housing and the

preservation of older affordable housing proper-

ties. Its been amazing how many transformative

things weve been able to do with the LIHTC as

the base tool, adds Norris.


jobs estimate

100Number of units

$11 millionTotal development cost



percent of the area medianincome; 45 units at 50

percent AMI; and 40 unitsat 60 percent AMI

BY THE NUMBERS

OHIO15TH CONGRESSIONAL DISTRICT


33/52

RAISE THE

ROOF


34/52


JEFFERY

TOTARO

SHARED SERVICES

AT MARY TAYLORHOUSE T

o get a healthy, hot mealat an afford-

able pricethe residents at Mary Taylor

House can just cross an enclosed pedestri-

an bridge between their building and TheHickman, the seniors property across the street.

Mary Taylors seniors, ages 62 and up, can also

visit the nurse on duty at The Hickman and even

attend social events.

The goal was to create a connected com-

munity, says Jacob Fisher, development offi-

cer for affordable housing developer Pennrose

Properties, which developed Mary Taylor House

in partnership with The Hickman Friends Senior

PENNSYLVANIA6TH CONGRESSIONAL DISTRICT


35/52


36/52


JEFFERY

TOTARO


jobs estimate

60Number of units




percent of the area medianincome; 25 units at 50 per-

cent AMI; and 29 units at 60percent AMI

BY THE NUMBERS

Community of West Chester (Pa.), a nonprofit,

Quaker-sponsored community thats been in op-

eration since 1891.

Mary Taylor House is a new community for

low-income seniors living independently in

the heart of West Chester. As these seniors age,

theyll be able to take advantage of the more

intensive services offered at neighboring prop-

erty Hickmans assisted-living units. That means

theyll probably be able to keep living in their

apartments for longer without having to moveout into more expensive nursing homes.

The examination and wellness room at Mary

Taylor House is staffed twice a month by a regis-

tered nurse from the Hickman staff who provides

basic health assessments.

Residents at Mary Taylor House can also buy

meals at a reasonable rate from the Hickman

dining room, seven days per week, three meals

per day.

The new community at Mary Taylor ex-

ceeds the green building standards set by the

Pennsylvania Housing Finance Agency and

earned LEED Gold certification from the U.S.

Green Building Council.

The building is just three blocks from Gay

Street, the heart of the cultural and commer-

cial district in West Chester. The town is the

county seat of Chester, the wealthiest county in

Pennsylvania.

The market was really ripe for an affordableseniors property, says Fisher.

The statistics support that claim: In the area

around The Hickman, the number of low-income

senior households grew by 68 percent, or more

than 1,000 households, between 2000 and 2007.

Within three months after the first residents

moved into Mary Taylor House, the property was

fully renteda rapid lease-up rate for a seniors

community.

PENNSYLVANIA6TH CONGRESSIONAL DISTRICT


37/52

Historic Rehab 174 Units$44 MlionConstruction Loan

Kelly Cullen Community

San Francisco Californa

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Development Cop

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That's why we are especially proud of our collaboration with

enderloi Neighborhood Developmet Corp. (N DC), developer

of Kelly Cullen Community the winer i the Historic Rehab

Category of the Affordable Housing Finance 2013 Readers

Choice Awards.

"This jewel of a property is a living embodiment of the linkage

between homelessness and health, which is unachievable without

the solid foundation of a quality property backed by committed

reliable financing. Citi's financial participation was a critical

component in making this monumental project possible says

TNC Executive irecto Doald Fak

And because Citi is the# 1 afodale housing lender as ranked y

Affordable Housing nance we have he talent and naionwde

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PHOTOS:NEIL

KRAUSS

NEW

DEVELOPMENTHOUSES REFUGEES,HOMELESSYOUTHS

T

he first phase of Bud Bailey Apartments

in Salt Lake City is providing new begin-

nings for many of its residents. Refugees

from war-torn countries, formerly home-less families, low-income households, and for-

merly homeless youths are being served by The

Housing Authority of the County of Salt Lakes

latest project, named for the agencys late former

chairman of the board of commissioners. The

popular development opened in August and was

fully leased by the end of October.

Elizabeth Bioteau, resident services manager

for the housing authority, shares what a fresh start

UTAH4TH CONGRESSIONAL DISTRICT


39/52

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jobs estimate

62Number of units



Income targeting: 15 units forresidents earning 25 percent

to 39 percent of the areamedian income; 37 units at

40 to 45 percent AMI; and 10units at 50 percent AMI

BY THE NUMBERS

it was for a young woman who had been homeless.

The womans case manager helped her move in on

a Friday, and she went into labor just hours later.

She had an address to write on all of her paper-

work and a beautiful, clean apartment to bring her

healthy newborn son home to, says Bioteau. It

was such a good omen for our building.

The housing authority worked with several

partners to identify the areas housing needs for

the first phases 62 units. Salt Lake City is a major

resettlement hub for refugees from countries suchas Bhutan, the Democratic Republic of the Congo,

Kuwait, and Somalia. To accommodate large fami-

lies, the agency included three- and four-bedroom

units. The 20 units set aside for the refugee com-

munity also receive project-based vouchers.

The agency also decided to include units for

formerly homeless youths after its board heard a

presentation by the Utah Youth Mentor Project,

which supports youths leaving the foster-care sys-

tem. The 10 units set aside for this population, in

addition to six units for formerly homeless fami-

lies, receive Shelter Plus Care Program vouchers.

We are really proud that we have had such

great involvement with our partners from the be-

ginning and are meeting some clear needs in Salt

Lake County, says Bioteau.

The first phase, which was financed primarily

with low-income housing tax credits (LIHTCs),

also has a strong focus on creating a community.

The housing authority added a state-of-the-artcommunity center, community gardens, a com-

puter lab, and a playground. A services coordina-

tor is on site to support the residents with after-

school programs, tutoring, financial classes, and

English as a second language classes.

The second phase of Bud Bailey Apartments,

which is also being financed with LIHTCs, will

create another 74 units for low-income house-

holds and is expected to be completed in July.

UTAH4TH CONGRESSIONAL DISTRICT


41/52

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42/52


KGDARCHITECTURE

ARLINGTON PROJECTHELPS MEET DIRE NEED

When nonprofit developer Arlington

Partnership for Affordable Housing(APAH) opened the waiting list for

Arlington Mill Residences, it re-

ceived an overwhelming response from hopeful

renters in Arlington, Va.: Approximately 3,000

households applied for the 122 low-income hous-

ing tax credit (LIHTC) units in the Columbia Pike

neighborhood.

Were going to house 122 households at the

end of the day, but there are 2,900 who wont get

a home who had hoped to, says Nina Janopaul,

APAHs president and CEO. That really speaks

to the importance of the LIHTC program and ofwhat were doing.

The countys newest Columbia Pike revitaliza-

tion plan, adopted in 2012, encourages new hous-

ing investment and development while also seek-

ing to retain more than 6,000 affordable housing

units for households earning 80 percent or less of

the area median income (AMI). Arlington County

has been an integral resource in the creation of

Arlington Mill Residences, which will be an anchor

in the Columbia Pike Special Revitalization District

upon the buildings completion in January.The county had purchased an old grocery store

and initially planned to create condos or higher-

rent apartments along with a community cen-

ter for low-income households, but the for-profit

developer behind the housing portion of the deal

had financing problems. After the recession hit, the

county rethought the plan, instead deciding to cre-

ate a community center and affordable housing.

APAH was selected as the affordable hous-

ing developer and received a discounted ground

lease from the county to build the project. The

four-story development will mainly serve familiesearning no more than 60 percent of the AMI. In

partnership with the county, the property will also

include a suite of efficiency units for people com-

ing out of homelessness.

Its been a great success rethinking how the

community uses its public land, says Janopaul.

And weve made a commitment to keep the

property affordable for the entire 99 years of its

ground lease.


jobs estimate

122Number of units




percent of the area medianincome; 26 units at 50

percent AMI; and 83 unitsat 60 percent AMI

BY THE NUMBERS

VIRGINIA8TH CONGRESSIONAL DISTRICT


43/52

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DONALDRASK

M

ore than half the apartments had

already leased when the Parkview

Senior Living Community, phase three,

opened Oct. 8 in Racine, Wis.We had people lined up starting at four in

the morning, says Alf McConnell, principal with

Alf McConnell & Associates, an affordable hous-

ing developer based in Evanston, Ill. In less than

eight months, he expects the affordable indepen-

dent-living property to be fully occupied by se-

niors earning a mix of incomes.

All of the apartments in the developments

latest phase are reserved for low-income seniors.

WISCONSIN1ST CONGRESSIONAL DISTRICT

DEVELOPMENT

HELPS WISCONSINSENIORSAGE IN PLACE


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In the crowded and competitive LIHTC equity market, the voices that

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do what we say well do, or stay creative, reliable, and nimble, our

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Peter Dion, Executive Vice President617 502 5943 | [email protected]

Jay Segel, Executive Vice President617 502 5946 | [email protected]

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46/52


Key Community Development provides debtand equity financing for affordable housing andcommunity revitalization projects.

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WISCONSIN1ST CONGRESSIONAL DISTRICT

82NAHB local one-year jobs estimate

73Number of units



Income targeting: 52 units for residentsearning 50 percent of the area median income;

21 units at 60 percent AMI

BY THE NUMBERSThe earlier phases include some units

that have no income restrictions.

The new building is part of a cam-

pus of seniors buildings developed by

McConnell. Phase three at the Parkviewstands next to the first and second

phases, which are also independent-

living buildings, built on a similar plan.

The campus also includes Parkview

Gardens, a licensed assisted-living

building with health services provid-

ed by property managers Fresh CoastPartners. Together, the mix of indepen-

dent living for seniors ages 55 and up

and assisted living will help residents

stay in the community as they age.

Seniors who need more help as theyget older can move within the campus

to Parkview Gardens without having to

leave behind the social connections they

depend on.

In Wisconsin, the Medicaid system

helps pay the cost of providing services at

assisted-living properties like Parkview

Gardens. That helps the state balance its

budget, because fewer seniors like the

ones at Parkview are forced to move into

much more expensive, fully licensed,

subsidized nursing homes.To create the seniors campus,

McConnell invested his own resources.

During the financial crisis, the low-

income housing tax credit (LIHTC)

investors for Parkview Gardens backed

out of the transaction. McConnell con-

tinued with construction anyway, and

he has nearly finished building a second

phase at Parkview Gardens.

The care McConnell takes with his

properties also shows in the quality of

construction at Parkview, one of thefirst affordable developments in the

state to feature real stone on the exte-

rior, according to Bill Boerigter, man-

ager of multihousing for the Wisconsin

Housing and Economic Development

Authority.

He put his heart and soul into these

developments, says Boerigter. He wants

to deliver for his residents.


47/52

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