The Florida Housing Finance Corporation has posted new income and rent limits for SHIP-assisted rental units. SHIP income and rent limits are based on the Section 8 limits established by HUD for metropolitan areas and non-metropolitan counties. Starting this year, HUD defines “extremely low income” as the greater of 30% of area median income or the federal poverty level. As a result, in all areas of the state, there will be changes in SHIP income and rent limits for at least one family size in the extremely low income bracket.
In case you missed it:
FHFC issues final RFA for Rental Preservation, and draft RFA for Permanent Supportive Housing for Persons with Developmental Disabilities.
Final RFA 2014-104 for Preservation of Existing Affordable Housing Developments
Under this RFA, Florida Housing expects to have up to an estimated $5,369,334 of Housing Credits available for award to proposed Preservation Developments.
Read the article on our work on helping development of the latest Senior Modern Living space in Florida, Aqua.
Which came first, the industry or the housing? This age old debate is answered differently in each community, based on their indigenous needs. When considering a community for redevelopment or revitalization, some of the factors taken into consideration are:
• The distance to public transportation
• The distance to reasonable employment for prospective tenants
• If certain industry is brought to a local area would there then be adequate housing available for the industry employees?
• Are there potential prospects in the area to work in the potential industry?
The New Markets Tax Credit (NMTC) Program was established in 2000 as part of the Community Renewal Tax Relief Act of 2000. Its purpose is to help generate revenue in low income communities by incentivizing corporations with additional equity to bring business to a particular community. Typically, growth of stable industry will help to revitalize a community by employing the residents in the immediate area. By providing equity to certified Community Development Entities, the NMTC Program facilitates the development of industry in low income areas.
The NMTC works like a typical tax credit in that it is a reduction in the Community Development Entity’s tax liability. However, this is where the similarities end. The reduction in tax liability is 39% of the total cost to develop the industry. When determining the income potential of a particular industry that may receive NMTC, the credits work as follows:
• The credit equals 39% of the investment, paid out over 7 years:
o 5% in each of the first three years
o 6% in each of the final four years
For a total of 39% of the output of equity
The New Market Tax Credit program was created in 2000 as an additional revenue resource to bring adequate business to communities in need of revitalization. If you have found the New Market Tax Credit program to be beneficial in your communities, or have seen this program at work in a particular area, we invite you to share your experience with us on this blog.
Earlier yesterday, Mell Watt (D-NC) was sworn in as director of the Federal Housing Finance Agency. This culminates an embattled opposition in the House and Senate to his nomination back in May of 2013. On December 10, 2013, the Senate voted 57-40 to confirm Watt’s appointment, and the House did the same later that day.
Mell Watt has represented his district of North Carolina for more than 20 years, starting first with a term as a Senator, and then spending the time from 1992 to present as a Representative in the House. For more information, please read the NCSHA’s blog post at:
The FHFC deadline for HOME funding has been extended until December 31st, 2013.
As stated by The Florida Housing Coalition in an email:
The Florida Housing Finance Corporation has extended the deadline for RFA 2013-010, Financing of Affordable Multifamily Housing Developments with HOME Funding to be used in conjunction with Florida Housing-Issued Multifamily Mortgage Revenue Bond Financing and Non-Competitive Housing Credits. The new deadline is 11:00 a.m., Eastern Time, on Tuesday, December 31, 2013.
To view the Second Modification of RFA 2013-010, click the following link:
To view Florida Housing’s competitive RFAs and supporting documents, click on the following link:
Let’s talk about that time of year that all owners and management companies dread: when we, First Housing, come to visit your property for resident file reviews and a physical inspection. After our inspection, we compile all of our findings into a document called the “Annual Management Review.” Once the Annual Management Review is sent out, the owner has 10 days to sign, date and return it to us.
A question that always seems to come up is who is allowed to sign the Annual Management Review. In a perfect world, the person named on the signature page would sign, date and return it to us. Well, as we all know, we don’t live in a perfect world. So, who else may sign? The only other people who can sign are other owners or persons who have been given owner’s rights through legal documentation that has already been approved by your state agency and recorded by the clerk.
This then begs the next question– who can not sign your Annual Management Review. The property manager, the management company, or someone signing on behalf of the owner is not acceptable. If the owner is capable of providing a signed letter that gives someone else authorization to sign on his behalf, could they have not instead just signed the signature page? As you may have guessed, a letter from the owner granting someone else permission to sign is not an acceptable signature.
The Annual Management Review is considered a legal document. That is why it is imperative that an owner and only an owner sign it. If we do not receive your signature page by the due date listed on the cover sheet, a late letter may be sent. If you submit your signature page with someone other than the owner’s signature, a late letter may also be sent. So, to avoid a late letter, follow these simple instructions and please send your signature page signed by an owner before the due date. And, as always, check with your state agency for any additional guidelines.
We would just like to take the time to say Happy Birthday to the Low Income Housing Tax Credit, a wonderfully successful program that has dramatically increased the supply of affordable housing! Below is a quote from the Bipartisan Policy Center:
“As the Low-Income Housing Tax Credit (Housing Credit) enters its twenty-eighth year, it boasts a remarkable track record of doing exactly that which it was intended to do – producing 2.6 million safe, decent affordable homes for low-income households and counting. But its impacts go far beyond the construction of these homes: it has created over 3.6 million jobs and leveraged over $100 billion in private investment since its inception, to name a few. The Housing Credit doesn’t just do its job. It has actually exceeded the expectations established for it by Congress.”
Here’s to 27 years for a wonderful program, and let’s all hope for 27 more!
Due to the end of the war in Iraq, thousands of military professionals have been discharged from their current brand of service. These patriotic service professionals, who have served our country tirelessly, now must venture out to find new careers. Many will return to college or vocational school for retraining and education. History shares with us that often times when there is a large group of professionals in need of rehab or retraining, few of us consider where these individuals will live as they embark on their new journey. It goes without saying that this housing needs to be affordable, safe, and sanitary, while still in close proximity to their school. These conditions will foster an environment for these veterans to flourish and to obtain the education essential to start their new career.
On March 20th, we received notification from The Florida Housing Finance Corporation that if an individual is benefiting from the Veterans Retraining Assistance Program (VRAP) this shall be considered similar to the Job Training Partnership Act (JTPA). The VRAP offers up to 12 months of training assistance to unemployed veterans who:
• Are at least 35 but no more than 60 years old
• Are unemployed on the date of application
• Received an other than dishonorable discharge
• Are not to be eligible for any other VA education benefit program (e.g.: the Post-9/11 GI Bill, Montgomery GI Bill, Vocational Rehabilitation and Employment Assistance)
• Are not in receipt of VA compensation due to un-employability
• Are not enrolled in a federal or state job training program
As a result, veterans participating in the VRAP are provided the exception to the fulltime student household rule and will be considered qualified to live in a Housing Credit unit, as well as the other affordable housing programs that Florida Housing offers. Florida Housing, as a policy, will not consider a household in noncompliance with the student rule if the student occupant is enrolled in VRAP and documentation of such program participation is in the resident file.
Please be aware that this decision is not binding on the IRS, and may not effect your state. Therefore, when determining if a household is qualified in your state, it is always recommended that you check with the state agency in which the household will reside.
This is exciting news for our property owners, as well as the veterans that live and work in our communities. Our veterans will have access to necessary living conditions while they receive the training necessary to begin or to resume their civilian careers.
On September 16th, HUD issued a letter announcing that FHA has exhausted the $25 billion of mortgage insurance commitment authority Congress appropriated for FHA’s multifamily, risk-sharing, and health care programs for Fiscal Year (FY) 2013. However, their fiscal year ends September 30, 2013. The HUD letter states that beginning September 16, 2013 and through September 30, 2013, FHA will continue to accept and process new mortgage insurance applications under Multifamily and Healthcare programs, but will be unable to issue commitments; all transactions requesting commitment authority between now and the end of the fiscal year will be placed in queue, behind other transactions already in queue. When new Commitment Authority is made available in the new fiscal year, projects will be issued commitments in the order of this queue.