Articles Archives

An Underwriting Aid: New Report Provides Data, Analysis on Operating Expenses for LIHTC, Market-Rate Properties

4 min read

Per-unit total operating expenses for low-income housing tax credit (LIHTC) properties in a large national sample increased by an average 5.92% between 2010 and 2012, with the three largest cost categories being for payroll, repairs and maintenance, and utilities, according to a new report released by Novogradac & Company LLP, a national accounting, tax, and consulting firm.

Good News: Senate Finance Committee Approves Tax Extenders Bill

3 min read

On April 3, the Senate Finance Committee, under the reign of new Chairman Ron Wyden (D-Ore.), marked up and approved a bill that would provide for short-term extensions of about 50 expiring federal tax credits and other tax incentives.

Preserving Affordability: Acquisition/Rehab Transactions That Work

15 min read

Developers continue preserving affordable rental housing by acquiring and rehabilitating existing multifamily properties in a variety of transactions.

Historic Tax Credit Activity Rebounds: FY 2013 Results Reflect Improving Economy

3 min read

Aided by the strengthening economy, federal historic rehabilitation tax credit project activity picked up sharply in the latest full federal fiscal year, suggest new reports from the National Park Service.

Going Strong: Current Trends in LIHTC Property Sales

4 min read

The Tax Credit Group of Marcus & Millichap Real Estate Investment Services (TCG), based in Seattle, Wash., has specialized exclusively in LIHTC properties for more than 13 years, providing valuation services and acting as a broker for sellers and buyers.

Opportunities & Challenges

3 min read

In interviewing developers and owners for this month’s theme article on preservation transactions (“Preserving,” p. 24), I was struck by the variety of properties acquired and renovated and the different ways that deals are structured.

Heraclitus’ Preservation

4 min read

At the recent presentation by the National Affordable Housing Management Association of its Community of Quality awards, all five winners were preservation: two 42-year-old Section 236s undergoing rehab; a new-construction rising like a phoenix from razed public housing; a 1928 hotel on its second renovation (1995 and 2013); and the turnaround of a drug-infested eyesore. Among them, virtually everything that we normally consider a property attribute was changed.

A Glance Backward and a Look Ahead

6 min read

As we near the end of the first quarter of 2014 and await future developments in the debt markets, it is interesting to take a quick glance back at multifamily finance activity in 2013 and some of the challenges we faced in the industry.

Preservation & Resident Engagement

3 min read

I’d like to draw your attention to a topic that many people don’t think about when it comes to preservation: how many affordable multifamily owners around the country are engaging with and educating residents to act, and indeed live, sustainably. It’s easy to forget that residents are not just clients but key partners in preservation and energy efficiency efforts. Their buy-in and engagement are a critical step towards achieving economic returns at a property level.

Making Up Ground: HUD FY 2015 Budget Reflects Recovery from Sequestration

3 min read

Recovering from the spending cuts imposed by sequestration, the Obama Administration is proposing increased funding for the U.S. Department of Housing and Urban Development (HUD) for Fiscal Year 2015, which begins October 1.

U.S. Tax Court Expands Scope of Virginia Historic Credit Case

4 min read

Two recent decisions by the U.S. Tax Court provide some additional items for thought for parties structuring transactions proposing to utilize certain kinds of state tax credits, according to Washington, D.C. tax attorney Jerry Breed, a partner at Bryan Cave LLP.

A Providential Match: Nonprofit Preserves Rhode Island Property Acquired from Church

8 min read

In the deal, which featured multiple “firsts,” POAH, a nonprofit affordable housing developer and owner based in Boston, acquired and is renovating a Providence, R.I. apartment building in order to preserve it as long-term affordable rental housing for seniors.

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