Tax Credit Advisor Article Archives

Contrary to the messages of the latest spate of dystopian science fiction novels and futuristic prognosticators, the brave new world of high technology and computer control has not eliminated the role of human beings or made them obsolete. At least, not in the area of energy efficiency.

On June 26, 2015, HUD published a Notice in the Federal Register revising some of the rules of the Rental Assistance Demonstration (RAD) Program. The RAD program provides the authority to convert various housing programs to long-term project-based Section 8 rental assistance. The revised Notice PIH-2012-32, REV-2 summarizes key changes made to the program. Most elements of the revised Notice are effective June 26, 2015.

RAD’s birth a little over three years ago could scarcely have been less heralded: tucked obscurely into an appropriations extender, it offered no new money (not a bug, a feature; if RAD had had scoring cost, it could never have emerged from the sausage factory); outside the public housing realm it was greeted with indifference; and within public housing circles it was generally treated with at best hostile vigilance1. How then could this unassuming program blow through its original optimistic cap, tripling in size to over 180,000 apartments (nearly 15% of the entire public housing inventory) with no signs of slowing down?

“We’re seeing tons of technology but you still need someone to watch it,” asserts Brian Klansky, Vice President of Sales and Marketing for Bright Power, Inc., an 11-year-old energy management company in New York City. “Often you’ll see a project whose energy saving systems doesn’t work over time because no one’s monitoring it. By Year-Three or Four, you’re almost back to ground zero.”

The crumbling Worcester Vocational High School loomed over Worcester, Mass. The 117,000-square-foot complex was one of the most prominent abandoned buildings this state’s housing officials had ever seen. Broken, partly boarded-up windows stared out at local landmarks, like the Worcester Art Museum and Worcester Memorial Auditorium, along with several major streets and an elevated highway.

The budget battle between Congress and the White House is heating up, and among possible casualties are two housing programs that seem to enjoy strong bipartisan support.

On June 24, Harvard University published its annual State of the Nation’s Housing Report and the researchers found much to be concerned with. Housing starts are down and homeownership rates are at a 20-year low. Our sector of the market is fairing better in some respects as multifamily vacancy rates continue to decline and rents increase, but these same trends are putting greater pressure on low and moderate- income renters.

On July 8, 2015, the Department of Housing & Urban Development (HUD) issued a final rule on the procedures that must be followed by localities with regard to Affirmatively Furthering Fair Housing. The rule directs HUD program participants to take significant actions to integrate all zip codes in a particular locality. The rule refines the prior approach by replacing the analysis of impediments (AI) with a fair housing assessment of localities, and was issued almost immediately after the Supreme Court held that the Fair Housing Act allows “disparate impact” claims.

When HUD took its seat at the President’s table back in 1965, issues of race and equality were on the front pages daily, and the challenges facing American cities had become a priority. One of HUD’s first Secretaries, George Romney, embodied the spirit that it could tackle those challenges. He championed desegregation and a strong urban policy emphasizing region-wide solutions.

If you attended NH&RA’s Spring Forum in Los Angeles in May or just took a glance at the event’s agenda, you will recognize many of the topics covered in this month’s issue. A paramount objective of both a trade association and a trade magazine is to capture the current mindset of an industry, address the issues of greatest concern and facilitate the sharing of experience and innovative thinking across company lines. I view the association and the magazine as partners in comprehensive communication.

In thermodynamics, entropy is, among other things, a measure of a system’s granular complexity – and in thermodynamics it is a fundamental law that entropy and complexity always increase.

On June 11, the House Financial Services Committee hosted a HUD Oversight Hearing. Committee Chair Jeb Hensarling’s (R-TX) opening statement quoted President Lyndon Johnson: “We have declared unconditional war on poverty. Our objective is total victory.”