Tax Credit Advisor Article Archives

In June 2015, the U.S. Supreme Court affirmed that policies and practices that have an unintentionally discriminatory impact on minorities and other protected persons – referred to as “disparate impact” liability – could constitute violations of the Fair Housing Act (“FHAct”). Texas Dept. of Comm. Affairs v. The Inclusive Communities Project, Inc., __ U.S. __, 135 S. Ct. 2507 (2015). Since that time, agencies and courts have wrestled with the consequences of that decision. In some instances, agencies have seen the decision as expanding the scope of possible liability for housing providers, while courts have so far applied it sparingly, to address the so-called “heartland” of disparate impact cases involving barriers to housing integration. One year in, the Inclusive Communities decision has thus far resulted in more concerns and less certainty.

WaterFire is a non-profit arts organization whose activities include simultaneously lighting nearly 100 bonfires suspended just above the rivers that run through downtown Providence—accompanied, according to founder and Executive Artistic Director Barnaby Evans, “by music and other art surprises” that bring “joy and energy” to the way people experience and explore the City.

The Community Reinvestment Act – CRA – was enacted in 1977 as a means of encouraging commercial banks and other consumer financial institutions to meet the needs of borrowers throughout the communities in which they operate. CRA has been credited with everything from ending the practice of discriminatory redlining to creating vibrant inner city neighborhoods, and blamed for everything from forcing banks to make unwise or over-leveraged loans to helping foment the 2008 sub-prime mortgage crisis.

Jeffrey Whiting made headlines this summer when he announced that the Indianapolis-based syndication company he started in 2001, City Real Estate Advisors, found a new financial backer, Stone Point Capital through Omni Holding Company, LLC, and changed its name to CREA, LLC.

For maximizing the value of Section 8 properties, cost-effective amenities are a tool to consider. Depending on the market and the specific attributes of the property, particular amenities can yield higher rents while maintaining low cost. While appraisers can assist developers in identifying appropriate amenities for a substantial rehab, they can also assist asset managers during the lull between recapitalization periods – where simple and small additions may create large value through increased rent (marking-up-to-market).

Even on the coldest New England-winter days, there is a steady, long line outside the soup kitchen at Providence, Rhode Island’s Amos House. When it was founded in 1976 in the city’s Upper South neighborhood, where a third of the residents live in poverty, Amos House planned to serve 30-50 meals per day.

If the world’s 60 million refugees were a nation, they would be the world’s 23rd largest, with more people than South Africa or Italy. All of them have lost their homes, and all of them desperately want a home – in fact, not just a home, but a secure and stable place from which they can build new lives. While many may feel emotionally that ‘home’ is where they came from, most know that to build a new life they must migrate somewhere – within their country or to a new country.

In a park-like corner of a former naval base in the San Pedro neighborhood of Los Angeles sits a community that clearly demonstrates how affordable housing can better lives. Blue Butterfly Village, opened in April 2015, reserves its units for veterans experiencing homelessness.

In our June 2016 issue, we dedicated our cover story to the resurgence of tax exempt bonds. In that issue, Bond Attorney and NH&RA Director Wade Norris asked our readers, “Are we on the verge of a volume shortage?” And the answer in an increasing number of states is yes. This has caught many in our industry by surprise; after all, since the financial crisis, the volume cap across the country has been abundant. But if the current trend continues, the non-competitive credit might soon become competitive in a diverse mix of states including California, Connecticut, Massachusetts, Minnesota, New Jersey, New York, Pennsylvania, Tennessee, Utah, and perhaps others.

The flames glowing along the Providence River you see on this month’s cover are part of an event called WaterFire, that began as an artistic installation and has grown into an annual Rhode Island arts festival and celebration. When the photos of this event were presented at the NH&RA Summer Institute, I immediately decided this would be our next cover

The memories of our childhoods are quaint and fond. Vinyl records, vanilla Carvel and Vin Scully. The Little Rascals and the Young Rascals. Milk delivered to our home in the morning, the newspaper on the lawn in the afternoon, and the doctor examining us in our own bedroom. Dr. Brown was her name. (Yes, she was a she…and yes, this was in the early ‘50s.)

It is a widely accepted proposition that one of the key foundations for a healthy and productive life is stable, good-quality affordable housing. Housing and health go hand-in-hand with proper nutrition, adequate employment for those of working age and secure retirement for seniors, as well as a solid, emotional support system for all. Yet for a long time, housing and healthcare have been relegated to separate realms, with little programmatic or financial connection between them.