A. J. Johnson Author Archives

A massive mixed-use development with two big retailers, two apartment buildings, and commercial tenants is taking shape in the Uptown neighborhood in Chicago’s North Side. The $150 million Wilson Yard project, scheduled to open in 2010, will contain two low-income housing tax credit buildings, a Target discount store financed in part with federal new markets tax credits, a supermarket, and other commercial tenants.

Section 42(g)(2)(A) of the Internal Revenue Code states that a unit in a low-income housing tax credit project is considered rent restricted only if the gross rent does not exceed 30% of the imputed income limitation applicable under the elected minimum set-aside test. Under this test, at least 20% of the project’s units must be rented to households at or below 50% of the area median income (AMI); at least 40% rented to households at or below 60% of AMI; or (for deep rent-skewed projects) at least 25% rented to households at or below 60% of AMI.

Housing industry observers generally are optimistic about the future for affordable housing under the incoming Obama Administration. They take heart from the community-organizer background and big city orientation of President-elect Barrack Obama, and from some of the top people around him. But they also concede his White House will begin on January 20 with other, more pressing priorities on its plate, and will probably be constrained financially from being able to press any major new housing funding or initiatives.

A former brewery converted to affordable housing, a retreat and meeting center created from former military buildings, and a new community and media center built from the transformation of a former power substation are just a few of the historic rehabilitation projects named finalists in the 2008 J. Timothy (“TimmyÓ) Awards for Excellence in Historic Preservation.

President Bush on 10/3/08 received a bill (H.R. 2786) passed by Congress to reauthorize and amend the Native American Housing Assistance and Self-Determination Act (NAHASDA) and the Native American housing and economic development programs that fall under it.

President Bush signed on 10/1/08 signed a continuing resolution (H.R. 2638) passed by Congress to temporarily fund all federal departments and agencies through 3/6/09 at FY 2008 funding levels.

New IRS Revenue Procedure 2008-66 specifies the inflation-adjusted volume caps for each state for calendar 2009 for low-income housing tax credits and for tax-exempt private activity bonds.

New IRS Revenue Procedure 2008-57 specifies awards of an additional $4.16 million in low-income housing tax credit authority to 28 states from the 2008 “national pool.”

The Florida Housing Finance Corporation has issued a proposed timeline and proposed parameters for a new Preservation Pilot Program, for which $10 million in state funding is available. The program will provide loans for acquisition and predevelopment costs for qualified existing properties.

The National Housing & Rehabilitation Association (NH&RA) presented its 2008 “Timmy” Awards to nine standout historic rehabilitation projects at an awards ceremony in Boston on 10/27/08 during the NH&RA 2008 Fall Forum conference.

A former U.S. Army base just outside San Francisco has been rehabilitated and converted through adaptive use into a resort lodge and conference center, using the federal historic tax credit and other resources. The nearly $100 million development, called Cavallo Point – The Lodge at the Golden Gate, also utilized the federal solar tax credit and green building features.

As she approaches her one-year anniversary as Director of the Community Development Financial Institutions (CDFI) Fund, Donna Gambrell is looking forward to at least one more funding round for the federal new markets tax credit (NMTC) program and is celebrating its accomplishments.