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Home > Newsroom > September 2009 Newsletter
National Housing Trust Newsletter
September 2009
In this issue:
Preservation Commentary >>
Federal Stimulus Saves Affordable Housing and Creates Jobs >>
Weatherization Grant Helps Copeland Manor Go Green >>
Build America Bonds to Finance Energy Efficiency Improvement Project in Affordable Housing >>
Volunteers Mark 9/11 Anniversary with Green Service Project >>
News from D.C. >>
Preservation in the News >>
Preservation Commentary
All across the country, investment in affordable housing preservation
is playing a critical role in stimulating the economy and creating
jobs. We are beginning to see the direct impact of recovery spending on
the ground. We highlight a few examples in this month's newsletter.
Restoring jobs is still job number 1. Affordable housing acts as an
economic stimulus.The rehabilitation of every 100 apartments creates
over 115 well paying jobs.
Congress can do more to create jobs by approving reforms to the low
income housing tax credit (LIHTC) that stimulate investment in
affordable housing. The National Housing Trust has joined a coalition
of affordable housing groups calling for such reforms. The campaign,
Affordable Rental Housing A.C.T.I.O.N. (A Call To Invest in Our
Neighborhoods) has developed a series of proposals to reinvigorate tax
credit investment.
The LIHTC is a critical resource for preserving affordable housing. In
2007, before investment declined, the tax credit was responsible for
the preservation and rehabilitation of 65,000 affordable apartments,
creating over 100,000 well paying jobs.
Stimulating tax credit investment is now critical. The lack of
investment capital is stalling affordable housing development at a time
when the need is greater than ever.
ARRA is creating quality jobs while saving housing. Congress can build on this success by adopting reforms to the tax credit.
Stay tuned,
Michael Bodaken
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| Federal Stimulus Saves Affordable Housing and Creates Jobs
 From rural to urban communities throughout the country, stimulus funds
are playing an essential role in saving affordable housing and creating
jobs. Here are a few examples:
TCAP funds close financing gap to preserve senior housing in Denver.
The Colo. Housing Finance Agency acted quickly to award $1.7 million in
Tax Credit Assistance Program (TCAP) funds to preserve Denver Gardens,
home to more than 100 seniors. The TCAP allocation allowed Community
Housing Concepts to close on the purchase of the property. The property
will be substantially renovated while affordability is maintained. The
funds are expected to spur approximately $30 million in economic impact
and support more than 220 jobs.
Tax credit exchange funds save a Section 515 property in Delaware.
Nearly 200 jobs will be created in rural Delaware thanks to the
preservation of Hollybrook Apartments. More than $4 million in ARRA
funds are being used to substantially renovate the property and
preserve 124 affordable homes.
TCAP and Weatherization funds round out financing for a major
rehabilitation project in NYC suburb. The much needed rehabilitation of
276 affordable housing in Hempstead, NY will go forward in part because
of an allocation of Tax Credit Assistance Program (TCAP) and nearly
$1.5 million in Weatherization funds provided by the federal stimulus.
The property, Bedell Terrace, was constructed in the 1920s and is in
need of major capital improvements.
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| Weatherization Grant Helps Copeland Manor Go Green
 More than 60
residents of Copeland Manor in Washington, D.C. will soon be spending
less on energy costs thanks to the Weatherization Assistance Program
(WAP) and the federal stimulus bill. The National Housing
Trust/Enterprise Preservation Corp. (NHT/Enterprise) is helping
Copeland Manor's residents secure funding for significant energy
efficiency improvements. The improvements to be made at Copeland are
expected to reduce energy consumption by as much as 30%. Each family
will save approximately $350 in energy costs annually.
Securing
WAP funding is the latest step in what's been a long journey to
preserve and improve Copeland Manor. When Copeland Manor residents
found out that the owner planned to sell the property, they created a
resident association to exercise their right of tenant purchase. They
selected NHT/Enterprise as their development partner. Although the
property is in need of upgrading, rehabilitation financing has been
hard to come by. The WAP program has proven a crucial source of funding
to support much needed improvements to the property.
An energy
audit conducted by the D.C. Department of the Environment (DOE)
identified a number of cost effective energy saving measures. The
property will receive Energy Star light fixtures and appliances, a new
HVAC system, Energy Star programmable thermostats, and double pane
windows. A local organization chosen by D.C. DOE will complete the
repairs.
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| Build America Bonds to Finance Energy Efficiency Improvement Project in Affordable Housing
 As
state and local governments search for funding to pay for much needed
repairs to existing affordable housing, ARRA's Build America Bonds
(BABs) provide a possible solution. BABs were created by ARRA to
stimulate the economy while assisting state and local governments in
financing capital projects at lower borrowing costs.
The
Chicago Housing Authority (CHA) plans to use BABs to help finance
energy efficiency improvements in its public housing stock. CHA will
issue $38 million in bonds, with proceeds to be used to replace
inefficient boilers and water systems in more than 4,800 apartments.
The improvements are expected to save the CHA $9 million in energy
savings over the life of the project while reducing carbon emissions by
nearly 6,000 tons annually- the equivalent of taking 1,015 cars off the
road.
Demand for tax-exempt bonds has decreased significantly
throughout the country. BABs are taxable bonds that can only be issued
by government entities and proceeds must be used for capital
expenditures. Because the bonds are taxable, they can be sold to a much
broader range of buyers than tax-exempt bonds. To offset the higher
taxable interest rates, ARRA authorized direct payments to the bond
issuers, thereby lowering the project's net debt service.
"Through
this project, we have first-hand experience that the ARRA financing
opportunities through BABs and grants will positively stimulate
economic recovery, will increase job opportunities and training, will
lead to tremendous energy efficiencies, and will help improve the
ailing real estate industry through the viability of this vitally
needed Boiler replacement project," said Eli Rosario, CHA's CFO.
Projects
using BABs must close by December, 2010. The National Housing and
Rehabilitation Association has additional information about BABs:
http://www.housingonline.com/NewsArticle.aspx?NewsArticleId=114039.
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| Volunteers Mark 9/11 Anniversary with Green Service Project
 In response to Pres.
Obama's call for national service, and to mark the 8th anniversary of
9/11, volunteers from Enterprise Community Partners, Bank of America,
DC Green Works, and the Five Voices of R Street Tenant's Association,
joined National Housing Trust/Enterprise (NHT/E) for a green service
day project at R Street Apartments in Washington, DC. R Street
Apartments was recently preserved by NHT/E.
Amid bright
balloons, volunteers completed a green makeover of the computer lab and
community center using low volatile organic compound paints and planted
over a dozen species of native plants around the landscape. Volunteers
also completed a legacy garden for the afterschool program. The legacy
garden will serve as a learning lab for young residents ages 6-12.
NHT/E's afterschool program offers learning support in math, reading,
art, and the sciences.
For Devin Tucker, NHT/E Dir. of
Community Development Programs, the legacy garden will pay huge
dividends down the road. "The legacy garden is consistent with the
green re-development of R Street Apartments and indicates our intention
to develop the next generation of green leaders who understand the
importance of stewarding our natural resources and conserving energy,"
said Tucker.
To help sponsor the legacy garden through a
donation, or volunteer for the afterschool program, please contact
Devin Tucker at 202/333-8931, x113.
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| News from D.C.
 Oregon Senators Introduce Affordable Housing Legislation.
Sens.
Wyden (D-OR) and Merkely (D-OR) have introduced a bill that would allow
the use of existing section 8 housing funds to preserve and revitalize
affordable housing. S. 1676, the Affordable Housing Preservation and
Revitalization Act,would allow residual receipts to be transferred with
affordable housing properties that are sold to non-profits who commit
to maintaining the housing as affordable. The funds would be used to
help cover a portion of the acquisition and rehabilitation costs, would
be deposited into the property's replacement reserve account, or pay
for social and other services.
Senate Approves HUD FY 2010 Appropriations.
On
September 17, the Senate approved the 2010 HUD-Transportation spending
bill. The Senate approved $8.1 billion for the project-based section 8
program, including over $7.8 billion for the renewal of all expiring
project-based contracts for a full 12 months. This level of funding is
$600 million above the fiscal year 2009 non-emergency enacted level and
equal to the President's budget.
The Senate also approved
spending for two new initiatives proposed by Pres. Obama. The
Sustainable Communities Initiative would promote integrated housing and
transportation planning. The Choice Neighborhoods program would expand
the HOPE VI program to include the revitalization of privately owned,
HUD-assisted housing.
In July, the National Preservation Working
Group, a coalition of nonprofit organizations supporting high-quality
rental housing for low-income households, sent a letter to
Congressional leaders urging them to support the Choice Neighborhoods
initiative.
NHT Submits Recommendations for Implementing the GSEs' Duty to Serve Affordable Housing Preservation.
The
National Housing Trust provided comments to the Federal Housing Finance
Agency (FHFA) on the duty to serve provisions of the Housing and
Economic Recovery Act of 2008 (HERA) as it applies to the Government
Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. The Trust
urged the GSEs to provide a range of products and services tailored to
affordable housing preservation, including loan and bond guarantees at
reasonable rates and program related investments and lines of credit
available to strong for-profit and nonprofit mission-oriented
intermediary lenders and developers for bridge financing and longer
term financing of affordable rental housing. Click here for the full
list of our recommendations.
NHT Joins Coalition in Urging Congress to Stimulate Tax Credit Investment.
NHT
has joined a cross section of stakeholders in the field of affordable
rental housing in a campaign to enact legislative reform that would
rekindle LIHTC investment. The campaign, Affordable Rental Housing
A.C.T.I.O.N. (A Call To Invest in Our Neighborhoods), has put forth
industry consensus proposals that would stimulate affordable rental
housing production while creating and saving tens of thousands of jobs.
The proposals include extending the tax credit exchange program created
by ARRA; increasing the housing credit carryback period; and expanding
investor eligibility to corporations currently excluded from the
program. These proposals are further outlined in a letter that was
recently sent to Congress.
Sustainable Communities Legislation Introduced.
Senate
Banking, Housing, and Urban Affairs Committee Chairman Chris Dodd
(D-CT), along with fellow Committee members Robert Menendez (D-NJ),
Jeff Merkley (D-OR), Michael Bennet (D-CO), and Dan Akaka (D-HI), have
introduced legislation to help towns and regions create sustainable
communities. The Livable Communities Act would offer grants to
encourage towns and regions to plan and implement strategies that
integrate investments in public transportation and affordable housing.
The legislation would also establish a federal Office of Sustainable
Housing and Communities at HUD.
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| Preservation in the News
 Officials Tour Denver Sustainable Growth Areas (Colorado Business AP News)
Federal
officials praised a public housing project and historic Union Station
on Friday as examples of the way the nation should build for the
future, offering a mix of housing, retail and accessible mass transit.
They
even came bearing money - a $10 million grant for the redevelopment of
the South Lincoln Park Homes project - and said officials on all levels
of government should collaborate to make it easier for such projects to
succeed. Read on...
Owners scrutinize light rail housing options (The Minnesota Daily)
As
construction for the Central Corridor light-rail transit draws nearer,
so does the issue of housing along University Avenue...Some people are
concerned that low-income housing along University Avenue may get
pushed out because of people wanting to move closer to the light rail.
Read on...
President shifts focus to renting, not owning (Boston Globe)
The
Obama administration, in a major shift on housing policy, is abandoning
George W. Bush's vision of creating an "ownership society'' and instead
plans to pump $4.25 billion of economic stimulus money into creating
tens of thousands of federally subsidized rental units in American
cities. Read on... |
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