Are 2020 Bond-Financed Projects Eligible for the New Federal 4% Fixed-Rate?
On December 21, 2020, Congress passed and the President signed the Consolidated Appropriations Act, 2021, a year-end legislation package that includes a $1.4 trillion omnibus spending bill and a $900 billion COVID-19 relief bill (the "Act"). Among other things, the Act fixed the 4% LIHTC applicable percentage at a minimum of 4%. It is unclear how the IRS will handle projects with undisbursed 2020 bond proceeds and whether those projects can qualify for the 4% fixed rate.
$60.7M Fund Provides Equity Financing for Affordable Housing in Maine, New Hampshire and Vermont
Evernorth closed its second multi-investor fund - Housing New England, Fund II – on January 29, 2021. This fund will provide equity to finance affordable housing in Maine, New Hampshire and Vermont. Evernorth raises equity by syndicating federal Low Income Housing and Historic tax credits as well as various state, historic, and affordable housing credits.
Developer Asks tor Blessing to Turn Holy Family School into Low-Income Senior Housing
The developer that purchased the closed Holy Family School is asking for Rockland's blessing to apply for a lucrative federal tax credit and the state's "friendly 40B" project. The project would leverage state and federal historic tax credits in addition to a mortgage from the state Department of Housing and Community Development as well as the 40B program where they can set aside at least a quarter of the units for those who make less than 80% of the area's median household income.
Shell Dash Townhomes Will Provide Affordability and Historic Preservation to Campbell Park
The $2.5 million project will feature ten homes, including the historic Shell Dash Cottage, which will be relocated to the site from its original location. The City will transfer the land lease with a small fee sale to the developer and use $386,000 in tax increment financing (TIF) funds from the Affordable Housing Redevelopment Loan Program to subsidize construction costs. Financing will also include a fund that contains tax credits.
For MGM Springfield and Other Massachusetts Casinos, Sports Betting Could be Key for Economic Development
Without MGM being a partner, a housing redevelopment of 31 Elm St. at Court Square would not have gone forward. The project was financed with $5 million from MassMutual, $14.5 million from MassHousing's Workforce Housing Initiative, $16 million from MGM, with this funding collectively structured as a loan. Additionally, the project secured approximately $11.3 million in state and federal historic tax credits and $500,000 of housing funds.
Bellwether Provides $11.6M HUD-Insured Loan for Affordable Housing Community in Dothan, Alabama
Bellwether Enterprise Real Estate Capital LLC has provided an $11.6 million HUD 221(d)(4) loan for the rehabilitation of an affordable housing community in Dothan; a 50-unit public housing property. In addition to the HUD loan, the transaction's capital stack includes 4% Low-Income Housing Tax Credits (LIHTC) and subordinate loans provided by the Housing Authority of the City of Dothan.
North Fork Rancheria Indian Housing Authority to Build 26 New Housing Units for Community
The North Fork Rancheria Indian Housing Authority (NFRIHA) held a groundbreaking ceremony on Friday, January 22, 2021 for a new $16.4 million affordable housing development on tribal lands in North Fork, CA. The financing included $10.6 million in investor equity and a $5 million Indian Block Grant from HUD.
Do Housing Tax Credits Work as Well as They Could?
A recent study shows that California is providing more in subsidies to investors than we actually get back in project financing, adding as much as $26,000 to the cost of each LIHTC financed affordable unit. Further, real estate developers, contractors, bankers, and investors capture 35% of every dollar in a LIHTC financed project, on average. By contrast, local government and permitting fees capture just 6% and construction labor just 14%.
Intro Tax Increment Finance WebCourse
March 24-25, 2021 - Daily: 12:00-5:00 PM Eastern
This course brings TIF deal-making and best practices into focus through a two-day program targeting the entire TIF community including economic developers, public agency representatives, bond issuers, legal professionals, developers, financial advisors, and other stakeholders.