The document provides information about the Low Income Housing Tax Credit (LIHTC) program, including:
- It was established 28 years ago and has financed over 2.6 million affordable housing units, creating 95,000 jobs annually and raising $100 billion in equity capital.
- Each state receives tax credits based on its population that it awards competitively to affordable housing developments. Developers sell the credits to investors to raise equity capital.
- The program has been very successful, with a low foreclosure rate of 0.65%, and it creates safe, decent affordable housing while also stimulating local economies and job growth.
- However, the need for affordable housing still outpaces production, with a shortage of over 5
Pathway Lending is a distinctly different kind of lender. We are a non-profit, mission-driven organization that has a determination to help with respect for all. We align capital and education with opportunity to create change in Tennessee. Click through the following slideshow to learn more about the financial products that we currently offer.
The document discusses addressing sustainable development in the Democratic Republic of Congo, specifically focusing on Goal 11 of improving access to affordable housing. It proposes mobilizing various public and private resources to develop new cities and housing. This includes creating provincial housing funds, engaging multilateral development banks for infrastructure financing and technical support, attracting institutional and foreign private investors, developing the housing industry, encouraging individual savings programs for home purchases, and establishing mortgage loans through commercial banks. The goal is to develop a coordinated approach among different stakeholders to improve affordable housing and meet sustainable development targets by 2030.
This document summarizes a presentation given in Baghdad on using sovereign credit to finance power sector infrastructure projects in Iraq. It discusses how sovereign guarantees could help satisfy lenders, provide access to international markets, and enhance financing terms for Iraq. While Iraq's electricity sector currently does not meet standards for traditional financing, a sovereign guarantee could act as credit enhancement until reforms are made. The presentation outlines the process of establishing sovereign credit under Iraqi law and proposes a path forward for its use on power projects.
The document discusses social finance for social housing in Ontario. It provides an overview of social finance, describing it as an investment approach that aims to solve social or environmental challenges while generating financial returns. Examples of social finance deals in affordable housing, clean technology, and microfinance are presented. Key drivers in the housing sector that could attract social finance are identified as high housing demand, need for housing maintenance and improvements, and demonstrated financing needs.
This document discusses social finance for affordable housing. It defines social finance as investments that generate financial returns while also creating positive social or environmental impacts. Social finance is an important way to mobilize private capital for affordable housing projects. Examples of social finance for housing in Ontario include bonds issued by the Toronto Community Housing Corporation and YWCA Canada that raised funds for affordable housing developments. While there are challenges to social finance in housing like stable revenue streams and organizational capacity, opportunities exist through models from other jurisdictions, capacity building resources, and strategic solutions that leverage private capital at scale.
FCLF is a CDFI that provides financing for non-profits doing community development work. Since 1996, FCLF has provided over $51 million in 173 loans totaling over $250 million for projects, creating over 5,600 jobs and serving over 22,500 people. Metropolitan Ministries is expanding its human services campus using NMTC financing from FCLF. The expansion will add housing, increase served populations, and allow additional services like education programs. FCLF's NMTC projects total $358 million and have included facilities like schools, manufacturing plants, and healthcare centers.
The document provides information about Chicago's plans to use funding from the Neighborhood Stabilization Program (NSP) to address the foreclosure crisis. For NSP-1, Chicago targeted 25 community areas and planned to acquire and redevelop 585 vacant, foreclosed homes. For competitive NSP-2 funding, Chicago proposed investing $98 million in 12 targeted community areas to stabilize neighborhoods. The plans focused on acquiring and redeveloping REO properties, demolishing blighted homes, and ensuring affordability for rehabilitated homes.
Social finance is sustainable investing that aims to generate both social/environmental benefits and financial returns. The document discusses how social finance is gaining momentum in Canada but still lags behind other countries. It outlines various social finance mechanisms like social venture capital funds and investments in areas like affordable housing and community energy. The document proposes a national collaboration called CAUSEWAY to improve awareness of social finance opportunities in Canada and catalyze new financial pathways and products to build the field.
Pathway Lending is a distinctly different kind of lender. We are a non-profit, mission-driven organization that has a determination to help with respect for all. We align capital and education with opportunity to create change in Tennessee. Click through the following slideshow to learn more about the financial products that we currently offer.
The document discusses addressing sustainable development in the Democratic Republic of Congo, specifically focusing on Goal 11 of improving access to affordable housing. It proposes mobilizing various public and private resources to develop new cities and housing. This includes creating provincial housing funds, engaging multilateral development banks for infrastructure financing and technical support, attracting institutional and foreign private investors, developing the housing industry, encouraging individual savings programs for home purchases, and establishing mortgage loans through commercial banks. The goal is to develop a coordinated approach among different stakeholders to improve affordable housing and meet sustainable development targets by 2030.
This document summarizes a presentation given in Baghdad on using sovereign credit to finance power sector infrastructure projects in Iraq. It discusses how sovereign guarantees could help satisfy lenders, provide access to international markets, and enhance financing terms for Iraq. While Iraq's electricity sector currently does not meet standards for traditional financing, a sovereign guarantee could act as credit enhancement until reforms are made. The presentation outlines the process of establishing sovereign credit under Iraqi law and proposes a path forward for its use on power projects.
The document discusses social finance for social housing in Ontario. It provides an overview of social finance, describing it as an investment approach that aims to solve social or environmental challenges while generating financial returns. Examples of social finance deals in affordable housing, clean technology, and microfinance are presented. Key drivers in the housing sector that could attract social finance are identified as high housing demand, need for housing maintenance and improvements, and demonstrated financing needs.
This document discusses social finance for affordable housing. It defines social finance as investments that generate financial returns while also creating positive social or environmental impacts. Social finance is an important way to mobilize private capital for affordable housing projects. Examples of social finance for housing in Ontario include bonds issued by the Toronto Community Housing Corporation and YWCA Canada that raised funds for affordable housing developments. While there are challenges to social finance in housing like stable revenue streams and organizational capacity, opportunities exist through models from other jurisdictions, capacity building resources, and strategic solutions that leverage private capital at scale.
FCLF is a CDFI that provides financing for non-profits doing community development work. Since 1996, FCLF has provided over $51 million in 173 loans totaling over $250 million for projects, creating over 5,600 jobs and serving over 22,500 people. Metropolitan Ministries is expanding its human services campus using NMTC financing from FCLF. The expansion will add housing, increase served populations, and allow additional services like education programs. FCLF's NMTC projects total $358 million and have included facilities like schools, manufacturing plants, and healthcare centers.
The document provides information about Chicago's plans to use funding from the Neighborhood Stabilization Program (NSP) to address the foreclosure crisis. For NSP-1, Chicago targeted 25 community areas and planned to acquire and redevelop 585 vacant, foreclosed homes. For competitive NSP-2 funding, Chicago proposed investing $98 million in 12 targeted community areas to stabilize neighborhoods. The plans focused on acquiring and redeveloping REO properties, demolishing blighted homes, and ensuring affordability for rehabilitated homes.
Social finance is sustainable investing that aims to generate both social/environmental benefits and financial returns. The document discusses how social finance is gaining momentum in Canada but still lags behind other countries. It outlines various social finance mechanisms like social venture capital funds and investments in areas like affordable housing and community energy. The document proposes a national collaboration called CAUSEWAY to improve awareness of social finance opportunities in Canada and catalyze new financial pathways and products to build the field.
The document summarizes a report on the proposed Nigeria Mortgage Refinance Company. Some key points:
- Nigeria has a large housing deficit of 16-18 million units worth $25 trillion that grows by 2 million units yearly. The MRC aims to increase annual mortgages from 20,000 to 200,000 to help address this.
- Mortgage lending in Nigeria accounts for just 1% of GDP compared to 26% in South Africa. The MRC seeks to provide funding to lending institutions to expand mortgage origination.
- Challenges include the Land Use Act that limits land ownership and high mortgage rates around 24%. The MRC hopes to lower rates to 12% but this may not
The document discusses financing options for wastewater infrastructure in the United States. It estimates that $271 billion will be needed over the next 5 years to maintain and improve wastewater systems. Current government spending has flatlined while costs are rising. Alternative options discussed include public-private partnerships, decentralized distribution systems, increased state revolving fund grants, the WIFIA loan program, and adjusting policies around private activity bonds and infrastructure trusts. The largest nutrient recovery plant in the world is highlighted at the Stickney Water Reclamation Plant in Illinois.
This document outlines the concept of social finance and the potential for a national collaboration in Canada called CAUSEWAY. Social finance aims to generate both financial returns and social/environmental benefits. It exists on a continuum between traditional investments and grants. CAUSEWAY would work to develop new financial pathways in Canada for investing in public benefit through activities like convening stakeholders, supporting product and policy development, and building knowledge in the field.
This document discusses economic development tools and strategies for local governments. It provides an overview of new tools like site-specific tax revenue pledges and EB-5 immigrant investor programs. It also discusses existing tools such as ground leases, lease-leasebacks, and infrastructure financing districts. The document presents case studies of projects in Redondo Beach, Hollywood, and Norco that utilized these tools to stimulate economic development. It concludes with a discussion of how infrastructure financing districts could help replace lost tax increment financing capabilities.
The document provides information about a pre-proposal conference for the Florida PACE Funding Agency (FPA). It discusses the background and purpose of the FPA, which was created to operate a statewide Property Assessed Clean Energy (PACE) program. It outlines the FPA's goals of establishing uniform standards, attracting financial resources, and creating a partnership between various stakeholders. The RFP seeks proposals for third-party administration and investment banking/program financing services to assist in launching the statewide PACE program.
From recruiting more passionate staff members to acquiring a bigger board of directors and most importantly, generating greater impact of CFED's work, 2000 was a fundamental year of growth for CFED. Mobilizing a strategic three-year plan at the beginning of the year, CFED has channeled it's resources into acquiring individual assets, enterprise development, and sustainable economies that have resulted in a remarkable vision for economic opportunity in years to come.
With increasing demand on limited public resources, national and local governments are recognizing the need for a new approach to social services that emphasizes the identification of effective, innovative ideas. However, a lack of available funding and the reluctance to take on the risk that a promising, but unproven, idea might fail have created obstacles to this new approach. The social impact bond model is designed to eliminate these obstacles.
The document discusses 10 different types of housing finance options in India including home purchase loans, home construction loans, home extension loans, land purchase loans, and loans for NRIs. It provides brief descriptions of each loan type, explaining their purpose and eligibility requirements. The types of housing loans available provide financing solutions for purchasing, building, renovating, or converting residential properties in India.
The IDB provides loans, grants, advice and technical assistance to governments and organizations in Latin America and the Caribbean to promote sustainable development. It offers various financial products including A/B loans to mobilize private sector funding. Through B-loans, the IDB shares project risk with private investors while providing benefits like preferred creditor status, longer tenors and exemption from mandatory risk provisions. B-loans help the IDB fulfill its role of spreading risk and mobilizing additional resources for development initiatives in the region.
ShoreBank was a pioneering community development bank founded in 1973 that aimed to provide access to capital in underserved communities. It expanded nationally and internationally, using a three-pronged approach of for-profit banking, non-profit organizations, and consulting services. However, during the 2008 financial crisis its loan losses increased dramatically, and it recorded losses that year as its financial condition deteriorated. Despite its "too good to fail" social mission, ShoreBank was closed by regulators in 2010 due to insufficient capital to withstand the effects of the recession.
Supporting Rural Entrepreneurship Through Collaborationnado-web
Rural areas boast great innovation and creativity, but sometimes lack knowledge about available resources or a robust, well-coordinated ecosystem of support organizations to enable entrepreneurs to build businesses to their potential. During this session, hear about one region’s experience using the Strategic Doing process to pivot economic development strategies during the pandemic to support the digital economy and entrepreneurship. Further, learn how regions can leverage community resources more effectively by building collaboration to support entrepreneurs.
The financing of affordable housing in ksaBhzad Sidawi
The document discusses financing for affordable housing in Saudi Arabia. It notes that demand for affordable housing has increased due to population growth, income variation, and inflation. Major providers of affordable housing financing include the Real Estate Development Fund (REDF), banks, charities, and government organizations. However, the current financing system may not be able to meet present and future demand from low-income home buyers. The study aims to evaluate the contribution and plans of banks and REDF to meet this demand now and in the future.
As a follow up to our 2/26/14 webinar, Social Impact Bonds 101, Robert Esposito and Shawn Pelsinger, two NYU Law and Social Enterprise Fellows, joined us to expand upon our original discussion with a deeper look into the growth of SIB's in the Unites States and the implications for the philanthropic sector. Our two experts took us through a number of recent developments around SIB's in the U.S., including the fate of guarantors, the growth of multiple-funding sources, the expanding position of investment banks for financing and the ultimate role of foundations and philanthropy. This was the second webinar in a four-part series with Public Allies.
Mr. Napoleon Micu from the National Credit Council- Department of Finance speaks about the national policy framework of microfinance in the Philippines (Jan 29, PACAP Community Development Forum - Microfinance Amidst the Global Financial Crisis)
Transit-oriented development, or TOD, is a type of walkable community development that includes a mixture of housing, office, retail and/or other amenities located near quality public transportation. This presentation identifies successful approaches to financing equitable TOD across the United States.
Kenya has taken on a large amount of debt in recent years, with public debt reaching 61% of GDP. Much of this debt has been borrowed from China and other foreign lenders to fund large infrastructure projects that have low or negative returns. As a result, over half of tax revenue must now be spent on loan repayments, forcing the government to take on more debt to cover budget shortfalls. While public-private partnerships were intended to reduce debt levels by attracting private investment, this approach has been largely ignored despite rising debt levels. Greater use of partnerships could help finance projects while avoiding further increases in public debt. However, public education would be needed given potential concerns about foreign ownership of public assets.
This document provides an overview and strategies for advocacy related to appropriations for the National Association of Development Organizations (NADO) conference. It discusses the recent completion of the FY22 appropriations process and priorities for FY23 funding requests, including $50M for EDA/EDD Partnership Planning Funding and $18M for ARC/Local Development Districts. It outlines action plans for advocacy meetings, including stressing local impacts and following up after meetings.
This document is a 16-page spreadsheet created in 1994 by William E. Bryant, CPA for projecting cash flows and valuations for low income housing tax credit developments. It includes assumptions, cash flow projections for 30 years, projected costs and tax credits, capital accounts, balance sheets, and graphs. It provides an example for clients to review and understand Bryant's analysis for these types of real estate projects.
The document summarizes a report on the proposed Nigeria Mortgage Refinance Company. Some key points:
- Nigeria has a large housing deficit of 16-18 million units worth $25 trillion that grows by 2 million units yearly. The MRC aims to increase annual mortgages from 20,000 to 200,000 to help address this.
- Mortgage lending in Nigeria accounts for just 1% of GDP compared to 26% in South Africa. The MRC seeks to provide funding to lending institutions to expand mortgage origination.
- Challenges include the Land Use Act that limits land ownership and high mortgage rates around 24%. The MRC hopes to lower rates to 12% but this may not
The document discusses financing options for wastewater infrastructure in the United States. It estimates that $271 billion will be needed over the next 5 years to maintain and improve wastewater systems. Current government spending has flatlined while costs are rising. Alternative options discussed include public-private partnerships, decentralized distribution systems, increased state revolving fund grants, the WIFIA loan program, and adjusting policies around private activity bonds and infrastructure trusts. The largest nutrient recovery plant in the world is highlighted at the Stickney Water Reclamation Plant in Illinois.
This document outlines the concept of social finance and the potential for a national collaboration in Canada called CAUSEWAY. Social finance aims to generate both financial returns and social/environmental benefits. It exists on a continuum between traditional investments and grants. CAUSEWAY would work to develop new financial pathways in Canada for investing in public benefit through activities like convening stakeholders, supporting product and policy development, and building knowledge in the field.
This document discusses economic development tools and strategies for local governments. It provides an overview of new tools like site-specific tax revenue pledges and EB-5 immigrant investor programs. It also discusses existing tools such as ground leases, lease-leasebacks, and infrastructure financing districts. The document presents case studies of projects in Redondo Beach, Hollywood, and Norco that utilized these tools to stimulate economic development. It concludes with a discussion of how infrastructure financing districts could help replace lost tax increment financing capabilities.
The document provides information about a pre-proposal conference for the Florida PACE Funding Agency (FPA). It discusses the background and purpose of the FPA, which was created to operate a statewide Property Assessed Clean Energy (PACE) program. It outlines the FPA's goals of establishing uniform standards, attracting financial resources, and creating a partnership between various stakeholders. The RFP seeks proposals for third-party administration and investment banking/program financing services to assist in launching the statewide PACE program.
From recruiting more passionate staff members to acquiring a bigger board of directors and most importantly, generating greater impact of CFED's work, 2000 was a fundamental year of growth for CFED. Mobilizing a strategic three-year plan at the beginning of the year, CFED has channeled it's resources into acquiring individual assets, enterprise development, and sustainable economies that have resulted in a remarkable vision for economic opportunity in years to come.
With increasing demand on limited public resources, national and local governments are recognizing the need for a new approach to social services that emphasizes the identification of effective, innovative ideas. However, a lack of available funding and the reluctance to take on the risk that a promising, but unproven, idea might fail have created obstacles to this new approach. The social impact bond model is designed to eliminate these obstacles.
The document discusses 10 different types of housing finance options in India including home purchase loans, home construction loans, home extension loans, land purchase loans, and loans for NRIs. It provides brief descriptions of each loan type, explaining their purpose and eligibility requirements. The types of housing loans available provide financing solutions for purchasing, building, renovating, or converting residential properties in India.
The IDB provides loans, grants, advice and technical assistance to governments and organizations in Latin America and the Caribbean to promote sustainable development. It offers various financial products including A/B loans to mobilize private sector funding. Through B-loans, the IDB shares project risk with private investors while providing benefits like preferred creditor status, longer tenors and exemption from mandatory risk provisions. B-loans help the IDB fulfill its role of spreading risk and mobilizing additional resources for development initiatives in the region.
ShoreBank was a pioneering community development bank founded in 1973 that aimed to provide access to capital in underserved communities. It expanded nationally and internationally, using a three-pronged approach of for-profit banking, non-profit organizations, and consulting services. However, during the 2008 financial crisis its loan losses increased dramatically, and it recorded losses that year as its financial condition deteriorated. Despite its "too good to fail" social mission, ShoreBank was closed by regulators in 2010 due to insufficient capital to withstand the effects of the recession.
Supporting Rural Entrepreneurship Through Collaborationnado-web
Rural areas boast great innovation and creativity, but sometimes lack knowledge about available resources or a robust, well-coordinated ecosystem of support organizations to enable entrepreneurs to build businesses to their potential. During this session, hear about one region’s experience using the Strategic Doing process to pivot economic development strategies during the pandemic to support the digital economy and entrepreneurship. Further, learn how regions can leverage community resources more effectively by building collaboration to support entrepreneurs.
The financing of affordable housing in ksaBhzad Sidawi
The document discusses financing for affordable housing in Saudi Arabia. It notes that demand for affordable housing has increased due to population growth, income variation, and inflation. Major providers of affordable housing financing include the Real Estate Development Fund (REDF), banks, charities, and government organizations. However, the current financing system may not be able to meet present and future demand from low-income home buyers. The study aims to evaluate the contribution and plans of banks and REDF to meet this demand now and in the future.
As a follow up to our 2/26/14 webinar, Social Impact Bonds 101, Robert Esposito and Shawn Pelsinger, two NYU Law and Social Enterprise Fellows, joined us to expand upon our original discussion with a deeper look into the growth of SIB's in the Unites States and the implications for the philanthropic sector. Our two experts took us through a number of recent developments around SIB's in the U.S., including the fate of guarantors, the growth of multiple-funding sources, the expanding position of investment banks for financing and the ultimate role of foundations and philanthropy. This was the second webinar in a four-part series with Public Allies.
Mr. Napoleon Micu from the National Credit Council- Department of Finance speaks about the national policy framework of microfinance in the Philippines (Jan 29, PACAP Community Development Forum - Microfinance Amidst the Global Financial Crisis)
Transit-oriented development, or TOD, is a type of walkable community development that includes a mixture of housing, office, retail and/or other amenities located near quality public transportation. This presentation identifies successful approaches to financing equitable TOD across the United States.
Kenya has taken on a large amount of debt in recent years, with public debt reaching 61% of GDP. Much of this debt has been borrowed from China and other foreign lenders to fund large infrastructure projects that have low or negative returns. As a result, over half of tax revenue must now be spent on loan repayments, forcing the government to take on more debt to cover budget shortfalls. While public-private partnerships were intended to reduce debt levels by attracting private investment, this approach has been largely ignored despite rising debt levels. Greater use of partnerships could help finance projects while avoiding further increases in public debt. However, public education would be needed given potential concerns about foreign ownership of public assets.
This document provides an overview and strategies for advocacy related to appropriations for the National Association of Development Organizations (NADO) conference. It discusses the recent completion of the FY22 appropriations process and priorities for FY23 funding requests, including $50M for EDA/EDD Partnership Planning Funding and $18M for ARC/Local Development Districts. It outlines action plans for advocacy meetings, including stressing local impacts and following up after meetings.
This document is a 16-page spreadsheet created in 1994 by William E. Bryant, CPA for projecting cash flows and valuations for low income housing tax credit developments. It includes assumptions, cash flow projections for 30 years, projected costs and tax credits, capital accounts, balance sheets, and graphs. It provides an example for clients to review and understand Bryant's analysis for these types of real estate projects.
The Oklahoma Affordable Housing Act of 2014 established a state low-income housing tax credit to encourage the development and preservation of affordable rental housing. The tax credit is capped at $4 million annually and allocated by the Oklahoma Housing Finance Agency. To receive the credit, qualified projects must reserve federal low-income housing tax credits and be located in counties with populations under 150,000. The Act aims to increase the availability of affordable rental units while being reviewed every five years to ensure effectiveness.
The document provides background on the Affordable Housing Tax Credit program and discusses legislative changes that have impacted the program. It describes how the Housing and Economic Recovery Act of 2008 and American Recovery and Reinvestment Act of 2009 increased tax credits and other funding to boost affordable housing development during the economic downturn. It also outlines how Midwest Housing Equity Group invests in low-income housing tax credit projects to raise equity for development.
The presentation summarized the District of Columbia's approach to affordable and mixed-income housing. It discussed defining affordable housing, population growth driving the need for more units, tools used to finance development like tax incentives and the Housing Production Trust Fund, and innovative programs promoting mixed-use development and tenant ownership. Challenges included slow delivery of inclusionary zoning units due to the economy and lack of staff to monitor affordability requirements. Moving forward, the mayor committed $287 million in additional funding with a goal of producing 10,000 affordable units by 2020.
EE in Affordable Rental Housing Brief_FINALAlise Newman
This study analyzed energy usage data from 15 low-income housing tax credit properties in Virginia to evaluate the impact of energy efficient design and construction. It found that apartments built to higher energy standards used 17% less energy than estimated. Residents saved an average of $648 per year on electricity bills. With over 13,000 such units certified in Virginia since 2007, total annual savings amount to over $8 million. However, resident surveys showed opportunities for further savings through better education on efficient energy behaviors.
The document summarizes a request for information from developers interested in an affordable housing development in College Station, Texas. It provides background on housing needs, current rental market conditions, and proposals received. One proposal, the Huntington at College Station, a 148-unit mixed-income elderly development, is discussed in detail. The developer, MGroup Holdings, is seeking city support for their competitive 9% housing tax credit application to the state. Staff recommends the city adopt a resolution of support and provide $100,000 in funding.
Wha is the Low-Income Housing Tax Credit Program in ArizonaCharles Lotzar
The Low-Income Housing Tax credit program is a federal tax credit program that was created by the Tax Reform Act of 1986. Details about the Low-Income Housing Tax Credit Program (LIHTC) can be found in the Internal Revenue Code (IRC), Section 42.Learn more about low-income housing tax credit program in this presentation.
General introductory information regarding Midwest Housing and the Low Income Housing Tax Credit. Information regarding using the Low Income Housing Tax Credit to assist in meeting CRA requirements.
This document summarizes information presented by David Kunhardt on affordable housing in San Rafael, California. It discusses the housing continuum from homeownership to supportive housing solutions. It provides data on income levels and housing costs. It also outlines various federal housing programs and subsidies over time. Additionally, it highlights how the Low Income Housing Tax Credit program works to incentivize private investment in affordable rental housing. The document emphasizes that affordable housing benefits communities and outlines actions that can be taken to support more housing choices in Marin County.
Midwest Housing Equity Group, Inc. (MHEG) was created in 1993 to raise equity capital for affordable rental housing. MHEG has since expanded to invest in properties across Nebraska, Iowa, Kansas, and Oklahoma, creating over 6,700 affordable units. The document provides details on MHEG's mission, portfolio growth, organizational structure, investment process, and benefits for participating financial institutions.
Example of Low Income Housing Tax StructureWilliam Bryant
Organizational Chart showing the Tax Structure of the Entities in a Limited Partnership. Note the percentage of Ownership for the Limited Partner that is acquiring the Flow-Thru of the Low-Income Housing Tax Credits.
Ivan Kaufman gives insight on the Low Income Housing Tax Credit Program (LIHTC), including when it was founded, what it's main objective is, how it's administered, who is eligible to apply, and its reduction on taxes.
The document summarizes changes to Connecticut's Low-Income Housing Tax Credit (LIHTC) program for 2015, including amendments to the Qualified Allocation Plan and procedures. Key points include $50 million available in tax credits, priorities for supportive housing and mixed-income developments, new scoring criteria, application deadlines in November 2015, and guidance on underwriting, construction requirements, and contacts for technical assistance.
Public Private Partnerships (Ppp) And Affordable Housing By David HoickaDavid Hoicka
Public Private Partnerships (PPP) and Affordable Housing by David Hoicka. Review of PPP as a £60 billion, $90 billion industry and its application to Affordable Housing
The document summarizes information from a presentation on social finance and affordable housing. It discusses barriers to affordable housing development, sources of public funding, and financial innovations used in other countries to increase funding for affordable housing projects, such as social impact bonds. Potential strategies proposed include establishing a limited partnership to attract private investment in supportive housing.
The document summarizes financing strategies for a $900 million riverfront development project in Dayton, Kentucky called Manhattan Harbour. It outlines public financing through tax increment financing of property, sales, and income taxes. Private financing will come from an equity fund, debt fund, and EB-5 immigration investor program. It also discusses using tax increment financing, a debt fund, equity fund, EB-5 program, and potential new market tax credits to finance the project.
Social Finance Applications: Case Studies for Affordable HousingAdam Spence
An overview of three case studies outlining social finance vehicles for the acquisition, construction, and retrofit of affordable housing in US and Canada. This presentation was prepared for the Ministry of Municipal Affairs and Housing (MMAH).
The real estate market has been impacted by inflationary prices, increased opportunities for remote work, and racial justice challenges to historical disinvestment in communities of color. This Financial Poise webinar examines the types of real estate projects that help stabilize and strengthen our population centers, including affordable housing and other types of community developments, and explains the various types of economic incentives available to investors who participate in these projects.
Part of the webinar series: REAL ESTATE INVESTING 101 - 2022
See more at https://www.financialpoise.com/webinars/
Pathway Lending, the Tennessee Bankers Association, and the Tennessee Housing Development Agency are working together to identify qualified developers, underwrite loan requests, and participate loans with Subscribing banks.
These loans provide developers with a long-term, fixed rate, permanent mortgage for their Low-Income Housing Tax Credit awarded developments. These loans also play a major role in improving economic conditions, incomes, taxes, and jobs in low-income communities across Tennessee.
The document provides an overview of New Markets Tax Credits (NMTCs), including background, transactions, terminology, and deal structure. NMTCs provide tax credits to investors who make equity investments in designated low-income communities. They allow private capital to fund projects that may not otherwise be financially feasible. Common deal structures involve an investor, community development entity (CDE), qualified low-income community business, and sometimes a leverage lender.
Latest brochure from Orient Management Group marketing an interesting opportunity in fixed rate bonds, contact us to find out more:
http://www.orient-management.com/contact.php
Financing the 2030 SDGs with Community Development Bonds sola bickerstethSola Bickersteth
Community Development ( CD ) Bonds are proposed to raise finance directly from local citizens through the capital market and to be invested in major infrastructure projects especially those aligned to achieving the SDGs..
The proposed CID Bonds provides for a mechanism for sharing public sector risk with private sector reward as well as a sustainable model for financing community development.
This article sets out the basic framework for issuing Community Development ( CD) Bonds and provides answers to the various components of a successful implementation in Nigeria
Addressing poverty with community developement bonds sola bickerstethSola Bickersteth
Poverty in our society can be substantially reduced by 1. creating Financial Inclusion Centers ( FIC) in local communities 2. Deploying professionally competent Financially Services Agents to operate the FIC 3. Building a bio-metric database and on boarding of the residents , properties and resources in the community 4. Conducting a community development stakeholder needs assessment 5. Negotiate tax breaks with the Local/state government 6. Issue a Community Development Bond on the local stock exchange 7. Implement a digital repayment system by all on boarded community stakeholders
2022 Annual Report Mitchell-Lama Housing Companies in New York State.pdfssuser2104fb
The 2022 Annual Report to the Legislature provides information on Mitchell-Lama developments in New York State based on 2021 certified financial statements. It includes data on 213 developments with over 102,000 apartments supervised by DHCR or HPD. The report summarizes rents, subsidies, occupancy rates, and other financial information for each development.
The document discusses potential funding options totaling $1 billion needed to finance resiliency infrastructure along Manhattan's East Side to protect coastal communities from climate change risks. Option 1 proposes issuing a "Resilience Bond" through taxes or surcharges on property owners and businesses in the target area, with debt service of around $55 million annually. Option 2 involves directly assessing the $1 billion on individuals and businesses in the target area. Supplemental sources discussed to provide interim financing include EB-5 financing of $250 million+, a zero coupon bond offering also of $250 million, and a $100 million initial investment from a private "Master Developer".
MVVF Presentation with Enterprise Bank - 3/16/11MassDevelopment
MassDevelopment promotes economic development in Massachusetts through various financial programs and real estate services. They provide tax-exempt bond financing for eligible projects between $1.2-10 million, as well as real estate loans up to $5 million and commercial lending for real estate and equipment. New programs include the Manufacturing Innovation Initiative and Gateway Cities Loan Program. MassDevelopment also administers the Emerging Technology Fund, providing loans to emerging technology companies for facility expansion and equipment.
In India, venture capital has helped fund new entrepreneurs and businesses but performance has been mixed. Venture capital funds raise money from risk-tolerant investors and invest it in startups that need funding but cannot access traditional sources. These startups are often in new areas and have a low probability of success, but the venture capitalist expects a few big successes to generate high returns to offset many failures. Venture funding is usually through equity to maximize returns, with exit planned via the stock market.
The New Jersey Redevelopment Authority (NJRA) provides financing and programs to support redevelopment projects that revitalize urban areas in New Jersey. Over 20 years, the NJRA has invested $418 million and leveraged $3.8 billion in total investments for 266 projects creating over 15,000 housing units and 10 million square feet of commercial space. The NJRA offers training programs on redevelopment topics and provides consultation services to help municipalities and companies achieve their goals.
Presentation on social finance and social housing including background on MaRS, the Centre for Impact Investing, motivations, case studies, public policy implications, and areas of interest for housing providers. As presented at CHRA Pre-Congress in May 2012.
State Infrastructure Banks (SIBs) are revolving funds established by state departments of transportation to provide loans and credit assistance to surface transportation projects. Federal and state funds are used to capitalize SIBs, with a prescribed matching ratio. SIBs operate similarly to commercial banks by marketing financial products, processing loan applications, and managing repayments to continually fund new projects. They provide advantages like accelerating project delivery through subsidized loans and leveraging additional public and private investment.
About the housing finances in India. About the national hosing bank and the functions of it. Then about the micro housing finance corporation and the types of loans, housing and its development. Discussion on the urban infrastructure.
Leveraging Opportunity Zones to Support Regional Economic Developmentnado-web
During the 2019 NADO Annual Training Conference (October 19 - 22 in Reno, NV), Scott Dadson shared information creating investable communities and how to take advantage of the Opportunity Zone Program.
The document provides information about the Affordable Housing Tax Credit Program. It discusses the background and history of the program, how tax credits are calculated, typical deal structures, examples of tax forms involved, factors that influence tax credit pricing, the investor profile, legislative movements including HERA and ARRA, and an overview of Midwest Housing Equity Group which serves as a tax credit syndicator.
Pre-Summit Workshop - New Markets Tax Credit Presentationkingdom1realty
What are New Markets Tax Credits?
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2. 28
2.6
95,000
100
The tax credit program was
established 28 years ago.
Over 2.6 million developments
financed.
Creates over 95,000 jobs annually.
Almost $100 billion in equity capital
raised to date.
3. A Guide to LIHTC
2
4
6
7
8
CONTENTS
Low Income Housing Tax Credits
The history of the tax credit and how the process works.
Proven Track Record
A look at the success of LIHTCs.
The Need for Affordable Housing
Read about the growing need for affordable housing in our communities.
More than Housing
The LIHTC program and its effects on the economy.
Supporting the Credit
Ways that you can help support and preserve the LIHTC program.
4. Low Income Housing Tax Credits
A Brief History
Twenty-eight years ago, Congress passed (and
the President signed) the Tax Reform Act of 1986.
Among many other things, the Act created the
Low Income Housing Tax Credit (Housing Credit)
program, whose purpose was to spur private
investment in affordable housing throughout
the country. This program is one of the most
successful affordable housing initiatives ever
launched by the federal government. The Housing
Credit (also referred to as “Section 42” – its IRC
code section) provides a dollar-for-dollar credit
against a taxpayer’s federal income tax liability. It
stimulates the bulk of all affordable rental housing
developed in the U.S. today. The program is a
highly effective public-private partnership that
harnesses the discipline of the marketplace
to efficiently build safe, decent and affordable
housing.
“...one of the most successful affordable housing Above: Housing Credits are very attractive to banks,
insurance companies and corporations with
taxable income. As stated, the credits provide
a dollar-for-dollar reduction in federal income
tax liability, providing an efficient and socially
responsible means for taxpayers to reduce their
effective tax rate. And for financial institutions,
investment in Housing Credits can be an effective
way to satisfy Community Reinvestment Act
requirements.
Over the past few decades the Housing Credit
has become an extremely important tool for
developing affordable housing. The program
has helped finance more than 2.6 million quality
affordable housing units, leveraging almost $100
billion in private capital.
So How Does It Work?
Each State receives a fixed amount of Housing
Credits from the U.S. Treasury Department based
on its population. For 2014, the Housing Credit
amount is equal to a State’s population multiplied
by $2.30 (with each State receiving a minimum
of $2,635,000 in credits). In addition, properties
financed in substantial part with the proceeds of
President Reagan signing the Tax Reform Bill in October of 1986 during a ceremony
at the White House.
tax-exempt bonds are eligible for Housing Credits, the amount of
which is not subject to the above formula.
Each State has a Housing Finance Agency (“HFA”) that
administers the Housing Credit program. Credits are generally
awarded to affordable housing developers by the HFAs on a
competitive basis though an application and allocation process.
The HFAs are permitted to identify and prioritize their State’s
unique housing needs and goals and have wide discretion in
determining which developers receive Housing Credit awards
(these priorities and goals are embodied in a “Qualified Allocation
Plan” or “QAP”). Once a QAP is issued, developers apply to the
HFAs for credits. HFAs review and score the applications and
award Housing Credits to those developments that best meet
the needs of the particular State. It’s a great example of local
control over a national resource.
The amount of the Housing Credit available to a property is based
on a variety of factors, including (i) actual cost of construction,
(ii) number of units in a development that will be rented to low-income
tenants, and (iii) the amount of credits necessary to make
the property financially feasible. HFAs conduct a rigorous review
of each application to ensure that developments only receive
enough Housing Credits to make them both financially feasible
and affordable.
In addition to any prerequisites set forth in a QAP, a property
must also satisfy one of the following federal requirements:
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5. • At least 20% of the units in the development need
are both rent restricted and occupied by individuals
whose income is 50% or less of the area median gross
income (AMI).
• At least 40% of the units in the development are
both rent restricted and occupied by individuals whose
income is 60% or less of the AMI.
A unit is “rent restricted” if the rent charged to the tenant
is not more the 30% of the income limit applicable to the
unit (generally the 60% AMI or 50% AMI limit referenced
above).
Section 42 also requires that Housing Credit properties
remain income-restricted and rent-restricted for an initial
15-year “Compliance Period” plus a subsequent 15-
year “extended use” period. HFAs may impose lengthier
affordability periods if they desire.
While the HFAs are busy reviewing applications and
awarding Housing Credits, Midwest Housing creates
and capitalizes investment funds (“Investment Funds”)
comprised of institutional investors. When developers
receive credit awards, the Investment Fund will partner
with them to provide equity capital to their properties. In
exchange for the equity investment, the Investment Fund
(and ultimately the investors) receives the Housing Credits
awarded to the underlying property (the credits flow for a
period ten years). Investors thus earn a market rate of
return on their investment. And, as a result of receiving
the equity investment to pay for construction costs,
properties need less debt, thereby allowing property
owners to charge lower rents while still developing a
financially viable property.
Left: Congresswoman
Lynn Jenkins and John
Wiechmann, President
of MHEG, discussing
affordable housing at
the Heritage Estates
Ribbon Cutting on May
30, 2013 in Neodesha,
Kansas.
FUND STRUCTURE
Midwest Housing
Equity Group
Fund sponsor
Fund Investors
Banks, insurance
companies, corporations
Investment Fund
(Limited Partnership)
- Owned 99.99% by the Fund Investors
- Owned .01% by MHEG
Housing Finance
Agency
Awards housing credits
Property
Developer
General Partner
- Owned 100% by the Operating
Partnership LP/LLC
initiatives ever launched by the federal government.”
A Guide to the LIHTC l 3
Operating Partnership
- Owned 99.99% by the Investment Fund
- Owned .01% by the Developer/General
Partner
6. Proven Track Record
The Housing Credit is “widely regarded as the most successful housing production and preservation program in the
nation’s history,” stated a 2010 report issued by Harvard’s Joint Center for Housing Studies. In fact, according to a
study of the program recently issued by the accounting firm CohnReznick, the annualized foreclosure rate for Housing
Credits properties is only 0.65%, far below the rate for the overall multifamily rental housing asset class. That success
is the result of numerous aspect of the Housing Credit program:
• Housing Credits are awarded only to those developments that best meet the housing needs of the State. Only the
strongest applications receive credits. This competitive process encourages developers to design financially viable
properties that offer a safe, decent and affordable place to live combined with practical amenities such as computer
labs and free credit counseling classes.
• Housing Credits are subject to recapture for 15 years. Recapture is most frequently triggered by foreclosure or
the failure to maintain the rent-restrictions and income-restrictions applicable to the units. Midwest Housing and
the Investment Funds obviously want to avoid any recapture of the Housing Credits. Each Housing Credit property
is carefully monitored by Midwest Housing to ensure it complies with the affordability restrictions. Each property is
also backstopped by property-level and Fund-level reserves, providing a strong safety net in the event of unforeseen
market changes.
• This public-private partnership structure, and the corresponding involvement of investors and Midwest Housing,
results in the imposition of private-sector discipline that is absent from many other federal housing production
programs.
The Housing Credit is an incredibly valuable tool. It creates safe, decent and affordable homes. The properties it
finances revitalize the neighborhoods in which they are located. It creates jobs and opportunities for our state and local
communities. And it’s all privately built, operated and managed.
Greystone Homes in Des Moines, Iowa offers 26 single family rental
homes for the Sherman Hills/Drake neighborhood.
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7. $10B
$8B
$6B
$4B
$2B
$4.8 billion
$5.7 billion
$6.7 billion
$8.2 billion
$6.9 billion
$3.6 billion
$7.3 billion
2004 2005 2006 2007 2008 2009 2010
$8 billion
$9.3 billion
$10 billion*
2011 2012 2013
NET
INVESTMENT
IN LIHTC
In the last 10 years over $70.5
billion has been invested into
LIHTC developments.
Midwest Housing Equity Group
began syndicating in 1993 with
the release of our first fund, NAHF
1993, L.P., a $4.75 million fund
with a total of eight investors.
Since then MHEG has released a
total of 41 funds raising over $1
billion in equity capital through
the investment of almost 120
banks, insurance companies and
corporations.
Source: Affordable Housing Finance
*Estimated
Woodson Park Apartments provides 52 rental units for
seniors in the El Reno, Oklahoma community.
A Guide to the LIHTC l 5
8. The Need for Affordable Housing
According to “The State of the Nation’s Housing 2013” by Harvard’s Joint
Center for Housing Studies the simple fact is, “that low-income renters far
outnumber the supply of low-cost units.” Unfortunately the shortage is greatest
among the extremely low-income renters, those earning up to 30 percent of
area median income. Both competition from higher-income renters and poor
housing quality limit the supply of low-cost decent rental housing.
In 2011, there were 6.8 million affordable rental homes available for over 12.1
million extremely low-income renters.1 This is an astonishing shortage of 5.3
million units. Over 46 percent of all renters in the U.S. pay more than 30 percent
of their income on housing, and over 25 percent of all renters are severely rent
burdened, meaning they pay over 50 percent of their income in rent.
As the need for affordable housing grows, the supply continues to shrink. The
Joint Center for Housing Studies also states that the affordability gap widens
each year as low-cost units are removed from the housing stock. Even after
taking into account LIHTC’s success at creating affordable housing units, the
demand is outpacing production.
In addition, there is a significant need for workforce housing in many communities
- housing neccessary for business to grow. According to the Center for Housing
Policy, many employers report that a lack of affordable housing makes it more
difficult to recruit and retain employees. In addition to workforce housing, our
aging population is causing the demand for independent senior housing to
increase sharply. Continued production of affordable housing via the tax credit
program is instrumental to addressing these issues.
Over 25 percent of all renters are paying over
50 percent of their income in rent.
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DEMAND VS.
SUPPLY
• For every 100 extremely low-income
renter households, there
are only 30 rental units affordable
and available to them. For every
100 renters with incomes below 50
percent of the area median income,
there are only 57 units avaialble.1
• Between 1997 and 2007, the
number of units with real rents under
$400, including utilities - about what
a household earning the full-time
minimum wage could afford at 30
percent of income - fell by 244,000
to 6.6 million.2
• The Government Accountability
Office estimates that mortgage
restrictions and rental assistance
contracts on more than 1 million
subsidized units expired in 2013.
1 “The State of the Nation’s Housing 2013,” Joint
Center for Housing Studies of Harvard University
2 “The State of the Nation’s Housing 2010,” Joint
Center for Housing Studies of Harvard University
9. Creating Jobs
The LIHTC does more than provide affordable housing, it also generates millions of jobs for Americans and helps
stimulate the economy. During the construction process, the program creates jobs for architects, carpenters, electricians,
plumbers and roofers to name a few. Once the property is completed, it requires property managers, leasing agents,
maintenance workers and other service providers to operate the property. In addition, the now leasing residents help
support local businesses and jobs by spending their income.
According to the National Association of Home Builders, they estimate on average that building a 100 unit property
provides the following in one year:
• $7.9 million in local income
• $827,000 in taxes and other revenue for local governments
• 122 local jobs
They also estimate on average the recurring impacts of that a 100 unit property provides annually:
• $2.4 million in local income
• $441,000 in taxes and other revenue for local governments
• 30 local jobs
Source: “The Local Economic Impact of Typical Housing Tax Credit Developments” National Association of Home Builders (March 2010)
Types of jobs created during and after the
construction of a 100 unit multifamily LIHTC
property.
100%
80%
60%
40%
20%
Jobs Created Directly
and Indirectly by
New Construction
Jobs Supported
by Spending Locally
Earned Wages
Jobs Supported by
Households Occupying
New Homes
Source: “The Local Economic Impact of Typical Housing Tax Credit
Developments” National Association of Home Builders (2010)
Construction
Wholesale & Retail Trade
Business & Professional Services
Restaurants & Bars
Health, Education & Social Services
Local Government
Other
More than Housing
Left: Reese Estates provides 15 single family rental
homes for the community of Waverly, Nebraska.
A Guide to the LIHTC l 7
10. Supporting the Credit
The LIHTC program is the primary resource for
the development of affordable rental housing
nationwide; without the credit there would be
virtually no production of affordable housing. And
with the need greater now than ever, the program
needs your support. With our nation’s growing fiscal
challenges, Congress is considering tax reform that
would reduce or possibly eliminate corporate tax
expenditures, such as the LIHTC program.
One challenge that needs to be addressed is the
floating credit rate. Historically, the Internal Revenue
Service has calculated the 70 percent and 30 percent
present value credits for newly constructed and
Kansas Governor Sam Brownback attends City View at St. Margaret’s Ribbon
existing properties based on medium and long-term
Cutting in Kansas City, Kansas on December 19, 2013.
interest rates. When applied to LIHTC investments,
this floating rate system creates uncertainty and financial complexity. The Housing and Economic Recovery Act of 2008
(HERA) provided for a 9 percent fixed floor rate for newly constructed and substantially rehabilitated properties that
received an allocation of tax credits on or before 12/31/13. Permanently locking the 70 percent tax credit percentage
at 9 percent, as well as providing a minimum 4 percent rate for acquiring existing properties, will provide stability in the
affordable housing industry and make affordable housing development more financially feasible.
It is important to stay in contact and communicate with your Congressional delegations. We must continue to educate
our elected officials on the value of the LIHTC program, ensuring that it is preserved if and when tax reform takes place.
One very effective communication method is to invite Senators, Representatives and other government officials to
attend and participate in groundbreakings, ribbon cuttings and open houses of LIHTC developments. These events do
make a difference and allow members of Congress to see the quality of our developments and to meet the residents
whose lives are improved.
Another great way to support the credit is to join the A.C.T.I.O.N. coalition. Their website (www.rentalhousing.org) is an
excellent source of advocacy information, which includes LIHTC talking points, background information of the credit,
state-specific fact sheets, sample letters to send to members of Congress, guidelines on getting delegates to attend
groundbreakings and open houses and many other tools.
Above: Congressman Lee Terry attends the ribbon cutting for Cypress Pointe in Omaha, Nebraska
on August 16, 2013.
Right: Senator Tom Harkin speaks with Senator Jack Hatch and Ryan Galloway of Hatch
Development Group at the Des Moines Greystone Homes Groundbreaking on August 23, 2013
in Des Moines, Iowa.
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