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IPED Annual Affordable Housing & Development Update: Opportunities in a Changing Economy The Fairmont Miramar Hotel Santa Monica, CA June 4 - 5, 2009.

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Presentation on theme: "IPED Annual Affordable Housing & Development Update: Opportunities in a Changing Economy The Fairmont Miramar Hotel Santa Monica, CA June 4 - 5, 2009."— Presentation transcript:

1 IPED Annual Affordable Housing & Development Update: Opportunities in a Changing Economy The Fairmont Miramar Hotel Santa Monica, CA June 4 - 5, 2009

2 IMPORTANT RURAL HOUSING SPECIFIC ISSUES Go Zone/Disaster Area Credit Qualification For Exchange – Reform! 538 Interest Credit Subsidy – Protect! MPR/Restructuring Permanent Legislation Additional Subsidy – Existing, New and Preservation

3 515 mortgage subordination and tax credit re-syndication to reposition properties. 9% LIHTC Transactions combining multiple sites have been closed repeatedly Alternative Funding Preservation Tools

4 Tiered rents for LIHTC properties? New 30 year RUP required CRCU rents will probably continue to be the standard Equity can be paid by non-RD sources or from RD sources with appraisal 20 year CNA Preservation Tools

5 Handbook – HB – Chapter 15 – Apply to prepay – Must be complete – but completeness can vary by office – Must demonstrate ability to prepay with loan commitment or assets You can receive incentives – equity take-out loan – From RD – 1% interest rate but little money and long wait – Obtain yourself – must locate and educate lenders ELIHPA

6 You may be able to prepay with a life -estate use restrictions for current residents – If housing determined to be unnecessary – If no adverse impact on minority persons And/Or you can offer for sale to a non-profit, at apprised value – Must offer for 6 months – If non profit makes offer, have up to 24 months to close – If neither happens, can prepay

7 MPR MPR is seeking pre-applications by 5 p.m. est June 29, The authorized restructuring tools are debt deferrals, revitalization grants, zero percent loans and soft-second loans. Market value. Excess cash. Simple transactions that involve no change in ownership. Complex transactions consist of a property transfer to new ownership or a subordination Portfolio transactions. Top ranked pre-applicants are invited to submit a formal application. Capital needs assessment Community market rent demonstration, allowing an owner to set a rent above the approved basic rent for any unit not currently occupied by a tenant receiving RA.

8 Richard Michael Price Nixon Peabody LLP 401 Ninth Street Suite 900 Washington, DC Telephone: (202) Facsimile: (202)


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