Commemorating the 30th anniversary of the passage of the low-income housing tax credit, the LIHTC Showcase describes the history of the credit; the impact it has on residents, developers, investors and state agencies; and profiles more than 70 properties across the nation that were financed by the LIHTC.
For more information and the full report, visit here.
Arlington, VA (January 19, 2015) – Governor Terry McAuliffe announced a $750,000 award to the Arlington Partnership for Affordable Housing (APAH) from the Virginia Housing Trust Fund. The award will provide a long-term no interest loan to support the construction of Columbia Hills Apartments, a 229-unit affordable housing development slated to break ground later this year.
Speaking at the announcement event, Governor McAuliffe said, “Columbia Pike showcases how we can really provide affordable housing that can successfully be integrated into our communities. The key is cooperation and engagement from our elected officials, our developers and, of course, our citizens. I am proud to award these grants and watch them work to improve real people’s lives and grow our economy.”
The Virginia Housing Trust Fund was created to promote affordable housing and homelessness prevention across the Commonwealth. In all, Governor McAuliffe announced more than $6.9 million in grants and loans to an audience of affordable housing leaders, members of the Arlington County Board, and the media at Arlington Mill Community Center. Welcoming Governor McAuliffe, John Milliken, APAH’s Board chairman, noted, that “We are gathered today in the public portion of a unique and award-winning facility developed in partnership with Arlington County. APAH’s Arlington Mill Residences has 122 affordable housing units, including 13 for permanent supportive housing. None of this would be possible without the strong support of the Commonwealth of Virginia. Its guidance (and dollars) help marshal the federal, state, local and private resources necessary to make these often complicated projects a reality for the families that live in them.”
The Trust’s Competitive Loan Pool is intended to create and preserve affordable housing units within the Commonwealth. The loans support projects that will meet local affordable housing needs and support the Commonwealth’s housing policy. Thirty-one applications were submitted requesting $18 million in loans. “APAH is honored to be selected for a $750,000 loan from a very competitive applicant pool,” said Nina Janopaul, APAH President/CEO. “These funds will enable us to further reduce the rents on some of the new apartments we are building at Columbia Hills, enabling more Arlingtonians to live and thrive in our community.”
Columbia Hills will be a 100% affordable property built on land already owned by APAH at its existing Columbia Grove Apartments. Features include a new, eight-story concrete building atop underground parking, a community room for resident programs, a new playground, 13 accessible units and 10 units are designated for permanent supportive housing. APAH anticipates breaking ground on Columbia Hills in summer 2016.
We are all aware that having access to affordable, quality housing in a safe neighborhood that is connected to jobs and other amenities makes life better for people. Research has shown the positive relationship between stable, affordable housing and good health outcomes, improved academic performance and greater economic self-sufficiency. Individuals and families with low-incomes who have access to housing that is affordable undoubtedly benefit from that housing. For some, that is reason enough to support public spending on affordable housing programs. But what about others who ask about the return on investment in affordable housing? To what extent should we make the economic case for affordable housing?
Putting a dollar value on the benefits associated with access to affordable housing is a tricky business. Housing researchers have tended to avoid monetizing benefits—and for good reasons. It can be really difficult to establish definitively that receipt of housing assistance causes a change in an individual’s or family’s condition. Even if that link could be shown, the benefits might be a long time coming and it can be hard to track people and measure changes over years or even decades. Some housing advocates also balk at putting a dollar value on the benefits of housing, arguing that housing is a right and economic benefits need not be part of the discussion.
There is a little research, however, that has put a dollar value on the benefits of affordable housing. Monetizing the health benefits associated with housing is probably the most common way return on investment has been measured. In a review of the research on the intersection of housing and health, Janet Viveiros and I found a number of rigorous studies that have demonstrated that providing permanent supportive housing to homeless individuals saves money on public health care expenditures. In fact, it can be far more cost effective to provide housing to homeless individuals than to provide the extra health care and other services they need when they are not stably housed.
Aside from the permanent supportive housing research, there is little analysis on the public benefits of other affordable housing programs. One exception is recent research by Raj Chetty and his collaborators at Harvard. They analyzed data from the Moving to Opportunity (MTO) housing voucher program and found that children in families that had access to a voucher under this program had higher incomes later in life. And, over the long term, the additional tax revenue collected on these increased earnings were more than enough to offset the cost of the voucher program. So, investing in this housing voucher program had a positive return—albeit, many years after the fact.
How does investing in affordable housing relate to regional economic growth? Although I’ve made the claim in the past that a lack of affordable housing can lead to slower economic growth, there hasn’t been any systematic research that definitely confirms that hypothesis. There is, however, new and compelling research that hints at the important role housing plays in regional prosperity. Researchers Chris Benner and Manuel Pastor examined economic growth in metro areas across the U.S. and found that places with higher inequality and more segregation have slower job growth and less sustainable economic development. By extension, local and regional housing policies that lead to less inequality and more residential integration should lead to stronger regional economies. And theoretically one could monetize the value to the regional economy of pursuing those types of inclusive housing policies.
So, there is a lot of potential for quantifying the broad economic benefits of affordable housing programs and policies. But for now, researchers have tended not to focus on measuring the return on investment of public spending on housing. It seems like we could do a better job on this. Even as we realize that a “cost-benefit” or “return-on-investment” analysis should not be the sole driver of housing policy decisions, it can be a useful part of the discussion. And it can help make the case for affordable housing programs to those who take a “bottom line” approach to government spending decisions.
Q: Tell us a little bit about yourself:
A: I am a current Master’s of Real Estate Development candidate at University of Maryland-College Park. I want to focus on developing mixed-use affordable housing that will provide people with a work/life/live balance. In the affordable housing aspect of the development, I am especially interested in emancipated youths. Ultimately, I would like to provide them a safe and stable environment where they are able to learn independent living skills, work where they live and have a special rental savings program in which they are then able to set aside a portion of their rent to become future home owners.
Q: What do you see as the biggest challenge in your industry?
A: Available space. Many companies are experts at in-fill development. They build beautiful buildings where land is available, but the units are still at market rates. This is difficult for workers who are earning above the poverty income, but not enough for the high end of the market. This population, which is inclusive of teachers, police, social service workers, etc., deserve to have the conveniences of city living and also be in close proximity to all the great amenities that city life offers. Unfortunately, these kinds of homes are typically not affordable in either the homeownership or rentals markets. Because land is so scarce – and at such a premium – to make the development finances work there are no other choices except market rate prices – unless LIHTC is used to subsidize a project, which then changes the dynamics of the deal. As they say: “numbers do not lie,” especially in this niche market, and that is why I see limited space as the biggest challenge in the affordable housing industry.
Q: What’s the one piece of advice you wish you had gotten sooner that helped you be successful?
A: Stay focused on your goals!! It is so easy to get sidetracked when life throws you curveballs. Getting back on your path can becomes difficult as you try to work through life’s day-to-day challenges. The real estate development field is so small and most people know each other or have heard of each other, so if they see you are engaged and enthusiastic about achieving your goals, they are very happy to help you get to that next level.
Q: How has being a member of HAND helped you with your community development efforts?
A: Finding HAND was an absolute blessing. I have always had a deep desire to be in the development world, but after being forced to take a break from real estate because of the recession, HAND helped me get back on my path. It has connected me with all the people that I need to know and has taught me so much that I did not know but always wanted to learn. The training sessions are phenomenal and of such a value. As Heather Raspberry told me when I first phoned her trying to get more information on the organization: “All of the partners required to make projects come to fruition are members of HAND.” And truer words have never been spoken, every member of HAND when I asked for an appointment to pick their brain, have been open and available. It is truly great to be a part of such a wonderful organization!!
Over the past few years, WRAG has worked alongside its membership, local stakeholders, and regional leaders to identify and implement new ways to address the affordable housing need in our region. As announced at its 2015 Annual Meeting, they have teamed up with Enterprise Community Loan Fund to develop Our Region, Your Investment as an opportunity for local stakeholders to be a part of the solution to the affordable housing crisis through impact investing.
More than 150,000 families in the Greater Washington region are currently in need of affordable homes, a number that is expected to double in less than 10 years. When people spend too much on housing, they are less likely to be able to cover basic needs. That instability can lead to negative health outcomes for residents, poor educational outcomes for their children, and an increased risk of homelessness.
Additional capital resources are required to create and preserve the affordable homes needed in the region over the next decade. Learn about how you can be a part of the solution at www.impactnote.com/ourregion.
Visit the Enterprise Community Loan Fund webpage for more information.
‘The Springs’ will provide 104 new apartments within walking distance to Ballston Metro
The Arlington Partnership for Affordable Housing (APAH) recently celebrated the “Topping Out” of The Springs Apartments. The celebration, an old Scandinavian tradition, marks the building construction reaching its highest point. The building will be completed later this year and provide affordable homes for 104 households as well as APAH’s new headquarters.
“APAH purchased this site in 1997,” said APAH Board member, Susan Bell. “Nine of APAH’s 14 properties are in North Arlington. The redevelopment of The Springs expands APAH’s presence in this wonderful Ballston location, just ½ mile from metro and close to so many jobs and services.”
“Arlington Partnership for Affordable Housing is one of our key community partners,” said Libby Garvey, Chairman of the Arlington County Board. “Today only 9,600 Arlington apartments are affordable to the 17,000 low income families looking for housing in our community. With the targets set in the County’s Master Plan, we are committed to keeping Arlington a place where people from across the socioeconomic spectrum can live and work comfortably.”
Closing the celebration, Nina Janopaul, APAH President and CEO stated “Gratitude is what today is all about. Without the support of everyone—from the Arlington County Board to citizen commissions to our talented construction team—The Springs would not be possible. Thank you all.”
The event concluded with the 40+ attendees signing a commemorative beam that will be installed in the penthouse of the new building.
For more information, visit www.apah.org.
CohnReznick has recently issued “The Low-Income Housing Tax Credit Program at Year 30: Recent Investment Performance (2013-2014).” This is the fourth in a series of published reports that provides detailed analysis of the performance of properties financed with federal low-income housing tax credits (housing tax credits) and the investment funds organized to acquire interests in such properties.
The report includes:
…and more!
CohnReznick also invites all who are interested to participate on an industry-wide webinar on Thursday, January 21 and join the study authors as they review the highlights of the report. Register today.
In 2014, Gilbane Development Company (GDC), the real estate development arm of Gilbane, Inc., successfully closed on The Grove at Parkside. Located in Ward 7 in Northeast D.C., The Grove at Parkside is an integral residential component to the larger Parkside master plan and Parkside Planned Urban Development (PUD). With 186 units in all, including 176 affordable apartments for residents earning 60% or below AMI and 10 rental units set aside for permanent supportive housing for residents earning 30% or below AMI, The Grove at Parkside was one of the only Tier I projects under DHCDs 2014 RFP to close and is one of the largest Housing Production Trust Fund tax-exempt bond transactions in the District.
GDC has an extensive track record of successfully managing complex projects by integrating finance, management and operational issues to deliver full service real estate solutions. The GDC team has in-house expertise and resources and works with partners to clarify objectives, review opportunities and streamline plans that align with the overall goal. Additionally, the company helps with the details – such as assessing ownership and financing options, overcoming permitting hurdles, investigating tax liabilities and incentives, handling municipal and environmental regulations and recommending occupancy alternatives. For GDC, the reason behind working so hard with partners and clients is simple: to achieve maximum value while creating enduring assets and communities.
As part of Parkside PUD, The Grove at Parkside will be connected to the massive reinvestment in the Parkside-Kenilworth neighborhood. The Parkside master plan includes over 3.2 million square feet of existing and future mixed-use components, including residential, retail, educational, office, open space and healthcare services. The 15.5 acre master plan site sits on the eastern edge of the District and is connected to the Minnesota Avenue Metro station via a pedestrian bridge. The Grove at Parkside is being developed as a joint venture with CityInterests, LLC and is scheduled to be completed in the third quarter of 2016.
As a member of HAND, GDC understands how being part of the overall real estate and development community assists in its work. It affords the company an opportunity to meet and collaborate with existing (and potential) nonprofit and mission driven for-profit partners who are committed to developing affordable housing in the Washington, D.C. metropolitan region. The knowledge sharing, trainings, networking and awards recognitions help GDC and its fellow HAND members to be at the cutting edge of developing the highest quality, most cost-effective and energy-efficient homes for families with lower incomes living in our region, one of the highest-cost housing markets in the country.
GDC looks forward to continuing to work with HAND and our members to deliver affordable housing in the years to come!
HAND is pleased to spotlight Gilbane Development Company as a member who certainly contributes to our organization’s COLLABORATION, INNOVATION and TRANSFORMATION within the metropolitan area!
