News
OHCS Publishes 2012 CFC Application and Funding Amounts Available
Oregon Housing and Community Services (OHCS) recently published the application for the 2012 Consolidated Funding Cycle (CFC) and announced a training webinar on January 26. Applications are due March 30. Available funding in 2012 includes $8 million in Low Income Housing Tax Credits (LIHTCs), $10 million in Oregon Affordable Housing Tax Credits (OAHTCs), $5 million in trust fund (HDGP), $3.7 million in HOME funds, $700,000 in weatherization funds (LIWP), and a $240,000 set aside for special needs populations (HELP). OHCS also continue its preference to set aside 50% of all funding available through the CFC for Preservation projects. Click here for a link to the application and further information on the upcoming webinar.
— Posted on 1/11/2012
OHCS Announces Results of Recent Preservation RFA
On December 16, Oregon Housing and Community Services (OHCS) announced two successful applications for its recent Request for Pre-Application (RFA) for Preservation funds. The 1200 Building, co-sponsored by Cedar Sinai Park and Winkler Development Corporation, and Crooked River Apartments, a three property portfolio sponsored by Chrisman Development and Management Inc, received funding reservations and must now submit applications for OHCS bond financing within 45 days. The Crooked River Apartments consists of 94 total units, 79 of which currently have Rental Assistance (RA) through USDA Rural Development (RD), at the Madison Apartments and Willow Creek Apartments in Madras and Wintergreen Apartments in Redmond; while the 1200 Building in Portland has 89 units, all of which have project-based Section 8 rental assistance. In order to preserve these 183 units, OHCS will use issue bond-financing and Oregon Affordable Housing Tax Credits to accompany the $5.7 million in Preservation gap funds. During the one-month application period in the fall, OHCS received requests for funding exceeding $14 million.
— Posted on 12/19/2011
Use of New Data to Affect CDBG Formula Allocations
A recent report produced by HUD discusses the impact of new data on future allocations of Community Development Block Grant (CDBG) funds, which entitlement communities (metropolitan areas and urban counties) and the state often use to contribute financing to preservation projects. Replacing the use of old 2000 Census data and less accurate intermediate estimates, the 2010 Census and 5-year American Community Survey (ACS) estimates will now provide data for the five CDBG formula factors: population, people in poverty, overcrowded units, population growth log (since 1960), and pre-1940 housing units. HUD looked at total FY2011 CDBG funding and examined the differences between actual FY2011 allocations and what allocations would have been using the new data. Nationally, use of new data would have resulted in communities of 100,000 to 999,999 people receiving slight increases in funding, with those or more than 1,000,000 or fewer than 100,000 seeing slight decreases. For Oregon, the new data would have resulted in an overall increase of 3.0%, with only four of the 14 entitlement communities seeing small decreases. The report stresses that the analysis does not indicate actual FY2012 allocation amounts. Nationally, CDBG funding will decrease by 12% in 2012, as a result of the FY2012 HUD appropriations bill that passed Congress in November (see November blog post). Click here for HUD’s report.
— Posted on 12/19/2011
OHCS Site Review Schedule for 2012 CFC
Starting in 2012, Oregon Housing and Community Services (OHCS) will arrange third-party site reviews of acquisition rehabilitation projects (including Preservation) at the beginning of the Consolidated Funding Cycle (CFC) process. Feedback from project sponsors indicated that information from the reviews would be help in drafting CFC applications. Site visits will take place between January 17 and 31 and applicants will receive the review team’s recommendations by February 17. OHCS will post the 2012 CFC application online on January 9, with final materials due by March 30. Sponsor’s planning to submit a 2012 CFC application for a project not considered during the 2011 CFC must notify the Regional Advisor to the Department (RAD) for their area by January 6. Click here for more information.
— Posted on 12/19/2011
HUD Releases FY12 Income Limits
On December 1, HUD released both FY12 Incomes limits and median family income (MFI) estimates, which help set eligibility requirements for potential residents at properties in HUD-assisted housing programs, including Section 8. The MFI estimate for a four-person household provides the basis of the income limit in a specific county or metropolitan area. HUD then adjusts by household size and for areas with abnormally high or low rents in order to determine final figures. Project-based Section 8 units at a property are generally available to households with very low income (50% or less of MFI), with some percentage, depending upon the initial contract date, available to those with low income (80% or less of MFI). The statewide FY12 MFI for a four-person household in Oregon is $63,900, which is 1.7% below the national average of $65,000 and a 1.3% increase (on par with the average increase nationally) from the FY11 Oregon MFI of $63,100. Click here for HUD’s FY12 income limit webpage.
— Posted on 12/08/2011
HUD Clarifies Sale Proceeds Issue for FHA-Insured Properties
In November, HUD issued a policy notice designed to encourage long-term preservation of properties with upcoming maturity dates on FHA-insured mortgages, primarily, but not exclusively, Section 236 or Section 221(d)(3). Marking a change from previous limitations, nonprofit owners of such properties can now retain sale proceeds if meeting certain conditions, such as requiring the buyer to agree to use restrictions that extend the property’s affordability for at least 20 years beyond the original mortgage maturity date. Especially in situations where the current nonprofit owner does not desire to remain the owner or cannot attract the capital needed for adequate improvements to the property, HUD believes the incentive of being able to sell at a market price will steer more sales toward preservation-focused purchasers. If the property reaches mortgage maturity, residents not living in units with some form of rental assistance would be subject to large rent increases or eviction (save the recent FY12 HUD appropriations provision allowing for a limited number of tenant protection vouchers nationally for residents in such situations).
Other stipulations contained in the notice are the execution of 20-year renewals of any project-based Section 8 rental assistance contracts for the property; the possibility of rent increases using Mark-up-to-Budget for nonprofit buyers and Mark-up-to-Market for for-profit buyers; a cap of 10% on increases to rent on units without project-based Section 8; commissioning of a Capital Needs Assessment and a timetable for addressing the property’s physical needs; and a buyer with affordable housing experience and the capacity maintain the property throughout the extended affordability period. Click here for more information.
— Posted on 12/08/2011
HUD Announces Upcoming Preservation Policy Changes
On November 22, following the passage of the FY12 “minibus” appropriations bill, HUD announced three additional policy changes designed to help mitigate annual appropriations increases needed to fund all its project-based rental assistance commitments. HUD intends to use residual receipt account balances to offset assistance payments (only applicable to "New Regulation" contracts); require that rent comparability studies substantiate the need for proposed rents that exceed 110% of Small Area Fair Mark Rents; and limit annual rent adjustments under Option 4 renewals to OCAF increases if proposed rents exceed the market rents. The later was already outlined in recent drafts of the soon-to-be-released revised Section 8 Renewal Guide, but the former are yet to be described in detail. Check back for updates as HUD will release guidance in the coming months. Click here to read HUD’s memo to multifamily owners.
— Posted on 11/23/2011
Preservation Policy Provisions in FY12 Spending Bill
The “minibus” appropriations bill, H.R. 2112, that set program funding levels for both HUD and the Department of Agriculture Rural Development also contains legislative language to create or update policy provisions relating to preservation. The biggest news was the last-minute inclusion of an amendment, co-sponsored and championed by Oregon Senator Jeff Merkley, that allows for the project-basing of tenant protection vouchers issued after project-based rental assistance contract expirations or opt-outs at properties with Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), or Section 8 moderate rehab (Mod Rehab) contracts. Owners with expiring Rent Supp and RAP contracts do not have the ability to renew and those with Section 8 moderate rehab contracts can only renew for one-year terms, greatly limiting long-term preservation possibilities. Project-basing of tenant-based vouchers can ensure the affordability of the units involved, both for the current residents and in the long term, while also increasing the ability to recapitalize the property if rehabilitation is needed. Eligibility is limited to properties with one of the three contract types noted above and at which HUD has issued tenant protection vouchers since FY07. The authority will last through FY13. HUD will issue guidelines for owners to obtain resident input and secure agreement from the PHA administering the vouchers before the project-basing can occur. The provision also waives the project- and PHA-level caps on the percentage of tenant-based vouchers allowed to be project-based.
H.R. 2112 incorporates some of HUD’s Rental Assistance Demonstration (RAD) program proposal. While RAD was not funded, the language included allows owners of Mod Rehab properties to apply to convert their rental assistance to project-based Section 8 or project-based voucher contracts, thus opening up the possibility of renewals longer than one year. This ability is subject to a 60,000 unit national limit, for which public housing also qualifies, and expires at the end of FY15.
Other preservation-related provisions in the bill allow HUD to transfer the project-based Section 8 contracts of physically or financially distressed properties; continue and expand the requirement to preserve project-based rental assistance contracts before and during the foreclosure process; and extend, through FY15, the Mark to Market program, which allows owners to restructure HUD-assisted mortgages when the rents are marked down to market levels during contract renewals.
Click here for the full text of H.R. 2112.
— Posted on 11/21/2011
Big Cuts in FY12 HUD and Rural Development Funding
On November 18, the President signed into law H.R. 2112, the “minibus” FY12 appropriations bill, which provides funding for various federal agencies, including HUD and the Department of Agriculture (USDA). Though the conference committee agreed on the FY12 bill with fewer delays than experienced with the FY11 version, which didn’t pass Congress until more than six months after the start of the fiscal year, the cuts to housing programs overall are severe.
For HUD, the Project-Based Section 8 program received $9.34 billion for FY12 contract renewals. While that figure is a 1% increase from FY11, it is slightly below the amounts requested and included in the House and Senate versions of the bill. H.R. 2112 also rescinds $200 million for the Housing Certificate Fund, which HUD uses to supplement the amount appropriated should it not meet the need for all new and existing contract renewals. HUD says the funding received will allow it to renew contracts for the full 12 months, but advocates did learn that HUD intends to pursue use of residual receipt accounts in funding shortfall situations.
The Tenant-Based Rental Assistance program received $18.91 billion. While that is a 3% increase from FY11, advocates believe the total does not allow for renewal of all authorized vouchers, possibly resulting in the loss of as many as 24,000 nationwide. The 7% cut in the amount reserved for public housing agencies’ administrative fees, on top of the 8% cut seen in FY11, will likely mean, at the very least, slower processing times for use of vouchers that are funded. The set-aside for Tenant Protection Vouchers and Enhanced Vouchers, which provide tenant-based rental assistance to qualified residents should the owner of their building prepay some HUD mortgages or opt out of a project-based assistance contract, decreased by 32% from FY11 to $75 million. Included in that total is $10 million specifically residents at properties with unassisted maturing mortgages who would otherwise not receive any protection and face eviction. Policy provisions enacted in H.R. 2112 also include the ability to project-base such vouchers at certain properties (see additional posting).
The bill cut HOME program funding down to $1 billion, 38% below FY 11 and following a 12% decrease last year. The Community Development Block Grant program received a 12% reduction. The Section 202 (Housing for the Elderly) program saw an additional 6% cut after it was slashed by 52% in FY11. The only HUD production program with an increase for FY12 was Section 811 (Housing for Persons with Disabilities), which received 10% more funding, providing some relief from its 50% cut in FY11. Both the Rural Innovation Fund and the Energy Innovation Fund, HUD programs with eligible uses related to preservation of multifamily rental housing, received no funding for FY12.
For USDA Rural Development (RD), H.R. 2112 set funding for the Section 515 Rental Housing Direct program at $64.5 million and for the Section 514/516 Farm Labor Housing programs at $27.9 million, which represent 7% and 21% cuts, respectively. As expected, the Preservation Revolving Loan Fund received no funding. However, the Multifamily Housing Revitalization Demonstration program did receive $2 million, an 87% cut from FY11, after not being included at all in the President’s budget or in the House version of the bill.
The bill funds the Section 521 Rental Assistance program at $904.7 million, which is a 5% decrease and on the heels of sa 2.5% cut in FY11 as well. The program provides project-based rental assistance in many RD properties and cuts ultimately lead to fewer units affordable to people with the lowest incomes. Just as in FY11, there will be no specific set-aside for rental assistance in RD preservation projects.
Click here for further information on the HUD appropriations totals. Click here for further information on the USDA RD appropriations totals.
— Posted on 11/21/2011
Salem Accepting Applications for HOME & CDBG Funds
The City of Salem announced the beginning of its application period for 2012 HOME and CDBG funding. Though the final figures will not be available until after the passage of the FY12 HUD appropriations bill, the city estimates it will see a 20% reduction from the funding available in 2011, which would result in approximately $1,740,000 available from the two programs. Both HOME and CDBG funds can be used for the rehabilitation of existing affordable multifamily rental housing.
The application period closes on December 30. The City of Salem will offer two workshops on the application process: November 17 and 28. Click here for more information.
— Posted on 11/15/2011
Portland Announces $11 Million in Housing Funds
On November 4, the Portland Housing Bureau issued a Notice of Funding Availability (NOFA) for up to $11 million in federal and local housing funds, with as much as $5 million set aside for properties within the Interstate Corridor Urban Renewal Area. The NOFA specifically sites preservation of properties with federal rent assistance contracts as one of the three primary targets and states that projects serving households with incomes of no more than 30% of the area median family income (MFI) will receive funding preference. Applicants can also propose to use the funds for new development or acquisition and/or rehab of currently affordable housing that has no long-term use restrictions. All proposed projects must have a minimum of 10 rental units and all funding must go to rental housing affordable to households with incomes of no more than 60% MFI. Developments requiring 9% Low Income Housing Tax Credits are eligible. Click here for further details.
A mandatory info session for all potential applicants will occur on November 16. Applications are due by 3pm on December 19. The total funds available, subject to future appropriations and approved city budgets, includes $3 million in FY11 and FY12 HOME funds, $3 million in FY11 and FY12 CDBG funds, and $5 million in FY11, FY12, and FY13 Tax Increment Financing (TIF) for the Interstate Corridor Urban Renewal Area.
— Posted on 11/07/2011
OHCS Requests Applications for New Housing Preservation Funds
On October 14, Oregon Housing and Community Services (OHCS) issued a Request for Pre-Application (RFA) for $5.7 million in Housing Preservation Funds, as well as Oregon Affordable Housing Tax Credits (OAHTCs), to be used in conjunction with OHCS-issued bond financing. Interested applicants must demonstrate capacity to complete the preservation project within two years and, as with other OHCS preservation set-asides, eligible properties include those multi-family rentals with at least 25% units with federal project-based rental assistance. If selected, the applicant will then have 45 days to submit a pre-application for bonds/4% LIHTCs. Pre-application materials for this RFA are due to OHCS by November 15. Click here for further details.
OHCS intends to preserve 125 units with the $5.7 million, which includes $4.7 million in new funds approved by the Oregon Legislature at the end of June and $1 million in additional OHCS funds.
— Posted on 10/19/2011
HAC Announces New Rural Senior Housing Grant
On October 3, the Housing Assistance Council (HAC) announced a new, flexible small grant program aimed at helping address the needs of older adults living with low incomes in rural areas. Rural Senior Housing (RSH) Fund grants are available to nonprofits and must support housing-related activities benefiting people 62 and over with low incomes living in rural areas. Though eligible uses of RSH funds cover a wide variety of costs, from project costs to advocacy, the grant materials explicitly state preservation as a target of the fund. Grant awards can be distributed in a one- to three-year period with a maximum of $20,000 per year, up to $50,000 total. Applications are due December 15. For full details, click here or visit HAC's website, www.ruralhome.org.
— Posted on 10/05/2011
Oregonian Features Portland Preservation
On Sept 29, the Oregonian featured an article on the preservation of Uptown Tower, a 71-unit property with project-based Section 8 rental assistance in Southwest Portland. With the contract for that rental assistance expiring in 2013 and an increasing demand for housing in the area near Jeld-Wen Field, the risk was high that the property would convert to market-rate housing. Portland Housing Bureau Commissioner Nick Fish included the property in his “11x13’ initiative to preserve 11 large buildings with project-based Section 8 contracts, all expiring in 2013. The city, state, and other funders, including NOAH, contributed money to preserve six of these 11 properties thus far. Preservation of the remaining five is still likely before their 2013 expiration dates. A grand opening party at Uptown Tower is scheduled for October 7. Click here for the Oregonian article.
— Posted on 10/03/2011
Green Affordable Housing Coalition Launches Website
The Green Affordable Housing Coalition, a network of national and local groups advocating for the development and preservation of green affordable housing, recently launched a website that provides the latest news on policy initiatives, events, industry resources, and coalition members’ efforts. Click here for more information.
— Posted on 9/27/2011
OHCS Conference October 24 & 25
Oregon Housing and Community Services (OHCS) will hold its 2011 conference, Better Together: The Power of Partnerships, on October 24 and 25 at the Salem Conference Center. Workshops will include an update on OHCS’ efforts to keep Preservation a top priority and a variety of topics related to green design/retrofitting and weatherization. Early registration rates are available until Friday, September 23. Click here to register and here for more detailed conference information.
UPDATE: OHCS extended early registration until Friday, September 30.
— Posted on 9/09/2011
2011 CFC Funds Awarded to Nine Preservation Projects
On August 19, Oregon Housing and Community Services (OHCS) finalized its 2011 Consolidated Funding Cycle (CFC) awards, receiving clearance from the Housing Council for projects with allocation amounts that triggered a mandatory approval process. Preservation projects, accounting for nine of the 24 projects funded through this CFC, received support via seven programs: Housing Preservation Fund (HPF), Housing Development Grant (Trust Fund), Low Income Housing Tax Credit (LIHTC), Oregon Affordable Housing Tax Credit (OAHTC), Low Income Weatherization Program (LIWP), General Housing Account Program (GHAP), and HOME. Only one Preservation project that applied failed to receive an award and the funded projects include:
• Cedar Park Gardens, 20 units in Sandy
• Crestview Court Apartments, 48 units in Beaverton
• Duck Country Apartments, 76 units in Sherwood, Dundee, and Wilsonville (combining Dunhill Apartments, Linnwood Apartments, and Wilsonville Heights)
• Jefferson Court Apartments, 26 units in Madras
• Maples II Apartments, 21 units in Hillsboro
• Norseman Village Apartments, 43 units in Junction City
• Spencer House Apartments, 48 units in Spencer House
• Strawberry Village, 10 units in Prairie City
• Timber Grove Apartments, 72 units in Estacada and Sandy (combining Estacada Village Apartments and Firwood Village Apartments)
Northwest Real Estate Capital Corporation used Oregon Housing Acquisition Funds in 2010 to acquire Crestview Court Apartments. Both Maples II Apartments and Spencer House Apartments received Green Pilot Program grants through the Oregon Housing Preservation Project to help upgrade energy efficiency during the rehabilitations.
More information on CFC allocation amounts and project types is available here.
— Posted on 9/09/2011
New National Advocacy Tool Features Oregon in Initial Use
As part of a new advocacy effort to prevent proposed cuts to federal rental assistance funds, the National Housing Trust (NHT) recently began preparing “Story Books” highlighting residents in HUD-assisted properties from states with members of Congress in key roles. The Network for Oregon Affordable Housing (NOAH) submitted preservation property photos and stories to NHT, which in turn used that information to create its first audio slideshow to be shown on iPads during congressional visits.
Click here to download the slideshow. Once you open the file using Microsoft PowerPoint, select the Slide Show tab in order to view with music.
— Posted on 8/18/2011
Governor Names New OHCS Director
On August 12, Governor John Kitzhaber announced Margaret Van Vliet as the new director of Oregon Housing and Community Services (OHCS). Van Vliet will leave her current position as director of the Portland Housing Bureau (PHB) on September 15 and take over leadership of OHCS beginning October 1. She comes to OHCS after two successful years at PHB, including guiding the agency through the merger of the old Bureau of Housing and Community Development and the housing functions of the Portland Development Commission. Prior to her tenure at PHB, Van Vliet worked as both the executive director and deputy director of the (then) Housing Authority of Portland, on policy in the governor’s office during one of Kitzhaber’s previous terms, as the executive director of the Network for Oregon Affordable Housing, and in the banking industry.
Governor Kitzhaber replaced former OHCD Director Victor Merced in February, naming Rick Crager, OHCS deputy director, as acting director during the six-month search. OHCS likely faces a re-budgeting and restructuring process following the recent changes with its contract to administer HUD’s project-based Section 8 assistance in Oregon (see post from August 11).
— Posted on 8/15/2011
Update: OHCS to Remain PBCA for Short Term, With Opportunity to Re-Compete for Contract
On August 11, HUD publically released a letter sent to applicants for the recent Performance-Based Contract Administrator (PBCA) awards announcing that most states will be “re-competed” soon. The decision affects the 42 states, including Oregon, where more than one entity applied to be the PBCA and a protest of the award was filed. HUD aims to release a Notice of Funding Availability (NOFA) within 60 days, as opposed to the Invitation for Submission of Applications that it used previously, that will address the concerns of protesting entities that the original bidding process did not adequately disclose how it would evaluate applications. Currently, it is unclear the extent to which switching to a NOFA will affect the application and award process.
In the meantime, current PBCAs, such as Oregon Housing and Community Services (OHCS), will be offered a six-month contract extension so that owners of properties with HUD project-based rental assistance contracts will continue to receive payments. However, this extension will include reduced tasks and a lower administrative fee than in the existing contract, though further details were not released. As such, it is also unclear how this new development will affect staffing levels at OHCS moving forward.
— Posted on 8/11/2011