Multi Housing News July 2012 : Page 33
PERSPECTIVE The Preservation Game people to work together to establish a stronger sense of sharing and community; • Classes for young people led by seniors to promote understanding and respect between the two generations; and • Classes for seniors led by teens designed to help seniors better un-derstand and utilize technology to pay bills online and connect with family and friends. These and other on site programs are designed to foster learning, healthy living and community building to enrich daily living of Courier Place residents regardless of age. Jamboree’s resident services co-ordinator is constantly creating new programs and activities that unite young and old—establishing and maintaining a true sense of family at a time when families are often geographically separated. By Philip Melton, Centerline Capital Group The Affordable Housing landscape is shifting to a new focus on preserving existing multifamily stock. The trend began during the fi nancial crisis, when construction fi nancing was nearly impossible to locate. Also, state agencies want to maintain properties that have received Low Income Housing Tax Credit status. A large number of these properties were facing the end of their initial 15-year compliance period, and the availability of state and federal subsidies to sustain these properties had dried up through budget cutbacks. Additionally, demand for Section 8 properties had increased signifi cantly as developers/owners sought opportunities to lock in long-term payment subsidy streams. To a city or state offi cial, preservation means the ability to maintain quality housing stock for lower income residents. To a developer, preservation affords an opportunity to reestablish func-tionally obsolete housing stock. To an owner, it’s an investment in their existing housing portfolios, and to residents it often means an improved quality of life via the rehabilitation of their homes. Fannie Mae, Freddie Mac and FHA have all turned their attention to pres-ervation of affordable housing through increased fi nancing offerings and a focus on the mission of providing affordable housing. During the 2009-2011 recession, the use of tax-exempt bonds in conjunction with low-income housing tax credits waned consid-erably. Lately, there has been a resurgence in developer interest in Private Activity Bond programs, largely in the areas of acquisition/ rehabilitation projects or “preservation” deals. New construction using tax-exempt bonds remains challenging given the lack of subsidies available to ease gaps in fi nancing; however, in-place rehabilitation with renovation budgets equal to $25,000+ per unit is gaining momentum. A number of factors driving this trend include: a willingness of upper-tier LIHTC investors to invest; the reduction in lease-up risk, which should lead to a faster delivery of tax credit benefi ts; the availability of private activity bonds at the state level (unlike competitive 9 percent allocations); and, an often-times smaller fi nancing gap to bridge in the capital structure. Projects with Section 8 contracts are the most desired, especially in light of HUD’s willingness to enter into new 20-year Section 8 contracts, often with increasing rents post-renovation. Congress has shown its support as well for the Section 8 program through a recent decision to increase Section 8 appropriations by $536 million in fi scal year 2013. This bill passage indicates the com-mitment Congress is making to affordable housing efforts. Interest-ingly, the new appropriations total was $1.1 billion more than HUD’s requested funding level for the Section 8 program. As the fi rst big wave of LIHTC deals come to the end of their fi rst 15 years of compliance, there will be greater demand for up-grading that housing stock. The preservation of affordable housing is not only good business; it’s the right thing to do. Philip A. Melton is senior managing director in the Afford-able Housing Debt division of the Affordable Housing Group of Centerline Capital Group. Advancing sustainability Courier Place has other attributes that benefi t its multigenerational residents. It is designed to be certifi ed as LEED Platinum—the high-est LEED rating—and offers a signifi cant level of energy effi ciency and cost savings. Courier Place’s advanced sustainable footprint includes optimum water effi ciency, increased wall insulation, highly effi cient windows and glass slider doors, energy-effi cient lighting and ENERGY STAR appliances in each apartment home. This all helps to reduce resi-dent utility bills. Most of the property’s electricity for common areas is provided by solar energy via photovoltaic panels atop parking covers. Additionally, Courier Place’s sustainable rating includes its transit-oriented location, with more than 350 bus or Metrolink commuter train rides available daily to residents within ½ mile of the site. Some 20 of Courier Place’s residents already work in Claremont, and several can actually walk to work. Located at 111 South College Boulevard in down-town Claremont, Courier Place is also a walkable community across from the Metrolink rail station and nearby shopping, schools, parks and entertainment. These green attributes have elevated the property to new heights for affordable housing. Another key sustainable feature is the fact that Courier Place exceeds California’s Title 24, one of the nation’s most comprehensive energy effi ciency policies, by more than 35 percent. The purpose of Title 24 is to provide California with an adequate, reasonably priced and envi-ronmentally sound supply of energy. Courier Place promotes healthier living and a cleaner environment for our residents, benefi ts that extend to the city and entire region. The three-story, garden-style Courier Place was designed by William Hezmalhalch Architects Inc. of Santa Ana, Calif, and provides residents with convenient laundry facilities and a 3,000-square-foot recreation center with property management offi ces, a multipurpose room, kitch-en, restrooms and computer lab. Outdoor amenities include a swim-ming pool, patio dining area with barbecues and a tot lot. The Advent Companies of Mission Viejo, Calif. was the general contractor, and The John Stewart Company provides on site property management. MHN Michael Massie is the housing development director at Jamboree Housing Corporation. To comment on this story, e-mail dmosher@multi-housingnews.com www.multi-housingnews.com | July 2012 33
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