IPED Annual Affordable Housing

1
IPEDAnnual Affordable Housing Development
Update Opportunities in a Changing Economy

• The Fairmont Miramar Hotel
• Santa Monica, CA
• June 4 - 5, 2009

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IMPORTANT RURAL HOUSINGSPECIFIC 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
Preservation Tools

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

4
Preservation Tools

• 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

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ELIHPA

• Handbook HB-3-3560 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

6
ELIHPA

• 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

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MPR

• MPR is seeking pre-applications by 5 p.m. est
  June 29, 2009.
• 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.

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• Richard Michael Price
• Nixon Peabody LLP
• 401 Ninth Street
• Suite 900
• Washington, DC 20004
• Telephone [phone]
• Facsimile [phone]
• E-Mail rprice_at_nixonpeabody.com