Multifamily Housing Resources for Rural Veterans and Seniors - Jerry Floyd
-
Upload
housing-assistance-council -
Category
Education
-
view
113 -
download
1
description
Transcript of Multifamily Housing Resources for Rural Veterans and Seniors - Jerry Floyd
Iowa Finance Authority
Jerry FloydHOME Program Analyst
Iowa Finance Authority
Mission: To finance, administer, advance and preserve affordable housing and to promote community and economic development for Iowans.
Overview5 Divisions• HousingIowa• Iowa Agricultural Development
Division (7/1/13)• Section 8• Title Guaranty• Water Quality
At a Glance:• Self-funded• 89 employees
Affordable Rental
Project-based Section 8:• Oversight of 223 Section 8 properties • Serve 12,000 low-income Iowans in 73
counties
HOME Program:• Administrator since July, 2010• Appropriated under $6 million
• Rental• Homebuyer Assistance• Tenant-based Rental
Assistance
Low-income Housing Tax Credits:• Allocating agency for tax credits
since 1986• Nearly $7 million in tax credits
annually.• Nearly 21,000 units in more than
580 projects located in 83 counties
Investing in All of Iowa
Rural Development Preservation Demonstration
• In 2007, IFA received an award of funds from the USDA-RD office to assist current RD projects in rehabilitation.
• The program initially began with IFA working with select developers on their portfolio of properties.
• But then IFA had an influx of disaster tax credits and ARRA funds making the demonstration project not as attractive.
Rural Development Preservation Demonstration
• Late 2011, IFA issued a Request for Proposal seeking project proposals for Rural Development Section 515 projects to participate.
• Received 12 applications with 7 projects selected to proceed.
• Projects evaluated based upon readiness to proceed, long-term feasibility, experience of the qualified development team, and an established relationship with a Syndicator/Investor.
Funding• In years 2009, 2010, and 2011, IFA set-
aside 10 percent or approximately $1.67 million in tax credits which has equated to about $12.8 million in equity.
• Also set-aside $1.6 million in HOME loans; and the $2 million in Preservation Revolving Loan Funds received from the USDA.
• Roughly $16.4 million dedicated to these projects.
Approved Projects
• Three projects have closed to date.• Three more projects are slated to close by
year end.• Two selected projects did not move
forward.
Approved Projects
• Valley View in Columbus Junction by CHI.• Only project from 1st RFP to be approved.• Finances:
– Tax Credits of $299,649– HOME of $527,325– IFA MF loan of $133,098– RD assumed loan of $436,588– 24 units– $3.34 million of total project costs
Approved Projects
• Boyer View in Logan by Landmark Group.• Finances:
– Tax Credits of $172,833– HOME of $205,000– IFA MF Loan of $129,337– RD assumed loan of $203,837– 24 units– $2 million of total project costs
Approved Projects• Prairie Village of La Porte City by Newbury
Management.• Finances:
– Tax Credits of $342,590– HOME of $442,000– IFA MF loan of $115,000– RD assumed loan of $160,674– LP Seller Note of $180,000– 32 units– $3.83 million of total project costs
Problems Encountered• Rules, rules, rules.• Forging the confluence of three highly
technical and regulated programs was difficult – no big shock.
• Took much longer than anticipated to get approval of the property transfers by USDA RD.
• One property Boyer View also has a HUD contract so that added another layer of difficulty.
Problems Encountered
• IFA ended up returning the loan funds to USDA. Instead IFA used its own funds through multifamily loans.
• Lack of flexibility across the board makes it difficulty to utilize the programs together.
Keys to Successful Projects
• Owner entity that pushed the bureaucracy to get it done.
• Syndicator who understood the complexities of the programs.
• Stubbornness on the part of staff and legal counsel at all levels to bring these projects to fruition.
THANK YOU!
IowaFinanceAuthority.gov
Twitter.com/IowaFinance
Facebook.com/IowaFinance
Youtube.com/IowaFinance
Foursquare.com/IowaFinance