Message from the Chair
Greetings, HCCP® Professionals – and welcome to the October edition of The Credential.
Since its creation in 1986, the Low-Income Housing Tax Credit (LIHTC) program has created high-quality affordable housing with over 46,554 projects and 3.05 million housing units placed in service between 1987 and 2016 as reported in the HUD LIHTC database.
Notwithstanding this number, our country is facing a severe housing affordability crisis. The National Low Income Housing Coalition reported earlier this year that a growing share of the nation’s renters cannot afford to live in the cities where they work. In 2016, nearly half of renters were considered cost-burdened, spending more than 30% of their income on rent. A joint study by Harvard University and Enterprise Community Partners estimated the number of severely cost-burdened households paying over half their income on rent will grow by at least 1.3 million from 2015 to 2025, an 11% increase.
The affordable rental housing crisis has led to the introduction of several tax bills. One bill comes from Senator Elizabeth Warren (D-Mass.) who introduced The American Housing and Economic Mobility Act of 2018. Senator Warren’s housing bill proposes a $500 billion plan to fix the housing crisis by building more than three million new homes in 10 years and bringing down rents by 10%. Senator Warren’s solution to the affordable housing crisis includes increasing investments in the National Housing Trust Fund (HTF) and the Capital Magnet Fund, expanding the Community Reinvestment Act (CRA), and creating incentives for local governments to eliminate unnecessary land-use restrictions. It also seeks to expand the Fair Housing Act to strengthen anti-discrimination laws. The analysis determined that the legislation would build or rehabilitate more than three million units over the next decade and create approximately 1.5 million jobs. Here is a summary of Senator Warren’s bill.
As LIHTC professionals, we must all continue to promote the LIHTC program as it is the most critical method of preserving and expanding the stock of affordable rental housing. Let your voice be heard at all levels of government by educating legislators and the public about the history and success of the program.
In this edition of the Credential, you will find two articles to assist you with understanding key compliance areas of the LIHTC program. The first is titled Management Transition of an Affordable Community by Joy Herlong, V.P., director of affordable housing compliance of multifamily housing for the S.L. Nusbaum Realty Company. Joy will highlight the required items that should be reviewed and obtained to ensure a successful transition of a LIHTC property. Our second article comes from Michele Brad, Florida Relations Manager for the Franklin Johnston Group, titled To Throw Away or Not to Throw Away…A Quick Look at First-Year Resident Files. In this article, Michele shares with you a listing of suggested documents that should be maintained in the first-year resident files, as well as subsequent years during the compliance period.
Continuing with our Back to Basics compliance series, Scott Michael Dunn, CEO of Costello Compliance and director of policy for the Costello Companies in Sioux Falls, S.D., and member of the Technical Advisory Group to the Board, has provided an article on Casualty Loss. This article comes at an important time, due to the recent impact that both Hurricane Florence and Hurricane Michael have had on the southeastern part of the United States.
Finally, in our regular spotlight articles, you will get the chance to learn more about HCCP Board of Governors member Wes Daniel, senior vice president of affordable housing for ConAm Management Corporation; HCCP Distributor Scott Michael Dunn, CEO of Costello Compliance and director of policy for the Costello Companies; and HCCP Amanda Clay, compliance specialist for Volunteers of America.
A quick reminder: The 2018 HCCP webinars are free for HCCP designation holders and Housing Credit Group members. They provide a great way to meet your continuing education requirements while learning new things about our industry. Our next webinar, presented on Monday, Oct. 29, will focus on how to Avoid Costly Mistakes with the New Average Set-Aside Option, presented by Scott Michael Dunn.
Remember to log in to http://nahb.org with your regular username and password, and the webinar price will be "$0" when added to your cart. We hope you will be able to join us, so Register Now.
As always, the Board of Governors is here to serve you and the HCCP credential. Let us know how we can support you in your professional endeavors, and whether there are topics you would like to see covered in The Credential or as a webinar. Keep up your good work!
Donna Mills, HCCP
Chair, HCCP Board of Governors
Stories in this edition:
Back to Basics Part 9 - Casualty Loss
To Throw Away or Not to Throw Away
HCCP Board of Governors Spotlight
HCCP Distributor Spotlight
HCCP Designee Spotlight