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Register Now for McKonly & Asbury's November 2 Affordable Housing Seminar!
We are excited to once again welcome back A.J. Johnson as our speaker. A.J. will cover topics including acquisition/rehab deals and complexities related to those deals such as placed in service issues and transferring tenants between units. He will also spend time discussing the calculation of LIHTCs, critical time frames for LIHTC developments, IRS Forms 8609 and 8823, and combining tax-exempt bond financing with LIHTCs.
This seminar will also include a light breakfast, lunch, and networking.
Attendees are eligible for 5.5 “Other” Continuing Professional Education Hours and this training is appropriate for senior management staff, developers, and others involved in structuring low-income housing tax credit and tax-exempt bond deals. The level of the content is Intermediate to Advanced and a basic understanding of the LIHTC program is the only prerequisite.
Date: Thursday, November 2, 2017
Time: 9:00AM – 3:30PM (registration and a light breakfast begin at 8:30 AM)
Location: Giant Community Center – inside the Giant Food Store at 3301 East Trindle Road, Camp Hill, PA 17011
Fee: $195 (includes lunch)
Click here for more information and to register.
Registration Opening Soon for McKonly & Asbury's Fall Affordable Housing Seminar
McKonly & Asbury’s fall Affordable Housing Seminar is planned for Thursday, November 2, 2017. We are excited to once again welcome back A.J. Johnson as our speaker. A.J. will cover topics including acquisition/rehab deals and complexities related to those deals such as placed in service issues and transferring tenants between units. He will also spend time discussing the calculation of LIHTCs, critical time frames for LIHTC developments, IRS Forms 8609 and 8823, and combining tax-exempt bond financing with LIHTCs.
The seminar will be held at the Giant Community Center – inside the Giant Food Store at 3301 East Trindle Road, Camp Hill, PA 17011.
PHFA UPDATES PLACED-IN-SERVICE PACKAGE REQUIREMENTS
The Pennsylvania Housing Finance Agency (PHFA) has updated their Placed-In-Service Package requirements. There are numerous changes and clarifications to the package; which PHFA believes will help developers submit complete Placed-In-Service Packages, and therefore reduce the time it takes to receive their IRS Form 8609.
The changes to the Placed-In-Service Package were introduced in two sessions called “Navigating the Cost Certification” presented at the Commonwealth Housing Forum, which was held in May. If you were unable to attend those sessions, you can view them on PHFA’s YouTube channel here and here.
The first new requirement is a cover letter. Carol Carroll of PHFA stated in the above referenced sessions that this letter should not only contain the basic, requested information, but it should also “tell your story”. If there is anything unusual or that PHFA isn’t expecting in your Placed-In-Service Package, you should explain that in the cover letter. Try to anticipate questions that PHFA might ask or clarifications that they might need and include those answers and that information in your cover letter.
PHFA has new forms and revised formats to previous forms that can be found with the Placed-In-Service Package Requirements on their web-site. PHFA has also added instructions for the architect’s certifications. As part of the updated requirements, PHFA is requiring additional financial information, consisting of detailed schedules of rent up expenses, furnishings & equipment, legal fees, relocation costs, and change orders; and those schedules must agree to the amounts presented on the Development Cost Certification.
New items applicable to developments starting with Program Year 2016 include a $1,500 Energy Benchmarking Fee payable to PHFA and certifications relating to ranking consideration for material participation of minority, women’s, and veteran’s businesses.
PHFA stated that the most common items that delay the Placed-In-Service Package review are incomplete architect certifications, incomplete or incorrect Owner’s Certification of Placed-In-Service Date forms, missing bank statements for funding the reserves, and not having the required PHFA reserve language included in the partnership agreement. Each time PHFA has to ask for additional information or clarification to submitted information, it causes a delay in the processing of the Placed-In-Service Package.
The new requirements and forms can be found at PHFA’s web-site.
If you have any questions regarding PHFA’s Placed-in-Service Package or the cost certification, please contact Elizabeth Harriger at email@example.com or Dan Kern at firstname.lastname@example.org.
Faces of Affordable Housing
Members of McKonly & Asbury’s affordable housing team attended Housing Development Corporation MidAtlantic (HDC)’s Faces of Affordable Housing Banquet on April 26, 2017.
HDC honored Brian Hudson as their Housing Advocate of the Year for his dedication, advocacy, and service to the affordable housing community. Mr. Hudson is the Executive Director and Chief Executive Officer of the Pennsylvania Housing Finance Agency where he began his career in 1975. Mr. Hudson is Past President of the National Council of State Housing Agencies, Chairman of the Audit Committee of the Federal Home Loan Bank of Pittsburgh, Chairman of the Commonwealth Cornerstone Group, and a member of the Board of the National Housing Trust. He is a former member of the Consumer Advisory Council of the Federal Reserve Board. Congratulations, Brian Hudson!
The event featured the Pulitzer Prize winning author of Evicted Matthew Desmond. Mr. Desmond, a Harvard professor, lived in Milwaukee’s poorest neighborhoods for 15 months during which time he gained the trust of multiple landlords and tenants and learned their stories. Mr. Desmond’s book tells the stories of six tenants who went through evictions, as well as two of their landlords. Mr. Desmond spoke about one tenant’s story on Wednesday evening. Desmond told the story of Arleen, a single mother with two children, who faced a continuous struggle for housing. Desmond stated that without stable housing, it is almost impossible for people to find jobs or for children to be successful in school. Desmond believes that a universal voucher system, which would provide housing vouchers to those living below a certain poverty threshold, is the solution to the affordable housing crisis that currently exists in America.
HDC highlighted their “Hope & Opportunity Fund.” Contributions to this fund assist HDC residents with emergencies or one-time needs. This fund will provide flexible funds for resident needs such as food assistance, health or sanitation products, transportation, or other necessities. HDC told the story of a resident who benefitted from this fund in the past year. A woman had been living with her mother in one of HDC’s properties until the mother decided to move out of town, leaving her daughter behind. The daughter couldn’t afford the rent in the apartment they had been sharing and fell behind in her rent payments. HDC staff helped the daughter apply to the Hope & Opportunity Fund and with help from that fund, she was able to get caught up on her rent and move to an apartment in the same building that she could afford without assistance, which not only avoided an eviction, but let her continue to live in the community she had become a part of.
McKonly & Asbury is a leader in accounting and consulting for affordable housing developments in Pennsylvania. For more information, please visit our web-site or contact email@example.com.
PHFA Approves 2017/2018 Qualified Allocation Plan
The Pennsylvania Housing Finance Agency (PHFA) approved the final 2017/2018 Qualifed Allocation Plan (QAP).
Applicants will be required to submit an Intent to Submit a Tax Credit Application - Fact Sheet and Development Synopsis on or before July 7, 2017. The entire application package is due to PHFA by 3:00 p.m. on September 8, 2017.
Announcements of the 2017/2018 funding is expected in the Spring of 2018.
PHFA will hold a Pre-Application Workshop on May 10, 2017, at the Crowne Plaza Harrisburg/Hershey from 1:00 - 4:00 pm.
McKonly & Asbury is a leader in preparing and consulting on low-income housing tax credit applications in Pennsylvania. Our team is passionate about making your application a success. We have a comprehensive understanding of the challenges and nuances of structuring a low-income housing tax credit deal. We are able to assist you in putting the entire application package together for submission, or we can review your application and provide suggestions for optimizing points for PHFA scoring. We will help you maximize your tax credits and, therefore, increase your equity proceeds. For more information, please contact us at firstname.lastname@example.org.