2021 Texas Affordable Housing Magazine by Texas Affiliation of Affordable Housing Providers

2021 Edition • Issue 12

STRONGER TOGETHER

REAL PEOPLE REAL SERVICE REAL IMPACT

RESIDENT ENGAGEMENT BESPOKE PROGRAMMING MENTORING MINDS TEACHING SKILLS DEVELOPING TEAMS ENABLING LEADERS CONTINUING EDUCATION KEEPING ACTIVE LIFTING SPIRITS

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7,500

1,400

1,290

$500 million

6,500

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housing units since 2003

affordable units since 2003

units in conjunction with housing authorities since 2003

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mixed-finance units with HUD since 2003

in HOME funds (including Section 108 loan funding)

in tax-exempt bonds issued and sold

3,342

total senior housing units in Texas since 1997

in CDBG-Hurricane Recovery Funds, plus GO ZONE HTC; $105 million total (includes Section 108 loan funding)

Total AHP Grant or other funds, including HTF: $8 million

Total HTC Equity 4% and 9%: $425 million allocated from TDHCA, MFA, OHFA, and CHFA

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Contents GENERAL

A Message from Leadership

Housing & the Economy: Affordable Housing for All

Contributors

Affordable Housing Initiatives Inch Forward: A Re-Cap of Texas’ 87th Legislative Session

TAAHP Leadership

A Message from TAAHP

Legislative Update

J A N I N E S I S A K , TA A H P P R E S I D E N T

ARTICLES & ADS

BOARD OF DIRECTORS

ROGER ARRIAGA, EXECUTIVE DIRECTOR

C H R I S A K B A R I , TA A H P

G O V E R N M E N TA L A F F A I R S COMMITTEE CHAIRMAN

F E AT U R E S

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

V I C T O R I A W I L S O N , TA A H P P O L I C Y & R E G U L A T O R Y M A N A G E R

V I C T O R I A W I L S O N , TA A H P P O L I C Y & R E G U L A T O R Y M A N A G E R & R O G E R A R R I A G A , TA A H P E X E C U T I V E D I R E C T O R

A Federal Perspective: Time for Texas to Move the Nation on Affordable Housing D E B R A G U E R R E R O, T H E N R P G R O U P

Affordable Housing Community Success Stories

Real Stories: Eviction Moratorium & Pandemic Response

Experts Discuss Pros & Cons of a 2-Year QAP

SPOTLIGHT ON NEW DEVELOPMENT

F E AT U R E

N A T H A N K E L L E Y, TA A H P Q A P C O M M I T T E E C H A I R M A N

A M E S S A G E F R O M TA A H P ’ S P R E S I D E N T

n my 20 years as a part of this industry, I do not remember a year quite as dramatic as the one we just had. Between the pandemic and Winter Storm Uri, TAAHP and our members experienced a very challenging year. As many of us are acutely aware, everything took longer, including transaction closings, construction, and lease-ups. Not only are these time delays costly for developers, lenders, and investors—but they have directly affected the supply of affordable housing, which is needed now more than ever as we recover from the pandemic-induced economic downturn.

met with more than 42 Texas House Representatives and Senators and testified at ten hearings to advocate for our legislative priorities. While a TAAHPsponsored bill did not ultimately survive the legislative process, we were able to deliver the message consistently and repeatedly throughout the Capitol that affordable housing is essential to Texas and the economic recovery. In doing so, we have also established TAAHP as the primary resource on affordable housing issues in the state. With the help of our lobby team, we were also able to prevent legislation that would have negatively impacted our industry from becoming law. TAAHP 2020-2021 President In sum, given that the 87th legislative In response to this situation, TAAHP did session was one of the most difficult in its best to advocate for the industry— history due to the pandemic, the state-wide energy crisis, both at the Capitol during the 87th Legislative Session and and the ongoing culture wars—expectations for passing new with the Texas Department of Housing and Community legislation were low, but we were still successful in defending Affairs (TDHCA) regarding regulatory matters. In August our industry and educating key legislators. 2020, TAAHP requested that TDHCA grant an automatic

Janine Sisak

placed-in-service extension for all 2018 9% awardees who had experienced supply chain issues or labor shortages that delayed construction. TDHCA granted this request, giving developers an additional six months to complete construction. The Governor’s Office also removed the “Readiness to Proceed” category in the 2021 Qualified Allocation Plan in response to TAAHP’s request. In February 2021, after Winter Storm Uri caused many of our members to live without power or internet for days, TDHCA worked with the Governor’s Office to grant a much needed one-week extension to the 9% tax credit application deadline, again in response to requests from TAAHP and other industry stakeholders. More recently, TAAHP has been engaged with TDHCA staff to develop relief from unprecedented construction cost increases in the form of a revised multifamily direct loan program and a possible tax credit increase policy, like the one that TDHCA approved in 2008. Results of those discussions are still pending but rest assured that TAAHP is actively pursuing all options to help developers close their transactions and see them to fruition. During the 87th Legislative Session, TAAHP’s Government Affairs and Legislative Advisory Committee members

Looking forward, I expect TAAHP to shift its advocacy efforts to the federal policy level, specifically with the goal of seeing the renewed Affordable Housing Credit Improvement Act (AHCIA) become the law of the land. In 2020, TAAHP’s federal advocacy efforts helped with the passage of the fixed 4% applicable percentage, which was a major win for our industry. Now, it is time to renew our support for other key provisions, including the proposed increase in the annual housing credit allocation, the Community Reinvestment Act and promoting housing as critical component of infrastructure. I am thankful for the support I have received from fellow board members, our membership, and staff over the last year as we have led this organization during the most challenging times we have known. We know that uncertainty will continue. But in uncertain times, we must work together as an industry, for the good of the industry, and for the good of the people we house, especially considering the growing economic and racial inequities in our country. We are only just starting our work in this regard, but we are well positioned to take it on because we are indeed stronger together.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

CONTRIBUTORS

CREDITS

Victoria Wilson, TAAHP

Published By

Publisher

2401 E 6th Street, Ste 3037, PMB 153 Austin, TX 78702 (512) 476-9901; www.taahp.org

roger@taahp.org

AF FO R DABLE H O USING FOR A LL: T EXA S NEEDS MO R E HO USING TO MEET IT S P OT ENT IA L

Roger Arriaga & Victoria Wilson, TAAHP T E XAS 87TH LE G ISLATI VE S ES S ION RE- CA P: AF FO R DABLE H O USING INIT IAT IVES INCH F OR WAR D

Debra Guerrero, The NRP Group A F EDE R AL PE R SPE CTIVE: T IME FOR T EXA S TO MOVE THE NATIO N O N A FFORDA BLE HOU S ING

Nathan Kelley, Blazer P R O S & CO NS O F A 2-YEA R QA P

AMTEX, ARX Advantage, Blazer Building, Centrant Community Capital, New Hope Housing, Saigebrook Development, Smith & Company Architects, Tropicana Properties S P OTLIGH T: AFFO R DABLE HOUS ING CO MMUNITY SUCC E SS STORIES

Asset Living, Tropicana Properties, Prospera Housing Community Services PANDE MIC R E SPO NSE REA L STORIES

TEX A S A FFI L I ATI ON OF A FFOR DA B L E H OU SI N G PR OV I D ER S

R OG ER A R R I AG A , EXEC U TI V E D I R ECTOR

Advertising, Sponsorship Sales

Art Director / Design / Editor

kristi@taahp.org

naomi@taahp.org

K R I STI SU TTER FI EL D, CON FER EN C E D I R ECTOR

N AOM I B LU D WORTH , COM M U N I CATI ON S D I R ECTOR

Contributing Editor

V I CTOR I A W I L SON , POL I CY & R EG U L ATORY M A N AG ER

victoria@taahp.org

On the Cover: Mistletoe Station - Photo Credit: Wesley Kirk, Vision & Verve Photography

Although every attempt is made to be as comprehensive and accurate as possible, the Texas Affiliation of Affordable Housing Providers (TAAHP) and its affiliates are not responsible for any misprints, errors, omissions, deletions, or the accuracy of the information in the publication. TAAHP and its affiliates do not accept responsibility for any loss, injury or inconvenience sustained by anyone using this publication. Information may have changed since print date. Copyright© 2021 by the Texas Affiliation of Affordable Housing Providers. All rights reserved. No part of this publication may be reproduced or transmitted in any form, by any means, electronic, mechanical, photocopying or otherwise without the written permission of the Publisher. The Texas Housing Conference™ is a protected trademark.

ADVERTISERS AMTEX. . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 ARX Advantage . . . . . . . . . . . . . . . . . . . . 46 Belveron Real Estate Partners . . . . . . . . . 7 Bellwether Enterprise. . . . . . . . . . . . . . . 91 Berkadia. . . . . . . . . . . . . . . . . . . . . . . . . . 60 Blazer. . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 BOK Financial. . . . . . . . . . . . . . . . . . . . . . . 2 Bonneville Multifamily Capital. . . . . . . 44 Brinshore Development. . . . . . . . . . . . . 79 Butler Human Services Furniture . . . . . 78 Capital Impact Partners . . . . . . . . . . . . . 44 Capital One Bank. . . . . . . . . . . . . . . . . . . 83 Capstone Compliance Services. . . . . . . 46 CBRE Affordable Housing. . . . . . . . . . . . 41 Centrant Community Capital. . . . . . . . . 53 Citi Bank. . . . . . . . . . . . . . . . . . . . . . . . . . 15 Coats Rose. . . . . . . . . . . . . . . . . . . . . . . . . 1 CohnReznick, LLP . . . . . . . . . . . . . . . . . . BC Commonwealth Co. . . . . . . . . . . . . . . . . 34 CHR Partners. . . . . . . . . . . . . . . . . . . . . . 89 CREA, LLC. . . . . . . . . . . . . . . . . . . . . . . . . 47 Diamond Property Consultants. . . . . . . 88 DMA Development Companies. . . . . . . 60

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Dominium. . . . . . . . . . . . . . . . . . . . . . . . . 3 Gardner Capital. . . . . . . . . . . . . . . . . . . . . 9 Goodman Manufacturing. . . . . . . . . . . . 24 Highridge Costa . . . . . . . . . . . . . . . . . . . 86 Hilltop Securities. . . . . . . . . . . . . . . . . . . 82 Hudson Housing Capital . . . . . . . . . . . . 21 ITEX Group. . . . . . . . . . . . . . . . . . . . . . . . 28 J4 Development. . . . . . . . . . . . . . . . . . . 22 JP Morgan Chase Bank. . . . . . . . . . . . . . 29 JLL Capital Markets. . . . . . . . . . . . . . . . . 86 KeyBank Real Estate Capital. . . . . . . . . . 28 Kittle Property Group . . . . . . . . . . . . . . . 35 Laura Casey & Co. . . . . . . . . . . . . . . . . . . 69 Locke Lord LLP. . . . . . . . . . . . . . . . . . . . . . 4 Lument. . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Merchants Capital. . . . . . . . . . . . . . . . . . 72 National Equity Fund . . . . . . . . . . . . . . . 59 Norris George & Ostrow PLLC. . . . . . . . . 45 Novogradac & Company, LLP. . . . . . . . . 10 Palladium USA. . . . . . . . . . . . . . . . . . . . . IBC Pavilion Construction, LLC . . . . . . . . . . . 69 Plummer Associates, Inc.. . . . . . . . . . . . 90 Portfolio Resident Services. . . . . . . . . . . IFC

Program Management Group. . . . . . . . 46 R4 Capital LLC . . . . . . . . . . . . . . . . . . . . . . 5 Rainbow Housing Assistance Corp. . . . 34 RBC Capital Markets. . . . . . . . . . . . . . . . 24 RDL Architects . . . . . . . . . . . . . . . . . . . . . 82 Red Stone Tax Exempt Funding. . . . . . . 36 Regions Affordable Housing. . . . . . . . . 43 Seldin Company. . . . . . . . . . . . . . . . . . . 54 Shackleford Bowen McKinley & Norton. 8 Sonoma Housing Advisors, LLC. . . . . . . . 6 Starwood Capital. . . . . . . . . . . . . . . . . . . 54 Stifel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Dauby, O’Connor & Zaleski, LLZ. . . . . . . 38 TAHLFA. . . . . . . . . . . . . . . . . . . . . . . . . . . 78 The Banks Law Firm. . . . . . . . . . . . . . . . . 36 The NRP Group . . . . . . . . . . . . . . . . . . . . 33 The Richman Group Affordable Housing Corporation. . . . . . . . . . . . 38 Tidwell Group. . . . . . . . . . . . . . . . . . . . . . 63 Topaz Asset Management. . . . . . . . . . . .90 Wilhoit Properties. . . . . . . . . . . . . . . . . . 50 Wells Fargo . . . . . . . . . . . . . . . . . . . . . . . 63 Zen Development. . . . . . . . . . . . . . . . . . 87

T A A H P

L E A D E R S H I P

TAAHP Board of Directors

2 0 2 0 - 2 0 2 1

Top Row, Left to Right: Janine Sisak, President; Dan Kierce, Immediate Past President; Chris Akbari, President-Elect Second Row, Left to Right: Jean Latsha, First VP; Valerie Williams, Second VP; David Saling, Treasurer; Nathan Kelley, Secretary Bottom, Left to Right: Debra Guerrero, K. Nicole Asarch, Terri Anderson, Jen Brewerton, Ellie MC Fanning, Meghan Garza, Darrell Jack, Audrey Martin, Mark Mayfield, Lora Myrick, Stephanie Naquin, Hector Zuniga

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

A M E S S A G E F R O M TA A H P ’ S E X E C U T I V E D I R E C T O R

efore we fully recognized the true severity of the pandemic and resulting economic shutdown in early 2020, most organizations adopted a cautious “wait and see” approach. Planning for the worst and hoping for the best seemed to be the prevailing mantra across all industries. With no roadmap to maneuver the abounding uncertainty, TAAHP’s strong board leadership, member engagement, and partner collaboration were vital to survive the most challenging year in our history.

the session as a recognized policy leader. Our Government Affairs Committee’s efforts to meet with and educate all incoming Texas House freshmen, senators, and key committee members did not go unnoticed. Also, our relationships in the offices of the Governor, Lt. Governor, and Speaker of the House will continue to prove valuable. TAAHP also successfully implemented a new online Advocacy Center, allowing every member’s voice to have a place in impacting legislation. These efforts position TAAHP as a resource on affordable housing issues for the upcoming 88th Legislative Session in 2023.

Our board’s response to the economic shutdown was to be flexible and quickly Industry Win: TAAHP in the Media pivot to create opportunities, confidence, We can do wonderful things for affordable TAAHP Executive Director and a strong value proposition for our housing, but consistent communication industry. We accepted the uncertainty is important to remain relevant. Even in a chaotic year, TAAHP and went to work. With a year of overcoming obstacles, I can members and staff provided interviews to the likes of the Texas report several wins for our members attributable to our leaders, Tribune, local NBC affiliate KXAN News, Affordable Housing members, and partners. Finance, and Tax Credit Advisor. With this recognition, our members are setting the stage for a more significant national Industry Win: First Virtual Texas Housing Conference voice in support of affordable housing. Overnight, the world of conferences changed for everyone. TAAHP Adapts Given in-person gatherings were banned, TAAHP not only created its first virtual conference in a matter of weeks, but we Over the last year, we also had to make strategic decisions and doubled the value by providing a second conference in the fall, investments to ensure that TAAHP remained sustainable. For free for those who attended the first. While nothing can replace example, we ended our lease for an office that has been in place the value and experience of an in-person conference, we still for over 15 years and established a structure that allows the staff provided cutting-edge panels covering updates to our usual fare to work remotely. We also upgraded our member management while also breaking ground with some new concepts, including system to provide added utility, value, and a more seamless race and diversity with renowned expert Richard Rothstein. Our experience for our members. members responded with resounding support. All in all, it was a challenging year. Still, TAAHP’s leaders kept a determined focus, and our members continued their Industry Win: Expanded Education Offerings commitment to ensuring we remain the responsive organization Working from our newly established virtual format and with you’ve come to expect. The work of our board and dedication of help from a diligent Education Committee, TAAHP provided our membership give us much optimism about what lies ahead. the latest professional development offerings. Some of these Join Us included our first multifamily and economic forecast, a primer on 4% tax credit transactions, post-award strategies, property We are growing, but we still have much more to accomplish. management in the time of COVID, average income, and yearWith your membership and support, you can expect to see 15 strategies affordable housing ownership, to name a few. more from TAAHP as we work to expand our role as a national industry leader in affordable housing. To our current members: Industry Win: TAAHP’s Growing Industry Influence thank you for being a part of our success during the most The Texas Capitol was a microcosm of uncertainty, reflecting challenging period in our history. For those of you considering a what was going on across the state. But amid unclear protocols, membership, we invite you to be part of our success and join us changing rules, and a limited amount of time, TAAHP ended on our way to a stronger future.

Roger Arriaga

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

HOUSING & THE ECONOMY

AFFORDABLE HOUSI TEXAS NEEDS MORE HOUSING TO MEET ITS POTENTIAL By Victoria Wilson, TAAHP Policy & Regulatory Manager

n Texas and nationwide we are on our way to economic recovery, but will it be robust? There is plenty of good news: COVID infections are declining, employment rates are increasing, and businesses and people continue to migrate from around the country. But along the path to recovery, we are encountering unexpected obstacles, including stagnating job growth in some sectors, limited housing and building materials, and soaring costs. Housing is essential to the Texas economy and, as such, the health of this industry will be necessary to ensure a robust economic recovery. However, heavy constraints on the industry coupled with a large segment of residents who are unable to keep up with housing costs and basic needs threatens Texas’ ability to flourish.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

Where Are We Now?

A jump in the inoculation rate over the past few months has allowed many states to open their economies, spurring hopes of a swift return to normalcy. While we have seen many jobs return, the unemployment rate in Texas is still 6.7 percent (as of April) – this is a vast improvement from the last year’s high of nearly 15 percent, but still almost double the pre-pandemic rate of 3.5 percent. A closer look at state data shows most industries are recovering, including oil and gas and manufacturing.

ING FOR ALL But the service sector, which includes hospitality, is still lagging significantly. The service sector’s performance matters because it represents 70 percent of Texas’ private sector output. The imbalance should not be surprising: recoveries tend to be unequal both in terms of speed and magnitude. These discrepancies, in turn, tend to disproportionately affect low-income renters, putting them at risk of falling further behind. In the past year, the pandemic affected low-income residents the most, with some surveys suggesting that early on, up to 40 percent of renters lost at least half of their income. Available evidence suggests income loss has persisted for many renters in 2021. continued on next page...

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

THE DOWNSIDE TO THE TEXAS

HOUSING MARKET BOOM It is well understood by industry professionals that the economic pressure many households are facing has a direct impact on their ability to afford housing. Before the pandemic, an estimated 47 percent of households earning between 50 percent and 80 percent of Area Median Income (AMI), 81 percent of extremely low income to 50 percent AMI, and 89 percent of extremely low-income households were considered cost-burdened because they were spending more than 30 percent of their income on housing costs. Over a year after the start of the pandemic these conditions have been aggravated by soaring home prices and inflationary pressures. The Wall Street Journal reported in June that the inflation rate is up to 5 percent — the highest it’s been since 2008. Texas median home values have reached record highs, with lower priced houses having seen the greatest increase, further complicating many households’ chances for homeownership. The limited supply of housing, combined with high demand means would-be homebuyers cannot cross the threshold into ownership. Further, some families may not be able to access credit due to accumulated rent debt or having an eviction record after the pandemic. Unaffordable housing, lack of inventory, and pandemic-related financial constraints put additional pressure on the rental market. According to ApartmentGuide.com, overall rental rates in Texas rose 3.13 percent year-overyear in May 2021. This growing demand is in addition to the existing need of 699,747 rental units for those earning up to 50 percent of Average Median Income (AMI). We expect that demand to be higher in coming years. Supply constraints are a threat to affordability

The housing market is soaring, but not just because of increased demand – it is also due to anemic supply.

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Almost 50% of Texans are

Housing Cost Burdened 100% -

80% -

60% -

40% -

20% -

0% -

Extremely Low Income

(0%-30% AMI)

Very Low Income

(31%-50% AMI)

Low Income

(51%-80% AMI)

Middle Income

(81%-100% AMI)

Source: National Loc Income Housing Coalition

Inventory has been low for years, but recent increases in the prices of materials are further constraining supply as construction is delayed. According to the National Association of Home Builders (NAHB), the price increase of lumber has added nearly $36,000 to the price of the average new home. Construction cost increases also translate to home price increases and rental price increases. We need more affordable housing, but rising prices raise feasibility questions for Housing Tax Credit developments – it is possible that some planned developments could not be completed because of the sky-rocketing cost of materials, labor and rising interest rates are also contributing to development costs. Where are we headed?

Job and population growth are on the horizon, but there are important housing implications that we cannot ignore.

Photo Credit: Trong Nguyen / Shutterstock.com

For starters, a company relocating to Texas will bring both high wage jobs and low wage jobs. According to economist Enrico Moretti, “every new high-paying innovation job in the ‘innovation sector’ [..]creates five new jobs in other industries, many of which are for lowskilled workers.” What is great news for the economy is not necessarily great news for the housing market or businesses. The dearth of affordable housing will only become more pronounced as demand increases. Lack of affordable housing could also mean companies may struggle to retain employees who live far from the workplace because they cannot afford to rent near job centers, thereby limiting future economic growth. Cost-burdened households also have less disposable income to spend on consumer goods and services, essentially hampering the economy by limiting its

growth. Additional consumption can stimulate economic and employment growth, possibly creating a multiplier effect. Texas’ population continues to grow

Between 2010 and 2020, the population of Texas grew 15.9 percent, double the population growth of the United States as a whole. Between July 2018 and July 2019, the state added 367,215 residents—1,006 a day. Of these, 523 were from net migration (178 international and 345 domestic migrants per day).

30.0 -

Texas Population [in millions]

Texas shows promising signs of recovery, including an uptick in the number of companies relocating to the state. Adriana Cruz, the executive director of economic development and tourism for the Governor’s office, said the office has 196 active relocation projects – many from tech, but from a variety of other industries as well. This influx of new businesses will certainly encourage the recovery, but with it come additional challenges.

28.4 -

26.8 -

25.2 -

23.6 -

22.0 -

'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 2010 - 2021

Source: worldpopulationreview.com/states/texas-population

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TEXANS LIVING BELOW THE

POVERTY LINE Photo Credit: jmanaugh3 / Shutterstock.com

Population growth is good news for economic recovery, as population and economic growth go hand-in hand. However, this also means housing demand will continue to increase. When we also consider that Texas’ population growth has been concentrated in the state’s urban areas, the demand in these areas is bound to become more pronounced. It is also important to highlight that approximately 13.6 percent Texans live below the poverty line – ranking near the bottom (40th) in the U.S. As the state’s population grows, so will the number of those in need of assistance. Affordable housing is crucial to breaking the cycle of poverty: it allows low-income residents to live near job and education opportunities and reduces the portion of their paycheck that goes toward rent. We need housing not just for the families of today, but also for the families of tomorrow. Where do we go from here?

Texas is resilient: the economy is open and gradually expanding job offerings; over 1,000 people are mov20

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

13.6% ing to the state every day; and businesses continue to relocate here. But housing has been and will continue to be a notable constraint. Low-income residents are still recovering from pandemic-related income loss, and the state has only become more expensive to live in. Limited supply, rising constructions costs, and increasing rents threaten households’ ability to afford housing and other goods and services. If our residents and workers do not have affordable living options, the economy will certainly slow. At the national level there are signs of awareness of the housing dilemma with the filing of the 2021 Affordable Housing Credit Improvement Act in Congress. Yet the bill’s passage is far from certain, and we need a greater supply of housing now. Texas is capable of more, and the state of affordable housing begs the question: What could Texas achieve if housing was no longer a burden on families? Let’s come together as an industry and spread the word on housing: it’s time we met our potential.

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Hudson Housing Capital has delivered consistent results for tax credit investors and affordable housing developers since 1998. But it’s also the simple things that set us apart: Care in working with our partners, private ownership with a view toward the long term, thorough underwriting and meticulous asset management. Those who have worked with us know the difference.

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THE J4 DIFFERENCE

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J4 Development Inc is a multifamily construction firm providing general contracting services nationwide for LIHTC owners and developers. Specializing in Affordable, Workforce, Seniors and Adaptive Reuse housing.

1700 Jay Ell Dr. #100 ● Richardson, Texas 75081 972-930-7075 Phone ● 469-480-3400 Fax

Public Finance

STIFEL WAS RANKED THE #1 NATIONAL UNDERWRITER OF MULTIFAMILY HOUSING REVENUE BONDS FOR 2020* A Leading Investment Bank Specializing in Affordable Housing Finance Stifel, Nicolaus & Company, Incorporated, founded in 1890 and headquartered in St. Louis, Missouri, is a subsidiary of Stifel Financial Corp., a publicly held company traded on the New York Stock Exchange. Stifel has long established itself as a leading underwriter of multifamily housing revenue bonds. Over the years, Stifel has demonstrated a leadership position in the structuring and marketing of multifamily housing securities. As a national leader in multifamily housing finance, we help our clients achieve strategic objectives through comprehensive investment banking services, in-depth housing sector knowledge, debt structuring, and trading expertise.

Rankings As noted by the chart below, Stifel was the #1 ranked underwriter of multifamily housing revenue bond issues for the past five years, based on the number of issues brought to market. Experience matters, and accordingly, we have underwritten more multifamily housing issues than any other firm in the nation during that time period.

National Multifamily Housing Investment Banking Rankings For Years 2016-2020* Year

Rank

Number of Issues

2020

Experience Includes

2019

• • • •

2018

2017

2016

• • • • •

Fannie Mae M.TEB (forward + immediate delivery) Private Placements Collateralized short-term multifamily housing bonds Standard & Poor’s and Moody’s unenhanced project finance rated bonds Rental Assistance Demonstration (RAD) program bonds USDA Rural Development pooled bond financings Bonds secured by FHA-insured mortgages Fannie Mae and Freddie Mac credit-enhanced bonds FNMA Workforce Housing taxable bonds

Source: Thomson Reuters SDC; Bloomberg *National rankings based on the number of negotiated transactions brought to market and closed from January 1 through December 31 of each year. The above table does not include secondary market tax-exempt securitizations that Stifel underwrote for the Freddie Mac M-series and TEL program, which totaled 11 issues in 2018, 20 issues in 2019, and 10 issues in 2020.

Multifamily Housing Investment Banking Team Contacts Montgomery

New York

Baton Rouge

Seattle

John Rucker III (334) 834-5100 ruckerj@stifel.com

Christopher Moriarty (212) 847-6610 moriartyc@stifel.com

John Sabatier (225) 421-2609 sabatierj@stifel.com

Dan Dill (425) 455-8122 dilld@stifel.com

Birmingham

Denver

Britton Henig (334) 386-0634 henigb@stifel.com

Brad Edgar (303) 291-5263 edgarb@stifel.com

David Dill (425) 455-8122 daviddill@stifel.com

William (“B.J.”) Biggio (334) 834-5100 biggiow@stifel.com Sue Alley (334) 834-5100 alleys@stifel.com

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Proud to Support TAAHP RBC Community Investments closed more than $1.3 billion in tax credit equity across the nation and $177 million in Texas in 2020, while the RBC Municipal Finance team senior managed over $4.78 billion in single and multifamily housing bond financings.1 As one of the nation’s largest syndicators and bond underwriters, we are proud to support TAAHP and are grateful for their partnership in advocating for affordable housing throughout the State of Texas.

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Helen Feinberg Managing Director Housing Finance Group – Bond Underwriting helen.feinberg@rbccm.com

Greg Goldberg Director Housing Finance Group – Bond Underwriting greg.goldberg@rbccm.com

rbccm.com/communityinvestments.com | rbccm.com/housingfinancegroup 1. Refinitiv. This advertisement is for informational purposes only. RBC Capital Markets is the global brand name for the capital markets business of Royal Bank of Canada and its affiliates, including RBC Capital Markets, LLC (member FINRA, NYSE and SIPC). ®/™ Trademark(s) of Royal Bank of Canada. Used under license. © Copyright 2021. All rights reserved.

A M E S S A G E F R O M TA A H P ’ S

G O V E R N M E N TA L A F FA I R S C O M M I T T E E C H A I R M A N

to take advantage of the uncertainty he 2020-2021 term of and push for changes with several key Government Affairs and priorities: (1) Removal of Resolutions of Legislative Advisory (GALA) No Objection for 4 percent transactions; committee has been a great success for (2) Removal of the “clean” census tract our organization. The 87th legislative priority in the 9 percent scoring process; session began very slowly and with plenty (3) Reorienting the scoring priority of unknowns caused by the COVID-19 for 9 percent applications to allow for pandemic. In the early weeks of the session TDHCA to choose scoring priority based prep, the Capitol was largely closed, and upon policy and need; and (4) Modify legislators’ offices were closed to in-person the property tax appraisal process visitors. We quickly realized that this would to address properties that are under be a session like no other. Our lobbyists, construction or not yet stabilized. We Andrade-Van De Putte (AVDP), and our staff were not successful in getting all of decided to build on our previous efforts. them modified. Still, I am certain that Our goal was to elevate our voice and we elevated each of them to a level of stature within the legislature by meeting Governmental Affairs Committee consideration that will give us a chance Chairman with key Senate offices and House to address them in future legislative members positioned on committees that sessions. We did find success in a partnership with the Texas impact housing. We pushed further by holding joint fundraisers Association of Builders to addressing the Property Tax Appraisal with other housing-related organizations and meeting with every process for affordable housing under construction or not yet House freshman’s office to introduce our industry and our stabilized with the passage of HB 3833. Finally, much of our organization. There were several weeks where GALA members, critical successes came from preventing bad policies by working TAAHP staff, and AVDP met with legislative staff and members with legislators and lobbyists to understand the implications of to make sure they knew our industry and its impact on Texas these harmful measures. We were ultimately able to keep many families’ stability. We focused on how the need for housing detrimental bills from making their way to the governor’s desk. affordability impacts all Texans. These relationships yielded The GALA committee owes all of its success this session to our great results for our organization. TAAHP staff — Roger, Victoria, and Naomi, as well as the AVDP Engaging with peer organizations such as the Texas Apartment team. They spent hundreds of hours setting us up for success Association (TAA), Texas Association of Builders (TAB), Texas and strategically connecting the GALA committee’s “subject Association of Local Housing Finance Authorities (TALHFA), matter experts” with the members and staff in time to make and Rural Rental Housing of Texas (RRHA) marked a pivotal an impact. I want to thank the staff, GALA members, TxCAD change in TAAHP’s approach. These relationships helped us Members, TAA staff, TAB staff, Mike Warner, Austin Holder, and significantly throughout the session. This collaborative effort of course, the legislators who are our champions in the House helped strengthen our message and promote good housing and Senate. I would especially thank Senators Lucio, Alvarado, policies for Texans and assisted in protecting our industry from and Menendez. On the House side, I would like to thank bills that could have a negative impact. Representatives Cortez, King, Gerven-Hawkins, Chen-Button, Generally, most organizations declined to sponsor specific Holland, Bernal, Campos, Gates, Johnson, Minjarez , Morales bills that contained legislative changes. TAAHP and members Shaw, Slaton, and Deshotel. Each of these legislators have of the GALA committee took a different approach by deciding become champions for “Better Housing for Texans.”

Chris Akbari

Thank You to the GALA Committee Members Danny Allgeier, Lakewood Property Mgmt Terri Anderson, Anderson Development & Construction, LLC Bobby Bowling, Tropicana Building Corp. Debra Guerrero, The NRP Group Joy Horak-Brown, New Hope Housing, Inc.

Darrell Jack, Apartment MarketData Toni Jackson, Banks Law Firm Nathan Kelley, Blazer Building Texas LLC Dan Kierce, RBC Capital Markets Jean Latsha, Pedcor Investments Scott Marks, Coats Rose PC

Diana McIver, DMA Development Company, LLC Rick Sheffield, Rowlett Housing Finance Corp. Janine Sisak, DMA Development Company, LLC Lisa Stephens, Saigebrook Mike Sugrue, Stoneleaf Companies Valerie Williams , Bank of America Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

A RE-CAP OF THE TEXAS 87 th LEGISLATIVE SESSION

AFFORDABLE HOUSING INITIATIVES INCH FORWARD By Victoria Wilson, TAAHP Policy & Regulatory Manager & Roger Arriaga, TAAHP Executive Director

he 87th Texas legislative session was anything but ordinary. Given an uncertain start during the pandemic, which involved rapidly changing safety protocols and limited public interaction and input, it was not clear what we could expect. What we did know early on, however, is that addressing the hardship caused by both COVID-19 and Winter Storm Uri would be priorities with the added complexity of a constrained budget. Amid these circumstances TAAHP maintained that housing had a role to play in the economic recovery: without safe, high-quality, affordable housing, families would struggle to rebound after the challenging year that had passed. With this in mind, TAAHP’s focus was on building relationships, advancing legislative priorities with no fiscal impact, supporting legislation that would advance TAAHP’s mission, and limiting legislation harmful to the industry. A seat at the table

TAAHP’s Government Affairs Committee, its leadership, lobby team, and staff worked diligently to connect with as many legislators as possible. Collectively, we succeeded by having met with nearly every member of the Senate, every incoming freshman legislator, the Lt. Governor’s, Governor’s and the Speaker’s offices, and many other key members and staff. These efforts were fruitful not only in educating members on Housing Tax Credits, but also in making TAAHP known as a valuable resource in the affordable housing space. More than any other session, TAAHP was sought out to provide input on housing bills, and offer testimony and support. These relationships and experience are invaluable and will be carried forward for sessions to come. TAAHP put considerable resources toward advancing HB 2027, which sought to limit restrictions on delivering affordable housing where it is most needed by lifting census tract restrictions, modifying the resolution of no objection (RONO) process, and allowing TDHCA to prioritize scoring items. In the House, opposition from Rep. Swanson led to a significant reduction in the bill. TAAHP launched an education and lobbying campaign that led to its passage by the House, but ultimately expired in the Senate as time ran short.

TAAHP MEMBERS PROVE TO BE A VALUABLE RESOURCE FOR TEXAS LEGISLATORS Nearly 7,000 bills were filed this session, which is comparable to past sessions. But 15 percent were signed into law – a roughly 22 percent decrease from last session. It was a tough session to pass bills, but affordable housing still garnered some success. On par with this rate, TAAHP supported 21 bills this session, of which three passed, making it to the Governor’s desk for his signature. TAAHP members traveled from across the state to testify at congressional hearings and drop cards in support for 10 bills. TAAHP also found success in opposing bills that would have made it more difficult to build affordable housing in the state. A few of the most impactful changes were: Private Activity Bonds (SB 1984)

SB 1984 allows previously designated carryforward bonds to be reassigned to the issuer’s next project application. It will speed-up the processing of these private activity bonds by allowing reassignment of the carryforward designation of these bonds. Appraisals (HB 3833)

This bill expands a previous reduction in the number of years rollback taxes are due to other land uses and eliminates the interest due on rollback taxes. Of special interest to the LIHTC community is the change in the appraisal process for properties that are under construction or have not yet reached stabilized occupancy. In these cases, the expected income and expenses established in the underwriting report will be adjusted to reflect the percentage of construction that is complete or the percentage remaining to achieve stabilized occupancy. Non-compliance reporting (SB 2046)

This bill prohibits the Texas Department of Housing and Community Affairs (TDHCA) from including instances of noncompliance associated with a project in its compliance report if the applicant has demonstrated that the

compliance issue in question was delegated to another party. This change means applicants will avoid accumulating demerits, possibly making them ineligible for future tax credits, when they have no control over compliance.

Key Takeaways TAAHP leadership went above and beyond to build the organization’s reputation and collaborate with other organizations throughout the state, and these efforts proved to be worthwhile. Without a doubt, our membership has been our most valuable advocacy resource. Many legislators believe in the HTC program’s contribution to quality affordable housing in Texas, yet NIMBY (not in my backyard) sentiment remains strong in some circles. TAAHP is committed to educating our legislators on the amazing work you all do in bringing quality, affordable housing to Texans. TAAHP’s active involvement during this legislature, both in supporting and opposing bills, yielded results. It is crucial that, with the help our membership, we continue to engage in the legislative process and build relationships to solidify our reputation as the respected voice in the world of affordable housing.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

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BUILDING A BETTER TOMORROW. Chase is proud to sponsor TAAHP’s 2021 Texas Housing Conference, and we applaud its leadership in increasing the supply and quality of affordable housing for Texans with limited incomes and special needs. To learn more about Chase Community Development Banking, please visit chase.com/cdb or contact: Scott Schmid (585) 797-2808

David Saling (512) 479-2218

Olivio Ochoa (214) 965-2678

Ken Overshiner (713) 216-8393

A FEDERAL PERSPECTIVE

TIME FOR TEXAS TO M ON AFFORDABLE HOUSING By Debra Guerrero, The NRP Group

MOVE THE NATION L ike it or not, as Texas goes, so goes the nation.

ail Collins not only penned this phrase but wrote an entire book about the phenomenon. Many may not always like the results, but it does frame the importance of our great state and the impact our housing industry can have in the national narrative. Given the strength of the Texas market, burgeoning economy, and demand for affordable housing our state has much to gain by not only directing its influence to obtain its share of resources but also to expand them. Federal housing tax credit financing programs have enjoyed diverse bipartisan support from our federal elected officials. Even amid an international pandemic, 2020 was a banner year for the Affordable Housing Credit Improvement Act (AHCIA) with the passage of one of the most important initiatives — the minimum 4 percent credit rate for housing tax credits. According to Novogradac, this change is expected to finance 130,000 additional affordable rental homes over ten years. But there is still much more to do to ensure that production of affordable housing continues to meet the demand of our nation’s seniors, families, and children. The AHCIA of 2021, reintroduced in April, further strengthens and expands the low-income housing credit. Key provisions include a 50 percent LIHTC increase over two years, a reduction of the 50 percent bond financing threshold to 25 percent, and various credit boosts for specific priorities. Additionally, other significant sections will focus on removing barriers to affordable housing preservation, streamlining program rules to promote efficiency and allowing the program to better serve rural and special populations. The passage of this bill will result in 2+ million additional affordable homes over the next decade. Nationally, Texas receives the 2nd largest number of 9 percent tax credit allocations. This significant position indicates that Texas should embrace opportunities to be at the table where national tax credit policy is drafted, forge political support and ultimately lead in implementation once adopted. Further, due to its policy influence with tenured leaders in Congress, Texas can, and should, be leading the way beyond tax credits with similar emphasis on all policy areas surrounding affordable housing. Continued on Page 32

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

FEDERAL PERSPECTIVE CONTINUED

Currently, the AHCIA is the predominant federal affordable housing legislation being considered. It’s champions include Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Rob Portman (R-OH), as well as House Representative members Suzan DelBene (D-WA), Jackie Walorski (R-IN), Don Beyer (D-VA), and Brad Wenstrup (D-OH). If AHCIA is successful, the likelihood is that these representative states will benefit by affecting provisions that support their respective interests. So where are our Texas leaders?

Texas is a powerful voice on its own, and if there was ever an opportunity to impact this national conversation, it is NOW! Texas is indeed fortunate with the recent appointment of former Congressman Kenny Marchant (R-TX) by Governor Greg Abbott to the Texas Department of Housing and Community Affairs (TDHCA) Board of Directors. As a former member of the Congressional Committee on Ways & Means and as one of the original co-sponsors of the AHCIA, former Rep. Marchant was a critical voice representing Texas in national affordable housing policy. With his formidable policy credentials and new role as a member of the governing board overseeing housing for Texas, we have a wonderful opportunity to make great strides as key participants in the national development of affordable housing policy. Much as Congressman Marchant did with his 16 years of service, it is essential that our current Texas delegation of Senators and Representatives become armed with housing data, facts, and rationale for them to support our industry. If the pandemic and weather crises have made anything abundantly clear, it is that affordable housing sits at the intersection of health outcomes and economic resurgence. The constraint for both of these fundamental needs is supply. The 2020 Census reports that Texas’ population will top 29 million (a 16 percent increase from the last census) and with almost 50 percent of Texans experiencing some level of housing cost burden by spending more than 30 percent of their income on rent, the crisis in Texas is very real. Even with an economy that is once again showing signs of life, 32

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

the most recent National Low-Income Housing Coalition Gap Report shows Texas is on the lower end of the affordable housing supply scale with just 29 units available per 100 Extremely Low Income (ELI) renters. Our 38 congressional members must stand up for Texas and be counted among those who support investment in our state’s future success. However, this engagement cannot be expected unless our industry leads the way by providing the arguments and recommended policies to educate our elected officials on the importance the public-private initiative under the tax credit program as well as all other resources that support affordable housing development. Every one of TAAHP members’ properties are a testament to the success of these programs and house families who are becoming self-sufficient and thriving. The premise is simple. Housing is a major component in so much that makes our community richer. It is our role to help our leaders understand the impacts of how investments in affordable housing directly link to greater economic growth by providing a safe and secure place for our populations to live, work, and play. With these opportunities, our communities will experience continued economic development, greater health outcomes, higher educational attainment, and overall long-term sustainability. So, let’s activate and engage. Texas has the power to expand its economic prowess through affordable housing, but nothing will change if we only act as individuals and not with the growing strength of our industry. Let’s demonstrate the dire needs, the program adjustments, and the greater good our members provide every day. Let’s show that we can multiply our successes across the state and across the nation by being the tip of the spear of change where everyone wins. Join with your TAAHP colleagues to lead the nation in advocating for the programs we all know are solutions to the affordable housing crisis. We need your help. Sign up for TAAHP advocacy alerts at taahp.org/advocacy-action-center. If you have relationships with legislators or have donated to campaigns, fill out the “Who Do You Know” form so we can leverage those relationships. Your engagement is critical to our success.

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SPOTLIGHT

Affordable

Housing

COMMUNITY Success Stories Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

Advancing Affordable Housing We put our accounting, tax, and consulting expertise squarely behind those who create more equitable communities, nationwide. DOZLLC.COM

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The road to quality housing requires a team effort. Thank you for your continued support.

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SPOTLIGHT

ANTHONY

Anthony, TX

Palms

ropicana Properties’ newest addition in 2021 is Anthony Palms, a new 80-unit duplex community that offers affordable, high-quality living to El Paso’s neighboring community, Anthony, Texas. With a population of 5,655 residents, Anthony Palms wasted no time in making a community impact with those of the town. Its grand opening initiative saw the property reach 100% physical occupancy in less than 40 days. Since its opening, Anthony Palms has set the groundwork for both fiscal and occupational sustainability, having a superb lease-up period and achieving full occupancy in just over a month. Quickly reaching full physical occupancy and stabilizing its financial occupancy marks a tremendous achievement by industry standards.

Paired with a community outreach program and social services that Photos by Laura Chaidez strive to establish resident engagement and interaction, Anthony Palm’s management is creating an inviting atmosphere. Monthly functions have been developed to strengthen resident relationships and morale while also giving residents opportunities to purchase a Tropicana home. A key component to establishing resident relationships is Tropicana’s various social services, which offer programs and services to assist its residents. These no-cost services include monthly exercise courses, weekly chore help for the elderly, and even homebuyer workshops. Tropicana’s social services goal is to provide information, resources, and incentives to all tenants.

Our goal has always been not only to provide safe, sanitary, and affordable housing but also to be an incubator for future homeowners. Bobby Bowling IV, Principal Tropicana Building

Location:

120 Sandia Dr, Anthony, TX 79821 Developer:

Tropicana Properties

Syndicator and Lender:

Syndicator: The Richman Group Lender: Bank of America, N.A.

Future Home Buyer Program The highlight of the social services afforded to tenants is Tropicana Properties’ future homebuyer program — giving current residents a pathway to homeownership by providing Homebuyer Education, Financial Literacy Seminars, and Credit Counseling.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

SPOTLIGHT

ANTHONY Anthony, TX

Palms Amenities:

Anthony Palms offers a myriad of high-quality amenities for tenants of its community that give a sense of high-quality living without sacrificing the affordability attached to Low-Income Tax Credit Properties. Amenities included:

• • • • • • • • • •

Energy Star Washer and Dryer

Fully Furnished Kitchen Appliances Fully Tiled Apartments Community Center Playgrounds Picnic Areas

Grills and Seating Area Basketball Courts Fitness Center

On-Site Maintenance

Supportive Services

• Future Homebuyer Program + Homebuyer Education

+ Financial Literacy Seminars + Credit Counseling

• Weekly Chores Initiative Photos by Laura Chaidez Resident Profile

This property features mixed resident profiles, ranging from seniors to single room occupancy and families. Units and Composition:

80 units total / mixed AMI Type of Funding:

9% Tax Credit Project awarded by the Texas Department of Housing and Community Affairs Architect:

Archipeli Design Studios, Fred Perez

+ Schedule trash pick-up for Properties elderly and

disabled residents + Quarterly Chore assistance by maintenance crewchecklist of chores outside of normal maintenance duties. • Weekly Exercise Classes + Zumba Instructional Classes (Shifted to Zoom online classes during COVID-19) • Monthly Health and Nutritional Classes inn partnership with Vivir Legacy: + Diabetes Awareness and Prevention + Hypertension Seminars

+ Hypercholesterolemia Seminars

+ Nutritional Well-being and Living healthy seminars.

For More Information please contact: Diana Sotelo, (915) 500-7158

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

One Team. Leading Affordable Housing Insight. With more hands-on experience and data-driven insight than anyone else in the market, CBRE Affordable Housing thoughtfully manages every element of affordable housing transactions across investment sales, lending, and capital markets advisory services.

www.cbre.us/affordablehousing

SPOTLIGHT

CALDWELL Caldwell, TX

Heights

estled in the center of Texas’ triangle of the large metropolitan cities of Dallas, Houston, and San Antonio, you will find the cozy town of Caldwell, just down the road from the twin cities of Bryan and College Station; the home of Texas A&M University. Caldwell Heights, one of the latest developments in a growing rural Texas, is a shining example that high-quality affordable housing doesn’t have to be limited to large metropolitan areas. Both the City of Caldwell and Burleson County recognize their collective need for quality affordable housing. To meet the demand, both the City and County worked with developers over several years to bring quality affordable housing for families to their corner of central Texas despite the sometimes complicated nature of the qualified allocation plan for rural communities. The Caldwell Heights development consists of seventy-two units of affordable housing for families. The community is comprised of 1-, 2-, and 3- bedroom units serving those making 30%, 50%, and 60% of area median gross income. Funding sources for Caldwell Heights include equity raised from the sale of 9% Housing Tax Credits awarded in 2018, private funds, and traditional debt. Caldwell Heights was constructed in a close working partnership between Olympia Construction, Inc, Arx Housing Initiatives, LLC, and Wallace Architects.

Photos: Courtesy of ARX Advantage Location:

302 E. Martin Luther King Dr. Caldwell, TX 77836 Developer:

Olympia Construction, Inc, Arx Housing Initiatives, LLC Syndicator and Lender:

Bonneville USDA 538, Regions Bank

Built Green so Residents Can Save Even More! All units are furnished with Energy Star appliances and high efficiency toilets, faucets, and water-heaters.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

Units and Composition:

Resident Profile:

The Caldwell Heights development is comprised of seventy-two units consisting of a mix of 1, 2, and 3 bedroom units serving individuals and families with 30%, 50%, and 60% of area median gross incomes.

Individuals and Families Type of Funding:

9% Competitive Tax Credits, Traditional Debt and HOME Partnership Funds.

On-Site Amenities:

Architect:

Wallace Architects

+ +

For More Information please contact:

Robbye Meyer, robbye@arxadvantage.net (512) 963-2555

+ + +

Furnished Community Room Business/Learning Center Fitness Center Energy Star Appliances Playground Laundry Center Picnic Areas

STRENGTHENING COMMUNITIES FROM THE GROUND UP. Regions believes everyone deserves a place to call home. Regions Affordable Housing continues its commitment to investing in people and communities across the nation. We have originated $6.2 billion in equity investments in 1,275 assets across 45 states, D.C. and Puerto Rico and have a 30-year track record providing construction and equity bridge financing to communities benefiting from Low-Income Housing Tax Credits (LIHTC). Regions Affordable Housing provides clients with a full-service banking relationship.

Contact Regions Affordable Housing for customized solutions: Rachel Thomas-Phillips | rachel.thomas-phillips@regions.com

Contact Regions Real Estate Capital Markets for permanent debt solutions: Graham Dozier | graham.dozier@regions.com

regions.com/realestatebanking LIHTC & Historic Tax Credit Equity (Federal and State) | Construction Loans Equity Bridge Loans | FHA/HUD & Fannie Mae DUS Lender | Treasury Management & Depository Services | Derivatives & Institutional Trustee Services © 2021 Regions Bank. All loans and lines of credit are subject to credit approval, terms and conditions. | Regions and the Regions logo are registered trademarks of Regions Bank. The LifeGreen color is a trademark of Regions Bank.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

NATIONAL AFFORDABLE HOUSING LENDER, SPECIALIZING IN HUD & USDA 538 LOANS Chris Mullen cmullen@bmfcap.com Rob Hall rhall@bmfcap.com

w w w. B M F C A P. c o m | 8 0 1 . 3 2 3 . 1 0 7 8

Partnering with affordable housing developers across Texas As one of the nation’s leading nonprofit, mission-driven lenders, our local team is working to address Texas’ housing crisis by deploying low-cost and flexible financing to affordable housing developers across the state.

 We offer acquisition, construction, and permanent financing for affordable housing projects  Our Austin-based staff is available to personally engage with applicants and leverage our networks to make their projects work  Community partner that has made nearly $90 million in mission-driven financing across Texas  As a mission-driven organization, we are committed to supporting projects that create social impact and address issues of equity and justice

Questions? Contact Will Robison | WRobison@capitalimpact.org | 512.957.9007 | www.capitalimpact.org

•

Norris George & Ostrow PLLC (NGO) a ten-lawyer boutique law firm based in Washington, DC specializing tax-exempt municipal bond finance with a special emphasis in tax-exempt multifamily rental housing bond finance.

•

NGO’s attorneys have over 185 years of exceptionally broad experience in municipal finance, having served as underwriter's or purchaser's counsel, and in other roles as counsel in thousands of tax-exempt bond and loan financings. In the last five years alone, attorneys on the NGO team have served as counsel in more than 700 private and public transactions in 40 states, including over 65 financings in Texas.

•

NGO’s attorneys have been architects of the structures and model documentation for a number of the industry’s major tax-exempt debt programs, including the country’s leading tax-exempt bond and loan private placement program, short term cash backed tax-exempt bonds used since 2008 with FHA insured and rural development loans, the Freddie Mac TEL private placement structure and the Fannie Mae M.TEBs rated publicly offered bond structure.

•

More recently, with private activity bond volume becoming increasingly oversubscribed in a number of states, the firm and its clients have taken advantage of recent record low yields on tax-exempt versus taxable paper to pioneer placements or limited public offerings for Section 501(c)(3) borrowers and workforce housing financings using “essential function” or “governmental purpose” tax-exempt bonds.

•

In addition, our practice includes cash flow analyses, rebate computations and yield proof calculations and reports, and opinions and reports required in bankruptcy and debt defeasance transactions.

•

To support its recent growth, in the last year alone our firm has hired three new outstanding associate attorneys, two new exceptionally qualified financial analyst/paralegals and one experienced additional administrative assistant.

•

We would love to discuss potential financing opportunities with readers of the Texas Affordable Housing Magazine. How can we and our clients help you choose or design the right financing product for your project, assemble a first rate financing team, and manage your tax-exempt debt financing to achieve industry leading results?

NORRIS GEORGE & OSTROW PLLC 1627 EYE STREET, N.W., SUITE 1220 WASHINGTON, D.C. 20006 TEL: (202) 973-0103 www.ngomunis.com

capstone compliance

partnering for success in affordable housing

File Review

Lease-up Services

Complete services ranging from income calculations to electronic and on-site file review.

From pre-approval of households for move-in to maintaining electronic copies of initial resident files.

Specialized Monitoring

Audit/Inspection

Turnkey services encompassing all compliance requirements, program reporting, supportive services assistance and EIV administration.

REAC and UPCS pre-inspection, MOR and file pre-audit, to resolution of identified non-compliance issues and corrective action response.

CALL US TODAY!

512.646.6785

INFO@CAPSTONECOMPLIANCESERVICES.COM

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OPPORTUNITY STARTS WITH A

safe place to call home WATERS AT SUNRISE

ROUND ROCK, TX / 300 UNITS Atlantic Housing Foundation

Texas families find affordability and convenience within Waters at Sunrise, easily accessible to local job and education opportunities. In addition to large common spaces, community service initiatives and on-site activities help residents engage with neighbors, as well as serve the larger community.

CREALLC.COM AUSTIN

BOSTON

CHICAGO

INDIANAPOLIS

NEW YORK

PORTLAND

SARASOTA

SAN DIEGO

SPOTLIGHT

Property Photos by Gary Zvonkovic

LAW

THE

Harrington

Houston, TX

he nation’s largest LGBTQ-affirming seniors community comes as the result of long labor. After seven years of fundraising, design collaborations, meetings with community stakeholders, and the construction process, the Law Harrington Senior Living Center has received its initial occupants. The senior living center, 2222 Cleburne, is located south of downtown Houston, adjacent to Highway 288 in the Third Ward neighborhood. Designed by Smith & Company Architects, this affordable, LGBTQ-affirming senior living center features 112 oneand two-bedroom independent living apartments with full kitchens and washer and dryers for low-income individuals and couples who are 62 years and older. Additional features of the property include a 17,196 square foot Clubhouse building in the front of the facility which includes: a social services department managed by the Montrose Center, geriatric primary care clinic provided

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The Law Harrington is the nation’s largest LGBTQ-affirming senior living affordable community. by Legacy Community Health, a group dining area, meeting and game rooms, a fitness center, dog park, and outdoor recreational spaces. The faÇade and design reflect and respect the architecture and culture of the vastly changing historic Third Ward area in which the property sits, but also is designed to be consistent with the modern movement currently taking place with new and proposed developments in the area. Since public funds were used to support the project, Federal UFAS and Fair Housing design standards, and Texas accessibility standards had to be met.

Energy-Star

Rated appliances

Location:

2222 Cleburne, Houston, TX, 77004 Developer:

Covenant Community Capital & The Montrose Center Syndicator and Lender:

National Equity Fund, Inc. BBVA Compass Bank

Architect: Smith & Company Architects Resident Profile:

This affordable Senior Living Center is open to individuals and couples who are 62 years and older, but The Montrose Center clearly positions and markets it as affirming to the LGBTQ community. Units and Composition:

112 One & Two Bedroom Units Support Services: + + + + + + + + +

Geriatric Primary Care Clinic provided by Legacy Community Health

Social Services Department managed by the Montrose Center Counseling and peer support

Congregate Meals Advocacy and service linkage Wellness and fitness programs

Job resources and skills training Social and recreational activities Educational Programs

Type of Funding:

$23 million dollars in funding Residents have access to this 6,000 square-foot-multi-purpose community through various sources such asin the courtyard that accommodates educational services building situated grants, tax credits and community and social activities, including after-school and summer programs. donations, and the No Place Like Home campaign. The City of Houston Housing and Community Development Department contributed $5.1 million with TIRZ funds to finance the development. The Midtown Redevelopment Authority donated the land, worth $3,380,000. Additional donations were provided by The Hollyfield Foundation, LTR Lewis Cloverdale Foundation, the John Steven Photo by Alex Rosa Kellett Foundation, and the Kinder Foundation. Amenities: + + + + + + + + +

Full disabled accessibility Secured entry

Laundry Facilities Clubhouse

Library & lounge area

A Group Dining & Assembly Hall Meeting and Game Rooms Computer & Fitness Center

Dog Park & Outdoor Recreational Spaces

For More Information please contact:

The Montrose Center, Kennedy “Kent” Loftin, Chief Development Officer kloftin@montrosecenter.org (713) 800-0821, ext 4505 www.montrosecenter.org

Shuttle Service

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

Welcome Home

TO WILHOIT LIVING.

Founded in 1 9 6 7, Wilhoit Properties is dedicated to providing

high-quality, accessible, and affordable housing for today's family and senior resident. Our core strength is a corporate team that delivers hundreds of years combined experience in property development, construction and management. Currently, we manage a total of 217 properties in 15 states—including 37 developments & 4,000+ units in the Lone Star State alone. We truly value our growing roots in these Texas communities—and our relationship with the TAAHP & Texas Housing Conference. When a need or opportunity arises, make Wilhoit Properties your welcome home to affordable housing solutions.

Mid-rise Senior Communities Garden-Style Apartments Single-Family Homes & Townhomes

417.883.1632

WilhoitLiving.com

Paula Wilhoit VP/Property Management PWilhoit@wilhoitproperties.com

SPOTLIGHT

GLENN PARK

Apartments

ith a diverse economy, a growing population, and a robust network of education, employment, and recreation opportunities, San Angelo, Texas, is frequently cited as an excellent place to live, work and play. As is often the case in such small cities, demand results in a shortage of quality affordable housing opportunities. Glenn Park Apartments is a new, mixed-income community with four two-story buildings containing 60 garden-style units. All units include kitchens designed with energy-efficient appliances, washer/dryer units, and a patio or balcony with additional exterior storage space.

San Angelo, TX

The property includes a community clubhouse with a kitchenette, fitness center, and on-site management office. The professionally landscaped and maintained grounds also include a playground, barbecue grills, and picnic tables for resident use. Additionally, the property offers easy access to retail and transportation services and employment centers such as Goodfellow Air Force Base and Angelo State University. Residents also enjoy access to full-time, on-site support services provided by Portfolio Resident Services, including regular community gatherings, health and wellness events, and back-to-school supply drives.

Residents enjoy access to full-time, on-site support services provided by Portfolio Resident Services For More Information please contact:

(325) 703-1166; glennpark@wilhoitproperties.com Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

SPOTLIGHT

GLENN PARK

San Angelo, TX

Apartments Units and Composition:

60 units total / mixed AMI By Bedroom:

• 36, 2 Bedroom / 2 Bath • 24, 3 Bedroom / 2 Bath By Income Level:

• • • •

5 affordable at 30% AMI

10 affordable at 50% AMI 33 affordable at 60% AMI 12 at market rate

Type of Funding:

9% Housing Tax Credits through Texas Department of Housing and Community Affairs Architect:

Parker Associates Tulsa, LLC Amenities: • Furnished community clubhouse w/kitchenette

Photos by David Bennet Location:

3612 Christoval Rd.,San Angelo, TX 76904 Developer:

Wilhoit Properties, Inc. Syndicator and Lender:

Syndicator: Raymond James Tax Credit Fund Lenders: Great Southern Bank & Centrant Community Capital Resident Profile:

Serving Individuals and Families 52

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

• • • • • • • • •

Fitness center

Computer/library/business center Energy Star appliances

Washer/Dryer in each unit

Balcony/Patio with exterior storage On-site management

On-site service coordinator

BBQ grills and picnic tables Playground

MISSION DRIVEN LENDING

What does home mean to you?

Visit us at Booth #4

At Centrant, we believe everyone should have a safe, affordable place to call home.

(984) 344-9992

Our mission-driven approach to lending connects committed banks of all sizes with dedicated developers to create and preserve quality affordable multifamily housing. We believe building strong communities starts with building strong partnerships. And we invite you to partner with us so we can bring the joy, safety and certainty of home to the communities that we serve together. NORTH CAROLINA

SOUTH CAROLINA

info@centrant.org centrant.org Since 1990, Centrant Community Capital has offered loans across the Southeast, funding more than 23,000 units for individuals and families.

VIRGINIA

GEORGIA

TENNESSEE

TEXAS

Starwood Capital Group is a private investment firm committed to enriching the communities in which we live, work and serve. We're expanding ground up affordable housing development across the country. STARWOODCAPITAL.COM

Jessica Mullins

jmullins@starwood.com (713) 344-7055

Brad Fisher

bfisher@starwood.com (913) 787-1676

To learn more, contact |

A better way to home. • • • • • •

CONVENTIONAL, HUD, & HOUSING TAX CREDIT MANAGEMENT NEW CONSTRUCTION LEASE-UPS COMPLIANCE SERVICES DEVELOPMENT & CONSULTING VALUE-ADD RENOVATIONS REPOSITIONING TROUBLED ASSETS

20,000+ 5,000+

UNITS NATIONALLY UNITS IN TEXAS

PROPERTYMANAGEMENT@SELDIN.COM 402-333-7373 | SELDIN.COM

SPOTLIGHT

Dale

NEW HOPE HOUSING Carnegie Houston, TX

ew Hope Housing Dale Carnegie is a supportive housing property serving vulnerable individuals, many of whom are formerly homeless. It serves individuals earning 30-60 percent of the average median income, which in Houston is between $15,750 and $31,500. The average resident earns $7,540 and is formerly homeless with a mental health disability and/or chronic health condition.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

SPOTLIGHT

NEW HOPE HOUSING

Dale Carneqie

Houston, TX

ocated in the Sharpstown area of southwest Houston, New Hope Housing Dale Carnegie offers 170 permanent, affordable, single room occupancy (SRO) apartments for vulnerable individuals, plus 7,500 square feet of shared space for resident services and programs and community engagement.

amenity-rich neighborhood near transit, and near a commercial development community. The site is less than one mile from BakerRipley’s signature campus and Legacy Community Health’s federally qualified health clinic, as well as a full-service grocery store, pharmacy, public library, higher education institutions, and an abundance of job opportunities.

The Dale Carnegie property is LEED Gold certified, making it New Hope Housing’s sixth energy-efficient housing community. Committed to meeting the needs of Houston’s urban core, New Hope chose to build in this area because it is located in an

The creation of a sense of place through art, architecture and nature is an integral part of New Hope Housing’s award-winning approach to affordable housing. The built environment has a profound effect on the human spirit.

Location: 7025 Regency Square Blvd. Houston, Texas 77036 Developer: New Hope Housing, Inc. Syndicator and Lender: National Equity Fund, Inc. BBVA Freddie Mac Architect: Ernesto L. Maldonado, AIA, with GSMA, Inc.

Resident Profiles:

In support of HUD and City of Houston’s Permanent Supportive Housing initiative, targeting chronically homeless individuals, 110 units are dedicated to this collaborative effort. They are supported by Project Based Vouchers granted by Houston Housing Authority and case management provided by U.S. Vets, Career & Recovery Resources, Inc., and United Health Care. Units and Composition:

170 SRA tax credit units, fully furnished studio apartments, with free utilities and cable TV access; full size refrigerator and microwave; private tiled bath; privately controlled HVAC Architect & Construction:

Kelly Grossman Architects, Austin, TX Blazer Construction, Houston, TX Type of Funding:

Low Income Housing Tax Credits, HUD Home Program, City of Houston Homeless & Housing Consolidated Bond Program, Federal Home Loan Bank of San Francisco AHP, and private grants from foundations, corporations, and major donors. For More Information please contact:

Joy Horak-Brown, President and CEO (713) 222-0290; joy@newhopehousing.com Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

SPOTLIGHT

NEW HOPE HOUSING

Dale Carneqie

Houston, TX Amenities:

Apartment features:

• Studios 280-360 square feet with free utilities and cable TV access

• Fully-furnished homes with private bath and kitchenette with full-size refrigerator and microwave

Common area features:

• • • • • • • • •

Reception area with 24/7 front desk staffing Coin-operated washer/dryer facilities Business Center with computers Library

Theatre room

Fully-equipped community kitchen and dining room Training rooms for educational programming

Social service delivery space and meeting rooms Courtyard with terrace and rooftop terrace

Supportive Services:

• • • • • • •

Special Design Features

• Tranquil upper level terrace with views of tree-lined streets and a landscaped rooftop.

• Passersby will notice a 58-foot high “tower” that is actually

an indoor staircase. It has a 10-foot radius from the center point to the outside wall, and is five stories tall to provide stair access to the roof of the four-story building.

• Original art fills the interior walls. The installation of historic photos educates residents and visitors about the history of

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

Case management and counseling

Access to primary and mental health care Legal assistance

Health and nutritional counseling Financial education Life-skills training

Recreational and social activities

the surrounding neighborhood. Donated photos by local photographer Ken Frederick capture some of the rich cultural traditions of the Sharpstown/Gulfton neighborhood.

• A beautifully landscaped courtyard in the center of the com-

munity provides a place for respite and relaxation. It also is conducive to social gathering and activities. It is an important aspect of fostering a sense of community and strong mental health.

DMA Development Company, LLC DMA Properties, LLC

DMA celebrates Janine Sisak, our General Counsel & Senior Vice President, as she completes her service as TAAHP President for the 2020-2021 term! Cheers!

Development and Property Management Services for Multifamily, Affordable and Special Needs Housing

www.dmacompanies.com | 4101 Parkstone Heights Drive, Austin, TX 78746 | 512.328.3232

El Paso, TX

SPOTLIGHT

Photos by Laura Chaidez

JOPPalms F

units where income or over 20 years, Tropicana Proplimits are put in place JOP Palms offers a variety of higherties has prided based on the area quality amenities for tenants that give itself in being of invalumedian income, that able service to the El Paso would otherwise not a sense of high-quality living without community by providing be readily available. In sacrificing the affordability attached to Low-Income Affordable providing such units, housing throughout the JOP Palms offers a Low-Income Tax Credit Properties. El Paso and surrounding pathway to members counties. “Our goal has Demetrio Jimenez, CEO of the community to always been not only attain housing through to provide safe,sanitary, and affordable housing, but also simpler means and income requirements outside the tradito be an incubator for future homeowners,” says Tropicana tional route and requirements compared to the traditional Properties CEO, Demetrio Jimenez. The goal, supported by route offered by other apartment communities. JOP Palms his partner, Bobby Bowling, has and will continue to be to merits genuine recognition for all that it has achieved in make it possible for as many residents from our Tropicana such a small amount of time. Becoming a highlight of not communities to be put into a Tropicana home if that is only its management company, but of the community itself. something they aspire to, because we want our residents to Priding itself on tenant outreach and operating with “the truly love where they live. Although its tenure has been brief door is always open” approach across their communities, by industry standards, JOP Palms has become the standard assuring its tenants that property management is available against which all Tropicana Properties measure success of in aiding and taking care of their needs when desired the social service implantation. It is with their pertinacious efforts most. Staying true to the “Door is always open” motto, our in providing support and opportunity for their residents that tenant engagement is second to none, and it was adjusted JOP Palms deserves the utmost credit for its tireless efforts in to continue throughout the pandemic. A social calendar of cultivating the relationship that it does with its residents. monthly events that vary from pizza parties for youths of the community or morning breakfast on the run for tenants to Built using federal tax-credit funding granted by the Texas take advantage of before heading out to work, show only Department of Housing and Community Affairs, JOP Palms a glimpse of the social services Tropicana Properties has is a LITHC property that provides lower-income households become known for. the opportunity to qualify for quality housing by setting aside Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

SPOTLIGHT

JOP

El Paso, TX

Location:

229 N Nevarez Rd, El Paso, TX 79927

Palms

Developer:

Tropicana Building II, LLC Syndicator and Lender:

Wells Fargo Affordable Housing Community Development Corporation Wells Fargo Bank, N.A. Architect:

Kelly Grossman Architects Resident Profile:

This property features mixed resident profiles, ranging from single room occupancy to seniors and families. Units and Composition: 96 units, mixed tax credit Type of Funding:

9% Tax Credit Project funding awarded by the Texas Department of Housing and Community Affairs Amenities:

• • • • • • • • • •

Energy star Washer and Dryer

Fully Furnished Kitchen Appliances

• Future Homebuyer Program + Homebuyer Education

+ Financial Literacy Seminars + Credit Counseling

• Weekly Chores Initiative

+ Schedule trash pick-up for Properties elderly and disabled

residents + Quarterly Chore assistance by maintenance crewchecklist of chores outside of normal maintenance duties. • Weekly Exercise Classes + Zumba Instructional Classes (Shifted to Zoom online classes during COVID-19) • Monthly Health and Nutritional Classes inn partnership with Vivir Legacy:

Fully Tiled Apartments

+ Diabetes Awareness and Prevention

Playgrounds

+ Hypercholesterolemia Seminars

Community Center

+ Hypertension Seminars

Picnic Areas

+ Nutritional Well-being and Living healthy seminars

Basketball Courts

Built Green so Residents Can Save Even More!

Grills and Seating Area Fitness Center

On-Site Maintenance

For More Information please contact: Jessica Zamarripa, (915) 474-3418 62

Supportive Services:

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

All appliances are energy star efficient. Eco Landscaping to help reduce water waste.

Guiding your business through extraordinary times

Wells Fargo Commercial Real Estate understands that making business decisions in the current environment is more challenging than ever. Our experienced bankers can provide the financial guidance you need to help navigate your company’s most pressing issues. With our industry knowledge, products, and services, we’re confident we can help keep your business moving forward. Learn more at wellsfargo.com/affordablehousing.

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REAL ESTATE INVESTMENT SALES

ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Securities, Investment Banking and Advisory Services provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission.

SPOTLIGHT

MISTLETOE Ft Worth, TX

Station

Apartments

istletoe Station is a mixed-income urban living community in Fort Worth’s Mistletoe Heights neighborhood. The development includes 110 units, split between two buildings. The property also includes a fully furnished clubhouse with leasing office, computer lounge, fitness center, multipurpose room with kitchen, and theater. Minutes from Baylor Scott & White Medical Center and Cook Children’s Hospital, the community serves working families, individuals, and seniors, many of whom work in the medical field. Completed in 2020, Mistletoe Station provides holistic housing at all income levels, and the opportunity to live in Fort Worth’s Near Southside. Residents live walking distance to restaurants, coffee shops, and city parks in a vibrant mixed-use neighborhood. Photos by Wesley Kirk, Vision & Verve Photography

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

SPOTLIGHT

MISTLETOE

Apartments

Ft. Worth, TX

Station

Units feature Energy Star appliances and high efficiency lighting and plumbing fixtures. Every unit includes washer and dryer connections, quartz counters, resilient vinyl plank flooring, tiled kitchen back splashes and tub surrounds, and covered entries. Units are cable, internet, and phone ready. Co-Developer, Megan Lasch of O-SDA Industries stressed the importance of “persistence, patience and an unwavering determination to finish” as the key to Mistletoe Station’s success. “Mistletoe Station is the result of successful public-private partnerships that came together with a common goal in mind—to provide affordable and workforce housing in a previously under-served and underutilized location,” says Lisa Stephens of Saigebrook Development, a CoDeveloper. The City of Fort Worth, Fort Worth Housing Solutions, the Southside TIF and the Texas Department of Housing and Community Affairs all supported the project through providing the multiple levels of funding needed for development and construction. Location:

1916 Mistletoe Blvd., Fort Worth, TX 76104 Developer:

O-SDA Industries, LLC, Megan Lasch Saigebrook Development, LLC, Lisa Stephens Syndicator and Lender: Hunt Capital Partners JP Morgan Chase Freddie Mac Architect:

Resident Profile:

This property serves families at a variety of income levels. 74 of Mistletoe Station’s units are affordable to households making 30%, 50%, and 60% of area median income, or are reserved for special needs, formerly homeless, and/or disabled households. The remaining 36 units are available at unrestricted market rate rents.

HEDK Architects Tax Credit Consultant: S. Anderson Consulting General Contractor: Maker Bros 66

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

Built Green so Residents Can Save Even More! Mistletoe Station is NGBS-Bronze Certified multifamily project.

Left to Right: Lisa Stephens, Stephanie Baker, Megan Lasch, Ann Zedeh, Scott Turner, Mayor Betsy Price

Units and Composition:

110 Units Total Affordable (74) Conventional (36) Type of Funding:

9% Housing Tax Credits through Texas Department of Housing and Community Affairs, Fort Worth Tax Increment Reinvestment Zone Number Four (Southside TIF) Reimbursement, Fort Worth HOME Investment Partnerships Program Loan, Fort Worth Housing Finance Corporation Loan, Fort Worth Water Department Fee Waivers, TDHCA Tax Credit Assistance Program Loan, Fort Worth Housing Solutions Project Based Vouchers, TDHCA 811 Rental Assistance, Fort Worth Housing Finance Corporation Case Management, JP Morgan Chase conventional loan Special Design Features:

Mistletoe Station, located in the Near Southside of Fort Worth, was pleased to work with Fort Worth artist Ariel Davis for this colorful mural, “Colors of Station Light.” Inspired by stained glass in traditional train stations and the colors one might see as light passes through, as well as inspiration from historic architecture from the Mistletoe Heights Neighborhood - the mural is full of color and abstract mistletoe. Voted Best Artist in 2018 by Fort Worth Magazine, Ariel Davis of Art by Ariel Davis is a Fort Worth native and manages Artspace One-Eleven gallery and is a founding member of Art Tooth, a local artist collaborative. “Colors of Station Light” Designed by Ariel Davis and completed along with her stepdaughter Alani Hicks and Aimee Cardoso with Art Tooth.

On-Site Amenities: + + + + + + + +

Fully furnished clubhouse including: Community room and kitchen Business center Leasing center Fitness center Theater Elevator served building Public art Courtyards with games and activities for residents

Support Services:

Mistletoe Station offers a variety of free on-site services for residents through Portfolio Resident Services. These include but are not limited to: + + +

Financial planning classes

Health, nutrition, and cooking classes

Youth programming includes: Arts and crafts, Character building discussions, Recreational activities Weekly social events for residents

For More Information please contact:

Mistletoe Station Apartments, 817-360-2232 www.mistletoestation.com For Saigebrook and O-SDA’s other properties: www.affordablehousingtexas.com

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

A BIG THANK YOU To Our Past Presidents

2019-2020

2018-2019

2017-2018

2016-2017

Dan Kierce RBC Community Investments

Debra Guerrero The NRP Group, LLC

K. Nicole Asarch Rock Real Estate, Ltd./ Staffable Africa

Bobby Bowling Tropicana Building Corp.

2015-2016

2014-2015

2013-2014

2012-2013

Mahesh Aiyer Citi Community Capital

Justin MacDonald MacDonald Companies

George Littlejohn Novogradac & Company, LLP

Barry Kahn Hettig-Kahn Development Co.

2011-2012

2010-2011

2009-2010

2008-2009

Antoinette M. “Toni” Jackson The Banks Firm

Dan Markson The NRP Group, LLC

Linda McMahon Neighborhood Strategies, LLC

Mike Sugrue Stoneleaf Companies

2007-2008

2006-2007

2005-2006

2004-2005

Mike Clark Alpha-Barnes Real Estate Services

Granger MacDonald MacDonald Companies

Diana McIver DMA Development Co., LLC

Jerry Wright Dougherty & Company, LLC

2003-2004

2002-2003

2001-2002

2000-2001

Mike Lankford Mike Lankford Interests, LLC

Chris Bergman TCR Affordable Housing, Inc.

JOT Couch Texas Inter-Faith Supportive Services

Sally Gaskin SGI Ventures, Inc.

1999-2000

1998-1999

Dick Kilday Kilday Realty Corp

Edwina Carrington CHK Enterprise, LLC

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

REAL VALUE REAL RESULTS Property Tax Consulting CONVENTIONAL

LOW-INCOME

LIHTC

LL CASEY & COMPANY LLC

Property Tax Appeal LIHTC ~ USDA/RD ~ Multi-Family

LLCASEY.COM

Serving Texas Taxpayers Since 2009

SPOTLIGHT

Commerce

Houston, TX

CAMPANILE

ampanile on Commerce features oneand two-bedroom spacious units with amenities that welcome residents’ home. This property is centrally located in Houston, TX within walking distance to shopping, dining and entertainment options.

Location:

2929 Commerce St. Houston, TX 77003 Developer:

Kilday Realty Corp. Builder:

Blazer Building Texas Syndicator and Lender:

Resident Profile:

Amenities:

Units and Composition:

Housing Tax Credits

+ + + + +

Hudson Housing Capital National Equity Fund, Inc.

Architect:

Mucasey & Associates 70

Type of Funding:

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

Club Room with Kitchen Pool & Grille House Fitness Room

Business Center Activity Room

Package Service Elevator Access

Controlled Access Gates

Monthly Planned Activities

Active Adult 55+ / Senior 120 Units (tax credit mixed with market rate) Support Services: + + + + + + +

Food Pantry

Annual Health Fair Notary Services

Weekly Exercise Class

Twice Monthly Arts and Crafts Monthly Transportation

Twice Monthly on-site social services

For More Information please contact: Matt Fuqua, 713-914-9200

w w w.blazerbuilding.com | 713 .9 14 .9 2 0 0

B U I L D I N G E X C E L L E N C E S I N C E 19 78

Residents have access to this 6,000 square-foot-multi-purpose community by Racheleducational Van Nieuwenhuise building situated in the courtyard thatPhotos accommodates services and social activities, including after-school and summer programs.

Energy-Star

Rated appliances Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

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Whether you are considering Freddie Mac, Fannie Mae, HUD/FHA insured, tax credit equity, or balance sheet financing, let our personalized services help you meet your financing objectives. Experience the creativity of a small lender, with all the capabilities of a large institution.

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SPOTLIGHT

McKINNEY

Falls

Photos Courtesy of AMTEX

Austin, TX

he Great Outdoors beckons to McKinney Falls Apartments community residents with majestic McKinney Falls State Park located directly across the street.

Apartments

McKinney Falls is wonderful. Looking for an apartment was really hard, and then I found McKinney Falls. These apartments are brand new, and stunning inside and out. I love the community here and the dog park.

and sewer lines from one-and-a-half miles away, and constructing a new sewer lift station. The sewer and water connection project required the builder to shut down half of McKinney Falls Parkway and redirect and McKinney Falls Resident facilitate traffic flow for nearly half a McKinney Falls Apartments is a new mixed-income comyear. Grading the site was also challenging because native munity completed in 2020 for individuals and families soil conditions required the builder to truck in various other conveniently located in southeast Austin next to the Easton soils types to achieve proper soil compaction and moisture Park Master Planned community and near shopping and levels on which to build. services. Situated on an expansive 18-acre site with terraced views of Austin’s natural landscape, this open-space comResidents are thrilled with their new apartment homes, munity welcomes both affordable and market-rate residents including one delighted resident who says, “McKinney Falls with 312 apartments in 12 three-story buildings, and many is wonderful. Looking for an apartment was really hard, and on-site amenities including a multi-level infinity pool, and a then I found McKinney Falls. These apartments are brand dog park. Residents also enjoy 9-foot ceilings and designer new, and stunning inside and out. I love the community here finishes in every apartment. and the dog park. We always have a parking spot in this large parking space with enough room. The staff is great and pleasOne of the largest affordable housing communities in Travis ant, and provide amazing maintenance on the property.” County, McKinney Falls is located in a Low-Income Housing Tax Credit Qualified Census Tract which allows the comAnother happy resident affirms: “McKinney Falls is a nice munity to include 50 percent of its resident households to gated community with beautiful grounds here in East Austin. have incomes below 60 percent of the Area Median Gross I love my neighbors who plan to stay here a while with our Income (AMGI) or have a poverty rate of 25 percent or more. children who also go to the same school. The apartment In order to build on this undeveloped site, the developer homes have nice granite counter tops, garden tubs, and had to navigate challenges such as having to connect water large kitchens to store kitchenware.” Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

SPOTLIGHT

McKINNEY Apartments

Austin, TX

Falls

Location 6625 McKinney Pkwy, Austin Tx 78744

Developer: AMTEX Development LLC & TCHFC McKinney Developer LLC Syndicator and Lender: CREA McKinney Falls, LLC Merchants Capital Corporation Architect: HEDK Architects

Type of Funding: 4% Tax Credits, Tax Exempt Bonds, HUD permanent loan Resident Profile:

Individuals & Families

Units and Composition:

312 total units 296 Affordable Units / 16 are market rate units Amenities: + + + + + + + + + +

Gated and fenced, controlled access community

Inviting designer clubhouse with billiards gaming table

Quarterly on-site social and interactive activities with the City of Austin Police and Fire Departments intended to foster relationships with residents, such as barbecues, athletic events, basic CPR and first aid training, etching VINs on automobile windows, proper use of fire extinguishers, and general familiarity with fire safety equipment and procedures.

In partnership with the University of Texas or Austin Community College, scholastic tutoring and homework assistance for the children of McKinney Falls community.

Twice-monthly social activities for residents such as potluck dinners, special events for children such as a back to school party, a Fourth of July BBQ and swim party, game nights, football game nights, movie nights, holiday parties, and other special events.

Notary public access.

Children’s activity center Multi-level infinity pool

Fitness center appointed with cardio and strength training equipment Dog park Gazebos

Bicycle parking

Children’s playscape Grill stations

Green Initiative Energy Star appliances, LED lighting, ceiling fans

Support Services:

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

For More Information please contact: Twala Gann, VP of Operations, Mayfair Management Group Twala.Gann@MayfairMgt.com

PROUD TO SUPPORT THE TEXAS HOUSING CONFERENCE AMTEX is a developer and builder serving Texas with high-quality apartment homes in multiple communities including the Dallas/Fort Worth metro area, Austin, Houston, Rockwall, Garland and others. We partner with Housing Authorities, Housing Financial Corporations and others to develop affordable, workforce and market-rate multifamily apartments. We have completed nearly 2,500 apartment homes since 2012, have over 1,110 in construction and have nearly 1,000 more apartments in development.

Mark Morgan, Director of Acquisitions mmorgan@amcalhousing.com T: 818/706-0694 ext. 176 C: 909/720-4906

AMTEX Corporate Office 4101 McEwen Road, Suite 150 Dallas, Texas 75244 Te x a s A f f o r d a b l e H o u s i n g amcal.com/texas-communities

Magazine

Eviction Moratorium & Pandemic Response

REAL STORIES

Real Stories: Eviction Moratorium

Real Stories: Pandemic Response Services

Affordable housing providers have reported having to make difficult decisions to manage their properties effectively while being restricted by lengthy eviction moratoriums. While the rationale behind the moratoriums were well intended, some residents have misinterpreted the policy and are now finding that catching up on rent is nearly impossible, they will ultimately have an eviction on their record, and will have no where to turn. The unintended consequences of the policy are likely to have long-term impacts on renters and housing providers alike.

TAAHP members have stepped up to help their residents through a time of uncertainty — offering an unparalleled level of support to help them weather the economic storm brought on by the global pandemic.

“ “ “ 76

We have a few residents who are still working, have received stimulus money, and are still not paying rent.

I do believe for those who have truly lost their jobs, the moratorium has been effective. But, I believe there are better solutions such as rent assistance and charitable donations to help residents pay their rent.

I believe a lot of companies will never be paid the rent they are owed.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

“ “

Prospera Housing enabled 1,198 people to maintain health and wellness by providing 7,116 meals, produce boxes, and other food resources to address food insecurity concerns during the pandemic. During 2020, Prospera Resident Services provided 47 households with $25,644.50 in rental and utility assistance to enable families to maintain safe secure housing during the pandemic.

Real Stories: Tropicana Properties

“

”

In collaboration with El Pasoans Fighting Hunger Food Bank, Tropicana Properties coordinated and provided food pantry items to over 150 residents. We unloaded ten pallets of food at the Tres Palmas apartments for managers to distribute to 34 properties throughout the city. Distribution was adapted to provide access to our most vulnerable residents while still following city and state COVID guidelines.

“

Real Stories: Asset Living We visited our Timber Creek residents in Beaumont, Texas to hand out gift wrapped toilet paper and paper towels with healthy hygene messages. We also coordinated a socially distanced Easter egg hunt for the kids.

”

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

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JOIN US FOR THE

29th Annual TALHFA Educational Conference

Safari at the Kalahari Register at www.talhfa.org/events

SEPTEMBER 14-16, 2021 THE KALAHARI RESORT ROUND ROCK, TX

Questions?

Email us at jackie@talhfa.org

Strengthening neighborhoods through innovative & collaborative real estate development.

T H A N K YO U

2021 TAAHP Suppor TOGETHER WE ARE STRONGER

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

rters

As we emerge from a challenging time in our history, TAAHP is on the path to make new strides. It is with your help and support that we can do great things for affordable housing, because we are stronger together.

MANAGEMENT GROUP

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

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Experts Discuss the Pros & Cons of a

2-YEAR QAP

he topic of whether or not to support, and advocate for, a two-year Qualified Allocation Plan (QAP) has been hotly debated over the years. Year after year, TAAHP members have discussed the nuances of the various aspects of the Texas QAP. Numerous meetings and hours of discussion result in a lengthy list of recommendations to the Texas Department of Housing and Community Affairs to advocate for a myriad of changes which are intended to streamline the application while encouraging the highest and most sustainable quality of development. Depending on who you ask, you are likely to hear a series of reasons why or why not Texas should move away from an annual QAP to a bi-annual one.

Nathan Kelley TAAHP QAP Committee Chairman

Most recently, two bills were introduced in the 87th Texas Legislature that would have mandated such a change. While neither passed, the debate continues, leaving us to ponder the pros and cons of such a shift. As chairman of TAAHP’s QAP committee, I reached out to my colleagues to give me their thoughts on the subject. And while this list is not exhaustive of what many industry professionals have to say on the matter, their responses offer some very valid points that are worthy of consideration.

ON THE + SIDE

“ “ “ 84

A bi-annual approach would provide for more consistency in rule making over a two-year period.

Without annual modifications, application materials would be better and should result in the release of application materials sooner. In 2021, it was problematic that a final application was not available until about a week and a half before the freeze event happened. Even without the weather event, the timing was delayed and created an environment unnecessarily rushed completion timelines.

A 2-year QAP allows for more fully formed development plans in the second year and expands the ability to spend time on thoughtful design and engagement with community stakeholders.

“

Pre-development costs would be more effectively spent by developers since the 2-year cycle allows developers to know that they are working on sites which could be competitive over two consecutive cycles.

The current single-year QAP puts applicants “under the gun” as the QAP is not finalized until December of each year and pre-applications are due less than 30 days later. A 2-year QAP would eliminate this undue pressure in at least the second year of the approved plan.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

A 2-YEAR QAP WOULD PROVIDE MORE CERTAINTY

“

In terms of 4% tax credits, a 2-year QAP gives developers added time for long range planning without the risk of significant changes to the program requirements. Given the bond volume over subscription, it will be important for developers to be able to pursue a pre-allocation development plan that can last up to 24 months.

“

When you sign up a 4% deal in 2021, there is almost no chance that it would be awarded under 2021 program rules. It is more likely that 2022 rules, or even 2023 rules would apply. With this in mind, a 2-year QAP would provide more certainty on eligibility.

The time flexibility allowed by a 2-year QAP would also provide opportunities for TDHCA staff to focus on other important initiatives that are important to the Department and stakeholders – or to focus on whether the rules are truly addressing the intended needs. It could also promote more thoughtful feedback of established rules and eliminate ‘surprise’ rules at least in the second year of an approved plan.

ON THE DOWN SIDE

“ “

A 2-year QAP would not allow us to address problematic portions of the rules from year to year.

Unless applicants get some type of permission to allow for updates to things like price per square foot (and other areas sensitive to inflation pressure), there would be less flexibility to address these types of issues.

“ “

Competition for sites may become even fiercer since the same sites would score well for two consecutive years.

A 2-year QAP could limit TDHCA’s ability to react to any federal changes and/or changes to funding, such as additional disaster credits, the inclusion of additional boost areas, or more recently, allowing for average income.

WHAT DO YOU SAY? If you have your own thoughts and input on the pros and cons of a 2-Year QAP, we’d love to hear them. You can share your thoughts at www.taahp.org/2-Year-QAP.

Te x a s A f f o r d a b l e H o u s i n g M a g a z i n e

Highridge Costa is among America’s leading developers, financiers, owners, and operators of affordable workforce and senior apartment communities. With over 30,000 units across 290 apartment communities developed and invested in, Highridge Costa brings tremendous development experience to the table. For the past 28 years, Highridge Costa has stood by the vision to create a “Blueprint for a Better Nation”, with our mission being to change the lives of families and seniors across the nation. With a concentration in affordable workforce/senior, mixed income, and mixed-use development, we are building living communities that meet both individual and city growth planning needs.

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us.jll.com/capitalmarkets

over$5B

in affordable housing transactions in 2020 Whether you’re looking to buy, sell or finance – we deliver comprehensive solutions through one integrated platform. • #1 Freddie Mac Top Targeted Affordable Housing Lender in 2020 • #2 Fannie Mae DUS® Producer for Affordable Housing in 2020 • $1.6 Billion Affordable Housing Investment Sales Advisory in 2020 Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated. Loans made or arranged in California are pursuant to a California Financing Law license. © 2021 Jones Lang LaSalle IP, Inc. All rights reserved

Zen Development Consultants LLC (“ZDC”) assists non-profit and for-profit developers of affordable and mixed- income housing at every stage of the development process. HALE MOENA: Zen entitled and secured LIHTC’s, bonds, and $30 million of gap funding for this transformational 3 phased, mixed use development which was among the first high rise buildings in the City Center of Kapolei on the western side of Oahu.

ABOUT US

OUR SERVICES

Founded in 2011 by principal Zen Sawyer, ZDC specializes in new construction and occupied rehabilitation using LIHTC and other subsidized financing sources. We work coast to coast and have experience in 41 of the 50 states. Reflective of the group’s name, Zen and his team embrace a company ethos of focus, honesty, compassion, and calmness, especially when things get hectic.

Our consultants offer a full suite of services spanning the entire development process from conception to completion and beyond. Consulting services include: Acquisitions and Brokerage Services Sourcing and Evaluating New Projects

Development Finance Entitlements Project Management Large-Scale Master Plans Occupied Rehab and Resyndications Asset Management Non-Profit GP Partnership Match-Making

HIRING CONSULTANTS / ASPIRING CONSULTANTS NOW! www.zendevelopment.org Contact: Zen Sawyer, Principal T 818/653-3899 / E zdsawyer@gmail.com 222 Redwood Drive, PO Box 1082, Woodacre, California 94973

Are Utility Allowances Squeezing Your Cash Flow?

There’s a good chance your utility allowances are too high. Realistic utility allowances based on the actual design, construction and energy saving components of your property can save you money!

We Can Help Lower Your Utility Allowances. With the DPC Utility Allowance Program, we’ll perform a property-specific analysis that has proven to lower property utility allowances across the country. Since 2005, DPC has worked with LIHTC properties, local utility providers and engineers to establish realistic utility allowances that meet the requirements of 26 CFR §1.42-10 and the compliance regulations of state housing financing agencies across the country.

Serving the Multi-Family Industry Since 1999 Jim Beats 972-475-9977, ext 101 jbeats@dpcservices.net

The DPC Utility Allowance Program » Meets LIHTC guidelines. » Covers all types of utilities – electric, gas, water, sewer and trash. » DPC utilizes the Energy Consumption Model (ECM) or Written Local Estimate (WLE). » It doesn’t cost anything to find out if you can save money. DCP will provide a no-cost initial analysis to determine if a full study is justified. » Tax credit properties that choose DPC invest a fraction of what they save to put the program in place. » Can include an annual renewal schedule so you have one less compliance issue to deal with.

D P C

DIAMOND

Property Consultants, Inc.

Plummer Associates conducts utility allowance modeling for affordable housing developments across the United States. These properties have the option of conducting energy consumption modeling rather than adopting local utility allowances. In cases where the modeled consumption is lower than the published utility allowance, the owner can increase profits and recover investments in water and energy efficiency upgrades. The cost of conducting an energy consumption model can generally be recovered in less than three months. To date, Plummer has completed more than 300 utility allowance models across 32 states while increasing net revenue for our customers by more than $20 million dollars per year. To learn more about what we do, visit our website at www.plummer.com.

Palladium USA “Changing lives - one apartment home at a time” It’s our motto and how we’ve approached all our developments in Texas for over 30 years. We strive to fulfill the needs of the community and most importantly, our residents. We manage what we build. Our name is on the building and that means everything. Palladium's emphasis and focus is on the great people living at our properties. It is what makes us different and drives us to be better; to build a better product and provide better service. We continue to grow with eight new properties under construction and three more to break ground before the end of the year. Palladium USA | Premier Developers of Quality Multifamily Housing 13455 Noel Road, Suite 400, Dallas, TX 75240 (972) 774-4400

www.PalladiumUSA.com

Palladium Venus Closing Date: June 3rd, 2020

Palladium Port Aransas Closing Date: June 26th, 2020

Palladium West Francis Closing Date: December 11th, 2020

Palladium Garland Senior Living Closing Date: January 11th, 2021

Palladium Fain Street Closing Date: February 18th, 2021

District in Little Elm Closing Date: February 25th, 2021

Dallas Stemmons Closing Date: April 29th, 2021

Con Un str der uct ion

Palladium RedBird Closing Date: October 10th, 2019

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2021 Texas Affordable Housing Magazine

Articles inside

Experts Discuss the Pros & Cons of a 2-YEAR QAP

A Message from TAAHP's Governmental Affairs Committee Chairman

A Message from TAAHP's Executive Director

A Message from TAAHP's 2020-2021 President

A Federal Perspective: Time for Texas to Move the Nation on Affordable Housing

A Re-Cap of the Texas 87th Legislative Session - Affordable Housing Initiatives Inch Forward

HOUSING & THE ECONOMY - Affordable Housing for All - Texas Needs More Housing to Meet Its Potential