Low Income Housing Tax Credit Program Smoke-free Housing Policies - - PowerPoint PPT Presentation

Low Income Housing Tax Credit Program Smoke-free Housing Policies (2015)

April 9, 2015

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Common Law State and Local Statutes and Codes Federal Policies, Laws & Disability Statutes

Voluntary/Grassroots Incentives/Education Regulations

Strength and breadth of policy option

Basic Laws (not specific to smoke-free efforts)

Laws and Policies

Presenters

• Kayla Schuchman

Manager of Multifamily Programs Minnesota Housing

• Anna Stein

Legal Specialist Chronic Disease and Injury Section NC Division of Public Health

• Jessica Yamauchi

Executive Director Hawaii Public Health Institute dba Coalition for a Tobacco-Free Hawaii

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Public Health Law Center

April 9, 2015

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Our Mission:

Minnesota Housing finances affordable housing for low- and moderate-income households while fostering strong communities.

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Overview

• About the LIHTC
• LIHTC in Minnesota
• Minnesota Housing’s QAP
• Minnesota Housing’s Smoke-Free Policy

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About the LIHTC

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About the LIHTC

• LIHTC is a Federal Resource Governed by IRS

law

• LIHTC Provides Tax Credits to Investors in

Affordable Housing

– Reduces Investor’s Federal Tax Liability for 10 Years – In Exchange Investor Buys LIHTC & Agrees to 30 Years of Affordability – Proceeds from Sale Used for Affordable Housing

12

About the LIHTC

• Volume Cap credits (“9% credit”)

– Competitive credit

• Non-Volume Cap credits (“4% credit”)

– Non-Competitive credit – Associated with Tax Exempt Bonds

13

LIHTC in Minnesota

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LIHTC in Minnesota

• The Statutes establish multiple allocating

agencies

– Minnesota Housing – Suballocators

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LIHTC in Minnesota

City of Minneapolis

Community Planning and Economic Development

City of Saint Paul

Department

• f Planning

and Economic Development

Dakota County

Dakota County Community Development Agency

Washington County

Washington County HRA

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LIHTC in Minnesota

• MN Allocation: $12 Million, Raising $110M for

Affordable Housing Annually

• Of the $12M Allocation:

– Minnesota Housing: $8M – Suballocators: $4M

• Section 42 requires Allocation Plan

Establishing Priorities

• Minnesota Housing & Suballocators each have

a Qualified Allocation Plan

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Minnesota Housing’s QAP

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Minnesota Housing’s QAP

• Self-Scoring Worksheet - Memorialized in LURA
• Leverage/Readiness to Proceed
• Preservation of Federally Subsidized

Housing/Rent Assistance

• Ending Long-Term Homelessness
• Economic Integration, Transit Access,

Workforce Housing Communities

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Minnesota Housing’s Smoke-Free Policy

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Minnesota Housing’s Smoke-Free Policy

• Smoke-Free Housing Incentive Implemented

June 2010

• Goals:

– Reduced Operating Costs – Reduced Future Rehabilitation Costs – Reduced Risk of Fire – Improved Health Outcomes

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Minnesota Housing’s Smoke-Free Policy

• Incentive is worth 1 point out of approx 200

– Optional vs. Threshold – Cultural/Religious & Supportive Housing

• Occupancy Policy Prohibiting Smoking in All

Units & Common Areas

• Non-smoking Clause in All Leases
• 30-Year LURA

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Minnesota Housing’s Smoke-Free Policy

• 2,376 units since implementation June 2010
• 73% of 9% LIHTC projects funded are smoke-

free

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For More Information

Contact:

Kayla Schuchman kayla.schuchman@state.mn.us 651.296.3705 www.mnhousing.gov

USI NG T HE L OW I NCOME HOUSI NG T AX CRE DI T PROGRAM T O PROMOT E SMOKE

• F

RE E HOUSI NG POL I CI E S: HAWAI `I ’ S L E SSONS

By: Je ssic a Ya ma uc hi, E xe c utive Dire c to r Co a litio n fo r a T

• b a c c o -F

re e Ha wa i`i A pro g ram o f Hawai`i Pub lic He alth I nstitute

T YPE S OF HOUSI NG

 T

hre e type s of housing in Ha wa i` i: Ma rke t-ra te , Pub lic Ho using , T

a x-Cre dit Pro pe rtie s(a ffo rda b le ho using ).

 Pub lic Ho using :

 Ha wa i`i’ s ho using is uniq ue b e c a use we ha ve ONE

Pub lic Ho using Autho rity fo r the sta te .

 Ha wa i`i Pub lic Ho using Autho rity (HPHA) ma na g e s o ve r 80 pro pe rtie s thro ug ho ut the

sta te

 T

a x-Cre dit Pro pe rtie s (a ffo rda b le ho using )

 Ma na g e d b y Ha wa ii Ho using F

ina nc e a nd De ve lo pme nt Co rpo ra tio n (HHF DC)

 Ma rke t-ra te multi-unit dwe lling s

 Ha wa ii is a lso uniq ue with ve ry fe w a pa rtme nts ma inly c o ndo miniums.

HI ST ORY OF SMOK E

• F

RE E HOUSI NG I N HAWAI `I

 2010 smo ke -fre e ho using initia tive pic ke d up fo r the Co a litio n.  CT

F H sta rte d re se a rc hing smo ke -fre e ho using a nd mo re e ffe c ts o f se c o ndha nd smo ke , third ha nd smo ke a nd b e g a n o utre a c hing to a ll type s o f ho using .

 De ve lo pe d a we b site a nd a to o lkit to he lp with pro c e ss (fo c use d o n ma rke t

ra te ).

 Ha wa ii Pub lic Ho using Autho rity:.

 T

a lks we re sta lle d in 2010. Ne w E D a ppo inte d in 2012 a nd HPHA wa s inte re ste d in a smo ke -fre e po lic y

 2012, Ha wa i`i Sta te L

e g isla ture pa sse d a la w ma nda ting a ll pub lic ho using b e SF b ut the Go ve rno r ve to e d it.

 I

n June 2014 a simila r b ill pa sse d a nd b e c a me la w, HRS 356D-6.5.

HHF DC (AF F ORDABL E HOUSI NG)

 I

n 2011 the Co a litio n a nd DOH le a rne d a b o ut the Qua lifie d Ac tion

Pla n (QAP).

 I

n 2011-2012 the (QAP) fo r HHF DC wa s unde rg o ing c ha ng e s a nd CT F H pro po se d a smo ke -fre e ho using QAP po int to b e imple me nte d.

T he propose d polic y:

De ve lo pe rs wo uld re c e ive 1 po int o n the QAP fo r imple me nting a smo ke -fre e po lic y fo r the de ve lo pme nt.

PASSI NG T HE POL I CY

 HHF

DC se nio r sta ff in the o rg a niza tio n we re suppo rtive b ut the E xe c utive Dire c to r (E D) wa s no t o n b o a rd.

 CT

F H a nd DOH c o ntinue d to pro vide te stimo ny fo r the QAP

 We a lso me t with ma na g e me nt a g e nc ie s a nd de ve lo pe rs tha t

wo rke d with HHF DC a nd suppo rte d the initia tive .

 T

he re wa s no suppo rt fro m E D to ma ke sig nific a nt c ha ng e s in the QAP

 L

e sso ns le a rne d

HHF DC MANDAT E D SMOK E

• F

RE E HOUSI NG POL I CI E S

 In 2014 DOH a nd CT

F H we re no tifie d b y HHF DC tha t the 2015 QAP wa s o ut fo r re vie w with a ma nda te d po lic y tha t a ll pro pe rtie s b e smo ke -fre e (mo ving fo rwa rd). (A ne w E D wa s in pla c e )

 Pr

• pose d polic y: to ma nda te a ll ne w ta x-c re dit pro pe rtie s a nd e xisting pro pe rtie s b e ing

so ld/ re no va te d will b e smo ke -fre e .

 I

n F a ll o f 2014 CT F H a nd DOH pro vide d te stimo ny fo r the QAP to HHF DC a nd the po lic y pa sse d!

 We fe e l tha t the la w tha t pa sse d fo r pub lic ho using he lpe d to mo ve the ne e dle with ta x-c re dit

pro pe rtie s.

 Cur

r e nt r ule is:

Smo ke F re e : All pro je c ts to b e b uilt smo ke fre e o r e xisting b uilding s b e ing so ld/ re no va te d to b e c o me ta x-c re dit pro pe rtie s. Owne rs must pro hib it smo king in a ll indo o r c o mmo n a re a s, individua l living a re a s (inc luding b a lc o nie s a nd la na is), a nd within 25 fe e t o f b uilding e ntrie s o r ve ntila tio n inta ke s. A no n-smo king c la use must b e inc lude d in the le a se fo r e a c h ho use ho ld. Sub mit c e rtific a tio n (re fe r to e xhib it list o f the Co nso lida te d Applic a tio n).

NOW WHAT ?

 CT

F H a nd DOH still c o ntinue to wo rk o n smo ke -fre e ho using in Ha wa ii.

 HPHA- we a ssist with e duc a tio n a nd imple me nta tio n o f the

la w.

 Curre ntly wo rking o n ho w HPHA c a n turn smo ke -fre e

po lic y into a ne w b e g inning fo r Pub lic Ho using .

 Also he lps a ssist o lde r a ffo rda b le ho using pro je c t like

T

• we rs o f K

uhio Pa rk (a priva te -pub lic pa rtne rship)a nd

• the rs with e duc a tio n a nd imple me nta tio n o n a smo ke -

fre e po lic y.

 Assist HHF

DC in a ny q ue stio ns re g a rding the ne w po lic y.

 Assist Ma rke t-ra te ho using BOD a nd individua ls push smo ke -

fre e po lic e s.

MAHAL O!

 With c o ntinue d suppo rt, mo re multi-unit

ho using pro pe rtie s will b e smo ke -fre e sa ving tho usa nds o f pe o ple fro m se c o ndha nd smo ke ha rms.

 We a re c ha ng ing so c ia l no rms!  www.ha wa iismo ke fre e ho me s.o rg

Achieving a Threshold Requirement for Smoke-Free Housing in North Carolina’s 2015 QAP

Anna Stein, JD, MPH Legal Specialist, Chronic Disease and Injury Section NC Division of Public Health

Initial Discussions with Housing Finance Agency

• NC QAP has many provisions that contribute to

residents’ health and well-being; smoke-free policies would seem to be a logical addition

Examples:

– Points for lack of neighborhood blight – Points for proximity to grocery store or pharmacy – Points for not being near hazardous materials storage

• NC Housing Finance Agency indicated in 2011 that

a request for smoke-free policies to be added to QAP would be most persuasive if it came from housing industry

Building Relationships with the Affordable Housing Industry

• Educating industry about smoke-

free policies at conferences, lunch and learns, sit-down meetings

• Providing technical assistance to

affordable housing management companies to go smoke-free – Help conducting resident meetings – Cessation resources

• Results: Worked with 2 large

affordable housing management companies in NC to go smoke-free at all their properties

Critical Connection: Equity Syndicators

• Met with contact at regional non-profit equity syndicator
• Equity syndicators are essential to the process of using tax

credits to build affordable housing

– Affordable housing developers compete for tax credits through QAP process – Once developers win tax credits, they still need money upfront to build properties – Syndicators find investors to give money to developers to build affordable housing in exchange for investors’ use of the tax credits

• Given their critical role in the system, equity syndicators have

clout with housing finance agencies

• Syndicators maintain an ownership interest in the properties

they finance, so they are concerned about property maintenance and fire prevention; smoke-free policies are a natural fit for their interests

• Housing finance agency indicated in a March 2014 meeting

with equity syndicator that it was receptive to adding smoke- free requirement to QAP

The NC QAP Process

• August 2014: Deadline for written comments for 2015 QAP

– NC Alliance for Health made request for smoke-free requirement and gave suggested language

• Looked at other states’ incentives to craft language
• Wanted language to be concise but detailed enough for clear implementation

– NC Division of Public Health submitted information about the benefits of smoke-free policies http://www.nchfa.com/rental/RD2015Commentsqap.aspx

• September 2014: NC Housing Finance Agency released proposed 2015 QAP containing

smoke-free requirement

• October 2014: Public hearing on proposed QAP

– Developers supportive of smoke-free policies attended – Head of NC Tobacco Prevention and Control Branch attended

• December 2015: Final version of 2015 QAP released with smoke-free requirement

“Owners must prohibit smoking in all indoor common areas, individual living areas (including patios and balconies), and within 25 feet of building entries or ventilation

• intakes. A non-smoking clause must be included in the lease for each household.”

Lessons Learned

• The benefit of waiting to seek

policy change until you have your “ducks in a row”

• Who is the proper messenger?

– Public health benefits from having industry partners when talking to regulators – Smoke-free housing is a unique “win-win” for public health and industry

Contact us

Warren Ortland warren.ortland@wmitchell.edu (651) 290-7539 www.publichealthlawcenter.org