NYSAFAH Spring Virtual Symposium Thursday, May 14 Deborah - - PowerPoint PPT Presentation
NYSAFAH Spring Virtual Symposium Thursday, May 14 Deborah VanAmerongen David Gasson Nixon Peabody Boston Capital 212-940-3054 617-624-8896 dvanamerongen@nixonpeabody.com DGasson@bostoncapital.com Robert Moss Emily Cadik CohnReznick
Thursday, May 14
Deborah VanAmerongen Nixon Peabody
212-940-3054 dvanamerongen@nixonpeabody.com
David Gasson Boston Capital
617-624-8896 DGasson@bostoncapital.com
Robert Moss CohnReznick
617-648-1400 Bob.moss@cohnreznick.com
Emily Cadik Affordable Housing Tax Credit Coalition
832-515-9975 emily.cadik@taxcreditcoalition.org
Tenant-Based Rental Assistance
$1.25 billion These funds will preserve Section 8 voucher rental assistance for seniors, the disabled, and low-income working families who will experience loss of income from the coronavirus.
Project-Based Rental Assistance
$1 billion This additional funding will make up for reduced tenant payments as a result of
assistance will prevent low-income families and individuals from being at risk of homelessness.
3
For more information on this topic, please see Nixon Peabody’s alert: Housing related provisions in “Phase 3” coronavirus stimulus
— Up to three 30-day requests, 90-day total — A federally backed multifamily mortgage loan (FannieMae; Freddie Mac; or FHA-insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the federal government, HUD, or ”related program administered by any other such officer”) Mortgage must have been current as of February 1, 2020 — Oral or written request — HUD Multifamily can use MBA Forbearance Agreement — Owner must be experiencing a financial hardship during the COVID–19 emergency — Authority from March 27, 2020, and sooner; end of emergency as declared by the president; or December 31, 2020 — Eviction moratorium provision tied to forbearance (forbearance period plus 30 days) is similar, but doesn’t match up exactly with the eviction protections in the law
4
Eviction moratorium of 120 days starting March 27, 2020, and runs through July 24 — plus 30 days' notice. Prohibits noticing or filing for eviction for nonpayment of rent and prohibits assessing penalties/fees.
Applies to:
— Tenants with or without leases — In occupancy in a covered property — Condos and coops — Direct, insured, guaranteed, supplemented, assisted in any way — FHA — Fannie, Freddie — Rural Housing Vouchers — VAWA
5
VAWA Programs: — Low-Income Housing Tax Credits — Section 8 Project-Based Rental Agreements — Section 8 Mod Rehab SRO — Housing Choice Vouchers — Public Housing — Section 202 Housing — Section 811 Housing — Section 236 Housing — Section 221(d)(3) (BMIR) Housing — HOME — HOPWA — McKinney-Vento Homeless Assistance Title IV programs — Rural Rental Housing — Housing Trust Fund
6
The Federal Eviction Moratorium does not:
— Cover evictions for reasons other than nonpayment of rent — Cover evictions in process when the Act was passed — Change the fact that rent is owed Note: The moratorium relief for tenants is far broader in time and scope than the mortgage forbearance relief. NEED TO check state or local law, as well as whether courts are open and taking new cases in your jurisdiction.
7
Type of impact Properties receiving Section 8 or other HUD/RD-funded rental assistance (202, 811, 515, etc.) Properties with “federally backed” mortgages (Fannie, Freddie, FHA) Properties with conventional financing LIHTC Properties/properties participating in HOME program Rental income sustainability (ability to maintain pre- COVID-19 rental revenues) Should experience limited reduction in rental income (mostly reduction in tenant share of income) May experience significant income shortfalls (tenants unable/unwilling to pay rent) May experience significant income shortfalls (tenants unable/unwilling to pay rent) May experience significant income shortfalls (tenants unable/unwilling to pay rent) Eviction Moratoriums Subject to CARES Act/state/local moratoriums Subject to CARES Act/state/local moratoriums Not subject to CARES Act moratoriums but are subject to state/local moratoriums Subject to CARES Act/state/local moratoriums Mortgage Forbearance Depends on financing, if Federally-backed then covered Mortgage forbearance available Mortgage forbearance N/A; negotiation specific to each lender and property possible Depends on other financing, covered if federally backed SBA/PPP Assistance – Provides “forgivable” loans to small businesses to maintain payroll, pay mortgages, etc. – SBA interim rule overrides CARES Act, limits availability for multifamily housing purposes EIDL program Expands existing SBA Economic Injury Disaster Loan program Main Street Lending New Federal Reserve program for loans to small/medium businesses; not “forgivable”
8
9
⎯ Nixon Peabody Affordable Housing Website ⎯ Nixon Peabody Coronavirus Response Team ⎯ Nixon Peabody’s COVID-19 Affordable Housing Update 2.0 Webinar – April 13th ⎯ Nixon Peabody’s COVID-19 Affordable Housing Update Webinar – March 31st
10
Extensions of key deadlines to accommodate construction and lease-up delays during the crisis A minimum 4 percent Housing Credit rate to support the development of affordable housing at a time when the "4 percent" Housing Credit rate has fallen to an all-time low of 3.08 percent as a result of federal borrowing rate cuts
— Would finance 126,000 more affordable homes over the next decade
Lower the “50 percent test” threshold for private activity bond financing required to access 4 percent Housing Credits Allocate substantial appropriations to be used for rental assistance,
11
12
13
Increase the annual 9 percent Housing Credit allocation by 50 percent, phased in over two years at 25 percent per year, and adjusted for inflation, beginning in 2021 Provide the additional basis boosts if needed for the financial feasibility
— 30 percent basis boost for developments financed using Multifamily Private Activity Bonds, — 50 percent basis boost for developments serving extremely low-income tenants, — 30 percent basis boost for developments in rural areas, and/or — 30 percent basis boost for developments in Native American communities
Other Proposals Under Consideration
— Address adjuster issues — Increase cap on investment in credits
14