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The latest in industry news with the insight of Dominion Due Diligence Group (D3G) President, Rob Hazelton

 

Virginia to get nearly $7 million in funds for affordable housing

(Pictured above: Dale Homes)

Congratulations to all of those involved!   Dominion Due Diligence Group (D3G) was proud to have worked on New Clay House; Dale Homes; and Sun Valley Landings, contributing a combined $42.1 million to affordable housing in Virginia.  Working on 3 of 5 recipients is not too shabby!   

More info

Update: Midwest Lenders' LIHTC Workshop

I am currently attending the Midwest Lenders' LIHTC Workshop in Chicago. The conference has been very informative so far and I have taken part in many interesting discussions. Lots of good knowledge and best practices being shared... But I'm not sure which is more lively, the conversations or the carpeting!

 

RAD, Columbia Housing and Redevelopment Corporation, & D3G

D3G is honored to have been involved with the Columbia Housing and Redevelopment Corporation and LHP Development, LLC with the preservation of 296 public housing apartments, participating in the HUD Rental Assistance Demonstration (RAD). 

This five (5) property portfolio was successfully awarded 9% LIHTC from the Tennessee Housing Development Agency.  D3G’s professional services were important with this Section 8 PBRA transformation and included a property condition assessment, energy auditing, environmental assessment, and utility allowance analysis. The development team should be commended for their commitment to energy efficiency with the proposed rehabilitation.  

http://columbiadailyherald.com/news/local-news/columbia-housing-secures-68-million-rehab-project

 

Update: NCSHA Housing Credit Connect 2016

HUD Deputy Assistant Secretary for Multifamily Housing, Priya Jayachandran, and NEF Vice President, Catalina Vielma, provided a wonderful RAD update at NCSHA's Housing Credit Connect 2016.

A few major bullet points to take away from their update:

  • 32,000 units of RAD closed to date and another 20,000 with RCC or financing plan submitted; that equates to about 52,000 units of success!
  • 81,000 with active chaps with HUD involvement
  • $2.2 billion in construction dollars leveraged with closed transactions.
  • 53% of closings consist of 4% or 9% LIHTC
  • 17% new construction 

 But HUD wants and needs more on the waiting list! PHAs, hear the call!

SWAC and SMAC 2016 - Conference Overviews

I recently got back from the SWAC meeting in Fort Worth, Texas, and the SMAC meeting in Atlanta, Georgia.  Both were very informative and great events. 

D3G’s staff were invited to present and train on topics of engineering, environmental, and energy as they apply to the 2016 MAP Guide and the MIP Reduction Notice.   A few of the things I learned from the conferences:

a.      Transformation is hard to do. Fort Worth is two years removed from the process and Atlanta is currently in the midst of transformation – and when asking Lenders and HUD staff how is the process going, the four letter word most heard was not “easy”.     

 b.     Training is needed for HUD, Lenders, and Practitioners alike. It is evident during these times of changing policies and guidebooks that quality training is needed more than ever.  The Single-Underwriter Model, a keystone of the transformation, relies upon the premise of a very knowledgeable HUD representative who understands the technical due diligence subject matter, as well as multifamily underwriting.  

 c.     The MIP Reduction Notice for Green Buildings is energizing the FHA markets in two ways. First (and best) is the blitz of conventional product that wants to achieve the reduced MIP.  Second (but worst) is the misinformation in the marketplace about how easy it is.  It is not that easy, and we all should be reminded of HUD’s best line of the conference when presented with the question: “What if I don’t get an energy score of 75 post-construction?”  Answer:  Death Star activated.  HUD was very clear, a non-compliant property will be forced into compliance, or else.

d.     The Georgia Accessibility Law often referenced by the Atlanta HUD office may not be enforceable.

e.     Balconies, Noise, and HUD currently don’t make a good mix and compromise needs to be reached to allow for the development of vibrant urban housing and transit oriented developments.

And finally, SMAC knows how to throw an event in celebration of 15 years, and dancing to the sounds of The Brotherland was fun! 

For more information regarding the above topics and others, please be on the lookout for our next newsletter, which will be distributed in early June. Until then, keep sending us your inquiries concerning all things HUD.

 
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