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President Obama Releases Final Budget with significant investment in Community Development Initiatives.

The President’s Budget is out and throughout D.C. advocates are scouring the provisions.  While the Republican controlled Congress is refusing to invite the OMB Director to present the budget (as is customary) the President’s budget does set forth much of the terms of the debate.  Here are a few highlights in our areas of focus.  A fuller briefing is forthcoming..

 

The President proposes to make New Markets Tax Credit permanent at $5B annual authorization.

“To support private-sector partnerships and investments that play a key role in strengthening communities, the President also proposed to expand and make permanent the New Markets Tax Credit, which promotes investments in low-income communities. Under legislation signed into law by President Obama in December, $3.5 billion in New Markets Tax Credits will be available annually through 2019. The Budget would make the program permanent with an annual allocation of $5 billion.”

 

The CDFI fund is increased by 5.3% and includes a new small dollar loan program advocated by Sen. Sherrod Brown to provide an alternative to predatory lending.

“Promoting economic development in low-income and underserved communities through a $12 million increase (5.3 percent) from FY 2016 for the Community Development Financial Institutions Fund for a total of $246 million”.

“The Obama administration is proposing to fund a program that would offer small-dollar loans through Community Development Financial Institutions. The proposal would dedicate $10 million toward the program. The plan would “support broader access to safe and affordable financial products and provide an alternative to predatory lending,” the administration said in the budget.”

HUD funds the HOME program at $950M and the Housing Trust Fund dollars generated by FHA will be used to assist local communities to create and preserve affordable housing.

“The White House is requesting in its fiscal 2017 budget proposal a new fee the Federal Housing Administration would charge mortgage lenders on the loans the agency insures.

FHA would raise $30 million from the fees that would be spent in part to upgrade its dated computer systems.”

“The budget includes a $1.2 billion increase for a Housing and Urban Development Department program that provides rental assistance to very low-income families and allows them move into safer neighborhoods. Another $15 million would be provided to start a pilot program that would counsel these renters on how to move and stay in their new homes.”

“The White House is also requesting $11 billion as part of an effort the president announced in his first term to end family and youth homelessness by 2020. The money would be spent over the next 10 years to provide new housing vouchers to families with children and set up more permanent properties for chronic homeless”

 

A special office dedicated to P3 is proposed in Treasury called Financing America’s Infrastructure to provide direct loans to infrastructure projects developed through public/private partnerships

“The Budget establishes a new Financing America’s Infrastructure Renewal (FAIR) program within Treasury that would provide direct loans to U.S. infrastructure projects developed through public-private partnerships. Eligible projects under the program will encompass the transportation, water, energy, and broadband sectors, as well as certain social infrastructure, such as educational facilities, and must meet all applicable environmental and labor standards. The program is estimated to provide $15 billion in direct loans over 10 years at no cost to taxpayers.”

 

 

ACTION ALERT – Sign on to increase FY 2017 funding

Important information from our partners at NACEDA.

President Obama released his FY 2017 budget proposal today.

Now, Congress begins deliberations on how to slice the budget pie.

Sign onto a letter urging leaders of the House and Senate Appropriations Committees to allocate the highest possible levels of funding to the Transportation, Housing and Urban Development, and Related Agencies (THUD) Subcommittees for Fiscal Year 2017.
Read the full letter.

Act now!

  1.     Sign the letter.
  2.     Share the letter with your networks.

The deadline for organizations to sign on is Friday, February 19. House and Senate appropriators need to hear from your organization.

Sign on now.

House Unanimously Approved Rental Assistance Reform Legislation

Last week the House approved the Housing Opportunity Through Modernization Act of 2015 (H.R. 3700), which contains many reform provisions that will improve upon existing rental assistance programs while achieving modest cost savings. The legislation passed with unanimous bipartisan support by a vote of 427-0. The Center on Budget and Policy Priorities released a paper last week explaining how H.R. 3700 would build on the effectiveness of rental assistance programs by improving access to high-opportunity areas, helping to address homelessness, reducing administrative burdens for housing agencies, strengthening working incentives, helping to preserve public housing and improving resident quality of life.

The White House also issued a statement on the bill stating that it “appreciates the bipartisan effort to modernize and improve federal housing programs,” but noted some changes it would seek related to Federal Housing Administration (FHA) requirements as the bill moves forward. Though its timeline for consideration in the Senate is unclear, the overwhelming support in the House suggests that this critical legislation is well positioned to be enacted in a year that may otherwise boast few legislative achievements.

REACH OUT TO YOUR MEMBERS TODAY,

The path forward in the Senate will depend on housing advocates reaching out to Senators!

NDC Training ALERT: Space is Limited – Register Now!

Due to the overwhelming response to the upcoming ED101-Economic Development Finance course scheduled in Minneapolis, MN on February 1-5. NDC has added an additional ED101 course to accommodate the waiting list. Space is limited for the rest of the Economic Development Finance Professional Certification™ (EDFP) series (ED201, ED202 and ED300) at the Minneapolis training site…

…so register now to reserve your spot!

NDC Reaches Capacity, Adds Another ED101

The overwhelming response to the upcoming ED101-Economic Development Finance course scheduled in Minneapolis, MN on February 1-5 prompted NDC to add an additional ED101 course to accommodate the waiting list. Space is becoming limited for the rest of the Economic Development Finance Professional Certification™ (EDFP) series at the Minneapolis training site.

Register now to reserve your spot!

 

Thank you to our 2015 training sponsors and partners

Thanks to our 2015 training sponsors and partners for building new skills and capacity in development professionals across our nation. Skills and capacity that deliver critical jobs, small business expansion, affordable housing and community facilities where they’re needed most.

BB&T
Citi Foundation
U.S. Department of Housing and Urban Development (HUD)
International Economic Development Council (IEDC)
National Trust for Historic Preservation
City of Cleveland
Enterprise Community Partners
Florida SBDC
Housing Alliance of Pennsylvania
Seattle King County Housing Consortium
Virginia Housing Development Authority (VHDA)
CIT Bank
American Express
Ally Bank
Indiana Association for Community Economic Development (IACED)
North Texas SBDC
Ohio Housing Finance Agency (OHFA)
San Antonio for Growth on the Eastside (SAGE)
U.S. Bank
West Virginia Housing Development Fund (WVHDF)
Community Economic Development Association of Michigan (CEDAM)
Michigan State Housing Development Authority (MSHDA)
Connecticut Housing Finance Authority (CHFA)
Community Ventures
Housing Association of Nonprofit Developers (HAND)
Louisiana Housing Corporation
State of Louisiana Office of Community Development-Disaster Recovery Unit (LA OCD-DRU)
Minnesota Housing Finance Agency
National Main Street Center
North Dakota Housing Finance Agency (NDHFA)
South Carolina Association for Community Economic Development (SCACED)
South Carolina Community Loan Fund (SCCLF)
Pennsylvania Economic Development Association

Learn more about why housing and economic development networks, state and local governments, community development banks and charitable foundations across the U.S. sponsor NDC training for their staff and development partners.

NDC Trained Over 3,600 Development Finance Professionals and Certified 357 in 2015

Congratulations to the following participants who became Economic Development Finance Professionals (EDFPs),  Housing Development Finance Professionals (HDFPs) or Historic Real Estate Development Finance Professionals (HREDFPs) in 2015!

Economic Development Finance Professionals (EDFPs):

Blong Lee Sheila Wheeler Daniel Park
Victor Dau Bob Weston Jay Headley
Janis Mueller Monique Holliday Bettie Ted Dickey
Mark McKnight Eddie Watson Mark Nelson
Johnnie Marshburn Kevin Markielowski Edi Friedlander
Teresa Scarlett Jacob Kuester Elaine Kennedy
Fran Scarlett Jennifer Boulanger Robin Weis
Bion Schulken Albert Tasker Philip Knutson
Mike Seibert Christina O’Brien Kyle Niemann
Jennifer Sherwin Christine Bekes Scott Amundson
Micah Kordsmeier Laura Million Lori Frederick
Dan Levine Ronald Carter Shannon Benolken
Debra Hamilton Farley Phu-Christine Lam Vince Yokom
Meredith Flowe Tracy Verrier Elizabeth Pierre
Owen George Robin Berry Mark Zimmerman
Jane Ellis Loretta Richardson Jason Nitschke
Thomas Dennison Iris Cotto Darlene Moore
Byron Hicks Kathryn Darville Luke Robinson
Amanda Archer Melissa McLaughlin Tamera Adams
Nicholas Auten Brianna Zhang Michelle Cunningham
Ariana Billingsley Joseph Willauer Melissa Dansereau
Nancy Burleson Lisa Sich Dan Rolfs
Tamara Bynum Doug Nelson Nicole Robben
Donnetta Collier Barbara McGowen Tyler Rossmaessler
Scott Daugherty Paul Cooney Charlene Paddock
Charles Williams James Becker Andrew Freeeman
Pieter Swanepoel Erik Wilford Mary Ann Faulkner
Tom Tanner Jeff Rouzie Kyle Rauch
Michael Twiddy Brent O’Neil Michael Wojcik
Melvin Wallace Trisha Viss Constance Bachman
Tracy Ward Amy Hofer Clifford Long

Housing Development Finance Professionals (HDFPs):

Frank George Tiffany Sokol Marguerite Carlson
Nicole de Lima Morris Jeannette Welsh Carolyn McQuairter
Isaac Orona Samantha Makoski Demetria Farve
Erica Hudson Jonathan Adkins Wendy Hall
Donna Martino Kelan Craig Jonathan Wesley
Zachary Elliott Stacia Pugh Barbara Gagnat McCoy
Misty Sheck Seth Walsh Frankline Kimbeng
Catherine Colby Nick Balow Desiree Armstead
Teresa Sarver Tony Bango Collette Mathis
Beth Blankenship Kathy Berry Ray Rodriguez
Chris Bontoft Jeff Campbell Kyle Chintalapalli
Marlena Mullins Denise Russell Michael McMunn
Stephen Fisher Omri Gross John Davis
Landen Burcham Eric Skidmore Joel Segel
Darlene King Tonya Brunner Laura Guralnick
Debra Payne Jasmine Grant Stacie Reidenbaugh
Megan Howard Andrea Bruno Rich Kisner
Niki Rowe-Fortner Adam Rice John Bryson
Alice Carver Jillian Bolino Renee Kent
Dustin Nitcher Julie Alford Bridget Coyne
Michelle Renee Wolf Samantha Reeves Kelly Wilson
Sean Chapman Ian Beniston Lori Graham
Staci Tillman Andrew Ross Bailey Julie Collins
Meghan Carbone Anya Kulcsar Ed Nusser
Sharon Vogel Robert Bender Whitney Stinebiser
Karen Briggs Gwin Jonathan McKay David Howe
Gonletuo Ward Kathy Hottinger Jack Brown
Jonathan Cabral Yuliya An Litvak Shaina Madden
Alyse Jackson Kathryn Gillespie Jeremy Bloeser
Joseph Rizzo Jack Daugherty Maureen Quinn
Matthew Page Heather Abramowski Darlene Robinson
Dominc Carew Lori Miller Nathan Wetzel
Ashleigh Rivard Josh Anderson Carol Tsoi
Amy Allred Tray Bratz Kate Swanson
Lauren Mathisen Tara Campbell Jon Hoffmann
Janet Masella Celia Elkins Iris Whitworth
John Poulsen Joseph Giuliano Megan Krider (Zumbrun)
Jacob Gelb Annie Schappacher Peter Kiburi
Kristen Cane Christopher Hall Tim Althof
Richard Loo Krystal Cantrell Steve Kambic
Jenny Weinstein Myia Batie Deborah Williams
Justin Bombara Julia Carter Colleen Ritter
Whitney Rearick Teresa Kazee Zinat Naderi
Steve Yago Tim Tilton Seson Taylor-Campbell
Minkailu Jalloh Rick Dorris Keith Cunningham
Sibyl Glasby Leslie Morishita Orlando Velez
Nathan Peppin Sojung Choi Kelly Sowards Opot
Robert Knox Jeff Haley Mindy Cochran
Alyssa Mehl Urshala Hamilton Jess Peterson
Wendy Lawrence Alvin Johnson Robin Corak
Patrick Tippy Amy Newlun Leroy Moore
Dena Harris Thomas Latour Kristy Seyfert
Lara Diaconu Robert McNeese Amy Grantham
Joshua Jorgensen Lisa Bergeron Sheila Harper
Jason Hennigan Jessica Guinn Gilbert Medina
Ainsley Close Janelle Dickey Pamela Thomsen
Jill Stanton Nicole Carter William Bedford
Eric Swagerty Marjorianna Willman Jeremy Jostand
Annie O’Rourke Alex Stewart Kimberly Ashkenazi
Diana Kim Matthew Sanders Sherry Daniels
Deborah Leasure Joseph Rossman Antonio Henson
Vicky Hoffman Starr Moore LaKisha Thomas
James Downing Dione Milton Nathan Clark
Joan Isbell Tony Casale Arthur Eyre
Leona Smith Omar Cortez Angel Rodriguez
Rodney Smith Jacob Richardson

Historic Real Estate Development Finance Professionals (HREDFPs):

Robin Beckett Paul Wackrow Elise Haremski
Regina Brewer Amy Webb Irving S Moses, JR.
James Ciccolo April Wood Joanna McKnight
Kimberly Collins Kimberly Bahnsen McCarron Marion Meginnis
Ann Cousins Anne Nelson Rebeckah Blossman
Jane Covington Anne Ketz Kathleen Taus
Mindy Crawford Alana Stamas Scott Newman
Joel Gilman Frank Ordia Melissa Jest
Catherine Gorman Peter Zanghi Evan Kaufman
Erin Hammerstedt Elizabeth Shultz Trudy Andrzejewski
Amie Hayes Lolly Barnes Caitlin Meives
Isaac Kremer John Simone Angela Urban
Kevin Kuckelman Elizabeth Rosin Mike Badenbaugh
Frank Quinn Ray Scriber Jim Wilson
Rhea Roberts Erica Duvic Mandela Kazi
Daniel Ronan Martha Lauer Todd Morgan
Kate Ryan Amy Cole Debra Felske
Genelll Scheurell Jennifer Brennan Maryann Miller
Rhonda Sincavage Russell Waddell Ben Sutton
Lucy Strackhouse Jeffrey Murdock Michael Fleenor
Erin Tobin Beth Wiedower Daniel Serda
Kim Trent Jennifer Robinson

 

Breaking News: House passes $680 Billion Tax Bill

The House voted today to pass the Protecting Americans from Tax Hikes Act of 2015. On Friday the House will vote on the $1.1 trillion omnibus bill that funds the government through September 2016. The Senate is expected to take up both measures on Friday signaling the end of legislative business for 2015.

Negotiations are Finished Here is the Rundown of the Omnibus and Tax Package

On December 16th, the House leadership filed the conference report on the FY 2016 Omnibus Appropriations bill.  The $1.1 trillion bill includes appropriations for federal agencies both domestic and defense and is $50 billion above the FY 2015 comparable level.  The companion tax bill called the PATH Act (Protecting American Against a Tax Hike) totals $650 billion over 10 years.

Reading below you will see that housing and community development programs fared reasonable in the era of austerity. Many believe the increase of $50 billion agreed to this fall cost House Speaker John Boehner his job.  The relatively small increase – less than 5% – pales in comparison to the reductions in discretionary spending since the enactment of the Budget Control Act of 2011, but is nonetheless welcome and has cleared the way for a reasonably good outcome.

In HUD programs CDBG continues at the current rate and HOME, after defying death in Senate ended up with an $50 million increase. The conference agreement does not include House language that prevented GSE funding for the National Housing Trust Fund, authorized under the Housing and Economic Recovery Act (HERA) of 2008, thus clearing the way for implementation.  SHOP receives an appropriation of $55.7 million. The HUD 108 loan program continues at $300 million.

The CDFI Fund fared well with the highest appropriation in its history at $233.5 million. In addition, the Fund will have available money from HERA to implement the Capital Magnet Fund, has not received an appropriation in several years.

For the USDA Rural Housing programs, the bill represents the largest appropriation in recent memory and at least since the Federal Credit Reform Act of 1992 changed accounting for federal loan programs. The reason for this increase supports rural rental assistance.  The FY 2016 appropriation totals almost $1.4 billion. It is over $200 million above the budget request and $300 million, above the FY 15 level.  That amount includes $75 million for contract renewal within the 12 month period through September 30, 2017.  The bill requires USDA to provide quarterly reports on renewals, the amount of rental assistance funding available and anticipated need the balance of the fiscal year.

Other rural provisions of the FY 16 spending are more or less at the current rate.  Congress continues single family loan programs at the FY 15 rates and rejected (again) the proposed reduction in mutual self-help housing grants. The bill includes language requiring USDA to establish an intermediary pilot program to improve packaging and processing of section 502 direct loans.

Farm labor housing, section 515 loans, home repair loans funded at a freeze.  There is a little more funding for multi-family preservation and vouchers.  Proposals to cut the IRP were rejected.

See the attached Appropriation Charts comparing current funding levels to those highlighted in the Omnibus bill here.  

Other notable takeaways :

  • SBA 7(a) loan guarantee is capped at $26.5 Billion
  • EB-5 program is maintained “as is” and authorized through the end of FY 2016
  • CDBG is funded at $3 Billion
  • HOME is restored and funded at $50 million more than current FY15 authority, totaling $950 million

A full analysis of the bill including policy riders that didn’t make it into the final package is provided here by the House Democratic Appropriations Committee Staff.

Tax Extenders Package reached

On the tax side of the equation the Protecting Americans from Tax Hikes Act of 2015 ensures the permanency of the 9% credit floor on Low Income Housing Tax Credit and the New Markets Tax Credit was extended for 5 years at $3.5 billion in annual credit authority.  Empowerment Zone Tax Credits are extended through 2016.

The last tax extenders package, which passed at the end of 2014, authorized just one year of retroactive extensions. This amounted to only one additional round of NMTC allocation, and provided virtually no practical benefit for the Housing Credit. The new tax extenders package is a significant improvement over previous legislation and a victory for both programs.

The permanent minimum 9 percent rate would significantly strengthen the Housing Credit by simplifying program administration, providing predictability, and allowing states to allocate more Housing Credit equity into individual developments when needed for financial feasibility. The five-year extension of the NMTC would also provide greater certainty while ensuring that our nation’s most distressed communities receive critically-needed infusions of private capital for years to come.

Congressional reaction from our Champions on the Hill provided here by the New Markets Tax Credit Coalition, in which NDC serves as a member.

The tax bill will be on the House floor tomorrow.  There will be a separate vote on the omnibus appropriations bill on Friday, December 18th.  The Senate is expected to vote on a bill that combines both the tax and spending legislation in one bill.  That vote is also expected on the 18th.

What should we do?

Call Your Members of Congress to THANK them for their support for Community and Economic Development Programs!

Contact your members of Congress today – especially those who already have committed to supporting minimum Housing Credit rates by cosponsoring either H.R. 1142 or S. 1193See a state-by-state list of minimum Housing Credit rate legislation cosponsors.

Ask your members of Congress to reach out to House Ways and Means Committee, Senate Finance Committee and House and Senate leadership, and thank them for their efforts in securing these packages.

Key messages:

Members often here from constituents, lobbyist, advocacy groups, and stakeholders when there is a want, need, or particular ask, but rarely is there follow through once the ask is delivered. As Congress looks to close out the first session of the 114th Congress and leave for the Holiday recess, we would like to encourage you to reach out to Congressional Members and deliver a message of gratitude and appreciation.

Keep in mind, the Holiday Recess is the perfect time to have members of Congress see firsthand the benefit of these programs listed in the above legislation. Please reach out to us for assistance in setting up Recess visit  in the district.

NDC’s Robert W. Davenport Elected President of New Markets Tax Credit Coalition for 2016

Washington, DC- At the Annual Meeting for the NMTC Coalition, it was announced that Robert Davenport will serve as the Coalitions 2016 President. The NMTC Coalition is a national membership organization of Community Development Entities and investors organized to conduct research on and advocacy for the New Markets Tax Credit.

“I am excited about this opportunity to serve as the President of the NMTC Coalition” Said Robert Davenport “The coalition is a voice for community development organizations around the country and this is a very important time for the us, as we fight to make the NMTC program permanent”

In his newly elected role, Davenport will be joined by Heidi DeArment of Montana Community Development Corporation, who will serve as Vice President; Jose Villalobos of TELACU, who will serve as Treasurer; and Kermit Billups of Greenline Ventures, who will serve as Secretary.

 

About New Markets Tax Credit Program

The New Markets Tax Credit was enacted in 2000 in an effort to stimulate private investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies. The NMTC is a 39 percent federal tax credit, taken over seven years, on investments made in economically distressed communities. Today due to NMTC, more than $70 billion is hard at work in underserved communities in all 50 states, the District of Columbia, and Puerto Rico.

Congress Returns from the Weekend with a lot to do and VERY LITTLE TIME!

Here is the rundown of the state of play for the unfinished business of the 1st session of the 114th Congress.

1. The House and Senate are in session this week and they have a lot to accomplish before adjourning for the year, including an FY2016 Omnibus Appropriations bill and a $800 billion tax “extenders” bill to extend or make permanent around 50 temporary tax provisions. The House will also take up the Senate-amended version of a bill to repeal a number of the core provisions of Obamacare.  The House has voted many times to repeal Obamacare, but this is the first time – using the special budget reconciliation process – that a bill has passed the Senate and will likely force President Obama’s veto.  The Obamacare repeal bill also contains language to defund Planned Parenthood.

2. Last night House Ways and Means Chairman Kevin Brady introduced Tax Increase Prevention and Real Estate Investment Act of 2015. The bill extends all expired tax credit provisions including NMTC  ($3.5 billion in annual credit authority) for 2015-2016.  The bill is proposed as an amendment to HR 34, legislation dealing technical tax issues. This bill is seen as a backup measure should negotiations fail on the larger $800 billion tax bill. Throughout the day yesterday we were hearing two things: that the negotiations on a larger tax bill had not gone well over the weekend and that there increasing interest in Congress in adjourning for the year as soon as this weekend. With little time and limited progress, talk of a two year straight extension increased. Even as the two year package is introduced, discussions on a broader tax agreement continue. House Democrats in particular continue to pursue measures that assist low and moderate income families and resist a business only tax extender bill. The bill as introduced   will allow for an additional $3.5 Billion authorized allocation of New Markets Tax Credits retroactively for calendar year 2015 and 2016. As introduced, the measure includes the  9 percent fixed  credit rate for substantial rehab but does not include  the 4 percent rate for acquisitions which the Senate has already passed. Brady’s legislation also includes extensions of other provisions important to community development, including an extension of qualified zone academy bonds, and an extension of expired Empowerment Zone provisions. The bill also notably includes an extension of the production tax credit (PTC) for wind and certain other renewable sources of electricity. Right now Ways and Means committee staff continue to work on a final package.

3. House Appropriations Chair Hal Rogers’ (R-KY) was expected to release the text of the FY2016 Omnibus Appropriations bill yesterday, which would combine the 12 un-enacted FY2016 appropriations bill into one bill, although however the day came and went primarily in part to the continued disagreements over the controversial policy riders that Congress wants to add to the bill. On December 2nd , the White House announced that President Obama would not be willing to sign a short-term continuing resolution that lasts longer than one or two days to allow more time for negotiations on the bill, if lawmakers miss the December 11 deadline – which may necessitate a federal government shutdown at the end of this week. House Speaker Paul Ryan expressed doubt that Congress can finish its business this week, saying work on renewing expiring tax breaks and funding the government might stretch later into December. The Wisconsin Republican, speaking on 1380 AM in Janesville, Wis., said “it might take us more than just this week together these issues put together correctly.” Needless to say Congress could be in for a long weekend ahead of them.

Here are some of the riders provoking controversy: (1) block the EPA’s recent carbon and greenhouse gas emission regulations; (2) no money for President Obama’s $3 billion Paris pledge to the United Nations’ Green Climate Fund; (3) impose a moratorium on allowing Syrian and Iraqi refugees to enter the United States until certain security benchmarks are met; (4) lift campaign finance restrictions on coordination between parties and individual candidate campaigns, the so-called “Dump Trump” provision; (5) allow health care providers a “conscience clause” to object to providing certain services that go against their religion; (6) block a Labor Department rule to require retirement investment advisers to work solely in the interest of the clients; and (7) freeze a rule requiring for-profit schools to show that a certain percentage of their students are gainfully employed in a recognized occupation in order to remain eligible for federal student aid.

4.  On Friday, December 4, which also happened to be the deadline for enacting the bill, President Obama signed the $305 billion surface transportation bill, known as the FAST Act, which will immediately inject billions of dollars into the nation’s highway, transit, and rail infrastructure.  This is the first 5-year bill surface transportation authorization enacted since 2005.

 

What should we do? Call Your Members of Congress to include the both the 9 and 4 percent Housing Credit Rates!

Contact your members of Congress right away – especially those who already have committed to supporting minimum Housing Credit rates by cosponsoring either H.R. 1142 or S. 1193See a state-by-state list of minimum Housing Credit rate legislation cosponsors.

Ask your members of Congress to reach out to House Ways and Means Committee, Senate Finance Committee and House and Senate leadership, and tell them that both the minimum 9 and 4 percent Housing Credit rates must be included in the FINAL tax extenders package and continue to urge that the rates be made permanent.

Key messages:

  • Minimum 9 and 4 percent Housing Credit rates should be extended permanently. Minimum Housing Credit rates must be extended for at least two years in order to have any practical benefit. A retroactive extension of minimum credit rates for 2015 only would not benefit developments for which the credits have already been awarded.
  • Minimum Housing Credit rates make the development of affordable housing more predictable and financially feasible. With the ‘floating rate’ in effect, there is 15 – 20 percent less Housing Credit equity available for any given affordable housing development, creating financing gaps that are increasingly difficult to fill. Use our new Housing Credit rate fact sheet to help explain the need for minimum Housing Credit rates.
  • Minimum Housing Credit rates provide significant benefit for minimal cost. The Joint Committee on Taxation estimates that the minimum 9 and 4 percent rate extensions included in the Senate Finance Committee-passed tax extenders legislation would cost only $5 million over 10 years.
  • Minimum Housing Credit rates have strong bipartisan support. The minimum Housing Credit rate legislation in the Senate, S. 1193, has 29 co-sponsors, including 7 members of the Senate Finance Committee. The companion legislation in the House, H.R. 1142, has 77 co-sponsors, including 28 members of the Ways and Means Committee. The Senate Finance Committee also approved its extension of minimum 9 and 4 percent rates with bipartisan support.
  • Permanently extending minimum credit rates will ultimately benefit low-income families. The White House maintains that if any tax extenders are made permanent, some of them must benefit lower- and middle-income families.
  • The Housing Credit benefits urban, suburban and rural communities in every state. Use the state and district fact sheets to show the impact of the Housing Credit locally.

Call Your Members of Congress to Support the extension and enhancement of the New Markets Tax Credit Program

Ask your members of Congress to reach out to House Ways and Means Committee, Senate Finance Committee and House and Senate leadership, and tell them that the  New Markets Tax Credit  supports economic growth and investment across the country. As deliberations on a major tax bill continue, our message continues to be that the New Markets Tax Credit should become a permanent part of the tax code and should grow based on its demonstrated success.

There is no final word yet, however given the timing of the introduction and the Congressional sprint to the finish line, assembling and passing a larger more complicated tax bill seems challenging. We shall not give up as  some Members are still working on a large package and the New Markets Tax Credit Coalition is working to include the Senate provision on NMTC – described below – into the bill. Now is the time to support this effort.

Senate Finance Committee Bill (S.1946) -Extension and modification of new markets tax credit:

The bill extends the New Markets Tax Credit (NMTC) for two years. In addition, the bill modifies the NMTC to provide a one-time increase in NMTC allocation authority so that $3.94 billion in allocation authority is available in 2015 and 2016. This provision is estimated to cost $2.076 billion over 10 years.

Reasons for Change (Senate Finance Committee Report):

The Committee believes that the new markets tax credit has proven to be an effective means of providing equity and other investments to benefit businesses in low income communities, and that it is appropriate to provide for the allocation of additional tax credit authority for another two calendar years. The Committee also believes that it is appropriate to provide for a one-time adjustment to the credit limitation (by the rate of inflation from 2008 through 2014) in order to partially offset allocation erosion due to inflation.

For more information, contact NDC Washington Office at 202-400-3680 or oppa@nationaldevelopmentcouncil.org.

www.nationaldevelopmentcouncil.org

NDC Welcomes New Board Member

NDC is pleased to announce the nomination of John Downs to the NDC Board of Directors. Downs is welcomed to the NDC Board following his retirement from NDC as Central Regional Team Leader.

“John joins a Board that consists of active and engaged leaders” said Robert Davenport, President of NDC “His deep understanding of NDC and the work we do to provide opportunity to economically disadvantaged persons and communities, will allow NDC to continue to carry out our mission”

For over 18 years Downs has acted as the Regional Director for NDC’s Central Team. Under Down’s leadership the central team lead initiatives to direct capital to support the preservation and creation of affordable housing, the creation of jobs through training and small business lending and the promotion of livable communities through investment in social infrastructure. Prior to coming to NDC John worked for the State of North Carolina managing the CDBG and HOME programs.

Kings Theatre Restoration Receives Platinum Reconstruction Award From Building Design+Construction Magazine

Building Design+Construction magazine has recognized the King’s Theatre restoration project with a Platinum Reconstruction Award.
The winners of the 32nd Annual Reconstruction Awards showcase the best work of distinguished Building Teams, encompassing historic preservation, adaptive reuse, and renovations and additions.
Read Full Article HERE

Bothell City Hall to Celebrate Grand Opening November 7

Bothell, WA- The city of Bothell invites the public to celebrate the completion of its new City Hallfrom 10 a.m. to noon on Nov. 7 at 18415 101st Ave NE in Bothell. A live band will kick things off at 10 a.m., followed by brief speeches, a plaque dedication and ribbon-cutting ceremony. The public will be encouraged to visit all floors of the building for an open house from about 10:45 a.m. until noon. Complimentary refreshments and activities for children, including supervised building with Lego blocks, will be available. The public also can purchase crepes from the Crisp Creperie food truck, which will be on 101st Avenue Northeast. A section of 101st Avenue from 183rd Street to 185th Street will be closed for the event from 7:30 a.m. until 12:30 p.m. More about the event HERE

 

Located in the heart of Bothell’s downtown, the city hall and multi-use campus is a key element of the City’s downtown revitalization plan that has already attracted over $200 million in private investment and is expected to stimulate an additional $450 million in private investment over the coming years.

University of Alaska Fairbanks Honored with Merit Award of Excellence

We are thrilled to announce the University of Alaska Fairbanks (UAF) Wood Center Renovation/Expansion received the Society for College and University Planning (SCUP) and AIA 2015 Merit Award for Excellence in Architecture-Building Additions or Adaptive Reuse.

The Wood Center was the first phase of the University’s campus master plan and the first major renovation/addition to the facility since construction in 1972. Funding was provided through a Public Private Partnership (P3), the first P3 for UAF and to our knowledge, the first P3 Student Center in the country!

The northern lights served as design inspiration, stemming from UAF’s challenge to capture the essence of Alaska within the facility. The lights’ influence of color and light on sensory perceptions invigorates the center and creates a colorful, vibrant facility that is now the place to see and be seen on campus!

The expansion includes a new dining room, servery, coffee house, lounge space, monumental stairway and various study/collaboration areas. Innovative insulated panels and other energy-saving strategies were incorporated to help reduce energy use by 66%, achieving the goals of the 2030 Challenge.

Client:
University of Alaska Fairbanks – Jenny Campbell, Senior PM

P3 Owner:
National Development Council – John Finke, Financing Partner
Lorig Real Estate Development and Management – Joe Borden, Project Executive

General Contractor: GHEMM Company, Inc.

Consultants:
Design Alaska – Mechanical, Electrical and Plumbing
KPFF – Structural Engineer
DOWL HKM – Civil Engineer
Stafford Design Group – Food Service

Perkins+Will Design Team:
Anthony Gianopoulos, Managing Principal/Project Manager
Doug Streeter, Design Principal
David Damon, Planning Principal
Carsten Stinn, Devin Kleiner and Francesly Sierra, Project Architects/Designers
Krisan Osterby, Site Planning/Landscape

Olympia Coffee Roasting Company Celebrates Grand Re-opening

The Grow Olympia Fund’s First Borrower Re-Opens Their Expanded Downtown Location

Olympia, WA –On Thursday, October 22nd from noon to 1 pm, Olympia Coffee Roasting Company will host a grand re-opening of their newly expanded flagship location, located at the corner Cherry Street and 4th Avenue  in Downtown Olympia.  The company now occupies the neighboring building located on 4th Avenue, directly across the street from Olympia City Hall. The event celebrates their expanded facility and will feature samples of their award winning coffee along with free cake.

Olympia Coffee Roasting Company is an award winning, boutique coffee roaster that sources and roasts coffee in small batches.  With three locations in Olympia, the expansion of the Cherry Street location provides increased space for the roasting and production facility. The facility includes a brand new roasting works anchored by a refurbished 23-kilo Gothot roaster from Germany along with training, cupping, and quality control lab facilities and offices for Olympia Coffee’s growing team.

“We are excited to invite folks to come see our newly expanded Olympia Coffee Roasters.” Said  Oliver Stormshak, co-owner of Olympia Coffee Roasting, “We want to thank the Grow Olympia Fund for our loan that helped to make our dream a reality by expanding our facility and meeting the growing demand for our coffee while continuing to support our company mission of improving the quality of life for our coffee farmers, staff and customers.”

The owners, Oliver Stormshak and Sam Schroeder, received a loan in the amount of $320,000 from the Grow Olympia Fund to pay for tenant improvements and equipment.  This is the first loan to close from the newly created loan fund, a partnership between the City of Olympia and the National Development Council’s Grow America Fund that provides lower cost financing to small businesses in Olympia, helping local businesses grow and create jobs.

“Working with local business entrepreneurs to expand and strengthen their operation is one of the priorities of the Grow Olympia Fund.” Said Olympia’s Mayor Stephen Buxbaum, “Our downtown strategy includes helping retail enterprises in our downtown to succeed. What the Olympia Coffee Roasters have been able to accomplish serves as a great example of what can happen when we partner with a local small business.”

“Congratulations are deserved to all involved,” said John Palyo, President of NDC Grow America Fund, “We are thrilled when one of our businesses is able to use our fund to achieve its full potential.  Olympia Coffee Roasting Company has a bright future and we are honored to have played a part in helping them achieve their goals.”

Eleven new jobs are expected to be created as a product of Olympia Coffee Roasting Company’s expansion.  As part of the City’s goals for economic development, the Grow Olympia Fund offers tangible support to local small businesses.  It also coincides with the first few months of the City’s newly hired Economic Development Coordinator, who sees the Grow Olympia fund as a key tool in the City’s economic toolkit.

“The Grow Olympia Fund and its investment in Olympia Coffee Roasting Company is an example of the City’s commitment to Economic Development.  This is exactly the kind of business we want to help grow in Olympia; a local business that is deepening their roots in our community”, said Renee Sunde, Economic Development Director.

About the City of Olympia’s Grow Olympia Fund

The Grow Olympia fund is part the Olympia City Council’s continuing efforts to support small business.  The loan fund is managed by NDC Grow America Fund and a portion of the City of Olympia’s Community Development Block Grant (CDBG) funds are used to pay for the management of the fund.  The actual loan monies come from the Grow America Fund (GAF) and are backed by the federal Small Business Administration.  Businesses that receive a Grow Olympia Fund Loan can buy machinery or equipment, make improvements to leased space, refinance an existing loan or buy property.

About National Development Council and NDC Grow America Fund

Founded in 1969, the National Development Council (NDC) is a national non-profit organization that has evolved into one of the most progressive and innovative community and economic development organizations in the country.  NDC’s Grow America Fund (GAF) is a Community Development Finance Institution (CDFI) licensed under US SBA preferred lenders program (PLP). GAF focuses on providing flexible and patient expansion loans to existing small businesses, manufacturers and distributors

About Olympia Coffee Roasting Company

Olympia Coffee Roasting was founded in 2005 and sold five years later to Oliver Stormshak and Sam Schroeder in 2010.  While both owners gained their initial experience in other coffee shops, they have taken coffee roasting to new levels.  In the past five years they have built up their business by investing in the quality of their coffee, increasing their staff to 30 people and expanding their business by over 100%.  The Grow Olympia Fund monies will help them to triple the foot print in their flagship location downtown at Cherry and 4th Avenue by offering an expanded café, barista training center and storefront for wholesale activity.  For more information, please visit:   www.olympiacoffee.com

 

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New Biomedical Research Building in South Lake Union

University of Washington closes on a $143 million biomedical research building

Seattle, WA – University of Washington’s School of Medicine and the National Development Council closed on the financing for the development of a $143 million biomedical research building in South Lake Union.  The project is the fourth phase in a biomedical research campus and is located on two full city blocks in the South Lake Union neighborhood of Seattle.

The existing campus has established University of Washington as a national leader in biomedical research and consists of 3 state-of-the-art laboratory buildings and one administrative building, totaling over 400,000 square feet of usable space.  In total, the projects represent an investment of more than $365 million.

The new building will provide approximately 165,000 square feet of biomedical research facilities, with three clinics and associated clinical research facilities.  Research at the new site is expected to include new programs and the expansion of existing programs, including microbiology, global health, kidney research, immunology, biomedical informatics, neurosciences, protein design, gastrointestinal and behavioral assays.  The new building will include a primary care clinic, as well as a diabetes clinic and an ophthalmology clinic focused on retinal diseases.

The project is being delivered using the National Development Council’s American model for public-private partnerships.  The model uses tax-exempt bond financing and employs a private sector development team to maximize the benefits of private sector development expertise.  The development team includes the UW School of Medicine, Vulcan Real Estate, Perkins+Will, Sellen Construction and National Development Council.

“This project will further ensure that the School of Medicine remains at the forefront of leading edge biomedical research focused on improving the health of the public.” Said John Slattery, Vice Dean for Research and Graduation, School of Medicine, University of Washington, “The presence of clinic space will also provide a unique opportunity to integrate clinical care and research in this vibrant area of the city.”

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P3s Offer Financing Options for Cash-Strapped Governments

CHECK OUT this great article talking about how Public-private partnerships (P3) are gaining popularity across the country as governments tighten budgets. In the article, NDC’s John Finke described the NDC American Model for P3, a financing that is uniquely American: tax-exempt financing, typically through bonds.

Read Full Text HERE

12th Avenue Arts Wins ULI 2015 Global Awards for Excellence

NDC’s Corporate Equity Fund and New Markets Tax Credit project, 12th Avenue Arts was selected as one of ten real estate developments to win the 2015 Urban Land Institute Global Awards for Excellence. The award is widely recognized as one of the land use industry’s most prestigious award programs. 12th Avenue Arts was honored Tuesday (October 6, 2015) at the ULI Fall Meeting in San Francisco.

The awards competition, now in its 37th year, recognizes real estate projects that achieve a high standard of excellence in design, construction, economics, planning, and management. The program, open to all and not limited to ULI members, is viewed as the centerpiece of ULI’s efforts to identify and promote best practices in all types of real estate development.

“Each of this year’s finalists and winners demonstrates how innovation and design intersect with development performance,” said jury chair Michael Covarrubias, chairman and chief executive officer of TMG Partners in San Francisco, California. “The diversity of these projects is a reflection of the land use industry’s interdisciplinary nature, illustrating the variety of ways to stabilize a neighborhood, improve the streetscape, and create meaningful experiences for communities worldwide.”

NDC worked in collaboration with Capitol Hill Housing to complete the project, which transformed a 29,000-square-foot surface parking lot into a light-filled cultural center mixing arts, affordable housing, and public-safety needs. The bulk of the funding for this project was from public and private sources, including the City of Seattle, State of Washington, National Development Council Corporate Equity Fund (CEF), National Development Council HEDC New Markets (NMTC) and KeyBank. The affordable housing component was financed with a combination of tax exempt bonds and differed loans from the City of Seattle and the State of Washington. Capitol Hill Housing raised $4.1 million in donations for 12th Avenue Arts, the capital campaign combined with New Markets Tax Credit Equity, a 108 Loan from the City of Seattle and a conventional bank loan were used to finance the art space as well as the office and retail portion.

Today the project is active both day and night and has become an anchor of the community. Congratulations to the project and our partners on receiving this prestigious award!

For more information about the 2015 winners, finalists, and the development teams behind each project, visit the Global Awards for Excellence page

Chuck Depew
National Development Council
cdepew@nationaldevelopmentcouncil.org
(206) 842-7572 direct
(206) 419-3904 mobile

NDC Corporate Equity Fund Project Completes Lease-Up!

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NDC is excited to announce that our Sunny View Village project in Freeland, Washington, has competed lease-up. Located in the City of Freeland on Whidbey Island, The project consists of a cluster of family apartments totaling 26-units of affordable housing. Seven units will have Project Based Section 8 Rental Vouchers and will be set aside for homeless/very low income families, thirteen are set aside for those earning 50% AMI, five are reserved for 60% of AMI with a on-site manager’s unit.

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NDC CEF partnered with Common Ground and the Housing Authority of Island County, using a combination of Low-Income Housing Tax Credits, Tax-Exempt Bond Financing, Island County HOME Funds, and Island County 2063 Funds to help finance and develop the $6.3 Million project.

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