Latest news with #LowIncomeHousingTaxCredits
Washington Post
15-06-2025
- Business
- Washington Post
Why did those apartments for the poor cost D.C. more than $1 million each?
The June 8 front-page article 'D.C. apartments for the poor exceeding $1 million to build,' which highlighted the high costs of a handful of developments financed in part with the Low-Income Housing Tax Credits program, did not reflect typical costs of developments financed by the credit program. The credit, which has been the primary federal incentive for the construction of rent-restricted apartments for low-income families since 1986, has generated construction of more than 54,000 properties containing more than 3.7 million affordable homes nationwide. The vast majority have been built at comparable costs to similar buildings serving higher-income households — even as credit-financed properties must meet a host of federal and local labor, environmental and approval requirements and achieve standards of quality and durability far beyond the typical market-rate project. Stockton Williams, Washington The writer is executive director of the National Council of State Housing Agencies. Jubilee Housing appreciated the June 8 front-page article highlighting the cost of producing affordable housing in D.C. The affordable housing crisis remains one of the most pressing issues of our time, and we must harness every possible solution to meet the need. That said, the article's focus on the cost efficiency of Ontario Place, which Jubilee Housing is developing, missed a crucial point: Cost per unit is only one part of a complex picture and often a misleading one. Ontario Place provides 52 affordable homes, and nearly half are large enough for families. A lower per-unit-cost design with mostly one-bedroom units could have yielded more smaller units — and a more typical per-unit cost — but it would have been able to house fewer people overall. Maximizing family-size units not only meets District policy goals; in this project, it was actually 10 percent less expensive per person housed than the original design with mostly one-bedrooms and studios. We agree that in most jurisdictions, affordable housing developments are expected to achieve numerous additional policy goals. These include local hiring, higher wage scales and environmental sustainability features. Though those are worthy goals, such requirements can add 10 percent to 25 percent to project costs in D.C. On top of this, bond financing and low-income housing tax credits, which provide more favorable rates but higher transaction fees, are inherently more expensive than market-rate financing. That is especially true for smaller projects such as Jubilee's, where the percentage of financing costs is higher. Until viable alternatives exist, these remain a cost of doing business. Also, for decades, affordable housing was built where land was cheap, placing families far from transit, jobs, fresh food and quality schools. That strategy failed. Continuing it while expecting different outcomes is, as they say, the definition of insanity. Yes, affordable housing in D.C. is expensive, and it is a strategic investment. Affordable housing providers must meet public policy mandates and, in doing so, create economic value across the region. More important, Jubilee delivers what D.C. needs most: high-quality, affordable, family-size homes close to amenities and resources. Economist Raj Chetty has shown that the highest predictor of future success is the Zip code we live in, and other experts have shown that families in high-opportunity neighborhoods see long-term income gains — estimated at a combined $1.4 million over a decade for Ontario Place residents. The on-site aquaponics farm that some commentators have focused on will generate a combined $500,000 in annual wages for the people it employs and $920,000 annually in public savings from reduced reincarceration and reduced health incidents. The project will generate nearly $10 million in long-term public benefit. To break cycles of poverty, we must embrace innovation. We shouldn't just focus on per-unit development costs but also on how many lives can be supported by that investment. Alex Orfinger, Arlington The writer is chair of the board of Jubilee Housing. The June 8 front-page article on publicly funded housing in D.C. underscored an alarming and indefensible failure in the city's approach to affordable housing. The fact that so-called affordable apartments exceed $1 million per unit to construct is not just unsustainable — it's outrageous. This is further evidence that Democratic Mayor Muriel E. Bowser's housing strategy is completely out of touch with the lived reality of most District residents. While the city pours $100 million into the Housing Production Trust Fund, we see little oversight and even less affordability. Developers are racking up extravagant costs while D.C. taxpayers foot the bill. There is no justifiable reason taxpayers should be asked to subsidize $1 million apartments under the false promise of affordability. We must demand an immediate audit of all Housing Production Trust Fund expenditures, freeze new luxury-affordable projects and refocus the city's housing investments toward cost-effective, community-based development. The District needs leadership that prioritizes working families. D.C. can and must do better. Ernest E. Johnson, Washington The writer is a Democratic candidate in the D.C. mayoral race. The Post's June 5 online editorial 'Eliminating the tipped minimum wage has been a disaster' shared only part of the story of D.C.'s restaurant industry after the covid-19 shutdowns. Full-service employment, after fully recovering from the covid-19 pandemic in 2023, has remained at levels consistent with pre-pandemic employment, according to data from the Bureau of Labor Statistics. And D.C.'s food service employment has outpaced those of Maryland and Virginia. BLS Quarterly Census of Employment and Wages data shows that the restaurant industry in D.C. is growing, including in full-service restaurants that employ tipped workers. Wages for tipped workers have shown steady growth thanks to Initiative 82. And BLS data shows that average wages for staff in full-service restaurants rose above their pre-shutdown level. But let me be clear: I do not want to minimize the challenges our local restaurants are experiencing. Like so many families here in the District, restaurants have been hit hard by rising food prices and federal layoffs in the wake of the Trump administration's policies. Even before President Donald Trump took office, my colleagues and I sought to spur economic opportunities for our small businesses and restaurants through legislation, including through the Restaurant Revitalization Act, which was passed last year. Good policy must be guided by good data, and the numbers do not justify going back on our word to workers. The data shows that wages have been rising and that the number of restaurants has increased since I-82 was implemented. As a council, our responsibility is to make our economy work for everyone and not balance our budgets by rolling back wages and protections for working families. Janeese Lewis George, Washington The writer represents Ward 4 on the D.C. Council. The Editorial Board is right that Initiative 82 has been bad for both D.C.'s restaurants and workers. The BLS Quarterly Census of Employment and Wages shows D.C. has lost about 5 percent of its restaurant jobs since the law went into place. That's over four times higher than the losses seen in surrounding Maryland and Virginia counties. The District's workers have lost over $11.8 million in earnings since the law took effect because of a loss of income from tips. With this context, it's easy to see why even the city's leadership is taking measured steps to stop the law's devastation. Rebekah Paxton, Arlington The writer is research director for the Employment Policies Institute. I agree with the June 5 online editorial, 'Eliminating the tipped minimum wage has been a disaster.' Implementing Initiative 82 was a misguided effort rooted in policy frameworks that don't align with the realities of the city's hospitality industry. The policy disproportionately targets large chain restaurants with large staffs and also hurts the city's diverse food scene. Initiative 82 has hurt local restaurants in two key ways: First, it ignored the ripple effects of payroll hikes. Increasing base wages doesn't just affect take-home pay — it also increases payroll taxes and administrative costs. The law mandates higher operational costs within D.C. that put restaurants here at a competitive disadvantage relative to restaurants in Virginia and Maryland. Second, under the previous law, restaurants were already required to ensure that tipped workers made at least minimum wage. If tips fell short, employers were legally obligated to make up the difference. And, the service fees that have been introduced to cover rising costs are revenue to the restaurants that do not have to be distributed to staff. Ironically, under the new system, there is potential for some servers to earn less than they did before, with diners paying less in tips because of those service fees. The city should return to the previous system, which minimized costs for businesses while still guaranteeing a safety net for workers. It's encouraging that The Post's Editorial Board opposed both Initiative 82 and its predecessor, Initiative 77. But many restaurant workers and diners have come to a similar conclusion far too late. Jonathan Halperin, Washington
Yahoo
05-06-2025
- Business
- Yahoo
Lincoln Avenue Communities Breaks Ground on Affordable Housing Development in New Mexico
Governor Michelle Lujan Grisham and other local officials joined LAC to celebrate Santa Fe County's first multi-family and affordable development. SANTA FE, N.M., June 5, 2025 /PRNewswire/ -- Lincoln Avenue Communities (LAC), a mission-driven acquirer and developer of affordable housing, hosted a groundbreaking ceremony last week at the future site of Cresta Ranch Apartments, a new development that will provide 240 units of affordable housing to lower-income residents in Santa Fe. "LAC is proud to bring high-quality, affordable housing to communities like Santa Fe where the need is especially urgent," said Ben Taylor, LAC vice president and project partner. "Cresta Ranch will deliver on our mission by supporting generations of New Mexico families who may otherwise be priced out of the area." Taylor and LAC were joined at the event by a host of community leaders and local officials including New Mexico Governor Michelle Lujan Grisham, and Santa Fe County Commissioners Hank Hughes and Justin Greene. Cresta Ranch will be the first multi-family and affordable development in Santa Fe County and is comprised of 10 buildings of 24 two- and three-bedroom homes, with each unit featuring a balcony and walk-in closet. The community will offer amenities including a fitness center, yoga studio, community room, playgrounds, on-site leasing offices, mail and package room, and common area for laundry. Units will be leased to individuals and families earning up to 60% of the Santa Fe County Area Median Income. The development is financed with a $4 million New Mexico Housing Trust Fund loan and federal Low Income Housing Tax Credits from Housing New Mexico, along with a $35 million conduit tax-exempt bond issuance through Santa Fe County and a $1.32 million of gap funding through their newly created Developer's Assistance Program (DAP). Other financing partners included JP Morgan Chase, National Equity Fund, and Barings. Construction on the development began in January and the first units are expected to begin leasing in Summer 2026. About LAC: Lincoln Avenue Communities (LAC) is one of the nation's fastest-growing developers, investors, and operators of affordable and workforce housing, providing high-quality, sustainable homes for lower- and moderate-income individuals, seniors, and families nationwide. LAC is a mission-driven organization with a presence in 28 states and a portfolio of 170+ properties comprising 30,500+ units housing 80,000+ residents. View original content to download multimedia: SOURCE Lincoln Avenue Communities Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Twin Cities housing nonprofit paid $5.41 million for Rochester town homes
May 30—ROCHESTER — A St. Paul-based nonprofit developer with a focus on affordable housing recently paid $5.41 million for a northwest Rochester townhomes complex as its first investment in the Med City. The Twin Cities Housing Development Corp., under the name of Innsbruck, LLLP, purchased the aging 40-unit Innsbruck complex at 1530 50th St. NW on May 27, Twin Cities Housing Development has built or renovated over 2,940 units of housing in the Twin Cities in the past 41 years. While the Twin Cities is its primary focus, it does consider any communities within two hours in its geographic range. It did acquire and upgrade a 48-townhome complex in Owatonna last year. This is the nonprofit's first foray into Rochester. "We love the Rochester market. There's just so much energy there," said Ken Isaacson, Twin Cities Housing's Development Manager. Isaacson explained that the plan is to make improvements to Innsbruck, while keeping it as low-income affordable housing with the help of Low Income Housing Tax Credits and other means. Innsbruck is fully occupied. "The site itself is in good shape, but it needs some TLC," he said. Nath & Associates of Bloomington, Minn. sold the 43-year-old property. Nath, which also owns The Quarters in Rochester, had owned Innsbruck since 2015, when it paid $2.85 million to buy it. Olmsted County estimated the total market value of the Innsbruck complex at $4.61 million for 2025-2026.
Yahoo
22-05-2025
- Business
- Yahoo
77 units of affordable housing for seniors now open in Tacoma. Details here
On May 21, elected officials, leaders from the Asia Pacific Cultural Center, and project partners gathered in Tacoma's Lincoln District to celebrate the opening of an affordable project aimed at providing a dignified way of living for the community's elders. Patsy Surh Place, in the heart of Tacoma's Lincoln District at 3740 S. G St., offers 77 units of housing for Asian Pacific Islander elders and other low-income seniors. The project, which will be co-owned and managed by the Low-Income Housing Institute (LIHI) and Asia Pacific Cultural Center, is named after community leader and artist Patsy Surh O'Connell. O'Connell immigrated to America as a student from Korea in 1963. She established the Asia Pacific Cultural Center in 1996 and was instrumental in creating the Korean American Artists Association of Washington State. The new six-story building features 47 studio apartments and 30 one-bedroom units, all designated for seniors earning up to 30% and 50% of the Area Median Income (AMI). According to recent U.S. Census Bureau data from 2023, Tacoma's household AMI is $83,857. As of the grand opening, all but 11 units had been leased. During the grand opening ceremony, Sharon Lee, the executive director of LIHI, said 20 of the units would be reserved for homeless veterans who could be eligible for vouchers through the Tacoma Housing Authority. Its amenities include a community lounge, multipurpose room, gallery space, outdoor courtyard, and on-site laundry facilities. The building includes commercial space for small businesses along South 38th Street. Executive director of the Asia Pacific Cultural Center, Faaluaina Pritchard, said there are plans to incorporate cross-generational programs that encourage senior residents to visit and engage with younger generations in the community to share stories and cultural knowledge. 'This project, you can mark my words, will be a model for senior housing,' Pritchard said. 'Because it is our culture to take care of our elders.' During the ceremony Tacoma Mayor Victoria Woodards said the project is part of a larger investment in Tacoma's Lincoln District and marks a 'remarkable transition' for the neighborhood. 'Seniors deserve to age with dignity in the community they love,' she said. 'This is what equity in housing looks like.' She noted the city has invested roughly $10 million into the infrastructure and modernization investments into Lincoln District as part of an effort to revitalize the historic international business community. 'We believe in this neighborhood,' Woodards told the crowd. Pritchard said the Asia Pacific Cultural Center hopes to secure funding to build a second affordable housing complex directly adjacent to Patsy Surh Place in the near future. The $36 million project was made possible by multiple public funding contributions, including $18.5 million from the National Equity Fund through Low Income Housing Tax Credits, $5.4 million from the Washington State Department of Commerce, and $7 million from Pierce County made available through the Maureen Howard Affordable Housing Act. The Maureen Howard Affordable Housing Sales Tax, named after a prominent advocate for the homeless in Tacoma who died in January 2023, has made available millions in funding for affordable housing projects across the region. Patsy Surh Place is the latest project to be funded by the county as part of push to create affordable housing stock. 'To fully meet the housing needs of current and future residents, the county needs to produce, on average, over 2,300 units per year of housing affordable at or below 50% of area median income (AMI) through the year 2044,' the county's Housing Action Strategy of 2022 found. 'Over half of these units are needed for households at 30% of AMI or below.' Since its implementation in 2023, the affordable housing fund has contributed to the creation of more than 1,000 units that are either built or in the pipeline, according to Pierce County Executive Ryan Mello.
Business Wire
12-05-2025
- Business
- Business Wire
Walker & Dunlop Arranges $22 Million Equity for Chicago Community
BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. is celebrating the ground breaking of Parkside 5, the fifth and final phase of the Parkside at Old Town development, a 99-unit community located on the former Cabrini-Green public housing site in Chicago's Near North Side. The Walker & Dunlop affordable housing team, led by Jennifer Erixon, syndicated Low Income Housing Tax Credits (LIHTC) and Illinois Donation Tax Credits on behalf of the client, Holsten Real Estate Development Corporation. Walker & Dunlop Affordable Equity syndicated the equity to JP Morgan, resulting in $22.6 million of equity to support the development. In addition to syndicating the credits, JP Morgan is also providing a construction loan for the project. The funding will support the construction of a mix of market-rate and affordable units, with 37 of the units benefiting from a 20-year Section 8 Housing Assistance Payment (HAP) contract. These affordable units will be reserved for households earning 50% and 60% of the area median income (AMI) or less. 'We are proud to support the continued revitalization of the Near North Side, helping to bring much-needed affordable housing options to the community while contributing to the broader transformation of the former Cabrini-Green site,' said Jennifer Erixon, senior managing director of Affordable Equity Originations at Walker & Dunlop. 'Our partners at Holsten have allowed us to provide a valuable solution that meets our shared goals.' Parkside 5 will feature three 3-story walk-up buildings and an 8-story mid-rise structure with townhome units at its base. Planned amenities include a community room, fitness center, and onsite social services for residents. Additionally, a playground, and dog park, will be open to the community to position Parkside 5 as a vibrant, inclusive space for its residents and neighbors. The development will complement the existing phases of the Parkside at Old Town project, a key piece in the ongoing revitalization of the historic neighborhood. Walker & Dunlop, the #2 multifamily finance lender in the US, has a long-standing commitment to affordable housing and continues to invest in its affordable platform to provide clients with unparalleled solutions for all of their needs. The team originated over $6.3 billion in affordable and workforce financing from 2021-2024 through HUD, Fannie Mae, Freddie Mac, and capital markets sources. To date, the platform has raised over $10 billion in LIHTC equity and sold more than 275 affordable properties across 40 states. To learn more about the team's capabilities and financing options, visit our website. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
