Affordable Housing Gurus

McKonly & Asbury Affordable Housing Staff Participate in Team Building Day

2013-05-17T12:07:13-04:00

Our affordable housing gurus took a “field trip” last week to visit two affordable housing (tax credit) properties located in Dillsburg, Pennsylvania that were developed and are managed by Presbyterian Senior Living. 16 members of our affordable housing team were “treated” to tours of these facilities and several of the senior citizens opened their doors to welcome us and allowed us view their excellent living quarters. These facilities were developed within the last 6 years and boast long waiting lists which speaks to the continuing need for affordable senior housing in the central Pennsylvania region. Each facility has a cozy, homey feel, and its residents clearly enjoy their community. While our team of accounting and consulting professionals are better known for their “number crunching” and financial expertise serving low-income housing tax credit properties, it was enlightening and gratifying to see the results of our efforts and the efforts of one of the best operators in the region. For the people in our communities that have a stereotypical view of what affordable housing looks like, we would encourage them to tour one of the many excellent facilities in our Commonwealth that are assisting seniors and working families have a better standard of living. The clients that we serve provide over 7,000 units of quality, safe, affordable housing. Kudos to all of our partners who work in this noble arena of affordable housing…we are making a difference!!!

Register Now for McKonly & Asbury's June 2013 Affordable Housing Seminar!

2013-04-30T15:39:02-04:00

McKonly & Asbury Spring 2013 Affordable Housing Seminar

Thursday, June 13, 2013
10:00 am – 3:00 pm

Giant Community Center
3301 East Trindle Road
Camp Hill, PA 17011

Topics & Speakers Include
Holly Glauser, Director of Development, PHFA
News from PHFA and
What to Expect in the 2014 Qualified Allocation Plan

Karen Arnold, Keystone Grant Manager
PA Historical & Museum Commission
Federal and PA Historic Tax Credits

David Buches, FHLBank Pittsburgh
Affordable Housing Program (AHP) and
Community Lending Program

Elizabeth Brooks, Principal, McKonly & Asbury, LLP
The 50% Test, The 10% Test, and
Development Cost Certifications

There is a registration Fee of $35 which includes lunch.
Click here for registration information

Save The Date!

2013-04-03T17:34:43-04:00

McKonly & Asbury Affordable Housing Seminar

June 13, 2013

10 am - 3 pm

Giant Community Center, 3301 East Trindle Road, Camp Hill, Pennsylvania

Speakers and topics to be announced

Follow @AffordHsgGuru on Twitter for News and Updates

Pennsylvania Seeks Nominations for 2013 Supportive Housing Award

2013-02-20T18:34:08-05:00

Individuals and organizations that are creating quality housing opportunities for older Pennsylvanians can be nominated for the state’s 2013 Supportive Housing Award. Nominations are due by March 29.

The award is sponsored by the departments of Aging and Public Welfare and the Pennsylvania Housing Finance Agency (PHFA). It recognizes significant efforts to increase the availability of supportive housing for older Pennsylvanians.

Supportive housing is defined as:
 Safe and secure;
 Affordable to its target population (not exceeding 30-percent of monthly household income);
 Capable of coordinating readily available, flexible and responsive services in the community  Accessible to older adults and those with low incomes.

The combination of affordable housing and supportive services, such as case management and housekeeping assistance, helps Pennsylvanians maintain their independence. The Supportive Housing Award recognizes those who have shown leadership and innovation in creating new housing models and strategies.

Any individual or organization, public or private, including builders, architects, planners, public housing authorities, municipal governments, financial institutions and non-profits can apply for the award.

The nomination form is available on the Department of Aging’s homepage at: www.aging.state.pa.us.

The winner will be announced on May 3 during PHFA’s 2013 Commonwealth Housing Forum in Harrisburg.

For more information about the award, please email: RA-housingaward@pa.gov or visit: www.aging.state.pa.us.

Year-End Audit and Tax Planning Tips for Low-Income Housing Tax Credit Partnerships

2013-01-10T19:09:02-05:00

Audit and tax season for calendar year-end entities is here. Being proactive in preparation for financial statement audits and tax return preparation is important in achieving a seamless and efficient audit process.

The following is a list of items that owners and managers of low-income housing tax credit projects can perform to help ensure reporting deadlines are met and to minimize the disruption by auditors and tax preparers to your day to day operations.

Audit/Accounting
• Be sure that all of the adjusting journal entries from the prior year audit have been made.
• Pay special attention to updating balance sheet accounts that might not have monthly activity during the year. For example: prepaid rent, related party advances, interest payable, developer fee payable, fixed assets, and accumulated depreciation accounts.
• Reconcile all bank accounts.
• Scrutinize any repairs made to property or equipment during the year to ensure the amount was properly capitalized or expensed.
• Create a list of fixed assets that were disposed of during the year including the date of disposal and any proceeds received.
• If there is any unpaid developer fee amounts outstanding, review the agreements for any requirements that may need to be met for final payment to be made.
• If there are related party payables, create and maintain a list of what makes up these amounts.
• Be sure that your audit firm has the most up to date copies of any agreements and any amendments to agreements.

Development Stage Audits
• Record all equity payments received. Review all requirements for future equity payments and develop a plan that will help in meeting those requirements as quickly as possible.
• If there is a tax credit adjuster written into your partnership agreement, talk to your tax preparer about analyzing the effect of the adjusters.
• If there was a cost certification performed during the current year be sure to reconcile the cost certification amount to your books.
• If development and operating transactions are being accounted for in separate general ledgers, be sure to combine the ledgers into one trial balance for year end.

Tax Preparation
• Report any change in ownership to your tax preparer. Check into step-up considerations for partner death or transfers.
• For a property receiving any IRS Forms 8609 during the year, properly complete Part II and provide to your tax preparer for their review prior to filing with the IRS clearinghouse and state housing finance agency.
• For partnerships with low or negative capital accounts, work with your tax preparer to ensure that there will not be any credits reallocated away from the investor. Complete minimum gain worksheet if applicable.
• At the end of the tax year, did any entity or individual have, directly or indirectly, an ownership interest of 50% or more in the partnership? If so, details will need to be provided to your tax preparer.
• At the end of the tax year, did the partnership own 20% or more directly of the stock of a corporation or interest in another partnership; or did the partnership own 50% or more, directly or indirectly, of the stock of a corporation or interest in another partnership? If so, details will need to be provided to your tax preparer.

For additional information on the above, please contact affordablehousing@macpas.com.

9% LIHTC Rate Extended

2013-01-03T09:50:47-05:00

The American Taxpayer Relief Act of 2012 contains some very good news for tax credit developers. The Act extends the 9% low-income housing tax credit rate floor to projects receiving low-income housing tax credit allocations before January 1, 2014. The rate had been scheduled to return to a floating rate for projects placed in service on or after December 31, 2013.

Philadelphia Nonprofit Developer Awarded $3 Million for Energy Efficient Affordable Housing

2012-10-30T18:11:41-04:00

A Philadelphia non‐profit developer was awarded $3 million from HUD to
upgrade 166 affordable housing units across Philadelphia and make them 20% more energy efficient.

Columbus Property Management and Development, Inc. (CPM) won a grant from the U.S. Department of Housing and Urban Development through its Energy Innovation Fund (EIF) to bring energy innovation and cost savings to
affordable housing residents in North, West, South and Northeast Philadelphia. Community Environmental Center, Inc., in Long Island City, New York, also won $3 Million in the Applied Research category, with seven others in this category receiving smaller grants.

The project will combine energy efficient upgrades with the installation ‐ in half of the units ‐ of energy display devises (EDDs) (small units that display real‐time utility consumption). It is anticipated that the overall effect will be a reduction by 20% or more of energy costs across the 166 unit portfolio. CPM has partnered with Steven Winter Associates, Inc. (SWA), building systems consultants based in Washington, DC, to help implement this project.

CPM is implementing a new financial model to fully fund the rehab project, using tax exempt bond financing and 4% low income housing tax credits ‐ to ensure that the units are not only energy efficient, but also remain affordable for at least 30 years into the future.

“We are extremely grateful to be selected by HUD for this important grant,” said Alfredo de la Pena, Executive Director of Columbus Property Management & Development, Inc. “CPM is committed to providing quality, affordable housing for the most vulnerable individuals in our region and green building practices are an essential part of our approach.”

“We’re confident that this grant will help us develop a successful model for reducing energy consumption in multi‐family housing that will result in savings for both tenants and property owners. We’re looking forward to sharing the outcomes of our work with others so that the model can be replicated nationally,” he added.

IRS Releases November LIHTC Rates

2012-10-26T14:28:42-04:00

The Internal Revenue Service has released Rev. Rul. 2012-30 which contains the LIHTC rates and applicable federal rates for November 2012. The 70% LIHTC rate is 7.38% and the 30% LIHTC rate is 3.16%. Note that for non-federally subsidized new buildings placed in service after July 30, 2008, and before December 31, 2013, the 70% LIHTC rate will not be less than 9%. For historical rates, click here.

Last Chance to Register for McKonly & Asbury's Fall 2012 Affordable Housing Seminar!

2012-10-22T20:04:21-04:00

McKonly & Asbury will be holding a two-day seminar on November 13 and 14 which will feature two days of training for experienced low-income housing tax credit property managers and professionals. We are pleased to welcome back A.J. Johnson of A.J. Johnson Consulting who will be providing the training. A.J. will be covering a wide range of LIHTC topics including placed in service issues for both acquisition and rehabilitation developments, how to calculate rents and fees, minimum set-aside tests, and determining utility allowances. For a complete list of topics to be presented, see our Events page. At the end of the training on the second day, participants will have the option of taking a certification examination to become a Housing Credit Certified Professional (HCCP) which is a nationally recognized designation through the National Association of Home Builders.

Registration Deadline: October 30, 2012

Location: Radisson Hotel Harrisburg, 1150 Camp Hill Bypass, Camp Hill, Pennsylvania 17011 in the Convention Center Building.

Time:   November 13 9:00 a.m. – 4:30 p.m. – Training
             November 14 9:00 a.m. – 11:30 a.m. – Training
             November 14 11:30 a.m. – 4:15 p.m. – HCCP Certification Examination

Fee: $325 for training only (includes lunch on November 13)
$499 for training and certification exam (includes lunch on both days)

Click here for registration information

Contact affordablehousing@macpas.com or Melissa Roberson at (717)761-7910 with questions.

PHFA Accepting Proposals for Use of PHARE and Marcellus Shale Funding to Improve Housing in Areas Impacted by Natural Gas Drilling

2012-10-16T20:04:36-04:00

The Pennsylvania Housing Finance Agency has issued a Request for Proposals (RFP) for projects to improve the availability and affordability of housing in the Marcellus Shale region of the state.

The funding is being made available through the Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) Fund and Marcellus Shale impact fees. This funding will include $2.5 million collected in 2011 and $5 million collected each year that follows. Additional funding to be added to the PHARE Fund may include Marcellus Shale impact fees provided to municipalities that exceed a certain percentage or dollar amount set by law.

Eligible applicants for the RFP include Pennsylvania counties that have adopted ordinances authorizing the imposition of an impact fee and that have producing, unconventional gas wells. Also eligible are municipalities that have excess (or spillover) funds deposited into the PHARE Fund, as noted above.
“We want the RFP to be as flexible as possible in considering ways we can expand the quantity and quality of housing in those communities impacted by the upsurge in natural gas drilling in the state,” said PHFA Executive Director and CEO Brian A. Hudson Sr.

“We understand that different communities will undertake different approaches for addressing their housing needs, including such options as adding more multifamily housing, providing rental assistance, expanding homeownership opportunities, and other development ideas. We’re looking for proposals that reflect the needs and wants of the communities they’ll serve.
“The end result will be improved housing options suited to the needs of the people who live in those regions affected by the increase in natural gas drilling.”

The RFP stresses the agency’s desire to fund projects that will leverage other funds secured to improve housing in a community. Proposals must ensure that at least 15 percent of any funds awarded will be used to help people or families with incomes below 50 percent of the median area income. Also, proposals cannot serve people or families with incomes above 200 percent of the median area income. Additional requirements are described in detail in the RFP.
More information along with the RFP is available by clicking here. The deadline for proposal submission is November 2 at 2 pm.

About PHFA
The Pennsylvania Housing Finance Agency works to provide affordable homeownership and rental apartment options for older adults, low- and moderate-income families, and people with special housing needs. Through its carefully managed mortgage programs and investments in multifamily housing developments, PHFA also promotes economic development across the state. Since its creation by the legislature in 1972, it has generated $10.6 billion of funding for more than 148,233 single-family home mortgage loans and 83,000 rental units, while saving the homes of more than 46,000 families from foreclosure. PHFA programs and operations are funded primarily by the sale of securities, not by public tax dollars. PHFA is governed by a 14-member board.