This is the fourth in a series of blog posts chronicling the Rural Rental Housing Preservation Academy. TSAHC, the Federal Reserve Bank of Dallas, Enterprise Community Partners, the Rural Rental Housing Association of Texas and Motivation, Education, & Training, Inc. are partnering to present the academy which is a series of no-cost training and peer learning sessions designed to help rural housing providers and nonprofits acquire and/or preserve USDA housing in their respective communities. Special thanks to the Capital One Foundation for providing financial support for the academy.
Attendees participated in “Session 4: Preservation Financing and Deal Structuring Continued” in Austin June 6-7. This is a recap of that session provided by Emily Perlmeter, Analyst, Community Development at the Federal Reserve Bank of Dallas.
Russell Kaney, Director, Programs at Enterprise Community Partners welcomed participants to the fourth session and reminded everyone that recaps of Session 1, Session 2, and Session 3 are available for those interested.
The Development Team
Will Eckstein - Greystone Affordable Development (Supporting Materials)
Mr. Eckstein presented on how to assemble a strong development team emphasizing that the developer is the “quarterback” and needs the experience, human capital, and financial strength to manage the development team.
Bonds, 4% Tax Credits and Pro Formas
David Danenfelzer - TSAHC (Supporting Materials)
TSAHC's David Danenfelzer gave an overview of Multifamily Tax-Exempt Housing Bonds and covered who can issue bonds and how they are blended with 4% tax credits to create or preserve affordable housing. He also offered advice on how to create a pro forma which is an analysis that projects if a development deal is financially feasible.
Fannie Mae's Duty to Serve
Joey Davenport - Fannie Mae (Supporting Materials)
Mr. Davenport explained Fannie Mae's Duty to Serve rule which is designed to improve the availability of home financing to low-income families in these three underserved markets: manufactured housing, affordable housing preservation, and rural housing. More specifically, Fannie Mae intends to apply this rule to purchase multifamily loans in Texas colonias.
GAO Report on Rural Development
Russell Kaney - Enterprise Community Partners (Supporting Materials)
On May 17, 2018 the U.S. Government Accountability Office issued a report examining how the USDA's Rural Housing Service office is addressing the risks posed by maturing mortgages in the Section 515 program. Mr. Kaney highlighted findings from the report and noted some tools that were available to preserve Section 515 properties.
Portfolio Transactions with Case Study
Yolanda Winstead - Greystone Affordable Development (Supporting Materials)
Greystone has preserved more than 12,500 rural rental units at 318 properties across 10 states through portfolio transactions. Ms. Winstead went over one of these transactions in detail that preserved 1,310 units at 23 properties in Georgia.
Rural Development Section 515 Case Study
Larry Anderson - Get RD Done Right! (Supporting Materials)
Russell Kaney - Enterprise Community Partners (Supporting Materials Part 1 and Part 2)
Mr. Anderson provided an example of a much smaller preservation deal in North Dakota. A nonprofit was able to preserve 16 units through a combination of loans and a grant provided through USDA's Multifamily Housing Preservation and Revitilization program.
Property Assessed Clean Energy (PACE) Program
Jonathan Blackburn - TX PACE Authority (Supporting Materials)
The PACE program provides capital for energy and water efficiency improvements at a development. The improvements increase the income a property produces through lowered utility costs.
Engaging with National Association for Latino Community Asset Builders (NALCAB)
Laura Furst - NALCAB (Supporting Materials)
Ms. Furst gave an overview of grants and technical assistance NALCAB provides to assist nonprofits in leadership development, housing development, organizational assessment and more.
HEART Grant Program
Michael Wilt - TSAHC
TSAHC's Michael Wilt described the Housing & Economic Assistance to Rebuild Texas (HEART) program. The program was created by TSAHC and Enterprise Community Partners, and it provides grants of up to $50,000 and technical assistance to nonprofits providing housing assistance to families displaced or otherwise affected by Hurricane Harvey. The HEART Program was funded through a generous grant from the Rebuild Texas Fund.
Session 5 of the Rural Rental Housing Preservation Academy will be held August 1 - 2 in Austin, Texas. If you wish to attend that session or any other future session, please register here.
On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.