These multifamily developments create affording housing opportunities for families and seniors across Pennsylvania, and they promote vital economic activity in rural and urban communities. When completed, the new developments will provide an additional 1,579 housing units for Pennsylvania residents.

“The competition was intense for this affordable housing funding and we were pleased with the high quality of the 96 proposals we received this year,” said PHFA Executive Director and CEO Brian A. Hudson Sr.

“This funding, and the tax credits we award, are vital to the housing needs of the state’s residents because they are the main tools we have for directing the construction of critically needed affordable housing across Pennsylvania. These multifamily developments will benefit the local communities where they’re located because of the economic boost they’ll provide during construction, and then later when the residents move in.”

The 32 multifamily housing proposals that today are being awarded PHFA funding and tax credits are identified here.

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 $10.5 billion of funding for more than 147,555 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.

McKonly & Asbury is a leader in accounting for affordable housing developments in Pennsylvania. IRS and PHFA regulations require specialized knowledge when accounting for LIHTC developments whether it's performing a 10% Test or Development Cost Certification audit; or performing development stage audits and preparing partnership tax returns. The M&A Team has the audit and tax expertise and experience needed. For more information, please contact Elizabeth Brooks at ebrooks@macpas.com.

A.J. will be discussing the Guide for Completing Form 8823 which was effective in October 2009. This part of the seminar will cover all elements of the Guide, including definitions and examples of noncompliance, dealing with over-income households, understanding the risk of not recertifying tenants, traps relating to the use of common area, the General Public Use Rule, and a review of new IRS positions relative to rents and fees. A.J. will also be discussing the basic requirements of the tax exempt bond program, especially with regard to on-site compliance.

This seminar will be held at the Giant Community Center, 3301 East Trindle Road, Camp Hill, PA  17011 from 8:00am – 5:00pm. CPE credits are available and the cost to attend is $195/person, which includes lunch.

Register by e-mailing affordablehousing@macpas.com and indicating you would like to attend or call (717)761-7910 and ask for Diane Clapper.

The Project is expected to receive LEED for Homes® Platinum certification which highlights 1260’s commitment to environmental stewardship and the long-term health of its residents, and are part of the larger plan to revitalize the surrounding neighborhood. David Hahn, Director of Construction, explains, “The cost savings that tenants will realize in their energy-efficient units (with extra insulation, Energy-Star appliances, and high-efficiency plumbing) will allow for more discretionary income to be spent in the community.”

Development funding for the Project was provided by Pennsylvania Housing Finance Agency, the Redevelopment Authority of the City of Philadelphia, Enterprise Community Investment, Inc., Firstrust Bank, Community Lenders Community Development Corporation, Federal Home Loan Bank of Pittsburgh (through Firstrust Bank), Federal Home Loan Bank of New York (through M&T Bank) and The Reinvestment Fund. Rental subsidies for the Project are provided by the Philadelphia Housing Authority and the Department of Housing and Urban Development. Temple II N. Gratz will also receive funding through the sale of carbon offset through the Enterprise Green Communities Offset Fund. This is the first domestic offset program supporting carbon reducing efforts through green affordable housing. Enterprise will purchase carbon emissions reductions from this project which will be retired, measured and verified over the next ten years.

Sustainable design elements of the Project include: Forest Stewardship Council (FSC) certified lumber; additional insulation in exterior walls; no Volatile Organic Compound (VOC)-emitting finishes or adhesive materials; high efficiency plumbing fixtures; high recycled content building materials and Energy Star and hydrochlorofluorocarbon (HCFC)-free mechanical systems. New Energy-Star Low E argon filled replacement and new windows increase day-lighting. A white roof system helps reduce the “heat island” effect. All site work was conducted in a manner to minimize disturbance of native vegetation and soil within the construction area. Best Management Practices of erosion and sedimentation controls were used, and a construction waste recycling program diverted 85% of the waste from landfills to recycling facilities. 

About 1260 Housing Development Corporation

1260 Housing Development Corporation (1260) is a 501(c)(3) Pennsylvania nonprofit corporation with a mission of providing high quality affordable housing with housing related services to low income individuals with a focus on individuals with behavioral health challenges in the City of Philadelphia. Since 1988, 1260 has developed over 1,200 units of affordable housing in Philadelphia. 1260 is a member of CPM Housing Group, a group of nonprofit companies with more than 20 years of experience in developing and managing affordable rental housing for low-income individuals. The CPM Housing Group currently operates more than 2000 units of affordable rental housing in the mid-Atlantic region.

About LEED® for Homes

LEED® for Homes is a third-party certification system for building and designing high-performance green homes that are energy-and resource-efficient and healthy for its occupants. Developed and administered by USGBC, LEED for Homes awards points to projects in eight categories of environmental performance: Innovation & Design Process, Location & Linkages, Sustainable Sites, Water Efficiency,
Indoor Environmental Quality, Energy & Atmosphere, Materials & Resources, and Awareness & Education. Homes can become LEED Certified, Silver, Gold, or Platinum.

As for the 96 units housed in the building, 49 are reserved for very low-income seniors with the other 47 designated for low-income seniors. 20 of the 96 units are reserved for the physically disabled. The apartments are currently being leased with 52 units occupied and 16 applications in process.

What kind of amenities does the development offer? Tenants can garden their own complimentary on-site plot of land, a unique opportunity for apartment living. Other amenities include a large community room with a home theater system, hair salon, fitness center, laundry center, lending library, and a walking trail. Geothermal heating and cooling are provided throughout the development.

The development is sponsored by Springwood Real Estate Services and Presbyterian Senior Living.

You can find more information about Westminster Place at Stewartstown here.

If you would like to have a development considered for our Success Stories series, please
e-mail affordablehousing@macpas.com.

There will be one funding round for the PennHOMES and LIHTC in 2012.  The application for the 2012 round will be due on October 12, 2011.  The announcement of funding for the 2012 applications is anticipated to be in April 2012.

McKonly & Asbury is a leader in preparing and consulting on low-income housing tax credit applications in Pennsylvania. Our team is passionate about making your application a success. We have a comprehensive understanding of the challenges and nuances of structuring a low-income housing tax credit deal. We are able to assist you in putting the entire application package together for submission, or we can review your application and provide suggestions for optimizing points for PHFA scoring. We will help you maximize your tax credits and, therefore, increase your equity proceeds. For more information, please contact Elizabeth Brooks at ebrooks@macpas.com.

The 10% Test deadline for developments that received 2010 low-income housing tax credits in Pennsylvania is here. These developments must have incurred 10% of their reasonably expected basis as of today and have until noon on August 25, 2011, to submit the required information  to the Pennsylvania Housing Finance Agency. This is an important test because failure to satisfy it can cause a development to lose its tax credits.

In order to meet the 10% Test for 2010 credits, a development must have incurred 10% of the reasonably expected basis by today. Reasonably expected basis is the estimated land and all depreciable property (not just basis eligible property) expected to be part of the development.

Generally, a development must be placed in service in the year that the low-income housing tax credits are awarded by the state housing finance agency (in Pennsylvania, this is PHFA). A carryover allocation can extend the placed in service date to the end of the second calendar year after the year that a carryover allocation is made.  For any development receiving an allocation of 2011 credits that will not be placed in service by the end of this year, a Carryover Allocation Agreement must be executed today and submitted to PHFA along with other required information  by August 22, 2011. Having a valid Carryover Allocation Agreement in place will give developments that received an allocation of 2011 low-income housing tax credits until December 31, 2013 to be placed in service.

McKonly & Asbury is a leader in accounting for affordable housing developments in Pennsylvania. IRS and PHFA regulations require specialized knowledge when preparing a 10% Test. This test is critical in the tax credit process and it is important to work with someone who has the experience and expertise to ensure that your Test is accurate and your credits are not lost. The M&A Team has the audit and tax expertise and experience needed to complete an accurate 10% Test. For more information, please contact Elizabeth Brooks at ebrooks@macpas.com.

The information presented in this post is intended solely for informational purposes and should not be construed as accounting advice from McKonly & Asbury, LLP.

If you would like to have a development considered for our Success Stories series, please e-mail affordablehousing@macpas.com. 

McKonly & Asbury is a leader in preparing and consulting on low-income housing tax credit applications in Pennsylvania. Our team is passionate about making your application a success. We have a comprehensive understanding of the challenges and nuances of structuring a low-income housing tax credit deal. We are able to assist you in putting the entire application package together for submission, or we can review your application and provide suggestions for optimizing points for PHFA scoring. We will help you maximize your tax credits and, therefore, increase your equity proceeds. For more information, please contact Elizabeth Brooks at ebrooks@macpas.com.