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Securing Resources for RD 515 Preservation

Securing Resources for RD 515 Preservation. 2007 Qualified Allocation Plan: Preservation Set-aside Rural Set-aside 2008 Qualified Allocation Plan: Affordable Preservation Set-aside Section 515 Rural Rental Housing eligible Underserved Set-aside

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Securing Resources for RD 515 Preservation

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  1. Securing Resources for RD 515 Preservation

  2. 2007 Qualified Allocation Plan: Preservation Set-aside Rural Set-aside 2008 Qualified Allocation Plan: Affordable Preservation Set-aside Section 515 Rural Rental Housing eligible Underserved Set-aside Counties not located in an MSA and have not received an allocation of tax credits in the past five years Preservation Efforts To Date

  3. 610 properties currently operating in Iowa Reduction from 980 properties that originally were established using Section 515 Section 515 in Iowa

  4. A market no longer existed in the community for affordable units; The property owner no longer desires to comply with the program requirements; The property owner need to update the property and there is not access to capital to make improvements; or The property owner is aging and no longer desires to own and manage the property. Reasons for Reduction

  5. State office of USDA-RD has identified 19 projects that are at risk of leaving the 515 program and are potential candidates for preservation RD 515 in Iowa

  6. RD Preservation III, Emmetsburg & Spencer • 210-214 N State (Emmetsburg) • 611-613 E 19th & 511/600 E 19th Street (Spencer) • 84 units, Eight buildings • Underserved Area Set-Aside • Occupancy type: Family • Special need: Self-sufficiency • Construction type: Rehabilitation • LIHTC award: $2,433,800 • Sponsor: National Affordable Housing Foundation

  7. RD Preservation II, Winterset & Carlisle • 426/428 W Mills & 1019/1107 N 8th (Winterset) • 1225/1245 Hardin (Carlisle) • 72 units, Eight buildings • Nonprofit Set-Aside • Occupancy type: Family • Special need: Self-sufficiency • Construction type: Rehabilitation • LIHTC award: $2,294,140 • Sponsor: National Affordable Housing Foundation

  8. RD Preservation IV, Mitchellville • 401/403/405/407 Center Avenue S • 24 units, Four buildings • General Pool • Occupancy type: Family • Special need: Self-sufficiency • Construction type: Rehabilitation • LIHTC award: $829,700 • Sponsor: National Affordable Housing Foundation

  9. Major new initiative Received $2 million loan through the RD Preservation Revolving Loan Fund Mission: Preserve and revitalize existing Section 515 properties in rural Iowa communities where both a market need exists, and the use of additional financial resources externs the viability of the property for at least 30 additional years. RD 515 Preservation Demonstration

  10. Break down three major barriers to the successful preservation: Regulatory and programmatic requirements associated with multiple funding sources Access to technical assistance Access to capital RD 515 Preservation Demonstration

  11. Five percent Set-aside of the available 9% Low Income Housing Tax Credits 2009 and 2010 funding rounds To be used with a PRLF loan To preserve between six and eight Section 515 projects RD 515 Preservation Demonstration

  12. A development team or teams will be selected to participate based on interest, commitment and experience Team will not enter the competitive 9% LIHTC round RD 515 Preservation Demonstration

  13. Following a period of technical assistance provided by IFA and USDA-RD, when the project(s) are ready to proceed, the project(s) will be guaranteed the 9% LIHTC and PRLF loan funds RD 515 Preservation Demonstration

  14. Identify potential 515 properties Feasibility analysis: existing and proposed ownership, market need, site characteristics, building condition Energy Audit Capital Needs Assessment Market Study Financial Analysis RD 515 Preservation Demonstration

  15. Prior to award of tax credits Must meet all of the Qualified Allocation Plan threshold requirements, as well as those additional requirements of the PRLF demonstration loan program based on an individualized in-depth analysis of each program RD 515 Preservation Demonstration

  16. Document the process and lessons learned so that information can be shared broadly with other housing finance agencies RD 515 Preservation Demonstration

  17. Carla Pope, Director, Affordable Rental Production Dave Vaske, LIHTC Manager Craig Johnson, Underwriter www.iowafinanceauthority.gov Firstname.lastname@iowa.gov 515/725-4900 Contact Information

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