Dear CCAH Members
& friends of the Council,
The CCAH 2009 Fall Conference is just around the corner and we invite you to join us November 15-17 in sunny Palm Springs, CA as we continue
to support the LIHTC program and California's affordable housing industry. Please click here for the agenda and registration form.
Will Warren Buffett and company buy $3 billion of tax credits from Fannie Mae
or will Congress stop this transaction as helping Fannie Mae financially but
damaging the tax credit equity market going forward??? Ronne Thielen, President
of AHTCC, Jeanne Peterson, Reznick Group, and David Gastton, Housing Advisory
Group, will provide us with an update on where this is all going and whether
you will suffer more risk or less risk in 2010 relative to Mr. Buffett's
proposed buy.
More importantly,
Bill Pavao will be with us in Palm
Springs to tell us how many 2009 9% deals are
relinquishing their tax credits and requesting to compete for ARRA
Exchange/1602 funds from Treasury. You
will recall that only 40% of the total tax credits are exchangeable and that
SRO, Special Needs, At-Risk and Rural deals will receive priority of the
Exchange dollars. One school of thought
is that 40% is sufficient and that there will be no excess demand for the
Exchange. Other experts project that the
Exchange will be oversubscribed and that many 9% deals will fall off the table
and provide credits for those projects on the limited "waiting list." Only Mr. Pavao will be able to settle this
debate and he will enlighten us on Monday morning at the conference.
RDA funds have been
ripped off to balance the state budget but litigation is in process and it may
not be as bad as you assume. The
Developer/Local Government panel discussion will provide you with an update on
what you can expect relative to RDA financial support in 2010.
Prevailing
Wages??? My goodness it is a convoluted
process and one that you must understand to protect your tax credit
development. Dennis Cook, the attorney
who helped us overcome and succeed in the Woodhaven case will walk us through
the maze of prevailing wage issues relative to TCAP, Exchange, HOME, TOD,
Infill and RDA soft financing.
Bloody Marys and Brainstorming Session on Tuesday
morning, November 17. That is exactly right in that CCAH and Red Capital
will be providing you with a Bloody Mary to get your brain cells working on
what CTCAC revisions are needed to improve the tax credit program in
2010. The key question raised by several of our
members is should we just eliminate the "permanent loan" tiebreaker and go
back to a lottery system?? See the attached Brainstorming agenda
and let us know if you want to add additional items for discussion and debate.
Join us in Palm Springs for the California Council for Affordable Housing
fall conference or visit www.californiacouncil.com for more details.
Sincerely,
Patrick Sabelhaus
Secretary of CCAH
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