|
Connect with
IACED Online
Do Not Miss the Regular Content Updates
Click These Links | |
|
| Members-Only Content |  |
If you have not received your log-in credentials for accessing member-only content on IACED's website, please contact Kathleen Taylor.
|
| Send Us Your Stories! | |
IACED knows that our members are doing great work - we'd like to spread the word! If you've had a successful project or a remarkable experience, send your story to Kathleen Taylor.
|
|
Greetings!
Greetings from the hallways of the Indiana State House. The 2012 legislative session is off and running. Much has happened with IACED's 2012 legislative priorities and several bills are cause for great alarm among the IACED membership. Look for an update on IACED's legislative priorities on the IACED Blog. The most pressing issue as of this writing is Senate Bill (SB) 344 authored by Senator Brandt Hershman. Your immediate action is required to contact your legislators and opposed the provisions of SB 344 dealing with the Section 42, Low Income Housing Tax Credit (LIHTC) program. As you read in an IACED action alert in mid-January, Section 3 of SB 344 repeals the prohibition against using the value of Section 42 tax credits in calculating the assessed value for property tax purposes. As amended in the Indiana Senate yesterday, SB 344 now requires inclusion of the credit value in the assessed value: SECTION 3. IC 6-1.1-4-40 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 40. The value of federal income tax credits awarded under Section 42 of the Internal Revenue Code after December 31, 2012, shall be considered in determining the assessed value of low income housing tax credit property. SB 344 is on third reading in the Senate today. It is expected to pass the Senate, as the first of two legislative chambers required to vote on the bill before it becomes law.
Now is the time for all IACED members who are concerned about the availability of affordable housing in Indiana to contact their member of the Indiana House of Representatives and tell them you are opposed to this provision of SB 344 dealing with the Section 42 program . Use the following link to find your elected Representatives' phone and/or email address: http://district.iga.in.gov/DistrictLookup.
When the legislation moves to the Indiana House of Representatives, it is expected to be assigned to the Ways and Means Committee for consideration.
If your elected Representative is any of the following, your timely outreach is even more important:Jeff Espich, Suzanne Crouch, Bill Crawford, Jim Baird, Mara Candelaria Reardon, Bob Cherry, Ed Clere,Tom Dermody, Terry Goodin, Mike Karickhoff, Clyde Kersey, Shelia Klinker, Rebecca Kubacki, Dan Leonard, Rich McClain, Win Moses, Scott Pelath,Phyllis Pond, Cherrish Prior, Milo Smith,Jeff Thompson, Randy Truitt, Eric Turner, Matt Ubelhor, and Peggy Welch.(Those members in bold italics are Republican members who are in the majority.)
Your message should talk about LIHTC as the most successful affordable rental housing production program in U.S. history. As the fundamental housing resource used to transform communities, the Section 42 program creates quality affordable housing for working families and people with special needs including the elderly, the disabled, and the homeless in urban, suburban, and rural communities throughout Indiana. This provision of SB 344 increases significantly the costs of producing affordable housing with Section 42 leading to foreclosed properties and displaced tenants.
Virtually every housing tax credit property operates on a paper-thin cash flow margin. The level of cash flow that housing tax credit properties generate is artificially constrained by federal statutory rent restrictions, which do not provide flexibility for rent increases to compensate for the proposed tax increase proposed by SB 344. Since properties can not flexibly increase rents and additional funds are not available, property managers may be forced to close housing communities, thereby displacing the residents.
There is a clear rationale for the prohibition of the value of the tax credits in calculating the assessed value of the property. The awarded tax credits are converted into equity in the property, the credits are not income. The tax credits are not part of the property itself, but are awarded to a partnership for conversion to an equity stake. Once they are transferred to the investors, they are gone. Tax credits are intangibles and should not be assessed. Indiana does not include any other type of federal or state income tax credits in the assessment of real property.
Studies of the housing tax credit program have documented the program's favorable record of serving income-qualified tenants at restricted rents, an exceedingly low number of properties being lost to foreclosure, and maintaining high levels of occupancy. Through construction of new apartments, preservation of existing affordable housing, and rehabilitation of older multifamily buildings, the LIHTC adds to Indiana's supply of housing opportunities.
According to national data from the National Council of State Housing Agencies (NCSHA), approximately 90 percent of all affordable apartments are financed using the Section 42 program. In 2010, half of all multifamily starts were financed using the Section 42 program according to the National Association of Home Builders (NAHB).
In Indiana, the LIHTC has provided critical financing for the development of 45,655 affordable apartments through 2009.
The LIHTC has a direct economic impact within the community through both the development of infrastructure and job creation, as substantiated by economic analyses conducted by the NAHB. Since 1987, the LIHTC has created 55,699 direct jobs and 13,697 permanent jobs in Indiana. The impact of construction and the expansion of the tax base from the ongoing operations of the affordable apartment communities attract significant private investment and generate substantial tax revenue as currently configured. Indiana has allocated more than $3.3 billion in credits to affordable housing projects throughout the state. During this period, investment has led to a return of $4 billion in local income for Indiana communities and $393 million in state and local tax revenue for Indiana. Call your elected representative today and tell them you opposed Senate Bill 344's provisions dealing with the Section 42 program. Regards,
Andy Fraizer
Executive Director
|
|
IACED is now on Twitter using the handle @INCommDev. Click the image below to follow us on Twitter.
Are you among the 500-plus followers regularly reading IACED's tweets? If not, here is a sampling of what you missed. - INCommDev IACED Comprehensive Community Development Education Opportunity - Do you understand the basics of Comprehensive Community ... ow.ly/1gPWTF
- INCommDev IACED Action Alert: Indiana General Assembly Considers Legislation Disproportionally Impacting Indiana's Low-Income and Vu... ow.ly/1gNoLe
|
|
Connect with
IACED Online
Don't miss out on regular content updates.
Click the links below to get connected!
| | |
|
|
Trainings, Events, and
Technical Assistance |
You need current and reliable information to set your vision. You need expertise to ensure your strategy is executed at the highest level. IACED can help you achieve both. We offer a wide variety of training and professional development services that are designed to help our members get what they need to make the most of their organization's talent and resources. Keep watching the IACED website for updates on training registration or new course announcements. For questions about training opportunities, please contact Chris Collins.
The following is a list of trainings already planned for 2012: - Economic Development Finance Professional
- Certified Aging in Place Specialist
- Certified Green Professional
- Home Modifications Assessment Certification
- Using Data to Make Decisions
- Fundraising for Your Community Development Project
- Asset Management for Affordable Housing
- Financing Your Renewable Energy Project
- Real Estate Finance
- Low Income Housing Tax Credits
- Project Development Training
- Executive Director Training
- Comprehensive Community Development in Rural Settings
- Essential Components of Successful Neighborhood Revitalization
- Advanced Organizational Development
- Developing Your Microenterprise Program
|
|
Connect with
IACED Online
Don't miss out on regular content updates.
Click the links below to get connected!
| | |
|
IACED Offers Quality Technical Assistance
Whether you are running an organization or trying to design a new program or project, it can feel like a considerable weight. Our job is to help share the load! IACED provides members with a wide range of direct technical assistance. For more information contact IACED Senior Program Manager Jessica Love.
|
2012 Homeward Bound Season Kicks Off
IACED is thrilled to announce the start of the 2012 Homeward Bound campaign. Homeward Bound is a series of statewide walks that allow residents, local non-profits and businesses in communities throughout Indiana to collaborate in raising awareness about homelessness and supporting their neighbors in need.
All proceeds raised at these local events benefit IACED's member agencies. For more information on Homeward Bound, please visit our website at http://www.homewardboundindiana.org/.
Locations with Confirmed Dates:
|
|
Around Indiana
IHCDA Releases Draft 2012-2013 Neighborhood Assistance Program Application for Comment, Announces Important Dates
The Neighborhood Assistance Program (NAP), administered by the Indiana Housing and Community Development Authority (IHCDA), offers $2.5 million in tax credits annually for distribution by not-for-profit corporations. The draft 2012-2013 application for this assistance is available for review on the NAP page of IHCDA's website. All comments must be must be submitted to IHCDA via email to nap@ihcda.in.gov by 5 p.m. February 10, 2012.
The final application package will be released February 15, and the online application will be available March 9. All applicants must attend one of the five application webinars being held prior to application submission. Applications are due by 5 p.m. March 31.
Organizations use NAP tax credits as an incentive to help them leverage more contributions from individuals and businesses for certain neighborhood-based programs and projects. For more information on program specifics, read our full blog post here.
VA Funding Opportunity for South Central Housing Network Providers
The VA Medical Center is looking to expand their homeless services in the Bloomington area. Their staff is hoping to connect with housing providers in the area who are able to provide temporary housing (6 months or less) in addition to case management services to homeless veterans. The contract would cover services provided during the 2012 Fiscal Year until September 30, 2012. Providers will be compensated a per diem rate per bed, to be determined. They are interested in hearing from all types of providers capable of serving homeless veterans in Monroe and surrounding counties. For more information, please contact Kjirsten Kmetz at 317-988-2622.
Federal Home Loan Bank Trainings
The Federal Home Loan Bank of Indianapolis announced their 2012 training calendar. The training is designed for retail lending staff, commercial lending staff, CRA staff, CFOs and others involved in community lending, as well as affordable housing project sponsors, local housing and community development agencies, members seeking credit for required HOP/NSA/NIP training, Habitat for Humanity affiliates and other persons interested in affordable housing and community economic development. For trainings dates and locations, click here to read our blog post.
Follow up on Transit - Moving Forward On January 26, 2012, the House Ways and Means Committee met and considered amendments to HB1073 (Transit) and then voted. The bill, authored by Representative Espich, addresses public mass transportation and includes much of what the Central Indiana Regional Transportation Authority (CIRTA) has been building momentum around. At the end of the meeting, there weren't enough votes to carry the bill. It failed to pass committee 10-11. While the bill didn't pass committee, a bi-partisan group of legislators stated their support for authorizing voter referenda for transit funding. Further, we have learned that the reasons for defeat were related to language regarding collateral issues that were not requested by the transit advocates. No one spoke against the transit substance of the bill. Support is broad, including from outside of Central Indiana. For background and updates on this bill, read our related blog posts herehere respectively. Bring A Young Entrepreneur to Your CommunityA program offered as a partnership between the Indiana Office of Community and Rural Affairs (OCRA) and the Indiana Economic Development Corporation (IEDC) lets your community tap into young entrepreneurs' solid, creative business plans.
The Indiana Young Entrepreneur Program is designed to match recent graduates who have a degree or extensive coursework in Entrepreneurship from Indiana University with Hoosier communities. Each plan will be reviewed by IEDC, and the best plans will be invited to participate in a Preview Event. Your community will have four weeks to determine which businesses and plans you wish to pursue, and then develop appropriate offers. Click here to read our blog post for information on participation.
Across the Nation
HUD Releases HOME Program Proposed Rule, Accepting Comments until Feb 14th
If you have been following our blog, you know that HUD published a significant proposed regulation for the HOME Program on December 16, 2012. The proposed changes place more stringent requirements on performance and accountability and clarify certain existing provisions. Public comments on the proposed changes are due by February 14, 2012.
Among the most significant are the following proposals:
- Projects not completed within four years from the date of project commitment would be considered terminated and the jurisdiction must repay HOME funds invested in the project;
- Repayment of HOME funds would be required for any unit that is not rented to eligible tenants within 18 months of project completion;
- Homebuyer units that are not sold within 6 months of completion of rehabilitation or construction would be required to be converted to rental projects;
- Makes several changes to the requirements of CHDOs and funding awarded to CHDOs. For example, general CHDO reservations would be eliminated and PJs would be required to commit CHDO set-aside funds to specific CHDO projects within 24 months. In addition, HUD would deobligate CHDO set-aside funds not expended within five years of obligation to the PJ;
- PJs would be required to examine annually the financial condition of rental projects with at least ten HOME-assisted units;
- New property standard requirements and inspection requirements would be established;
- Mandatory program design considerations for homebuyer programs would be established;
- PJs would be required to assess a developer's capacity and financial condition, in addition to market need for the project and its long-term viability before committing HOME funds;
- PJs would be required to develop and adopt written policies and procedures to improve program oversight, conduct risk-assessments, and more closely monitor sub-recipients.
HOME Participating Jurisdictions, other program partners and stakeholders are encouraged to comment on the proposed rule and raise questions for clarification through the comment process. For up-to-date information regarding the proposed rule and to provide comments, please visit the HOME Program Proposed Rule page. If you are willing to also submit your comments for inclusion in IACED's response to the changes, please email Kathleen Taylor at ktaylor@iaced.org. New National Report Ranks Indiana 35th in Financial Security
Assets & Opportunity Scorecard,a comprehensive look at wealth, poverty and the financial security of families in the United States. The report examines how well residents in each of the 50 states and the District of Columbia are faring and what states can do to help residents build and protect assets. The provides state-by-state performance and policy measures across five Issue Areas: Financial Assets & Income, Businesses & Jobs, Housing & Homeownership, Health Care and Education. For a look at Indiana's score and key findings, check out our blog post. |
|
The Huntington House Emergency Shelter
Based in Huntington, Indiana, the CFS Huntington House Emergency Shelter is one of IACED's newest members and a first-time participant in one of our Homeward Bound walks. This emergency shelter is a part of Community and Family Services (CFS), a non-profit community action agency helps lead families and individuals toward independence and self-sufficiency.
The CFS Huntington House Emergency Shelter provides short-term, immediate housing for homeless families, women and children who are in need. In addition to housing and meals, case management services are provided to assist and guide homeless persons as they seek to overcome their unique barriers and causes of homelessness in order to become independent, self-sufficient citizens.
The CFS Huntington House Emergency Shelter not only provides a refuge for those who need it but also engages its residents with an array of services aimed to address barriers and the causes of homelessness. Assisted by shelter staff, Huntington House residents develop goals that will aid them toward long-term success. For more information, check out their website at http://www.huntingtonhouse.org/. |
|
Connect with
IACED Online
Don't miss out on regular content updates.
Click the links below to get connected!
| | |
|
|
|
|
|
