Author: ipgocorp

(RECAP: J. Ron Terwilliger, chairman of Terwilliger – Pappas Multifamily Properties and the ULI Terwilliger Center for Housing, was the moderator for the panel “A New National Housing Policy,” at the at the 2016 Urban Land Institute Spring Meeting. During the meeting, politicians and real estate leaders discussed one of the conference’s hot topics of conversation: the affordable housing crisis. Terwilliger noted the affordable housing problem is evident through the stats: the U.S. is losing 125,000 affordable rental units every year and one in six Americans families spend more than half their income on housing. With the number of low-income families struggling to find affordable housing only growing, several panelists expressed the need for a new national housing policy that promotes homeownership and makes rental housing more affordable.)

(RECAP: Arlington County is faced with the unenviable scenario of a rising population coinciding with a shrinking number of jobs, which it’s taking steps to address. The Arlington County Board has unanimously approved a new budget for fiscal year 2017 that will see the county increase spending in some key areas, including an additional $1.5M for Arlington Economic Development, with a “focus on lowering the commercial vacancy rate.” Additional highlights include $13.6M for the Affordable Housing Investment Fund, which is $1.1M more than what was proposed by county manager Mark Schwartz, ARLnow reports. The budget coincides with the county’s release of its 2016 profile, which shows a rising population—but a declining number of jobs.)

(RECAP: The housing market in central Virginia, including the Richmond area, is off to a moderate start compared with last year, according to a report released Thursday by the Central Virginia Regional Multiple Listing Service. Home prices in most of the region remained flat. Meantime, the inventory of active listings continued to fall to historically low levels, a trend that is likely to continue into the second quarter, according to the report. The number of residential sales rose 3 percent in central Virginia and 3 percent in the Richmond area in the first quarter from the same period one year ago.)

(RECAP: Aiming to use its place as one of the nation’s largest banks to address “global social, economic, and environmental challenges,” Wells Fargo announced an ambitious five-year plan that includes massive investments in diversity and social inclusion efforts, environmental causes, and billions of dollars for mortgages in “underserved” communities. Part of $500 million in “philanthropic giving” will include housing grants to Habitat for Humanity, grants to Neighborworks to provide down payment assistance, providing funds for counseling programs for first-time homebuyers, and home repair programs to help low-to moderate-income households folks remain in their homes, among other efforts. Wells Fargo also pledged to provide $150 billion in mortgage originations to minority households and $70 billion in mortgage originations to low-to moderate-income households through the bank’s retail and correspondent networks.)

(RECAP: The Senate passed an amendment yesterday that would allow lenders to account for a home’s energy efficiency and expected monthly utility bill savings when determining borrowers’ eligibility for FHA insured single-family loans. The amendment, sponsored by Senators Isakson (R-GA) and Bennet (D-CO), would require FHA to create new guidelines that enable lenders issuing FHA-insured loans to take into account expected energy savings from monthly utility bills when calculating borrowers’ debt-to-income and loan-to-value ratios. The bill also directs FHA to establish an advisory group consisting of representatives from the housing and energy efficiency sectors to help it develop and administer the new energy efficiency guidelines.)

(RECAP: The purpose of the FHA is “to help creditworthy low income and first time homebuyers, individuals and families often denied traditional credit, to obtain a mortgage and purchase a home.” This is achieved through the FHA guarantee provided to lenders who originate FHA backed loans, which provides the FHA will pay out the balance of a mortgage loan in the event of an uncured default. This significantly lowers and practically eliminates the risk of FHA loans to the lender, which then allows them to offer higher loan-to-value ratios and more attractive interest rates to borrowers who would normally not have access to similar terms. This system was successful and aided in achieving the FHA’s goals of promoting home ownership, however this is changing as the DOJ has begun to bring investigations and actions against lenders under the False Claims Act.)

(RECAP: Last week, Representative Kuster (D-NH) introduced the Rural Housing Preservation Act of 2016, H.R. 4908, which seeks to provide relief to rural multifamily developments financed under the U.S. Department of Agriculture (USDA) Section 515 Rural Rental Housing Loan Program that will lose rental assistance in the future due to pre-paid or maturing mortgages. Since 2004, USDA appropriations bills have included provisions to make residents of properties with pre-paid mortgages eligible for USDA Section 542 housing vouchers. However, residents in maturing mortgage properties are not eligible for Section 542 vouchers under these provisions. H.R. 4908 would authorize USDA to provide vouchers to eligible residents in properties with pre-paid and maturing mortgages.)

(RECAP: Yesterday, Senate Banking Committee Chair Richard Shelby (R-AL) requested that both the Government Accountability Office (GAO) and the Congressional Budget Office (CBO) compose reports on matters relating to the Federal Housing Finance Agency (FHFA) and the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. In a press release announcing the requests, Shelby suggests that the reports will help Congress adequately oversee FHFA and the GSEs and, “ensure that Congress takes steps to protect American taxpayers from risk.” Shelby asks that CBO complete its report by July, and that GAO try its best to finish its work, which Shelby anticipates will include multiple reports, by November 1.)

LONGVIEW, TX – Civitas Senior Living announced the acquisition of two senior living communities in East Texas. Abby Development, based in Dallas, TX, owned and developed the communities in 2015-2016.

Arabella of Longview is located at 1133 E. Hawkins Pkwy. The building includes 132 independent living apartments, 20 independent living cottages, 50 assisted living apartments, and 32 memory care apartments.

Arabella of Athens is located at 413 Gibson Road. The building includes 12 independent living cottages, 34 assisted living apartments, and 21 memory care apartments.  The combined transaction adds 314 units to the Civitas Portfolio of 20+ properties located in Texas.

Both communities will be managed by Civitas under the leadership of Wayne and Misti Powell. Together, this management team has more than 30 years of experience operating senior living communities in Texas.

Wayne Powell, president of Civitas, says, “April has been a great month for the growth of Civitas Senior Living – adding these two East Texas Arabella properties to the earlier purchase of Arabella of Kilgore expands our East Texas footprint allowing us to focus on regional market expansion.  Each of these properties have a strong Independent Living component that mirrors current Independent Living expansions at other existing Civitas Properties.”

LUBBOCK, TX – Preferred Apartment Communities announced that it closed on a loan investment of up to approximately $9.4 million.  This investment is in connection with Haven Campus Communities’ plans to develop a 556-bed, 140-unit student housing community located near Texas Tech University in Lubbock, Texas. 

This is the second phase to an existing student housing project that is completing its first lease-up.  The second phase will be managed by Preferred Campus Management, the same company managing the current lease-up in the first phase.  Additionally, with this investment, PAC received an option to purchase the student housing community following stabilization at a discounted price to market. 

“We are excited to continue the growth of investments in student housing assets near world-class universities,” said Paul Cullen, Chief Marketing Officer of PAC.

Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.  As part of its business strategy, it enters into forward purchase contracts or purchase options for to-be-built multifamily communities and makes mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties.