Author: ipgocorp

(RECAP: On May 19, Senator Cantwell (D-WA) and Senate Finance Committee Chairman Orrin Hatch (R-UT) introduced S. 2962, the Affordable Housing Credit Improvement Act of 2016, which would enact several of NCSHA’s Housing Credit-related legislative priorities. The bill would address the severe shortage of affordable rental housing by increasing Housing Credit authority by 50 percent over five years beginning in 2017 and providing states additional flexibility in their program administration. The legislation also increases the small state minimum by 50 percent, also over five years. In addition to the cap increase, the legislation would set a minimum 4 percent Housing Credit rate for both acquisition Credits and for Housing Bond-financed Credit properties, allowing states to provide more Credit equity to these developments if necessary to achieve their financial feasibility.)

NEW YORK, NY – The value of new construction starts in April fell 8% from the previous month to a seasonally adjusted annual rate of $608.3 billion, according to Dodge Data & Analytics.  Nonresidential building pulled back following its sharp March increase, and residential building also declined due to a slower pace for multifamily housing. Meanwhile, the nonbuilding construction sector showed improvement, with public works strengthening after its lackluster March performance.  Through the first four months of 2016, total construction starts on an unadjusted basis were reported at $198.4 billion, down 12% from the same month a year ago. The first four months of 2015 had been lifted by several exceptionally large projects, including three liquefied natural gas (LNG) terminals with a total value of $15.4 billion and three large petrochemical plants with a total value of $11.9 billion, which substantially increased last year’s January-April amounts for the electric utility/gas plant and manufacturing building categories. If the electric utility/gas plant and manufacturing building categories are excluded, total construction starts during the first four months of 2016 would be down a modest 4% from a year ago.

April’s data lowered the Dodge Index to 129 (2000=100), compared to 140 for March. The Dodge Index had registered improved activity during February and March, averaging 141. April’s decline returned the pace of construction starts to what was reported during the July 2015-January 2016 period, when the Dodge Index averaged 129. “The construction start statistics on a month-to-month basis are subject to frequent ups-and-downs, so April’s decline after two months of improved activity was not a surprise,” stated Robert A. Murray, chief economist for Dodge Data & Analytics. “The elevated volume for nonresidential building in March was not expected to be sustained in the near term, yet the strength shown by its institutional segment in March does provide an indication of where growth is likely to come over the course of 2016. The prospects for the commercial segment of nonresidential building, while still positive, have grown more tenuous given signs that banks are beginning to take a more cautious approach towards commercial real estate loans. Residential building is still deriving some benefit from this year’s low interest rate environment, and increased funding under the new federal transportation act should provide support for the public works sector.”

Nonresidential building in April dropped 19% to $185.1 billion (annual rate). This follows the 26% hike reported for March, which included the start of several large transportation terminal projects plus several large hotel and casino projects. The institutional side of the nonresidential building market fell 24% in April after surging 50% in March, with widespread declines for its individual structure types. Most notable was an 86% plunge for the transportation terminal category, which had been lifted in March by $663 million for work on the rail terminal caverns at Grand Central Terminal in New York NY and $537 million for the new North Terminal building at Louis Armstrong International Airport in New Orleans LA. By contrast, the largest transportation terminal project reported as an April start was a $17 million rail station platform replacement in Wantagh NY. Healthcare facilities in April dropped 10% after soaring 57% in March, while the public buildings category retreated 16% after its 48% March rise. Even with its decline, the healthcare facilities category in April did see the start of several large projects, including a $275 million medical center expansion in Tucson AZ and a $180 million psychiatric center in Staten Island NY. The amusement category settled back 8% in April, after climbing 39% in March with the push coming from the $284 million casino portion of the Montreign Resort and Casino in Kiamesha Lake NY. There were still several large amusement projects that were entered as April construction starts, including two Star Wars-themed park expansions valued each at $135 million, located at Disneyland in Anaheim CA and Walt Disney World in Orlando FL. Educational facilities, the largest institutional category, had a relatively small 3% drop in April after climbing 21% in March. Major educational facilities projects reported as April starts were a $134 million high school in Spring TX and a $98 million middle school in Beverly MA.  The depressed religious building category ran counter to the broad pullback for institutional building, as it climbed 10% in April.

The commercial building categories as a group fell 18% in April, following a 5% gain in March. Hotel construction dropped 49% after its 47% March jump, which reflected the $332 million hotel portion of the Montreign Hotel and Casino. The largest hotel project entered as an April start was an $87 million hotel in Washington DC. Store construction in April decreased 17%, reversing its 17% March gain. On the plus side, growth was reported in April for warehouses, up 15%; and office buildings, up 8%. Large office projects that reached groundbreaking in April were the $232 million addition to the Fannie Mae office building in Washington DC, the $223 million CNA Financial headquarters office tower in Chicago IL, and the $200 million NCR headquarters office building in Atlanta GA. The manufacturing plant category in April rose 19%, supported by the $717 million expansion to an alpha olefins plant in Louisiana.

Residential building, at $269.1 billion (annual rate), slipped 8% in April. The weaker activity was due to a slower pace for multifamily housing, which declined 26% after advancing 14% in March.  There were five multifamily projects valued at $100 or more that were entered as April starts, compared to 12 such projects in March. The largest multifamily project in April was a $316 million apartment building in New York NY, followed by a $300 million residential tower in San Francisco CA, a $231 million apartment complex in Denver CO, a $152 million apartment building in Honolulu HI, and a $100 million apartment building in West Orange NJ. Through the first four months of 2016, the top five multifamily metropolitan markets in terms of the dollar amount of multifamily starts were led by New York NY, followed by Miami FL, Boston MA, San Francisco CA, and Los Angeles CA.  The New York metropolitan area’s share of the national multifamily dollar amount during this year’s January-April period was 24%, still very high by historical standards although down slightly from the 26% share reported for the full year 2015. Single family housing in April was unchanged from March, maintaining the essentially flat pattern that’s been present for at least the past nine months. By major region, single family housing in April showed a 5% increase in the South Atlantic, but slight declines were reported in the South Central and Northeast, each down 1%; and the Midwest and West, each down 2%.

Nonbuilding construction in March advanced 10% to $154.1 billion (annual rate), with public works up 39% while electric utilities/gas plants fell 36%. Highway and bridge construction climbed 13% following subdued activity in March, lifted by the April start of the $581 million Bergstrom Expressway project in Austin TX and the $209 million Interstate 59/20 interchange modifications in Birmingham AL. Through the first four months of 2016, the top five states in terms of the dollar amount of highway and bridge construction starts were the following – Texas, California, North Carolina, Illinois, and Florida. The miscellaneous public works category in April soared 180%, and included two site work projects valued at $365 million each for the Star Wars-themed parks at Disneyland and Walt Disney World.  Other large miscellaneous public works projects in April were a $220 million natural gas pipeline in Texas and a $146 million portion of the SunRail Commuter Rail Transit project in Orlando FL. With regard to environmental public works, water supply construction surged 85% in April, reflecting the start of a $707 million water tunnel repair project located in New York’s Dutchess, Orange, and Putnam counties. The other two environmental public works categories, river/harbor development and sewer construction, each fell 24% in April. The 36% decline for the electric power/gas plant category in April continued its retreat from a very strong amount at the outset of 2016. Even with the decline, this category still witnessed the April start of several massive projects, including a $780 million natural gas-fired power plant in Pennsylvania, a $613 million wind farm in Kansas, a $550 million wind farm in New Mexico, and a $350 million natural gas-fired power plant in Indiana.

The 12% slide for total construction start on an unadjusted basis during the first four months of 2016 came as the result of sizeable declines for both nonresidential building and nonbuilding construction, relative to their particularly heightened activity a year ago. For both sectors, the year-to-date comparisons should strengthen as 2016 proceeds. Nonresidential building fell 21% in this year’s January-April period, with manufacturing building down 72%, the institutional building segment down 10%, and the commercial building segment down 4%. The first four months of 2015 had been boosted by such projects as the $8.1 billion Sasol ethylene cracker and derivatives complex in Louisiana, the $2.5 billion 30 Hudson Yards office-retail building in New York NY, and the $705 million National Bio and Agro Defense Facility in Manhattan KS. Nonbuilding construction dropped 25% year-to-date, with public works down 23% and electric utilities/gas plants down 28%. The January-April amount for public works in 2015 was lifted by the $2.3 billion Interstate 4 project in Orlando FL while electric utilities/gas plants were lifted by the $15.4 billion for three LNG terminals in the Gulf Coast region. Residential building is the one major sector to show year-to-date growth so far in 2016, rising 8% with single family housing up 8% and multifamily housing up 5%. By major region, total construction starts for the first four months of 2016 revealed these comparisons to last year – the South Central, down 34%; the Midwest, down 7%; the Northeast, down 4%; the South Atlantic, unchanged; and the West, up 2%.

CYPRESS, TX – TNRG and MedCore Partners will begin construction on the 80-unit assisted living and memory care facility in late May 2016. Spring Cypress Assisted Living and Memory Care will be located at 16306 Spring Cypress Rd. (on the east side of US 290) and is projected to create over 100 new jobs.

The building will have, 65 assisted living units including studio suites, one bedroom units, and two bedroom units as well an additional 15 private and companion memory care units. Amenities will include fitness/wellness center, a gorgeous pond with a walking path and gazebo, a bistro, a beautiful courtyard, an activity room with theater, beauty shop, and many more industry leading amenities.

The community will be managed by Civitas Senior Living 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. Their goal is to create a warm, caring environment with all the comforts of home–because it truly feels like home.

“TNRG and MedCore Partners are extremely excited to partner with Civitas to provide the seniors of Cypress, Texas with a first class community that they will be proud to call home,” says Brian Bollich, Principal of MedCore Partners. 

WASHINGTON, DC – Georgetown, Texas, saw its population rise 7.8 percent between July 1, 2014, and July 1, 2015, making it the nation’s fastest-growing city with a population of 50,000 or more, according to estimates released today by the U.S. Census Bureau.

Georgetown is part of the Austin-Round Rock metro area, which crossed the 2 million population threshold in 2015 for the first time, according to statistics released earlier this year. This metro area is also home to Pflugerville, the nation’s 11th fastest-growing large city. Austin itself added more people over the period (19,000) than all but seven other U.S. cities.

Texas was home to five of the 11 fastest-growing cities (New Braunfels, Frisco and Pearland were the others), and five of the eight that added the most people (Houston, San Antonio, Fort Worth and Dallas were the others).

New York remained the nation’s most populous city and gained 55,000 people during the year ending July 1, 2015, which is more than any other U.S. city. New York City consists of five boroughs, each of which is a separate county equivalent of New York State. The five boroughs are Brooklyn, Queens, Manhattan, The Bronx and Staten Island. Queens (16,700), Brooklyn (16,000) and the Bronx (13,700) accounted for the bulk of New York’s growth.

Denver joined the list of the 20 most populous cities in the United States, moving up two spots to 19th. It displaced Detroit, which fell from 18th to 21st. In addition, Seattle moved up two spots to 18th. Denver and Seattle were both among the nation’s 11 top numerically gaining cities.

Among the 15 fastest-growing cities, the only one outside the South or West was Ankeny, Iowa, a suburb of Des Moines. It grew by 6.5 percent, ranking third. Ankeny completed a special census on Dec. 10, 2014, that showed the population to be 54,598. The 2015 estimate puts the population at 56,764.

For more information about the geographic areas for which the Census Bureau produces population estimates, see Census.gov.

(RECAP: A high-profile redevelopment project considered key to upgrading the city’s Interstate 95 gateway took a step forward last week as a divided City Council voted to apply for a federal loan on behalf of the developer. Michelle B. Peters, the city’s director of planning, asked council for permission to file an application for a loan of up to $2 million from HUD to help support C.A. Harrison Cos. LLC’s redevelopment of the former Ramada Inn at 380 E. Washington St. Peters explained that the loan under HUD’s Section 108 Loan Guarantee Program would leverage the city’s Community Development Block Grant to help finance the planned $20 million-$25 million project. The developer would repay the loan, which would not cost the city any money.)

NEW ORLEANS, LA – 365 Connect, a leading provider of award-winning marketing, leasing, and resident technology platforms for the multifamily housing industry, announced today the integration of its Marketing Syndication Platform with uCribs, the largest search site dedicated to apartments near universities. In teaming up with uCribs, 365 Connect will distribute rental listings to uCribs’ nationwide rental housing platform.

The 365 Connect’s Marketing Syndication Platform emphasizes the shift from obsolete marketing strategies towards more economical and effective marketing technology that can be successfully utilized in the apartment industry. Research has repeatedly demonstrated that today’s renters want more efficient, user-friendly sites like uCribs when seeking an apartment home in a focused location. Through the distribution of 365 Connect’s client property listings across uCribs’ unique apartment search engine, this powerful alliance delivers high market penetration.

uCribs enables millennial renters to search for rentals based on the location of their university instead of an arbitrary location. With students and young renters primarily in mind, uCribs curates its own property listings and works directly with landlords and selected live data partners to provide a one-stop-shop for young renters and their parents, who are seeking to understand the rental market around their chosen college. uCribs is committed to measuring and sharing rental trends across college markets within the United States to its growing audience of renters and potential landlords.

uCribs Vice President of Strategic Partnerships, Colin Kish, explained, “As we continue to scale our platform across the nation, it is critical that we deliver apartments that are currently available for lease to our site users. 365 Connect’s award-winning technology directly delivers trusted source listings with real-time pricing and availability to uCribs. This integration will help uCribs succeed in its goal of creating an exceptional user experience by providing accurate data to our site users searching for rental listings.”

Founder and CEO of 365 Connect, Kerry W. Kirby, responded, “We are excited to extend our Marketing Syndication Network to include uCribs. uCribs has created a unique marketplace for millennial renters that enables them to easily search and discover real-time inventory of apartments. uCribs’ focus on delivering leading-edge technology and mobile applications aligns perfectly with 365 Connect’s responsive platform, which allows renters on-the-go to find apartments, access neighborhood details, and share listings. This integration will allow us to dramatically increase the number of leads, eliminate redundant marketing efforts, and reduce operating expenses for our clients.”

To date, 365 Connect has received a total of 37 technology awards including an array of international awards for its leading-edge Marketing Syndication Platform. The 365 Connect Technology Platform is highly recognized by its peers for its unique ability to market communities across the Internet on high traffic sites, automate social media postings, and deliver desktop and mobile platforms for prospects to transact business. Today, 365 Connect’s innovative technology platforms are utilized across the nation by the most respected national, regional, and local multifamily housing operators in the country.

uCribs is an apartment search engine designed for renters who are looking to live near college campuses throughout the country. uCribs fills the college apartment niche actively sought by millennial renters in providing a comfortable interface, a clean design, and a focus in the student-housing market, which eliminate the friction of finding places near universities. Started in 2013 at one university with 50 properties, uCribs has expanded nationally to become the largest search site dedicated to rentals near universities.

365 Connect is a leading provider of award-winning marketing, leasing and resident technology platforms for the multifamily housing industry. Delivering a fully-integrated solution that eliminates redundant marketing efforts, simplifies transactions and delivers services after the lease is signed, the 365 Connect Platform interfaces with a variety of third-party applications to streamline operations and enhance user experiences. Powering the resident lifecycle since 2003, 365 Connect delivers game-changing results for its clients and the residents they serve, by remaining laser focused on connecting people with where they live.

LONG BEACH, CA – LINC Housing continues to expand its portfolio of affordable housing as construction begins on Mosaic Gardens at Pomona. The new 46-home apartment complex is expected to welcome its first residents in late 2017. 

Located at 1680 S. Garey Ave. in Pomona, Calif., Mosaic Gardens at Pomona will feature one-, two- and three-bedroom homes for low-income families, with half of the apartments designated for formerly homeless households who are being served by the Los Angeles County Department of Health Services.

“Mosaic Gardens at Pomona is part of LINC’s initiative to integrate affordable housing with health resources and other services,” said Rebecca Clark, LINC Housing’s president and CEO. “We know that combining housing with health services increases positive outcomes for residents and strengthens neighborhoods overall. Even months before construction began, we were meeting with local service agencies, city officials and other advocates so we’re sure to develop the best set of services possible.”

During predevelopment of Mosaic Gardens at Pomona, LINC Housing sought input from local government officials, city staff, and community advocates. In addition, LINC staff participated in meetings of the Pomona Continuum of Care Coalition, a group focused on working together to address issues surrounding homelessness. The Coalition includes more than 40 agencies including service providers, advocates, faith-based organizations, local government representatives, and county departments, as well as, homeless and formerly homeless people and concerned citizens.

A variety of resident services will be offered through LINC Cares, LINC’s resident services department, and Ocean Park Community Center (OPCC), which has a contract with the county to provide intensive case management services to the 23 formerly homeless households that will call Mosaic Gardens at Pomona their home.

Funding for the $19.7-million development comes from a number of sources including the Los Angeles County Affordable Housing Funds, a construction to permanent loan from Citi, a Citi subordinate loan, and tax credit equity from Raymond James Tax Credit Funds Inc. The 23 homeless units, which include one, two, and three bedrooms, will receive rental subsidies from the Los Angeles County Department of Health Services as administered by Brilliant Corners. Funding for predevelopment of the site was made possible by generous support from The California Endowment, the JPMorgan Chase Foundation, and Partners in Progress.

Residents of the new apartment community will benefit from convenient parking, a community room, and a spacious courtyard with tot lot. The courtyard will be on a deck above subterranean parking and will serve as a gathering space for families to talk, children to play, and all residents to get to know each other. The community room will include a large living room-type area, computers for resident use, and ample space for resident services programs and events. Three offices in the community building will provide space for private meetings with case managers, therapists or other visiting service providers.

The new complex will have a number of sustainability features including 35 kW of solar photovoltaic to offset common and resident use, high-efficiency mechanical systems, and a foam roof for added insulation. The building also has high-performance windows and building envelope, and both the HVAC and water heating systems are very high efficiency. Other environmental features include low-flow plumbing fixtures, LED lighting, drought tolerant landscape, on-site recapture of rainwater, permeable paving surfaces, and healthy building materials throughout. Southern California Edison provided support for the project’s energy efficiency features through its Emerging Technologies program. Mosaic Gardens at Pomona has been registered with the U.S. Green Building Council and intends to pursue a LEED Platinum certification. 

The community was designed by D33 Design and Planning, and the contractor is Walton Construction Services.

WILMINGTON, NC – Five Star Senior Living, one of the nation’s leading senior living and healthcare service providers, announced the addition of Morningside of Wilmington to their family of managed communities in the state of North Carolina.

The assisted living and memory care community will now be able to participate in Five Star’s signature programs like LifeStyle360, a holistic approach to senior health and wellness that focuses on maintaining an active and fulfilling lifestyle.

Residents with dementia will also benefit from Five Star’s Bridge to Rediscovery program, a unique approach to dementia care that is tailored to each resident, providing opportunities to thrive in a nurturing environment.

“We are excited to welcome all the team members and residents to the Five Star Family,” commented Scott Herzig, Chief Operating Officer of Five Star Senior Living. “We are dedicated to helping our residents reach their fullest potential and creating a unique experience for each individual.”

Five Star Senior Living operates over 270 Independent Living, Assisted Living, Alzheimer’s/Memory Care, and Healthcare Centers with Skilled Nursing & Rehabilitation and Continuing Care Retirement Communities across the country.

NEW YORK, NY – Mortgage rates reversed course and began moving higher, with the benchmark 30-year fixed mortgage rate registering at 3.76 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.18 discount and origination points.

For just the second time since last June, the larger jumbo 30-year fixed came in a tad higher than the smaller conforming loan, at 3.78 percent. The average 15-year fixed mortgage settled at 2.98 percent. Adjustable mortgage rates increased in an even more pronounced way, with the 5-year ARM climbing to 3.18 percent and the 7-year ARM rebounding to 3.38 percent.     

The Federal Reserve has increased talk of a possible June interest rate hike, and markets are nervous about it. For months, there has been a disconnect between the Fed’s expectations for interest rate hikes and what the market believes. In December, the Fed forecast that they would raise interest rates four times this year, then ratcheted that back to two as recently as March. Markets have been dismissive all along, according to the pricing of Fed Funds interest rate futures, with only a 50 percent chance at the December meeting and lower odds at every meeting between now and then. But the rhetoric from the Fed ramped up this week and that was just the beginning. The icing on the cake came with the release of the minutes of the Fed’s April meeting, where it was clear that an interest rate hike could be implemented as soon as June if the economy showed continued progress.

At the current average 30-year fixed mortgage rate of 3.76 percent, the monthly payment for a $200,000 loan is $927.37. 

SURVEY RESULTS

30-year fixed: 3.76% — up from 3.75% last week (avg. points: 0.18)

15-year fixed: 2.98% — down from 2.99% last week (avg. points: 0.14)

5/1 ARM: 3.18% — up from 3.11% last week (avg. points: 0.20)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The majority of respondents – 70 percent – predict further increases in mortgage rates, and just 30 percent expect mortgage rates to hold at present levels. Interestingly, none of the panelists forecast a decline in mortgage rates in the coming week.

(RECAP: Four projects ranging from the restoration of a 19th century building in Church Hill to a newly built urban house in Jackson Ward won Golden Hammer Awards on Wednesday night from the Better Housing Coalition, a nonprofit affordable housing developer. The ceremony recognized some of 2015’s best neighborhood revitalization projects in the Richmond area. It also recognized leadership in building vibrant communities through Better Housing’s Groundbreaker Awards. The event was held in a tent behind a structure built in Church Hill in 1923 by the Baptist Woman’s Missionary Union. The Colonial Revival building — formerly called the Citadel of Hope — will be converted into 52 apartments by the Better Housing Coalition. Construction is expected to start in early 2017.)