A Way Home For Tulsa: Strategic Planning | Ending Homelessness for Young Adults

The next Strategy Session for the AWH4T Strategic Planning Process will focus on Young Adults. Currently, Tulsa has 209 youth between the ages of 18-25 who are utilizing emergency shelters, transitional housing, or unsheltered. Many more are doubled-up and are at-risk of homelessness. This session will give us an opportunity to come together and create strategies for preventing and ending homelessness for some of Tulsa’s most vulnerable citizens. If you work with young adults between the ages of 16-24, or you are a youth that has experienced housing instability and want to help others, we would love for you to participate and lend your voice to this conversation. Click the image above to register.

Please share this opportunity with others!

NCSHA Statement on IRS Clarification That Housing for Special Populations Does Not Violate Multifamily Bond Public Use Rules

The National Council of State Housing Agencies (NCSHA) applauds the Internal Revenue Service and U.S. Department of the Treasury for issuing guidance this week stating affordable rental housing that provides preferences for specific populations, such as military veterans and other households with special needs, and that is financed with multifamily Housing Bonds and the 4 percent Low Income Housing Tax Credit is not in violation of the multifamily bond program’s general public use requirements as long as it is consistent with the Housing Credit program’s general public use requirements.

This victory is a strong example of Federal and State government representatives working together to support our country’s veterans.

State Housing Finance Agencies around the country had used multifamily Housing Bonds and the 4 percent Housing Credit to finance housing for people with special needs, including projects with preference for veterans, until last Fall when bond counsel began hearing from IRS officials that the Service considered such housing to be a violation of the general public use requirements in IRS bond regulations. IRS’s position, as communicated, put at serious risk developments that paired bond and 4 percent Housing Credits to serve these populations and had not yet closed construction loans or were in planning. In particular, this policy undermined the purpose and goals of California’s Veterans Housing and Homelessness Prevention Program, a $600 million state-financed program that specifically funds units to house veterans.

NCSHA has been pressing IRS and Treasury to reverse this position and to formally release guidance clarifying that housing for special needs populations and other group preferences does not violate IRS bond regulations if it is consistent with the Housing Credit requirements under the tax code. In December 2018, NCSHA’s Board of Directors made clarification of the general public use requirements for properties serving veterans a priority for the association. Just last month, a delegation led by NCSHA’s Board Chair and California Housing Finance Agency Executive Director, Tia Boatman Patterson, met with U.S. Senators and Treasury officials to urge a quick resolution.

NCSHA strongly supports IRS and Treasury’s decision to release this week Revenue Procedure 2019-17 making this clarification so that our member state Housing Finance Agencies may again pair these critical federal programs to serve at-risk populations.

IRS Revenue Procedure on General Public Use

As many of you are aware, one of the issues that needs resolving to facilitate affordable housing production is an omission that occurred back in 2008 with the Housing and Economic Recovery Act (HERA) regarding General Public Use.

Upon passage of HERA, Code section 42 provided that a project does not violate the general public use requirements solely because of occupancy restrictions or preferences that favor tenants (A) with special needs, (B) who are members of a specified group under a Federal program or State program or policy that supports housing for such a specified group, or (C) who are involved in artistic or literary activities. Among the specified groups included in the GPU provision for section 42 were veterans. Unfortunately this language was not conveyed to section 142 of the Code which pertains to tax-exempt bonds. This issue has now been resolved.

On April 3, 2019, the Internal Revenue Service (IRS) issued Rev. Proc. 2019-17, providing guidance regarding the general public use requirements for qualified residential rental properties financed with tax-exempt bonds under section 142 of the Internal Revenue Code (Code). The revenue procedure coordinates these requirements with the general public use requirements in Code section 42, thus ensuring that housing developments financed with bonds and the 4 percent LIHTC may include a preference for certain specified groups, such as veterans, without running afoul of the general public use requirements. This revenue procedure applies to bonds sold before, on, or after April 3, 2019.

This coordination is very good news in that it puts to rest concerns about whether 4 percent LIHTC properties serving veterans, or other specified groups, may move forward.

We also applaud the bipartisan efforts of Members of Congress to resolve this issue with the IRS and Treasury Department. House Speaker Nancy Pelosi (D-CA) and her staff worked with the House and Senate tax-writing chairs and ranking members, as well as with the Administration, to explore both regulatory and legislative clarifications. We also commend the efforts of Senators Dianne Feinstein (D-CA), John Cornyn (R-TX), Catherine Cortez Masto (D-NV), Jacky Rosen (D-NV), Kamala Harris (D-CA), and Mazie Hirono (D-HI). This bicameral, bipartisan united front was instrumental in making sure that the development of veterans housing will not be threatened.

Legislative Alert

HB1411-Nichols unanimously passed the Senate Finance Committee yesterday afternoon! Special thanks to all of our members who participated in the Call For Actions on this bill. Next step is that will be heard at any time on the Senate Floor. Please take a moment to visit, call or email your personal Senator as well as the Senators for all areas where you have a development and request they VOTE YES ON HB1411! If you have any questions or require additional assistance please contact one of the Andreas.

HB1032-Martinez has been brought to our attention by the Oklahoma Home Builders Association. Originally a shell bill, language has been inserted to prevent cities and counties from mandating certain esthetic design elements such as preventing the use of siding or front-entry garages. This increases costs and reduces housing affordability. The Government Affairs Committee has just been made aware of this bill and will submit it to the OCAH Board for an official vote to support its passage. In the meantime, we wanted to make sure all of our members were aware of this bill so they can take appropriate action, as needed to protect their business concerns. This bill will be heard by the Senate Committee on Business, Commerce and Tourism tomorrow at 10:30am. CLICK HERE for the meeting notice. CLICK HERE for the Committee Member List.

We look forward to seeing everyone tomorrow for our 4th Annual Affordable Housing Day at the State Capitol. Don’t forget that America Ninja Warrior is set up on the South Steps of the Capitol and the SE Entry door is currently closed. You will have to enter via the SW entry and it may take extra time to park and enter the building. The tunnel from the East parking lot is also still closed so if you park in the East lot you will cross over Lincoln Boulevard. If possible, car pool or uber over.

Last Chance to Register for Affordable Housing Day

Last Chance: Register for Affordable Housing Day at the State Capitol

It’s not too late to register for the 4th Annual Affordable Housing Day at the Capitol! The event provides a key opportunity to meet with your State Senator and Representative directly to educate them on your efforts to provide safe affordable housing in communities across Oklahoma.
Member Tickets: $25
Non-Member Tickets: $50
Would you like to become a member? CLICK HERE!

RAD Workshop in OKC

Oklahoma NAHRO is hosting a RAD Workshop in Oklahoma City on Monday, April 22, 2019. The deadline to register is April 17, 2019.

HUD is concerned with providing and preserving affordable housing units funded through a wider set of resources. HUD is now developing tools for PHA’s to reposition their existing portfolios to create better quality housing. This is a great opportunity for OCAH members to learn more about RAD, network with PHAs and see how their skills can interact to provide more housing for low income Oklahomans.

Speakers include:

Greg Jungman – Director, Affordable Housing Transaction Division Office of

Recapitalization

Greg Byrne – Director, Affordable Housing Transaction Division Office of

Recapitalization

Jane Blumenfeld-Hornstein – Director, HUD’s Special Application Center

For more information or to register: https://drive.google.com/file/d/1h8l5qG3brOuEFL-nQLNxsa0H2aDwQhjb/view

Call for Action: HB1411

HB1411-Nichols has been assigned to the Senate Finance Committeeand is scheduled to be heard tomorrow, April 9, 2019!

The Senate Finance Committee has regular meetings Tuesday afternoon once session has concluded. For a list of Senate Finance Committee members, CLICK HERE and then click on “FINANCE.” Please contact the Finance Chair-Senator Bice and thank her for adding HB1411 to the agenda. Please contact the remaining members of the Senate Finance Committee via phone, email or mail by Noon on Tuesday, April 9, 2019 and request that they:VOTE YES ON HB1411! HB1411 removes the county population cap and allows all 77 counties in Oklahoma to compete for these vital funds and also changes the carryforward from 5 years to 2 years. This is a nonpartisan issue.

If you would like more data on the impact of the Oklahoma Affordable Housing Act to share with your Representative or Senator, the Coalition commissioned an economic impact study from the Oklahoma Department of Commerce: Research and Economic Analysis Division to conduct an assessment of the Oklahoma Affordable Housing Act between 2015-2018. A copy of the study is available HERE.

This economic impact study focuses on construction and permanent employment activities associated with the construction of 36 developments across Oklahoma. Between 2015-2018, the Oklahoma Affordable Housing Act allocated $15,332,125 in state affordable housing tax credits which provided funding for:

36 developments in 28 communities

Created a direct impact of over $306M in construction activity

Close to 3,900 jobs during peak construction

Close to $200M in payroll during peak construction

Created 99 permanent FTE jobs

An additional 101 FTE jobs for induced and indirect jobs

$3M in annual labor income

$7.3M total impact on labor income from regular operations

$28M of economic activity annually

$42M in economic activity including indirect effects

The overall economic contribution from developers and leasing companies is over $575 million. When paired with 4% Bond transactions in 2017-2018, Oklahoma received an extra $34M in federal funding dollars which helped produce an extra 571 housing units.

If you need resources for delivery to your State Senators or Representatives, including the Economic Impact Report, Housing Fact Sheet or Oklahoma Affordable Housing Act Handout, please contact one of the Andreas: Andrea Frymire or Andrea Flowers-Householter. The Coalition has assembled mailing labels and contact lists as well for your convenience.

Numbers of the Day & Weekly What’s That

From our friends at OK Policy Institute:

Numbers of the Day

· 27.3% – Percentage of mothers of infants and toddlers in Oklahoma reporting less than optimal mental health.

· 82% – Share of Oklahoma state legislators who are non-Hispanic white, compared to 67% of Oklahoma’s population that is non-Hispanic white.

· -82% – Change in new multifamily housing permits issued in Oklahoma in Q4 2018 compared to the previous year.

· 9th – Oklahoma’s rank for least equitable state tax system in the nation.

· $2,496 – Average amount less of per pupil funding that high-poverty, nonwhite students receive in Oklahoma compared to high-poverty white students.

See previous Numbers of the Day and sources here.

Weekly What’s That

Emergency clause, what’s that?

The emergency clause is a provision included as part of a bill in the Oklahoma Legislature that allows it to become effective immediately upon the signature of the Governor or at a specified date. Emergency clauses require two-thirds approval by both houses and are voted on separately and subsequently to the vote in favor or against a measure. Click here to read more about the emergency clause.

Look up more key terms to understand Oklahoma politics and government here.

Chart of the Week

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1 Week Left to Register for Affordable Housing Day

Register Now !

It’s not too late to register for the 4th Annual Affordable Housing Day at the Capitol! The event provides a key opportunity to meet with your State Senator and Representative directly to educate them on your efforts to provide safe affordable housing in communities across Oklahoma.
Member Tickets: $25
Non-Member Tickets: $50
Would you like to become a member? CLICK HERE!

Senate Confirms Calabria as FHFA Director

The U.S. Senate earlier today voted to approve Mark Calabria’s nomination to serve as director of the Federal Housing Finance Agency (FHFA). Calabria was confirmed by a party-line vote of 52-45, with all Republicans present voting in support and Democrats present in opposition. He is expected to be sworn in soon.

Calabria will become the top regulator for the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, as well as the Federal Home Loan Banks. During a Senate Banking Committee hearing held to consider his nomination, Committee Democrats pressed Calabria about previous statements he had made that were critical of the GSEs and some of their affordable housing programs. Calabria acknowledged during the hearing that he had previously expressed strong opinions on the GSEs but pledged that his job as FHFA director would be to carry out legislation passed by Congress, not impose his own preferred policies. NCSHA previously summarized the hearing in more detail.

Calabria currently works as chief economist for Vice President Mike Pence. Prior to joining the Administration, he was a top aide for the Senate Banking Committee, where he helped to draft the Housing and Economic Recovery Act of 2008 (HERA), the legislation that established FHFA. Calabria also served as Deputy Assistant Secretary for Regulatory Affairs at the Department of Housing and Urban Development (HUD) during President George W. Bush’s administration and held positions with the Cato Institute, Harvard’s Joint Center for Housing Studies, the National Association of Home Builders, and the National Association of Realtors®. Calabria has addressed the state HFAs at several NCSHA events during his career.