On 7/17/09 MSHDA published its list of applications for LIHTC Exchange funds.  This list represents the total universe of potential “monetized” deals that would be processed on the US Treasury’s 1602 program.  Total amount of returned credit is $201,971,968.

See the entire list at:  http://www.michigan.gov/documents/mshda/MSHDA-Recovery-TaxCreditExchangeProgramApplicants7.19.09_286395_7.pdf

The MSHDA Board met on 7/22/2009.  Executive Director, Keith Molin, gave a report on the status of its NSP2 Grant Application.  The Application was submitted on behalf of a consortium of local communities and land banks.  The total amount of the Application is $290 Million.  A copy of the application is not yet available, but you can go online at http://michigan.gov/mshda/0,1607,7-141–217713–,00.html and obtain an overview of the Application.

The Board approved the sale and refinancing of Greenbriar Apartments, a Section 8 MSHDA financed development located in Holland Michigan.

The Board approved the appointment of a managing agent for Benjamin Manor in order to stave of significant deferred maintenance problems, a high vacancy problem and the pending tax foreclosure of the property because of unpaid city supplied water bills.

The Board approved MSHDA’s 2009/2010 Budget.  A presentation by MSHDA’s Finance Director, Jeff Sykes, indicated that net income for last budget year and probably for this budget year is down due to the credit crisis; interest income is project to increase in the coming year; federal fees are up because of federal stimulus funds coming into MSHDA; and salaries and fringes are shown as if all positions are filled; cost of liquidity is up, also because of the affects of the credit criss.  MSHDA has increased is provision for mortgage loan losses to more closely match the actual results it is seeing in both the Single Family and Multi-family Programs.  MSHDA grants are down by about $8 Million.  MSHDA has made provision for the Governor’s Homeownership Counseling Program. 

The Board approved a multi-year professional services contract with a Washington DC law firm, Holland & Knight, to represent MSHDA regarding its ongoing dispute with HUD on ownership of certain Section 8 funds.

MSHDA’s Director of Finance along with representatives from both underwriting firms and MSHDA’s financial consultant gave a post-closing report on the sale of its Single Family and Multifamily Bonds that occurred early this year.

The Chair announced that there would be no meeting in August.

Today, the MSHDA Board meet and acted on the following agenda items:

1.  Approved modifications to the Multi-Family Direct Lending Parameters.  

2.  Approved mortgage loan feasibility for Homecrest.

3.  Approved the appointment of a management agent to take over Algonquin Apartments.

4.  Approved amendments to the mortgage loan commitment for Crystal View Apartments.

5.  Approved additional amendments to the mortgage loan commitment for Freedom Place.

6.  Approved forgiving a small portion of the repayable grant to LISC.

7.  Approved a professional service contract with OLHSA to manage the IDA program.

8.  Approved a professional service contract with Pace for promotional services.

9.  Approved a bridge loan for Maxwell Place.

In addition, staff provided a presentation on the implementation of ARRA requirements and the Executive Director announced that there will be a presentation of NSP Round 2 at the July Board meeting.

If you are interested in receiving copies of any of the Board resolutions, please contact us at 517-347-0927.

HUD has announced its second round of NSP funding.  Unlike the first NSP funding round where HUD funds were allocated based on a CDBG formula, this round will be a national competition.  Applicants have 150 days from May 3, 2009 to submit their proposals.  Eligible activities include those that address home foreclosure and abandonment, capacity building and support.  Grantees must expend at 50% of each grant within 2 years and 100% within 3 years of award.  At HUD’s discretion, it may run 2 competitions - one for technical assistance, not to exceed $50 Million and one to provide programmatic funding for grantees.  Eligible grantees include states, local unit of government, non-profit organizations and consortia of non-profit organizations which can include partnership arrangements with a for profit entity.

MSHDA published its draft application for TCAP funding late last week.  Go to: http://www.michigan.gov/mshda/0,1607,7-141-5546-211383–,00.html to view this proposal for HUD funding.

1.  Approved sale of both single family and multi-family bonds.  The sale of the single family bonds will help re-open the program. 

2.  Approved Draft Lending Parameters for Multi-family program.  These are posted on the MSHDA website and comments are still being accepted.  A final version of the Lending Parameters will be considered at the June Board meeting.  Go to: http://www.michigan.gov/mshda/0,1607,7-141-5546-211383–,00.html

3.  Approved a Housing Development Grant to the Downtown Partnership in the amount of $1,694,379 to be used to clean downtown and to help fund the 211 On the Go Programs.

4.  Granted Mortgage Loan Feasibility to Village of Royal Oak at Starr Corners in the amount of $8,639, 601. This is a 147 unit elderly development.

5.  Granted Mortgage Loan Feasibility and Commitment to 223 N. Broad Street in the amount of $500,000.  This is a 7 unit development designed for the chronically homeless located in Adrian, Michigan.

6.  Authorized the sale of Palmer Park Estates, aka Richard Allen Court for $600,000 to Janko Properties, LLC.

7.  Authorized a modification to the mortgage loan of Riverview Terrace - deffering principal payments on the loan for a period of 1 year to help with severe operating losses due to a bed bug infestation at the development.

8.  Authorized the participation of MSHDA in Michigan Magnet Fund’s (MMF) 2009 New Market Tax Credit Program Application and authorized the appointment of members to the board of MMF as required by the New Market Tax Credit Program.

9.  Approved an increase in the amount of the Professional Services Contract for David J. Snider in order to complete employee training.

10.  Approved a Professional Services Contract with Patrick Babcock to review and make recommendations regarding certain of MSHDA’s programs including Supportive Housing, Homeless Initiatives and the Housing Choice Voucher Program.

The following actions were taken by the MSHDA Board at its regular monthly meeting:

1.  Approved a change in funding for the Blight Elimination Program in the Cities of Promise from MHSDA funds to NSP funds.

2.  Approved the promulgated rules for the Housing and Community Development Fund to assure consistency with MSHDA’s Act.

3.  Authorized the termination of certain Grant Agreements where there is no grant ending date and there has been no activity.  Most grants were 10 to 15 years old or had no activity for over a year.  This action will also MSHDA staff to clean up its balance sheet where it has been carrying the outstanding grants for some time.  This will amount in a savings of approximately $700,000.

4.  Approved the transfer of Court Street Village and Court Street West via a deed in lieu of foreclosure.  MSHDA will receive a payment of $3.4 Million from the MacFarland Foundation for the properties.  The Mott Foundation will provide another $2 Million for capital improvements for the properties.  MSHDA’s loan loss reserve has fully funded this loss.

5.  Approved an amendment to the MMAM contract to expand its services to include rent comparability reviews as part of the services it provides to MSHDA on the HUD-Section 8 portfolio that MSHDA manages for HUD.

6.  Approved a multi-year contract for ReCap Advisors through 2013 for $600,000 to provide consulting services primarily in the area of the Low Income Housing Tax Credit (LIHTC) Program.

MSHDA has posted information on its website about ARRA authorized Homeless Prevention and Rapid Re-housing Program funding.  MSHDA has received over $22 Million in federal funds that it will be distributing to eligible grantees - all 60 of Michigan’s Continuum of Care providers.  Only those providers submitting an acceptable CHAP plan will be eligible for funding.  Two target populations are to be served by the funding - persons currently house but at risk of becoming homeless needing short-term assistance and those residing in shelters or on the street needing longer-term assistance in order to obtain and sustain housing.  Grant agreements are to be executed no later than 9/1/2009 with awards being made by 9/30/2009.

More information on the Program can be found at:

http://michigan.gov/mshda/0,1607,7-141-5515_7534-213474–,00.html

MSHDA published its new underwriting criteria for monetized credit and TCAP funded developments on Friday, April 17th.  These new requirements will be used to evaluate developments that either turn back 07 and 08 LIHTC reservations or who are seeking 09 monetized and TCAP funding and all other developments, including direct lending developments being financed with 4% or 9% LIHTC.  These new requirements reflect MSHDA’s intent to stress-test all developments they are considering for the various funding sources they have available.

The new criteria can be found at:

http://www.michigan.gov/documents/mshda/mshda_li_ca_24_tab_o_underwriting_standards_183880_7.pdf

MSHDA has published its ARRA Implementation Plan and conducted one public listening session to encourage developers to turn back their 07 and 08 LIHTC reservations in exhcange for monetized credits and TCAP funding.  The listening session conducted on April 13th was well attending with a full room and at least 75 people calling in to hear people comments.  Information on MSHDA’s ARRA Implementation Plan, including The Parmenter Group’s comments and suggestions can be found at:

http://www.michigan.gov/mshda/0,1607,7-141-5546-211383–,00.html