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WSHFC
Continuum of Needs and Resources Chart
Local Government & Public Housing Authorities<Federal, State & Local Funds>
Housing Trust Fund Program<Federal, State & Local Funds>
Housing Finance Commission<Using No State Funds>
Private SectorPrivate Sector
SubsidyInsurance
Federal ProgramsFederal Programs
No Income 50% (Area Median) 80% Median 115%
Mortgage Interest Deduction &
Housing Credits and Tax exempt Bonds – It’s Simple!
WSHFC
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Tax Credits
Eq
uity
$$
for
Pro
ject
How are the Credits Turned Into Equity for the Project?
WSHFC
Tax Credit Partnership
Investor = 99% Owner
Developer = 1% Owner
$14,000,000
Credit to Equity
$13,580,000
WSHFCTAX CREDITS
InvestorTAX SAVINGS
10 years
Investorpays $0.97 / dollar
of tax credit
HousingEQUITY
$14,000,000
Credit to Equity
$9,800,000
WSHFCTAX CREDITS
InvestorTAX SAVINGS
10 years
Investorpays $0.70 / dollar
of tax credit
HousingEQUITY
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WSHFC
Best Process:
Objective vs. Subjective?
•Policy Objectives:– maximize public benefit
– appealing to investor
– geographic dispersion
– project readiness
– public funder coordination
•Allocation Approach– geographic credit pools
– public benefit point criteria
– caps and limits
Public Benefit Point Criteria
WSHFC
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WSHFC
USDA RD 538 Loan
6 Site PortfolioBond Tax Credit Financing
Rehab 6 Site Location
LIHTC BUDGET
Costs Per Unit
Acquisition Costs $ 7,483,656 $ 38,576
Construction $ 6,008,074 $ 30,969
Soft Costs $ 3,388,296 $ 17,465
Other Development $ 1,812,086 $ 9,341
Total Costs $ 18,692,112 $ 96,351
Total Project Costs $ 18,692,112
Total Eligible Basis‐Acquisition $ 8,061,656
Total Eligible Basis‐Rehab $ 8,358,746
Reasonable Expected Basis (1st Yr.) $ 17,000,402
.
WSHFC
USDA RD 538 Loan cont.
Bond Tax Credit Financing
Rehab 6 Site Location
Residential Sources Uses
USDA 538 Loan/Bond $9,000,000 Acquisition $ 7,483,656
USDA Loan Assumptions $3,592,659 Construction $ 6,008,074
Deferred Developer Fees $1,796,927 Soft/Financing Costs $ 3,388,296
Tax Credit Equity $4,302,522 Replacement Reserves $1,812,082
Total Sources $18,692,108 $18,692,108
Credit to Equity
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Chelsea Apartments - Oak Harbor, WA
Harmony House – Shelton, WA
Wellington Apts. – Snohomish, WA
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USDA RD 515 Loan
3 Site PortfolioCompetitive Tax Credit Financing
Rehab 3 Site Location
Residential Sources Residential Uses
USDA 515 Loan $2,347,969 Acquisition $3,323,022
GP Contributions $205,780 Construction $5,201,163
Sponsor Take Back Note $892,031 Soft/Financing Costs $3,388,102
Tax Credit Equity $8,892,507 Reserves $426,000
Total Sources $12,338,287 Total Uses $12,338,287
WSHFC
USDA RD 515 Loan cont.
Competitive Tax Credit Financing
Rehab 3 Site Location
Residential Sources Residential Uses
USDA 515 Loan $2,347,969 Acquisition $3,323,022
GP Contributions $205,780 Construction $5,201,163
Sponsor Take Back Note $892,031 Soft/Financing Costs $3,388,102
Tax Credit Equity $8,892,507 Reserves $426,000
Total Sources $12,338,287 Total Uses $12,338,287
Credit to Equity
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Mercy Housing Northwest Allegre Villa, Sandstone & Cambridge
Apts. RD Rehab
RD Transfer Application – lots of paper
Mercy Housing Northwest
• Acquired 30 property, 926 unit RD portfolio 8 yrs ago from private developer to preserve housing
• Strategy to rehab properties with emphasis on health and safety, energy conservation, accessibility, and extending useful life to enhance the overall sustainability and marketability
• Renovated 7 properties with HUD Green Retrofit• Phase 2 - 84 senior units in 4 buildings in 3 rural
towns
Mercy Housing Northwest
Sandstone Apartments, Tenino WAConstructed in 1978
Pre Rehab
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Mercy Housing Northwest
Moving Day – Residents are temporarily relocated
Mercy Housing Northwest
Sandstone Apartments in progress - rigid insulation, new windows and new roof & gutters installed
Mercy Housing Northwest
Pre-rehab non-conforming stairs
Rehab in progress to bring to code
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Mercy Housing Northwest
Typical pre-rehab kitchen
Mercy Housing Northwest
Asbestos abatement underway – floors, ceilings and wall texture throughout
Mercy Housing Northwest
Kitchen - asbestos abatement completed
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Mercy Housing Northwest
Accessibility modifications to sidewalks, ramps and driveway
Mercy Housing Northwest
Cementitious board siding installation underway
Competitive Housing Credit Timeline
Initial developer inquiry
Application submitted Day 1
Staff reviews and underwriting Day 1-90
Housing Tax Credit
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Tax Exempt Bond Timeline
Initial developer inquiry
Application submitted(Day 1)
Final commitment from lender or credit enhancer Day (55)
