Beginning this year, we are excited to announce we will provide up to $2,000 to new affordable developments to assist with groundbreaking and ribbon cuttings expenses. There is limited availability, this contribution will be application based, and the developer/general partner must have a MAAHP membership in good standing to apply.
MAAHP believes the best way to engage the community and advocate for affordable housing is to showcase affordable developments in our state.
Please take two minutes to review and sign-on to a letter [docs.google.com] to the IRS and Treasury Department regarding critical regulatory accommodations to the Low Income Housing Tax Credit program in response to COVID-19. These accommodations are necessary for addressing consequential disruptions in Housing Credit transactions and construction brought on by the pandemic and related response measures, including understaffed lenders, suspended site inspections, broken supply chains for materials, and local suspensions on construction.
The deadline to sign on is COB TODAY – Tuesday, April 7th – so please take a few minutes to add your company or organization to the relief request.
Reminder: MAAHP Conference Call on Thursday
MAAHP is hosting a video conference call with MHC Executive Director Scott Spivey on Thursday, April 9th, from 2-3pm CST. You can register for the call by clicking here.
We want to hear from you regarding questions and topics you would like to be discussed. The purpose of the call is partly to push out information to members, but also for affordable housing industry participants to raise questions and issues directly to MAAHP and MHC and to hear from other organizations on the problems they are facing.
Here are a few ways you can participate in the call:
You can send questions or comments for discussion before the call to info@maahp.ms and we will read them during the call (anonymously if you prefer)
You can join via the web through Zoom and you will be able to ask questions and make comments through the chat function
You can call-in and ask questions and make comments verbally
You can respond to questions posed during the call concerning the impacts to your work
We look forward to talking to everyone on Thursday!
MAAHP COVID-19 and CARES Act Update
Last Friday, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act. This relief bill has many provisions relevant to MAAHP members, specifically relating to assistance for small businesses and nonprofits, mortgage forbearance for multifamily borrowers, and a 120-day eviction moratorium for affordable housing properties. The Small Business Administration programs are especially important for members with less than 500 employees that need help paying employees and keeping a roof over your head.
MAAHP held a conference call last Friday to discuss the CARES Act and other COVID-19 related information. Mississippi Home Corporation Executive Director Scott Spivey joined the call to give updates regarding MHC and the state’s response. Click here to view the presentation from Friday’s call.
For more information on the CARES Act, please see below:
SBA Paycheck Protection Program
Designed to help small businesses and nonprofits keep employees on payroll
Forgivable portion will be based on number of employees and amount of payroll compared to pre-loan period; intent is entire amount will be forgiven if number of employees and amount of payroll is the same
Apply through your local lender or SBA-approved lenders
Applications begin April 3rd
Click on these links for more information
SBA Economic Injury Disaster Loan
Small businesses can apply for an advance of up to $10,000
Advance funds are quick and free: Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid
Apply through SBA
Capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
SBA Coronavirus Resources Page: The SBA has other resources that may be useful to MAAHP members.
Mortgage Loan Forbearance for Multifamily Borrowers: Multifamily borrowers with a federally-backed multifamily mortgage loan may be eligible for up to 90 days of forbearance on their mortgage loan if they are experiencing financial hardship. Borrowers receiving forbearance may not evict or charge late fees to tenants for the duration of the forbearance period.
120-Day Moratorium on Evictions from Affordable Housing: The CARES Act provides a 120-day moratorium on eviction filings for properties assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, or covered programs under the Violence Against Women Act. This includes Low Income Housing Tax Credit properties.
CARES Act Overview from Enterprise Community Partners, including a breakdown of $12.5B in housing funding.
For more resources, consult MAAHP’s coronavirus resources webpage, www.maahp.ms/covid-19.
MAAHP Conference Call
MAAHP is hosting another Zoom conference call with MHC Executive Director Scott Spivey on Thursday, April 9th from 2pm-3pm. Please click here to register for the call.
MHC Guidance
MHC will be issuing guidance to LIHTC properties regarding the 120-day eviction moratorium, and will also be collecting information from providers regarding tenants not able to pay rent and other COVID-19 issues. Please be on the lookout for that communication and respond to MHC with information related to tenants inability to pay rent. That data will be critical in coming up with solutions, including the need and scope of potential rental assistance.
Members can also reach out to MAAHP concerning any COVID-19 related issues by using this form.
MAAHP Update to Affordable Housing Providers in Wake of COVID-19
COVID-19 is presenting a significant challenge to our nation and state, and the affordable housing industry, as always, has a critical role to play. With state and local officials are encouraging residents to stay home to stop the virus’ spread, the homes our industry provides to Mississippi’s lower-income population are critical to keeping residents safe.
Our lower-income residents are also among the most vulnerable to the economic consequences resulting from COVID-19, as many are losing their jobs or experiencing a reduction in income. In turn, residents may have a hard time paying rent and threaten the viability of affordable housing properties.
MAAHP is in regular contact with the Mississippi Home Corporation and is monitoring federal actions and will report back to MAAHP membership on impacts for the affordable housing industry and low-income residents. In the meantime, we advise property owners to continue to communicate with lenders and syndicators regarding the challenges you are facing or anticipate facing (see below for an update from Fannie Mae and Freddie Mac regarding mortgage forbearance). Property owners should also examine their operating and replacement reserves as a source to compensate for lower rent revenues.
MAAHP has a COVID-19 Feedback Form where members can send in questions, concerns, or updates regarding how COVID-19 is affecting their work. Sharing this information will help MAAHP to work on solutions for those issues. Members can also email info@maahp.ms regarding any help they may need.
MAAHP Conference Call
Please join MAAHP for a call on Friday, March 27th, at 2:30 pm for a call to hear from MAAHP regarding the latest developments concerning COVID-19 and to ask questions or voice concerns you may have. Please click here to access the Zoom call information.
MAAHP and MAA Issue Press Release
Today, MAAHP and the Mississippi Apartment Association (MAA) issued a press release asking landlords and tenants to work together through these challenging times. The press release gives rental owners and tenants guidance on how to navigate tenant financial issues caused by the coronavirus.
Affordable Housing and COVID-19 News
The Federal Housing Finance Agency (FHFA) is announcing that Fannie Mae and Freddie Mac (the Enterprises) will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus.
The Mississippi Home Corporation has issued the following Program Bulletins related to COVID-19
NCSHA Urges IRS, Treasury to Establish Emergency Measures Related to Housing Credit Administration During COVID-19 Pandemic
The ACTION Campaign has identified and developed immediate statutory recommendations for Congress to include in the next COVID-19 relief package. Please be on the lookout for a MAAHP Call to Action concerning these important Housing Credit provisions.
MAAHP will continue to provide updates affecting the Mississippi affordable housing industry. You can find the latest updates on MAAHP’s website at https://www.maahp.ms/covid-19.
For Immediate Release:
March 24, 2020
Contacts:
John Sullivan
Enterprise Community Partners
601-757-7907
Meghan Elder
Mississippi Apartment Association
601-992-9933
MAA and MAAHP Ask Rental Property Owners to Work with Tenants During Coronavirus Crisis
JACKSON, Miss. – The Mississippi Apartment Association (MAA) and the Mississippi Association of Affordable Housing Providers (MAAHP) encourage Mississippi apartment managers and landlords to work with tenants who have fallen on hard times as a result of the coronavirus emergency. Together, MAA and MAAHP represent a significant portion of the rental property owners serving the state’s 350,000 renter households.
“Apartment communities in Mississippi have not been immune from the effects of the coronavirus. As an organization of individuals and companies who own, operate and service apartment communities, the Mississippi Apartment Association asks apartment managers to prioritize planning for the health and safety of tenants and their guests as well as employees and other valuable associates. During this difficult and uncertain time, MAA further asks that apartment managers look for creative and compassionate solutions to work with tenants whose jobs and income have been interrupted,” said Meghan Elder, MAA Association Executive.
“Public officials are calling on residents to stay home to stop the spread of the coronavirus. The last thing the state needs from a health perspective is for renters to lose their homes because of the economic consequences of the COVID-19 response. We are calling on all rental property owners to work with tenants during this difficult time,” said John Sullivan, State and Local Policy Director for Enterprise Community Partners and President of MAAHP.
The economic consequences of the COVID-19 response have been severe, with many workers being laid off or facing reduced income. While financial assistance is on the way from the federal government, that assistance will not be available when rent is due on April 1st. MAA and MAAHP firmly believe that communication between landlords at tenants is key as we move forward in these uncertain times.
· Landlord/Tenant communication is key: A number of landlords have already employed creative and compassionate solutions for tenants who cannot pay their rent on time. Landlords in the process of determining what solution works best for them and their tenants should take comfort knowing that others in our community have implemented various programs, such as waiving late fees, developing partial payment plans, and adding a catch-up payment at the end of the lease term. But communicating with tenants is a must, and tenants should likewise be upfront with their landlords about problems they foresee making full rent payments on time as a result of changes in their employment situation as a result of the coronavirus.
· Talk to lenders: Likewise, apartment owners should communicate with their mortgage lenders to discuss potential losses in revenue and seek mortgage relief. Freddie Mac and Fannie Mae have announced they will be offering mortgage forbearances to rental owners on the condition the owner does not evict tenants who cannot pay their rent because of the coronavirus. Many other mortgage lenders have implemented similar policies.
· Protect resident and employee health: To best protect the health of our apartment communities, including tenants, their guests, and residential staff, MAA and MAAHP would also direct landlords and tenants to resources available on MAA’s and MAAHP’s websites, www.msaptassoc.org and www.maahp.ms, for resources on property management and the coronavirus.
MAA and MAAHP are in communication with the Mississippi Home Corporation and state officials regarding the crisis, and are working through national partners, including the National Apartment Association, Enterprise Community Partners, and the ACTION Campaign, to promote federal assistance for renters and rental properties. We ask that rental property owners show patience for this assistance to reach Mississippi families.
About the Mississippi Apartment Association
The Mississippi Apartment Association, an affiliate of the National Apartment Association, promotes and enhances the professionalism of the apartment industry by providing quality education, national designations, networking events, and trade shows.
About the Mississippi Association of Affordable Housing Providers
MAAHP is a nonprofit trade organization established in 2010 to promote and provide well planned, well constructed and professionally-managed affordable housing for Mississippi citizens so they can reside in a safe, secure, family-oriented environment.
Thank you to all the MAAHP members who attended the Legislative Reception last Tuesday in Jackson, and a special thank you to the generous sponsors for this event (see sponsor list below). The reception was well-attended by members of MAAHP and MAA, as well as Mississippi legislators.
We had an excellent slate of speakers for those in attendance, with Governor Tate Reeves giving keynote remarks. Senator Josh Harkins talked to the crowd about the premises liability reform effort he led last year. Insurance Commissioner Mike Chaney, USDA Rural Development State Director John Rounsaville, and Mississippi Home Corporation Executive Director Scott Spivey also spoke regarding insurance and housing issues in the state.
Thanks again to all that could make it out and contribute to the success of this event!
Sincerely,
John Sullivan
President, MAAHP
Federal Affordable Housing Tax Credit Program Funds Nearly 40% of Region’s Multifamily Rental Housing
MCLEAN, Va., Oct. 25, 2019 (GLOBE NEWSWIRE) -- Freddie Mac (FMCC) today released a white paper highlighting the role that the Low-Income Housing Tax Credit (LIHTC) program serves in rural Lower Mississippi Delta. The report shows that the LIHTC program supports a substantial percentage (39.2%) of multifamily rental housing in the region, more than three times the national average.
The white paper, titled “LITHC in Rural Lower Mississippi Delta”, is part of Freddie Mac’s three-year Duty to Serve plan to increase rental and homeownership opportunities in historically underserved markets throughout the nation. This is the first of seven papers the Multifamily line of business will release over the next several months.
“LIHTC is absolutely critical to regions like rural Lower Mississippi Delta,” said Steve Guggenmos, vice president of Multifamily Research & Modeling at Freddie Mac. “These areas are experiencing high poverty, low population density and subpar employment opportunities. Our research shows that the most effective tool we have to channel housing investments to these areas is the federal tax credit program. Without these investments, it would be far more challenging for the region’s residents to find quality, affordable housing.”
Key Findings:
LIHTC supports 39.2% of the region’s multifamily rental housing market – a rate that is more than three times greater than the national average and one and a half times greater than all rural areas.
The overall poverty rate for the region (22%) is substantially higher than the national average (14.6%). Average household income is 37% lower than the national average and 21% lower than the rural average.
Rental housing is rare in rural Lower Mississippi Delta: Only 29.2% of households are renters (compared with 36.2% nationally). Of these renters, only 14.2% rent multifamily units (compared with 42.9% nationally).
The relative abundance of LIHTC in the region does not indicate oversupply – it’s a symptom of a market where unsubsidized properties cannot operate because of the relatively low income and low population density.
Single-family rentals make up 69.5% of all renters in the region. Both renters and homeowners in rural parts of the Lower Mississippi Delta prefer single-family structures. As a result, single-family communities and scattered site developments are common forms of LIHTC housing.
Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
MEDIA CONTACT:
Mike Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com
