Developing affordable housing : a practical guide for nonprofit organizations / Bennett L. Hecht.

Format:

Book

Author/Creator:

Hecht, Bennett L., 1959-

Language:

English

Subjects (All):

Housing development--United States--Handbooks, manuals, etc.

Housing development.

Housing rehabilitation--United States--Handbooks, manuals, etc.

Housing rehabilitation.

Housing management--United States--Handbooks, manuals, etc.

Housing management.

Nonprofit organizations--United States--Handbooks, manuals, etc.

Nonprofit organizations.

United States.

Genre:

Handbooks and manuals.

Physical Description:

xxii, 818 pages ; 26 cm

Edition:

Third edition.

Place of Publication:

Hoboken, N.J. : John Wiley & Sons, [2006]

Contents:

Chapter 1 Developing Affordable Housing in the Twenty-First Century 3

1.2 The Current State of America's Affordable Rental Housing 4

1.3 The State of America's Working Poor Seeking Affordable Housing 4

1.4 Current Trends in Affordable Housing 6

1.5 Unique Opportunities for Nonprofit Organizations: Rental and Homeownership 10

Chapter 2 The Real Estate Development Process for Nonprofit Organizations: An Overview 13

2.1 Nonprofit Organizations and the Real Estate Development Process 13

2.2 An Overview of the Real Estate Development Process 14

2.3 Addressing the Specific Needs of a Community and a Specific Project Site 17

Chapter 3 Establishing the Development Team 19

3.2 The Sponsor 20

3.3 The Financial Development Specialist 20

3.4 Attorneys 21

3.5 Accountant/Bookkeeper 25

3.6 Architect 26

3.7 Property Management Company 28

3.8 General Contractor 29

3.9 Construction Manager 29

3.10 Community Organizer 29

3.11 Appraiser 31

3.12 Conflicts, Multiple Roles, and Oversight 32

Part 2 Projecting Costs, Income, and Expenses 33

Chapter 4 Project Feasibility and Total Development Costs 35

4.1 Project Feasibility Defined 35

4.2 Determining Preliminary Project Feasibility 36

4.3 Estimating Total Development Costs 36

Appendix 4A Sample Letter of Value 60

Appendix 4B Summary of Key Federal Regulations Governing Underground Storage Tanks 63

Appendix 4C Summary of Relevant Laws and Regulations Governing Lead-Based Paint 66

Chapter 5 Determining Projected Income and Expenses 69

5.2 Projecting Income-Generally 70

5.3 Identifying Targeted Income Levels 70

5.4 Determining Affordability as a Percentage of Income and Market Rents 71

5.5 Income from Nonresidential Use 74

5.6 Projecting Expenses-Generally 74

5.7 Evaluating Past Operating Expenses 75

5.8 Projecting Expenses Where No Operating History Exists 77

5.9 Allowances and Reserves 80

5.10 The Role of Lenders 83

Appendix 5A Controllability of Expenses 84

Part 3 Raising Capital 85

Chapter 6 Raising Capital to Meet Total Development Costs 87

6.2 Sources of Capital-Generally 88

6.3 Loans 88

6.4 Grants 102

6.5 Equity and Sales Proceeds 103

Appendix 6A Example of an Amortizing Loan 105

Appendix 6B Example of a Nonamortizing Loan 106

Chapter 7 Sources of Capital: Loans 107

7.1 Who are Possible Lenders? 107

7.2 Sources of Loan Funds from Public Lenders-Generally 107

7.3 Sources of Loans from State and Local Governments 108

7.4 Sources of Loans from the Federal Government 128

7.5 Sources of Loan Funds from Private For-Profit Entities 138

7.6 Sources of Loan Funds from Private Nonprofit Entities 149

Appendix 7A 501(c)(3) Bond Terminology 218

Appendix 7B List of Local CDFI Organizations Financing Housing 219

Chapter 8 Sources of Capital: Grants 225

8.1 Grants from the Federal Government 225

8.2 Grants from State and Local Governments 236

8.3 Grants from Private Nonprofit Foundations 236

8.4 Grants from For-Profit Corporations 244

Chapter 9 Sources of Capital: Equity 245

9.1 Creation of an Equity Fund for Housing Development 245

9.2 Use of the Low-Income Housing Tax Credit 246

9.3 Other Equity Sources 259

Appendix 9A Tax Credit Information Resources List of State and Regional Tax Credit Equity Funds 266

Appendix 9B Partial Listing of Low-Income Housing Tax Credit Tax Syndicators 275

Chapter 10 Sources of Capital: Public Housing Funds 279

10.1 How Public Housing Resources Contribute to Affordable Housing 280

10.2 Mixing Public Housing Capital with other Capital: Mixed Finance 286

10.3 Uses of Public Housing Funds in Mixed-Finance Transactions 288

10.4 Considerations in Mixing Public Housing Development Funds with other Sources of Affordable Housing Funds 293

10.5 Elements of Public Housing Development Transactions 298

Part 4 Enhancing Feasibility and Packaging the Project 315

Chapter 11 Enhancing the Feasibility of an Affordable Housing Project 317

11.1 Increasing Access to Capital-Credit Enhancement 318

11.2 Increasing Access to Capital-Loan Sales on Secondary Market 325

11.3 Reducing Total Development Costs 344

11.4 Increasing Income 349

11.5 Reducing Operating Expenses 360

Chapter 12 Developing the Project Feasibility Report: Six Case Studies 363

12.2 The Feasibility Report and Financial Pro Formas 364

12.3 The Development of Affordable Housing: Six Case Studies 368

Appendix 12A The Whitelaw Reference Information 385

Appendix 12B Friendship Court Reference Information 397

Appendix 12C Garden Terrace Reference Information 399

Appendix 12D The View Reference Information 406

Appendix 12E Kentucky Mountain Housing Reference Information 415

Appendix 12F Lease-Purchase Reference Information 420

Part 5 Purchasing and Developing the Property 427

Chapter 13 Securing Site Control over the Property: Signing the Option or Purchase Agreement 429

13.2 Site Control Must Be Secured in Writing 429

13.3 The Use of Purchase Contracts 430

13.4 The Use of Options 444

Appendix 13A Documents Pertaining to Purchase Contracts 448

Appendix 13B Documents Pertaining to Option Agreements 457

Chapter 14 Prepurchase Considerations 465

14.2 Applying for Financing and Operating Subsidies 465

14.3 Determining the Ownership Entity-Generally 466

14.4 Determining the Ownership Entity-Corporations 466

14.5 Determining the Ownership Entity-Partnerships 468

14.6 Determining the Ownership Entity-Factors 470

14.7 Establishing the Ownership Entity: Divided Ownership and Leasehold Interests 476

14.8 Interviewing and Selecting the Management Company 477

14.9 Developing Plans for Renting or Selling Units 478

Appendix 14A Monthly Management Reports 483

Chapter 15 Partnerships and Joint Ventures 503

15.1 Issues Concerning Organization's Tax-Exempt Status 503

15.2 Options for Structuring the Relationship 510

15.3 Partnerships and the Use of the Low Income Housing Tax Credit 518

Appendix 15A Joint Venture Checklist 523

Board Involvement 524

Day-to-Day Management 525

Chapter 16 Purchasing the Property: Settling on Acquisition 527

16.1 The Settlement Process-Generally 527

16.2 The Role of the Settlement Agent 527

16.3 Title Insurance 528

16.4 Selecting the Settlement Agent 529

16.5 Preparing for Settlement 531

16.6 Settlement 533

16.7 Postsettlement 537

16.8 Lender Requirements 538

16.9 Governmental Regulations 539

Appendix 16A Settlement Checklist and Sample Documents 541

Chapter 17 Constructing or Rehabilitating the Property: Settling on the Construction Loan and Surviving the Construction Process 553

17.2 Settling on the Construction Loan 554

17.3 The Construction Process-The Participants and Their Responsibilities 555

17.4 Technology in 21st Century Affordable Housing Construction and Rehabilitation 575

17.5 Negotiating the Construction Contract and Bidding 577

17.6 Elements of the Construction Contract 593

17.7 Rehabilitating an Occupied Property 602

17.8 Completion of Construction 603

Appendix 17A Construction Process Checklist and Sample Contractor Agreements 605

Chapter 18 Selective Rehabilitation 665

18.2 Introduction to Selective Rehabilitation 666

18.3 Managing Selective Rehabilitation: Formal Versus Informal Approaches 673

18.4 Implementing a Formal Approach to Selective Rehabilitation: The Rehabilitation Specialist 675

18.5 Choosing A Property for Selective Rehabilitation: Building Inspection Techniques of Rehab Specialists 676

18.6 Conceptualizing the Project: Rehabilitation Standards 678

18.7 Designing the Project: Work Write-Ups and Cost Estimates 679

18.8 Computerized Specification-Writing and Estimating Systems 681

18.9 Defining Methods and Materials: Performance Specifications 681

18.10 Selective Rehabilitation and Construction Management 682

18.11 Selective Rehabilitation and the Contractor

Pool 683

18.12 The Role of Government Agency/Public-Purpose Organizations in Selective Rehabilitation 684

18.13 Avoiding Gut Rehabilitation: Tips of the Trade 685

18.14 Improving Energy Efficiency in Selective Rehabilitation 686

18.15 Dealing With Lead-Based Paint Hazards in Selective Rehabilitation 687

18.16 Dealing With Other Recurring Health and Safety Issues in Selective Rehabilitation 689

18.17 Applying Construction Codes and Existing Housing Codes to Selective Rehabilitation 691

18.18 Standards Issues with Funders and Selective Rehabilitation 692

18.19 Information Sources and Tools for Selective Rehabilitation 693

Appendix 18A Sample Documents Regarding Rehabilitation 695

Part 6 Completing and Managing the Property 711

Chapter 19 The Project Completion Phase: Completing the Development and Maintaining an Ownership or Rental Community 713

19.2 Settling on the Permanent Loan 714

19.3 Maintaining a Rental Property 717

19.4 Developing Additional Resident Services As Part of a Comprehensive Property Management Plan 733

19.5 Key Points on Setting Performance Standards for Comprehensive Property Management 734

19.6 Key Points on Deciding Whether to Contract for Management or Manage Directly 734

19.7 Key Points on Selecting a Good Management Company 735

19.8 Key Points on Evaluating Property Management Performance 740

19.9 Financial Management of Rental and Multifamily Homeownership 745

19.10 Converting the Property to Homeownership for Residents 754

19.11 Managing and Budgeting for Rental or Multifamily Ownership 757

Appendix 19A Sample Documents and Disclosure Statements 763.

Notes:

Includes bibliographical references and index.

ISBN:

0471743461

OCLC:

62493624

Publisher Number:

9780471743460