Washington Hotline - February 20, 2009

American Recovery and Reinvestment Act of 2009

The House and Senate passed the "American Recovery and Reinvestment Act of 2008," which the President signed into law on Feb. 17. Review a detailed summary of the Act and how it benefits the multifamily industry.

Housing Finance:

Regulatory: HUD Three-Year Rule Waived; Possible Change to TALF Collateral Terms

• HUD Mortgagee Letter Waives Three-Year Rule for Refinancing
  
  The U.S. Department of Housing and Urban Development (HUD) released a Mortgagee Letter providing a temporary waiver of the three-year rule for refinancing existing multifamily rental properties with the Section 223(f) program. 
  
  This mortgagee letter sets forth the Department’s policy to grant temporary authority to Multifamily Hub Directors to grant waivers of the Three Year Rule. The waiver will provide liquidity to recently constructed, self sustaining properties unable to secure permanent long term financing due to the freeze in the capital markets. The waiver authority is for six months, at which time the Department will review the policy and determine if it should be extended.

For more information, contact Claudia Kedda at 800-368-5242 x8352.

• TALF Loans May Accept Commercial Mortgages as Collateral

Commercial mortgages may soon be considered eligible to be collateral for TALF (Term Asset-Backed Securities Loan Facility) Loans from the Federal Reserve Bank of New York. The Federal Reserve Board released additional terms and conditions that included the possibility of using commercial mortgages as collateral in the future.

The TALF process was put in place “to increase credit availability and support economic activity by facilitating issuance of consumer and small business asset-backed securities at more normal interest rate spreads.” Any U. S. Company, or a qualified U.S. subsidiary of a foreign entity, may borrow from the TALF, “provided the company maintains an account relationship with a primary dealer.” 

For current terms and conditions for TALF loans, view this page.

Green Building: Multifamily Green Building Standard Tool Available

The National Green Building Standard scoring tool for new multifamily buildings is available at www.nahbgreen.org.

The NAHB Research Center, has set a fee of $200 for a green multifamily building plus an additional $20 per unit in the building. Verification services are negotiated between builders and verifiers directly and will vary based on the region and types of services provided.

All accredited verifiers listed at www.nahbgreen.org are being given additional mandatory training so that they are ready to verify a multifamily building to the new standard. This training will be completed by March 31.

For additional information, call the National Green Building Program Hotline at 877-NAHB-GRN, or click here for the "Contact Us" page at www.nahbgreen.org.

Economy: Job Losses, Tight Credit Erode Confidence in Apartments

The deepening recession and ongoing credit crunch continue to drag down builder confidence in the multifamily housing market, according to the latest results of NAHB’s Multifamily Rental Market Index (MRMI) and Multifamily Condo Market Index (MCMI), which were released on Feb. 11.

"Job losses and tightening credit continue to depress current and future multifamily construction," said David Crowe, NAHB's chief economist. "Without job growth as a demand driver for rental apartments, new construction is declining. And without access to credit, the pipeline for future construction is running dry."

The component of the MRMI that gauges supply conditions sank dramatically in the fourth quarter of 2008 to 22.4 for affordable apartments and 18.6 for market-rate apartments, compared to 45.3 and 40.00, respectively, for the same period a year earlier.

Read more in NBN.

For more information about this survey, e-mail Ann Marie Moriarty, or call her at 800-368-5242 x8350.

Multifamily Amenities on the Rise as Unit Size Shrinks

At the same time as individual living spaces are getting smaller in apartment and condominium buildings, the space allocated to shared amenities is on an upswing and being used in new ways, according to multifamily architects appearing at last month’s International Builders’ Show in Las Vegas.

The mail room, they said, may share space with a cyber café or a coffee lounge. Theatre spaces are being expanded to also offer interactive video game areas, with Wii or Guitar Hero available to residents.

Pools are becoming more than just pools, offering adjacent dog-washing facilities, or a snack and juice bar.

And views are important: passers-by on the sidewalk should see activity and people, and residents should be able to look out and see activity also — along the street or in the pool area. Bold colors and eye-catching shapes — inside and out — also tell the younger Generation Y residents who have become the focus of new multifamily development that the community is a vibrant, lively place to live.

For members of Gen Y, the multifamily community is less a home than a “base of operations.” Everything in the neighborhood — including nearby transit options — is vital to the out-and-about lifestyle of this group. Mixed-use communities start at the front door, and location has more to do with proximity to a lifestyle than being “close to work.”

Development Strategies for Hard Times

The bigger the project, the more difficult it is to finance — especially these days, the architects said. So many developers are exploring what’s possible with wood frame construction, up to five stories.

Developers are getting the most out of urban sites, wrapping buildings around parking structures or pool courtyards, or building all the way to the sidewalk, giving some ground floor units front porch stoops.

Some developers are diversifying into the active-adult rental market (another market, surprisingly, that’s fond of Wii and interactive games). Building smaller communities on smaller sites with a limited number of units is another approach that’s working for many.

Read the full article in NBN.

For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350.

NCHI Product: Timberlake Cabinetry

Applying its expertise in universal design, Timberlake Cabinetry has created storage accessories for kitchen cabinets that will enable all homes owners — from active adults to families on the go — to get organized.

“All Timberlake storage accessories are designed to save space, clear countertops, reduce the overall clutter of the kitchen area and simplify the food preparation process,” said Connie Edwards, Timberlake’s design director.

“Home owners are constantly wishing for more room in their kitchens,” she said, “and now they will be able to make the absolute most of their space.”

Visit www.timberlake.com for more information about this product series.

For more information about NCHI, e-mail David Cooper or call him at 800-368-5242 x8247. 

Resources: NAHB Members Receive 10% Off Wyndham Hotels

NAHB members can get 10% off the “best available unrestricted rate"* at all participating Wyndham Hotel Group (WHG) hotels — Wyndham Hotels and Resorts, Wingate by Wyndham, Super 8, Days Inn, Ramada Worldwide, Travelodge, Howard Johnson, Baymont Inn & Suites, Knights Inn and AmeriHost Inn.

To Register

To use the program by phone, call 877-670-7088 and give the agent the NAHB discount ID number 20090. The NAHB discount will be applied at the time the reservation is made.

To book rooms online, visit the Wyndham Hotel Group page of the Member Advantage discount pages on the NAHB Web site by clicking here and follow the simple steps to make your reservation. The Web pages also enable you to review key hotel amenities, hotel descriptions and directions.

Other Member Advantage Discounts

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.

Calendar: Conferences and Events

March 2009

NAHB Multifamily Pillars of the Industry Conference March 17-18, 2009 San Diego, CA Hotel Del Coronado Register NOW! The fluctuating economy and risky credit markets have even the most savvy multifamily developers rethinking their business plans. They’re strategizing new ways to finance current deals and positioning their companies for future opportunities. NAHB’s Multifamily Pillars of the Industry Conference is the place where smart developers and other industry professionals know they can come for: The most up-to-date market and financial information Interactive learning on key topics such as REIT’s, debt markets, sustainability and emerging trends The chance to network with peers, potential partners, capital sources and essential product and service providers View more about the Pillars of the Indstry Awards here.

NAHB 2009 Legislative Conference March 24, 2009 Washington, D.C Capitol Hill Fee: FREE Register Now! Travel to the nation’s capitol on March 24, 2009, to urge your representatives and senators to support policies that will stabilize the housing market, help reduce foreclosures and restore confidence in the credit market. Register Now! and view the 2009 Legislative Conference Schedule of Events. Read more information on the Legislative Conference here.

LIHTC Income Limits Webinar: Keeping Your Property in Compliance with the New Rules March 26, 2009 2:00 - 3:00pm EDT Last summer, as part of the "Housing and Economic Recovery Act of 2008," Congress enacted important changes to the Low Income Housing Tax Credit (LIHTC) program regarding income limits and recertifications. Join NAHB for this one-hour event as experts in LIHTC compliance review these changes and how they affect the way you do business. Registration and more information is available here. Presenters on the web seminar will: Review the effects of the "hold harmless" provision Go over the rural income limits measure and how to determine if your property qualifies Discuss the annual tenant income certification exception in 100% low-income properties Speakers: Jim Kroger, Novogradac & Company LLP Grace Robertson, Internal Revenue Service Ruth Theobald, TheoPRO Compliance & Consulting, Inc. The one-hour call will include the presentation as well as questions from the audience. Questions can be submitted in advance through Friday, March 20 to cmcguire@nahb.com

April 2009 

Building for Boomers & Beyond: 50+ Housing Symposium™ April 27-29, 2009 Philadelphia, PA Philadelphia Marriott Downtown The 2009 NAHB Building for Boomers & Beyond: 50+ Housing Symposium™ is the premier event for 50+ housing professionals—you can’t afford to miss it! Register TODAY! Get fresh ideas that will lead to concrete solutions and help you revolutionize your business: Develop a winning strategy – hear the latest economic forecast, get a look at the capital markets, emerging design trends, green building for the boomer market, hot amenities and more; Plug into the future – see the latest product and technology for the 50 and up crowd; Learn from the experts – hear from seasoned professionals who have been through several market cycles; Get a blueprint for success – tour award-winning condos, single-family homes, clubhouses and more; Develop and cultivate business relationships – network to grow your circle of contacts.

May 2009

Attend the National Green Building Conference in Dallas Attend the 2009 National Green Building Conference in Dallas on May 10-13 to learn more about the critical paths to green building, and to participate in interactive sessions and be part of the driving force for the green building and remodeling markets. For more information and to sign up to be notified when registration opens, visit www.nahb.org/GreenBuildingConference.

Calendar: Events and Conferences

March 2009