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For more than 25 years, the National Association of State and Local Equity Funds (NASLEF), has operated as a professional, nonprofit association formed to promote the efficient management of state and local equity funds. Throughout 41 states, NASLEF Active Members raise capital for affordable rental housing developments that qualify under the Low Income Housing Tax Credit (LIHTC) program. Collectively through 2017, member funds have raised over $14.5 billion in equity capital for rental housing developments throughout the country, creating or rehabilitating more than 180,153 units of affordable housing in 3,789 developments.
OUR MISSION
NASLEF’s mission is to promote a greater understanding of tax credit and other financing programs, to advocate for community development resources and to encourage the professional development of its member organizations all in support of the communities we serve. Our work is fueled by our members’ leadership in affordable housing advocacy, connection with community organizations, and knowledge of local markets. These organizational attributes enable NASLEF members to invest capital in strategic community endeavors, especially in underserved markets.
OUR IMPACT
NASLEF Active Members are visible in the communities they serve by providing affordable housing opportunities, strengthening neighborhoods, and impacting the lives of residents. Many member funds have developed philanthropic affiliates and foundations that fund programs that assist residents socially, economically, and educationally. Member funds also provide value-added services to development partners in the areas of technical assistance, training, engaging in local and state housing policy groups, and providing lending opportunities as certified CDFI organizations.
NASLEF member funds will continue to lobby for the continuation of the most successful affordable housing program in the nation. Fund members will continue to raise capital to provide affordable housing options for families, seniors, individuals, and special needs populations. NASLEF will continue to be a local presence with national impact on affordable housing.
Robert Rozen
As I write this column in late March to assess the last year in federal policy, Congress just reached agreement on an omnibus spending bill to fund federal agencies for the remainder of FY 2018. That legislation provides for a four year, 12.5% increase in the allocation cap for the Housing Credit program, remarkably the only tax provision in the omnibus spending bill other than a provision to correct a mistake dealing with agriculture cooperatives in the “tax reform” bill Congress passed in December.
How did we get this victory and what does it indicate about the future of the Housing Credit program? To get some perspective on that, let’s go back to our efforts in 2017.
Last year, the Housing Credit community continued to put an emphasis on legislation introduced in the Senate, S. 548, providing for miscellaneous changes in the program and a 50% increase in the allocation cap, and legislation introduced in the House, H.R. 1661, that was virtually identical to the Senate bill but without the cap increase.
Through a diligent effort by the entire affordable housing community, both bills picked up strong bipartisan support, including a majority of both Republicans and Democrats on the House Ways and Means Committee, and the Republican chairman and ranking Democrat of the Senate Finance Committee.
As we all know, building broad political support for putting more government resources into affordable housing has always been a difficult proposition. In spite of our best efforts to highlight the critical affordable housing shortage that exists in so many of our communities, the various spending programs at HUD have been cut or have remained stagnant for many years until this current omnibus spending bill. Fortunately, the most important federal housing production program, the Low-Income Housing Tax Credit, is part of the Tax Code and has been insulated from the annual appropriations process that has trimmed federal domestic spending over the years.
But that protected status as a permanent tax provision has been at risk as Congress considered tax reform legislation for the last eight years. In the final bill, our program was spared a direct hit and we are thankful for that result especially since it looked like right until the end the private activity bond program – which accounts for about 40% of Housing Credit production across the country – might be eliminated.
But on closer inspection, the Tax Cuts and Jobs Act (TCJA), was really little more than a general tax cut bill. It included few real reforms and almost no special tax provisions were eliminated. The Housing Credit was not eliminated but neither was any other tax expenditure. And in fact the tax bill included many changes sought by various industries. Yet, in spite of the strong bipartisan support for the House and Senate Housing Credit bills, there was really never any serious consideration to including those provisions in the TCJA. Moreover, the tax writers essentially ignored our proposal to change the credit rate formula to compensate for the lower corporate tax rate.
The result was disappointing. Novogradac and Company estimated the resulting impact from lower equity pricing would cost approximately 235,000 affordable units over the next ten years.
But we were given a reprieve in the omnibus spending bill through the 12.5% increase in the allocation cap for the next four years. Overall, although not necessarily with each development, that should largely compensate for the reduced equity pricing resulting from the TCJA.
How did we achieve this “victory” so soon after being ignored in the TCJA? It was largely due to the efforts of our chief Senate sponsor, Senator Maria Cantwell (D-WA), who doggedly insisted on more resources for affordable housing in the omnibus spending bill if that legislation was going to include a correction to the agriculture cooperative provision in the TCJA. Democratic votes were needed to pass the omnibus and this created leverage to insist on a trade-off for the co-op provision. But the inclusion of the Housing Credit provisions also required the key support of Republicans in both the House and Senate, including Chairman Hatch.
While the Housing Credit provisions were quite limited and we did not get anything near what is needed, this was still a very positive outcome for the Housing Credit showing a level of political support that we can hopefully build upon in the future if we all remain committed to vigorously advocating for affordable housing.
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Dana S. Boole
President and Chief Executive Officer
CAHEC
Mark McDaniel
President & CEO
Cinnaire
Stacy L. Sur
Member
Hawaii Housing Finance, LLC
Nancy Owens
President
Housing Vermont
Peter Sargent
Director of Capital Development
Massachusetts Housing Investment Corporation
Lisa Castillo
President
Merritt Community Capital Corporation
John Wiechmann
President
Midwest Housing Equity Group, Inc.
Don Sterhan
President
Mountain Plains Equity Group, Inc.
Bill Shanahan
President
Northern New England Housing Investment Fund
Hal Keller
President
Ohio Capital Corporation for Housing
John Kennedy
President & CEO
St. Louis/Kansas City Equity Fund, Inc.
Bob Newman
President & CEO
VCDC
Welcome to NASLEF, Lisa Castillo!
Lisa Castillo joined Merritt Community Capital as President in September 2017. Lisa brings more than 25 years of industry leadership to the company having served as Vice President of Originations for WNC & Associates, where she led tax credit syndication negotiation and origination efforts in the western region that placed more than $580 million in equity during her tenure. Lisa previously held senior executive roles in both public and private sectors, overseeing acquisition, finance, and project management of affordable housing developments nationwide, as well as implementing county housing programs. For the County of San Bernardino, Castillo & Company, National Community Renaissance, and National Housing Development Corporation, she spearheaded the cultivation of new business, secured hundreds of millions of dollars in equity and debt, oversaw regulatory compliance, expanded into new regional markets, and generated millions in revenue. Lisa has extensive experience with numerous nonprofit developers and serves on several nonprofit boards, including the Kennedy Commission, which advocates for affordable housing for extremely low-income families in Orange County.
There are two levels of membership in the NASLEF association: Active Member and Corporate Member. If you are interested in becoming an Active or Corporate member, please review the eligibility information below to ensure your organization qualifies. Membership in NASLEF must be approved by the NASLEF Board of Directors. We thank you for your interest in NASLEF and encourage you to submit an application. If you have any questions, please contact MARY KAY MEAGHER, NASLEF Executive Director.
PORTFOLIO OF HOMES BUILT
EQUITY RAISED
RESIDENT VOICES
NASLEF member funds not only invest in affordable housing communities but also invest in the residents who live in our communities. We know that providing safe, decent, affordable housing is a catalyst to revitalizing neighborhoods and stabilizing lives. We help provide supportive services that link residents to health, education, and employment services that will impact their lives socially, educationally, and economically.
Our residents value their housing and their lives are impacted daily by what it means to have a safe, stable place to call home.
UNITS BUILT
NASLEF MISSION: VALUE-ADDED TO PARTNERS
While raising capital to provide affordable housing opportunities is our core business, NASLEF member funds also actively provide value-added services to our partners in the industry. Many member funds serve vulnerable populations by investing resources into programs and activities that impact residents’ lives. Member funds have developed philanthropic affiliates and foundations that fund programs that assist residents socially, economically, and educationally.
Examples for 2017 from Member Funds include:
The CAHEC/CAHEC Foundation: As an affiliate of CAHEC, the CAHEC Foundation offers wellness and education initiatives to residents living in areas that CAHEC serves. In addition to CAHEC’s current menu of Community Investments grants, the CAHEC Foundation creates opportunities that go beyond affordable housing to help residents receive the critical resources they need to succeed. In 2017, CAHEC and the CAHEC Foundation granted $1,401,000.
Virginia Community Development Corporation (VCDC): In 2008, VCDC established the Vern Henley Special Initiatives Grant Program. This program affirms the belief that affordable housing should provide residents with quality shelter and access to services that foster their success. This holistic approach considers a range of factors that shape success — social, educational, physical, emotional, and economic. Since 2015, VCDC has also supported an intensive organizational development program called the Nonprofit Sustainability Challenge. In 2017, VCDC provided $129,623 to these efforts.
Ohio Capital Corporation for Housing (OCCH’s) philanthropic affiliate, the Ohio Capital Impact Corporation, funds programs targeted to neighborhoods and residents where OCCH has investments in affordable housing. More than $20 million in grants to partners has been awarded since 2012 in these areas: Resident Development Fund, Partners, Neighborhoods, and Community Properties Impact Fund. In 2017, more than $3.8 million was awarded for activities such as summer camp for residents’ children, neighborhood initiatives, property improvement, wellness, youth empowerment and engagement activities, senior activities, and the Jerry Grier Scholarship program, which assists residents with post-secondary education.
Massachusetts Housing Investment Corporation (MHIC): MHIC operates a Charitable Contribution budget that starts at $25,000. They also have a Charles Dahm Tuition Scholarship Fund for (children of) tenants of their properties who can apply for college tuition. Applicants are funded for four years and the amount fluctuates annually. MHIC also purchases MA Community Investment Tax Credits (CITC0) each year, the proceeds of which go directly to eligible CDC’s.
Housing Vermont: The Housing Vermont Scholarship program offers scholarships for residents of affiliated housing. Four annual grants of up to $2,500 are available for both degreed and non-degreed programs as well as for those interested in taking classes that lead to certifications. Housing Vermont launched HV Connections in 2016 by reserving $600,000 of its funds for this 5-year pilot program which works with property managers and sponsors to build connections between community resources and residents in such critical areas as education, child care, food access and employment.
Northern New England Housing Investment Fund’s scholarship program – “Investing in Your Success” is designed to help meet the training needs of our Partners by providing funds to supplement their training budgets. We know training is essential to doing a job well and many organizations are stretched thin right now. This program is one way for us to say: “we value the work you do and we support you”. Eligible training includes LIHTC compliance related training, conferences, soft skills and maintenance related training. In 2017, $30k in scholarship funds was disbursed to 40 partners in Maine & New Hampshire helping to support the training of 230 staff.
Other funding includes:
Member funds engage development and management partners by providing opportunities for training and education on a regular basis. Examples include:
Member funds recognize that importance of providing technical assistance to partners navigating HUD and Housing Finance Agencies programs. Assistance is given in:
Member funds are actively involved in state and federal housing policy issues, engaging lobbyists, and serving on:
Member funds focus on raising capital and providing equity for affordable housing development and preservation. Many funds also offer loan products or operate a Certified Development Financial Institutions Program that offers:
