News

By Anuradha Kher, Online News EditorSt. Louis–Enterprise Community Investment Inc., U.S. Bank, McCormack Baron Salazar and St. Louis-based Regional Housing and Community Development Alliance (RHCDA) will provide a $17.5 million federal New Markets Tax Credit (NMTC) investment for the redevelopment of Crown Square, the former 14th St. pedestrian mall located in the Old North St. Louis neighborhood.This financing will help in development of 33,500 sq. ft. of commercial, office, retail and restaurant space and 38 residential apartments. The development also features 42 affordable apartments in 16 buildings financed through tax-exempt bonds, historic tax credits and other subsidies. The $20.1 million…

By Anuradha Kher, Online News EditorWaco, Texas–SWB Heritage Square Partners L.P. has selected Dallas-based Humphreys & Partners Architects L.P., to design the student living facility in downtown Waco, part of Waco Town Square, a 17-acre, mixed-use development.Humphreys & Partners recently rolled out its new copyrighted “e-Urban” design to the multifamily industry. This design utilizes a number of innovative features including elevator lobbies and no corridors to create a high-efficiency ratio for net rentable space. In addition, the developer will incorporate energy-saving components and solar considerations that will enable the student housing facility to qualify as a green building.The four-story building…

By Anuradha Kher, Online News EditorSan Diego–AMCAL Multi-Housing Inc., builder of workforce and low-income housing, recently broke ground on the 89-unit Los Vientos, its first affordable housing development in San Diego, located at 1629 and 1688 National Ave. between South 16th and Sigsbee streets. The project is scheduled to open in fall 2009.Designed by Austin Veum Robbins Partners, Los Vientos will consist of two Spanish-style residential buildings showcasing 50 two-bedroom apartments, 35 three-bedroom apartments and four four-bedroom apartments. Based on today’s AMI, the rent would range between $480-$1,200, depending on the unit.Los Vientos is a 100 percent affordable development featuring…

McLean, Va.–Wachovia Multifamily Capital Inc. has achieved fully delegated status under the Freddie Mac Delegated Underwriting for Targeted Affordable HousingSM model. Wachovia is only the second company, after Centerline Capital Group, to achieve this status.Delegated Underwriting allows approved lenders to fully underwrite multifamily loans for Freddie Mac in accordance with its Delegated Underwriting Guide.“Delegated Underwriting lets us serve targeted affordable borrowers by tapping more effectively into the delegated Seller/Servicers’ capacity to originate and underwrite, in exchange for a risk-sharing relationship with us,” says Kimball Griffith, Freddie Mac vice president of affordable sales and investments.Daniel Cunningham, head of Affordable Housing at…

By Anuradha Kher, Online News EditorWashington, D.C.–This week’s fed rate cut could drive up lending in the multifamily market in the short term, but could push it down over the long haul due to an increase in the cost of borrowing.For the second time this year, the Federal Reserve has cut the federal funds rate by three-quarters of a percentage point. This brings the rate down to 2.25 percent. As recently as last September, the rate was 5.25 percent “The rate cut will most likely not impact non-recourse permanent financing for multifamily,” Martin Kamm, managing director of Real Estate Investment…

Washington, D.C.–The Federal Reserve is expected to issue a large rate cut at today’s meeting–possibly as large as a full percentage point drop to 2 percent, MarketWatch reports. The move would indicate that the Fed views the threat of a financial market collapse and a potential impending U.S. recession as serious, prompting a fast and firm action.A lower fed funds rate helps banks immediately rebuild their capital by reducing their borrowing cost. However, the other effect lower rates can have–increasing consumer and business borrowing–could take more time.Economists have said the worsening economic conditions since the last Fed meeting have increased…

Washington, D.C.–Home construction fell in February and future groundbreaking permits hit their lowest level in 16 years, according to data released Tuesday from the Commerce Department.Housing starts fell 0.6 percent to a seasonally adjusted 1.065 million annual rate, after rising 7.1 percent in January to 1.071 million, The Wall Street Journal reports.Originally, the Commerce Department had reported January starts were 0.8 percent more. Therefore, February’s 0.6 percent decline was a surprise–the drop was larger than expected but the construction pace was higher. Construction of housing with two units or more swelled 14.4 percent to 358,000; groundbreakings of multi-family homes with…

The National Association of Home Builders said Monday its housing market index–which gauges builders’ perceptions of current conditions, interest from potential buyers and expectations for home sales over the next six months–for March was the third lowest reading on record.Tighter lending restrictions and hesitant buyers have hurt home sales, USA Today reports. As a result, the index came in at 20 in March for the second month in a row.Since September, the index, derived from a survey of about 400 residential developers nationwide, has been at 20 or below, indicating builder discomfort. Index readings above 50 imply a positive reaction….

New York–The office, retail and hotel sectors are struggling, but rental apartment demand is rising, according to a PricewaterhouseCoopers survey released Monday.As restrictive lending standards keep more and more homebuyers from qualifying for a loan, foreclosure rates rise and buyers await lower prices, demand for rental units is increasing. However, apartment developers have reduced their plans to build new structures–driving demand up further, Reuters reports.”Because you have so many people losing their homes or not able to buy homes, there’s been an overall increase in the (apartment rental) sector,” Susan Smith, editor-in-chief of the study, told the news service. The…

By Anuradha Kher, Online News EditorSacramento, Calif.–Grand Plaza Apartments, an affordable housing community in the Chinatown Redevelopment Plan area of central Los Angeles, will soon receive renovations in order to preserve housing for more than 400 low-income seniors. The California Housing Finance Agency (CalHFA) board of directors has approved $19.9 million in long-term financing that will enable Denver, Colo.-based Aimco (Apartment Investment and Management Co.) to protect Grand Plaza’s rental affordability for seniors from ages 62 or older, with household incomes ranging from 30 percent to 80 percent of area median income.Grand Plaza consists of 302 units in five four-…