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CAHEC Connection
July 2018
In This Issue

CAHEC re cently sat down with Angel and Carmen Diaz, a couple who moved from Florida to North Carolina earlier this year. They've been married for 31  years and have two bea utiful daughters together. One daughter, who lives close by their new apartment at Wakefield Commons, helped convince them to move north after she became concerned about their health. "My husband has colon cancer," Carmen explained. "And I have diabetes and just had a kidney transplant. It was time for us to move to a slower paced environment, closer to family, where we could feel peaceful and happy - and we feel that here."

When we asked them about affordable housing, they said they had never heard of it before. "We knew it would cost less to live here, and we liked that, but we had never heard of a tax credit property." Angel and Carmen both receive monthly disability assistance, and their budget was stretched thin while living in their rental home in Florida. "Here, the rent is cheaper and the water is included in our rent. That helps us out a lot. It frees up money for us to buy healthier foods and actually do things that we enjoy!"

Carmen explained that because of her husband's health, it makes more sense to buy organic food. "We could buy a little of it before, but now we can afford to buy more healthy and nutritious food that makes him feel better." They also enjoy all the trees and fresh air in North Carolina. "My husband loves to walk outside for exercise, and he loves that there are so many trees here - it's beautiful!"

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By: Parisa Ford, CAHEC Risk Manager

Properties developed through the LIHTC program not only provide much needed affordable housing to communities, but also represent valuable investments through the tax credits they generate. Casualty losses, such as a fire or tornado, pose a risk of tax credit loss or recapture if the units remain uninhabitable at the end of the calendar year. In this event, individuals and organizations who guarantee the financial benefit of these credits would become liable for the loss to investors. 

Over $15,000 of tax credit losses were sustained at one of CAHEC's properties due to a major fire in October 2017, leaving seven units uninhabitable. Fortunately, the insurance held by the general partner covered the credits and a claim was successfully completed. 

Insurance products are available to protect against tax credit loss that go beyond more standard coverage for business income and repair costs. These products have been on the market for several decades but have recently become more effective through successful claims activity. Since the qualified basis of a LIHTC property is set at the end of each calendar year following the year of initial qualified occupancy, guarantors face a recurring risk from uninhabitable units. This exposure can add up quickly depending on the number of units and properties across a portfolio.

MIAMission in Action
  • CAHEC attended the ribbon cutting for Red Oak Ridge in Lincoln, AL, earlier this month. We are proud to be part of this new development that provides residents with 42 units of safe and affordable housing!
  • Congratulations to Whitehall Crossing in Charlotte, NC, on receiving nearly $15,000 in Active Lifestyle Grant funding from the CAHEC Foundation. The playground provided through this grant will be a wonderful addition for youth residents on the property. 
PortfolioHighlightsPortfolio Highlights
Expanding our Portfolio

CAHEC has added the following properties to our portfolio:

New Construction

Glenwood Gardens - Gastonia, NC; 58 units for seniors; Developer: Mosaic Development Group, Inc.


Fully Qualified

Congratulations to the following properties who have achieved 100% occupancy:

Parkside III - Lexington, KY


OnTheRoadOn the Road
CAHEC will be attending the following upcoming events:

July 27 Wakefield Commons - Ribbon Cutting - Raleigh, NC

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This institution is an equal opportunity provider.