CAHEC Connection: Your CAHEC Newsletter

Earlier this month, the CAHEC Foundation donated 5 new bikes and helmets to the Tree of Bikes at the American Tobacco Campus. More than 120 donated bikes were mounted on a large tree-shaped structure and will be on display near the American Tobacco Tower through December 17. The bikes will be distributed to deserving children living in affordable housing in Durham, NC. The CAHEC Foundation was honored to be a part of such a positive community outreach project.

For more information about the CAHEC Foundation, or to make a donation, please contact Stefanie Lee at 919-645-9825 or [email protected].

Our Mission in Action

CAHEC is pleased to announce that the U.S. Department of the Treasury's CDFI Fund awarded CAHEC New Markets a $45 million allocation under the Combined CY2015 - CY2016 allocation round of the New Markets Tax Credit (NMTC) Program. The NMTC allocation will be used to provide senior and subordinated debt financing to community facilities throughout the Southeast and mid-Atlantic regions, creating and improving access to jobs, educational opportunities, healthy foods, and community goods and services in high distress, low-income communities. Visit the CDFI website for the full announcement and list of awardees.

Help us win $5,000 to donate to a local nonprofit by voting for the CAHEC Tree in the Triangle Tree Challenge! This year, our tree showcases the importance of affordable housing by highlighting the number of hours a person making minimum wage must work to afford a one-bedroom apartment. Voting is open until midnight on Friday, December 16, by texting Tree 45 (space between Tree and 45) to 25827 and visiting the Triangle Tree Challenge website and clicking on the photo of the CAHEC tree. We appreciate your support and look forward to sharing the results!

Congratulations to Winfield Apartments in Harleyville, SC, and Eastbrook Apartments in Harlan, KY, on collectively receiving $10,000 in Active Lifestyle Grant funding from CAHEC. Both playgrounds were installed during their rehabs, and include various climbing stations, slides, and fun activity stations for youth residents to enjoy.

Deep Skewed Rents in LIHTC Projects

By Andy Bowden, CAHEC Board Member

Many state QAPs encourage developers to offer some of their units at lower rents - 50%, 40% and even 30% of Area Median Income (AMI) - in exchange for receiving a higher score on their tax credit application. For example, in a 50-unit project it is possible there may be ten market units, twenty-six 60% of AMI units, eight 50% of AMI units, and six 30% of AMI units. Commonly, when we visit these communities, we are told by management that they contain "deep skewed units." In fact, we have even seen situations where ownership has erroneously checked the box to "Elect deep rent skewed project (section 142(d)(4)(B))" on their 8609 Form. What exactly does deep rent skewed mean and how is it properly utilized?

It is important to understand that the term "deep rent skewed" refers to a specific option allowed under Section 42. The primary benefit to the owner is that they can permanently designate which units will be market units and which units will be low-income units. This allows them to secure upgraded fixtures and preferred views with the market units. This can be a very attractive option in an area that offers very high market rents. In exchange for being able to fix the units, there are several hoops the owner needs to jump through.

Special Hotel Rate for 2017 CAHEC Partners Conference

The 2017 CAHEC Partners Conference will be held Tuesday, May 16, and Wednesday, May 17, at the Grandover Resort & Conference Center in Greensboro, NC. A block of guest rooms is now available at the special conference rate of $189 per night (plus tax). The deadline for this rate is April 15, 2017. Space is limited, so click here to make your hotel reservation today.