Adams
Adams View adds 68 well-designed homes to Yakama Nation
Adams View adds 68 well-designed homes to Yakama Nation
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News, Analysis and Commentary On Affordable Housing, Community Development and Renewable Energy Tax Credits<br />
October 2013, Volume IV, Issue X<br />
Title VI Loan, LIHTCs Build Single-Family<br />
Homes on Tribal Land<br />
Published by Novogradac & Company LLP<br />
By Teresa Garcia, Staff Writer, Novogradac & Company LLP<br />
<strong>Adams</strong> View near Wapato, Wash. is the newest<br />
affordable housing development on the Yakama Nation<br />
Reservation and is the largest low-income housing<br />
tax credit (LIHTC) property in Indian Country to date,<br />
said Bill Picotte, executive director for the Yakama Nation<br />
Housing Authority (YNHA). The new 45-acre <strong>Adams</strong> View<br />
development adds 68 single-family homes to an existing<br />
30-unit development. It also has one of the largest U.S.<br />
Department of Housing and Urban Development (HUD)<br />
Title VI guarantee loan sums in the nation: $11.4 million for<br />
housing and $4.4 million for infrastructure.<br />
Affordable Housing on Tribal Land<br />
“The supply and demand of affordable housing is a huge<br />
issue on the reservation, as it is on most reservations,” said<br />
Don Clem, YNHA project manager. “We have about 1,350<br />
applications representing over 8,000 individuals on lists for<br />
housing.”<br />
Affordable housing demand continues to rise among Yakama<br />
tribal members who live near Wapato in south-central<br />
Washington, where the unemployment is 18.7 percent and<br />
42 percent of residents have lived below the poverty level in<br />
the past 12 months. “The income in the county generally isn’t<br />
Photo: Courtesy of ARC Architects<br />
<strong>Adams</strong> View homes are situated along a large circular road that surrounds a 10-acre park.<br />
continued on page 2
novogradac journal of tax credits<br />
www.novoco.com October 2013<br />
continued from page 1<br />
Photo: Courtesy of ARC Architects<br />
This four-bedroom <strong>Adams</strong> View home features a gathering room with<br />
vaulted ceilings.<br />
enough to drive new market-rate housing,” said Alisa Luber, the<br />
senior project developer for Mercy Housing Northwest who worked<br />
on <strong>Adams</strong> View.<br />
Clem said that a bulk of the Yakama Nation Housing Authority<br />
housing stock was built under the U.S. Housing Act of 1937 and<br />
subsequent related legislation. While the Housing Act of 1937<br />
succeeded in expanding tribal housing stock and providing<br />
rental assistance programs, tribal leaders didn’t have much<br />
planning control over their own communities’ developments.<br />
This changed with the Native American Housing Assistance<br />
and Self Determination Act of 1996 (NAHASDA), which granted<br />
tribes greater self-governance in housing assistance matters.<br />
The legislation eliminated several separate housing assistance<br />
programs and replaced them with the Indian Housing Block<br />
Grant and the Title VI loan guarantee program. These initiatives,<br />
along with the LIHTC, are giving aging and limited reservation<br />
housing stock a welcomed infusion of resources for rehabilitation<br />
and new development.<br />
Financing <strong>Adams</strong> View<br />
Securing LIHTCs for developments on tribal land has always<br />
been a challenge because of unique ownership situations and<br />
limitations on securing debt against tribal land, said Bill Rumpf,<br />
president of Mercy Housing Northwest. In response to advocacy<br />
to make developments in Indian Country more competitive in<br />
the LIHTC application process, the Washington State Housing<br />
Finance Commission amended its policies in 2008 to award extra<br />
points to developments in eligible tribal areas.<br />
<strong>Adams</strong> View qualified for the extra points and received a<br />
continued on page 3<br />
Novogradac Journal of Tax Credits<br />
Editorial Board<br />
Publisher<br />
Michael J. Novogradac, CPA<br />
EditorIAL DIRECTOR<br />
Alex Ruiz<br />
Technical Editors<br />
Robert S. Thesman, CPA<br />
James R. Kroger, CPA<br />
Owen P. Gray, CPA<br />
Thomas Boccia, CPA<br />
Daniel J. Smith, CPA<br />
ASSOCIATE EDITOR<br />
Jennifer Dockery<br />
Staff Writers<br />
Teresa Garcia<br />
Mark O’Meara<br />
Editorial Assistant<br />
Elizabeth Orfin<br />
Contributing Writers<br />
Christina Apostolidis<br />
Brent Rudy Parker<br />
Brandi Day<br />
Dat Ksor<br />
Christian Ayson<br />
Owen P. Gray<br />
CARTOGRAPHER<br />
David R. Grubman<br />
Production<br />
Alexandra Louie<br />
Jesse Barredo<br />
James Matuszak<br />
Cyle Reissig<br />
Warren Sebra<br />
John M. Tess<br />
Dan J. Smith<br />
Forrest Milder<br />
Novogradac Journal of Tax Credits<br />
Information<br />
Correspondence and editorial submissions:<br />
Alex Ruiz / 415.356.8088<br />
Inquiries regarding advertising opportunities:<br />
Emil Bagalso / 415.356.8037<br />
Editorial material in this publication is for informational<br />
purposes only and should not be construed otherwise.<br />
Advice and interpretation regarding the low-income<br />
housing tax credit or any other material covered in this<br />
publication can only be obtained from your tax advisor.<br />
© Novogradac & Company LLP<br />
2013 All rights reserved.<br />
ISSN 2152-646X<br />
Reproduction of this publication in whole or in part in any<br />
form without written permission from the publisher is<br />
prohibited by law.<br />
2
Novogradac Journal of Tax Credits<br />
Advisory Board<br />
Low-Income Housing Tax Credits<br />
Bud Clarke Boston Financial Investment Management<br />
Jana Cohen Barbe<br />
SNR Denton<br />
Tom Dixon<br />
Boston Capital<br />
Rick Edson<br />
Housing Capital Advisors Inc.<br />
Richard Gerwitz<br />
Citi Community Capital<br />
Rochelle Lento<br />
Dykema Gossett PLLC<br />
John Lisella<br />
u.S. Bancorp Community Dev. Corp.<br />
Phillip Melton<br />
Centerline Capital Group<br />
Thomas Morton Pillsbury Winthrop Shaw Pittman LLP<br />
Mary Tingerthal<br />
Minnesota Housing Finance Agency<br />
Rob Wasserman<br />
U.S. Bancorp Community Dev. Corp.<br />
Property Compliance<br />
Michael Kotin<br />
kAy Kay Realty<br />
Michael Snowdon<br />
mCA Housing Partners\<br />
Kimberly Taylor<br />
Housing Development Center<br />
continued from page 2<br />
novogradac journal of tax credits<br />
Housing and Urban Development<br />
Flynann Janice<br />
Rainbow Housing<br />
Ray Landry<br />
Davis-Penn Mortgage Co.<br />
Denise Muha<br />
National Leased Housing Association<br />
Monica Sussman<br />
Nixon Peabody LLP<br />
New Markets Tax Credits<br />
Frank Altman<br />
Community Reinvestment Fund<br />
Merrill Hoopengardner<br />
Advantage Capital<br />
Scott Lindquist<br />
SNR Denton<br />
Matthew Philpott U.S. Bancorp Community Dev. Corp.<br />
Matthew Reilein<br />
JPMorgan Chase Bank NA<br />
Ruth Sparrow<br />
Futures Unlimited Law PC<br />
Elaine DiPietro Enterprise Community Investment Inc.<br />
Historic Tax Credits<br />
Jason Korb<br />
Capstone Communities<br />
John Leith-Tetrault National Trust Comm. Investment Corp.<br />
Bill MacRostie<br />
mACRostie Historic Advisors LLC<br />
John Tess<br />
Heritage Consulting Group<br />
Renewable Energy Tax Credits<br />
Bill Bush<br />
Borrego Solar<br />
Ben Cook<br />
SolarCity Corporation<br />
Jim Howard<br />
Dudley Ventures<br />
Forrest Milder<br />
Nixon Peabody LLP<br />
John Pimentel<br />
Foundation Windpower<br />
Photo: Courtesy of ARC Architects<br />
<strong>Adams</strong> View homes have specially designed gathering areas for family and<br />
friends.<br />
reservation of nearly $1.4 million in LIHTCs in 2010. Bank of<br />
America provided an $11.4 million housing loan and a $4.4<br />
million infrastructure loan, both under the Title VI loan guarantee<br />
program. Key Bank contributed about $12.2 million in LIHTC<br />
equity through the syndicator, Raymond James Tax Credit Funds.<br />
“Leveraging resources was the key to accomplishing this<br />
development,” said Picotte. “It enables us to provide adequate,<br />
decent, safe, affordable housing to Yakama Nation tribal<br />
members.”<br />
<strong>Adams</strong> View<br />
A team from Seattle-based ARC Architects designed <strong>Adams</strong> View<br />
with six different floor plans for one- or two-story units. The units<br />
include three or four bedrooms, two baths, two car garages and large<br />
patios. <strong>Adams</strong> View was designed so that units could accommodate<br />
extended families with a large, high-ceilinged gathering room that<br />
can accommodate groups of family and friends.<br />
continued on page 4<br />
www.novoco.com October 2013<br />
3
novogradac journal of tax credits<br />
continued from page 3<br />
Photo: Courtesy of ARC Architects<br />
The <strong>Adams</strong> View affordable housing development was built on Yakama Nation<br />
tribal land near Wapato, Wash.<br />
The development meets Washington Evergreen<br />
Sustainable Development Standards with energyefficient<br />
green construction, ENERGY STAR appliances,<br />
high efficiency heating and cooling, cellulose insulation,<br />
fiberglass windows and doors, metal roofs and fire<br />
sprinkler systems. The units are situated and designed<br />
to minimize energy costs. They rely on the homes’<br />
orientation to the sun, natural cooling through window<br />
placement and air circulation. YNHA’s construction<br />
team completed half of the construction work on <strong>Adams</strong><br />
View to provide training, jobs and income to community<br />
members.<br />
<strong>Adams</strong> View sites homes around a large 11.3-<br />
acre center green. The green has two basketball<br />
courts, bleachers, picnic tables, a one-mile<br />
walking path that winds through the park<br />
and the surrounding neighborhood. There’s<br />
a conventional playground for toddlers and<br />
older children and a second ‘natural’ play<br />
area with logs from Yakama Forest Products, a<br />
tribal enterprise.<br />
One of the biggest challenges of developing on<br />
rural tribal land is lack of infrastructure, said<br />
Luber. The <strong>Adams</strong> View development added<br />
roads and sidewalks and expanded the water<br />
and wastewater treatment facilities to serve<br />
existing developments near <strong>Adams</strong> View, the<br />
68 new homes and future developments. A<br />
new 150,000-gallon elevated water storage tank<br />
and a new well link existing and new water<br />
mains for increased fire safety.<br />
<strong>Adams</strong> View is 100 percent occupied and leased to<br />
qualifying households that earn between 30 percent<br />
and 60 percent of the area median income (AMI). The<br />
68 homes are required to be rented for 15 years, and<br />
then there are options for the tribe to continue renting<br />
out the units or to sell the homes. If the tribe decides to<br />
sell the homes, leasees have the option to purchase their<br />
homes, if they meet certain requirements. Clem said<br />
this purchase option will allow households to make<br />
<strong>Adams</strong> View their family home for generations to come,<br />
he said, “It’s important to have a start in a place that lets<br />
you prosper and grow.”<br />
www.novoco.com October 2013<br />
This article first appeared in the October 2013 issue of the Novogradac Journal of Tax Credits.<br />
© Novogradac & Company LLP 2013 - All Rights Reserved<br />
Notice pursuant to IRS regulations: Any U.S. federal tax advice contained in this article is not intended to be used, and cannot<br />
be used, by any taxpayer for the purpose of avoiding penalties under the Internal Revenue Code; nor is any such advice intended<br />
to be used to support the promotion or marketing of a transaction. Any advice expressed in this article is limited to the federal<br />
tax issues addressed in it. Additional issues may exist outside the limited scope of any advice provided – any such advice does<br />
not consider or provide a conclusion with respect to any additional issues. Taxpayers contemplating undertaking a transaction<br />
should seek advice based on their particular circumstances.<br />
This editorial material is for informational purposes only and should not be construed otherwise. Advice and interpretation regarding<br />
property compliance or any other material covered in this article can only be obtained from your tax advisor. For further information<br />
visit www.novoco.com.<br />
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