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October 7, 2016<br />
Oregon <strong>Housing</strong> <strong>Stability</strong> <strong>Council</strong> Minutes<br />
• Group debrief on December 8 th , 2-4pm for all projects that did not receive funding this<br />
round.<br />
<strong>Council</strong>member Dickson asked if a group could contact agency staff directly if they had a<br />
specific question that was not addressed during the debrief meeting. Ms. Cody told the <strong>Council</strong><br />
that the <strong>Housing</strong> Finance staff would be opportunity for those groups to ask their questions after<br />
the meeting on December 8 th .<br />
<strong>Council</strong>member Geller asked if it is possible for applicants to combine 9% and 4% tax credits in<br />
the same applications. Ms. Cody told the <strong>Council</strong> that that would certainly be an eligible request<br />
and that the staff had seen the combination in applications in the past. Ms. Cody will add this<br />
topic to the debrief meeting on December 8 th . Acting Chair Valfre suggested that the agency put<br />
out a technical advisory detailing the specifics of the 9% & 4% combination to get the word out<br />
as broadly as possible. Ms. Cody said that she and her staff are planning to distribute the<br />
information over a variety of communication tools.<br />
Acting Chair Valfre adjourned the meeting for a 5 minute break at approximately 10:57 am. He<br />
reconvened the meeting at approximately 11:07am.<br />
Federal Rent Subsidy Preservation NOFA –<br />
Ms. Cody told the <strong>Council</strong> that the lower per unit subsidy worked in the past because most of the<br />
preservation projects that came to the table for funding were the low-hanging fruit. In the near<br />
past project developers and sponsors have mentioned the increase in acquisition and construction<br />
costs. The request is being made today to ensure that rehabilitation projects coming in for<br />
funding will have the ability to come in and make their request. They do not want to discourage<br />
needy projects from making application.<br />
Director Salazar added that by raising the cap it might incentivize developers/sponsors to come<br />
in through the 4% door rather than the 9% door, benefitting everyone.<br />
<strong>Council</strong>member Fieldman asked why the acquisition costs were rising. Ms. Cody told the<br />
<strong>Council</strong> that in the past some of the properties had been in foreclosure and were easier and<br />
cheaper to obtain. <strong>Council</strong>member Geller wanted the agency staff to make note of actual loss<br />
versus perceived loss. Ms. Cody told the <strong>Council</strong> that rental subsidy ends when the property<br />
mortgage reaches maturity (there is a 12-month grace period). She also told the <strong>Council</strong> that the<br />
projects that are expected to come in are those that want to re-amortize their loans.<br />
<strong>Council</strong>member Geller asked if there was a way the agency could keep an eye out for those<br />
investors who were behaving in an opportunistic fashion. She worries this type of behavior could<br />
put low income housing in jeopardy. Director Salazar said that the agency is working to assess<br />
the true risk of turning over the properties. Contracts can be renewed. What the agency was<br />
focusing on with this proposal is the tremendous capital needs of the preservation projects. The<br />
agency has been seeing “big ticket” differed maintenance (seismic upgrades, HVAC updates,<br />
etc.). The biggest driver is the increased capital need of the properties.<br />
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