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10A — August 9 - 22, 2019 — Multifamily Financing — M id A tlantic

Real Estate Journal

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Multifamily Financing

MonarchHousing Associates served as the consultant for the project NJHMFA uses Sandy Recovery Funding for veterans inHoboken

Regions Bank hires Cahill to leadReal Estate Banking for DC

property is rented. • Leasing the property as much as feasible, given its location; • Retaining written records of all leases, leasing activities and listings for lease; • Hiring a local proper- ty management company to make the property available for rental use; • Listing the property for rental on popular websites such as VRBO.com, rentals. com, homeaway.com, vacation- rentals.com, etc.; and • Showing rental income and expenses on Schedule E of the property owner’s tax return and other tax treat- ment consistent with a rental investment property. • As always, it is important for taxpayers to consult with their tax and legal advisors before engaging in a Section 1031 exchange. A careful re- view of the unique facts and circumstances of a vacation property owner’s situation should be done before the deci- sion is made to proceed with a 1031 exchange. Brenda Muller is VA, MD & D.C. Division Manager with Asset Preservation, Inc., a leading national qualified intermediary.  and expertise that provides support to any borrower that contacts Stratton Equities. Due to our extensive training and rigorous work ethic, we never have a mix up between loan programs, scenarios, and other situations. As we are always striving to grow, we put all of our energy into building our Loan Officers and providing them with the materials, training, and direct (organic) leads – to always stay on top of the Mortgage trends and new programs. Michael Mikhail is the founder and CEO of Strat- ton Equities, the nation’s leading direct hard money and NON-QM lender to real estate investors, with the largest variety of mortgage programs.  Real Estate Banking execu- tive Mike Smith commented, “I’m excited to welcome Jame- son to the Regions Income Property Finance team.  Mid-Atlantic region, working collaboratively with Regions Capital Markets to provide comprehensive financial ser- vices to meet the needs of real estate clients.

• The property owners did not take (and probably did not qualify for) depreciation or other tax benefits associated with an investment property including deductions for main- tenance expenses. Rev. Proc. 2008-16 provides a safe harbor for qualifying vacation homes for purposes of Section 1031, and meeting its requirements is likely critical to qualifying a vacation home under Section 1031. A vacation property that does not meet the requirements of Rev. Proc. 2008-16 will likely not qualify for Section 1031 exchange tax deferral. Converting a Vacation or 2nd Home into an Investment Property A property owner can pre- pare in advance for a poten- tial Section 1031 exchange in the future by converting their vacation home or second home into a property held for investment. There are a num- ber of steps that can be taken to accomplish this, which may include some of the following actions: • Keeping any personal use of the property to a minimum, under 2 weeks a year, and/ or below 10% of the days the Officers, who then qualifies the loan to our wide range of Mortgage Programs – to best suit the borrower’s needs. This ensures that each scenario is matched with its ideal and best possible program. The biggest misconception borrowers have, is that many believe that you need a hard money loan at high interest rates even though you are a high credit score qualified borrower. The fact is you can receive interest rates and terms very close to conven- tional financing while still being a no income verification loan. Hard Money is not a blanketed statement for all private money loans. Our team members are fully equipped with the knowledge BIRMINGHAM, AL — Re- gions Bank announced that Jameson Cahill has joined Regions Income Property Fi- nance as senior vice president and will be based in Wash- ington, DC. In this new role, Cahill will lead Regions’ efforts to expand outreach to real es- tate clients throughout Wash- ington, D.C. and the larger

ing veterans who have served our country so honorably. Permanent supportive hous- ing and services will provide the needed stability to help them rebuild their lives,” said NJHMFA executive director Charles Richman . “This outstanding project also re- flects the continued successful rebuilding efforts after Super- storm Sandy, which severely impacted Hoboken.” The building also includes bicycle and storage rooms, and an outdoor covered patio. The two residential floors each have their own laundry rooms. All apartments are either handicap adaptable or accessible, and one efficiency and a one-bedroom apartment are for the hearing and visu- ally impaired. The complex is within walking distance of pharmacies, grocery stores, hospitals, doctors’ offices, schools, parks, and other rec- reational activities. The Hoboken Shelter Inc. will provide support services focused on helping residents live independently in perma- nent supportive housing, in- cluding ongoing services that address residents’ daily living and special needs. Services will include onsite case man- agement services and linkages to mainstream resources, and access to health care and other treatment services. MonarchHousing Associ- ates served as the consultant for the project. Monarch is a Cranford-based nonprofit dedicated to expanding the supply, accessibility and vari- ety of affordable, permanent supportive housing through development, planning, advo- cacy and partnerships.  Mac. He earned a Bachelor of Arts degree from James Madi- son University and a Master of Business Administration from GeorgeWashington University. KeyBank Community Devel- opment Lending and Invest- ment (CDLI) helps fulfill Key’s purpose to help clients and com- munities thrive by financing projects that stabilize and re- vitalize communities. Experts in complex tax credit lending and investing, Key is one of a handful of affordable housing lenders in the country with a platform that brings together balance sheet, equity, and per- manent loan offerings. 

OBOKEN, NJ — American Legion Veterans Affordable

Housing , which will provide affordable supportive homes for six homeless veterans and was funded in part by the New Jersey Housing and Mortgage Finance Agency (NJHMFA) , celebrated its opening with a ribbon cutting joined by NJHFMA execu- tive staff, US Senator Robert Menendez, local officials and the developer, American Le- gion Hoboken Post No. 107. The project on Second Street involved the demolition of American Legion Post No. 107 and construction of a five-story building, which provides three efficiency and three one-bed- room apartments. The second floor, financed separately, is housing the new American Legion Hall. Residents are expected to start moving into the apartments this month. “Governor Murphy and I are dedicated to taking care of our military veterans in New Jersey. When our state was hit by Superstorm Sandy, it left some of our most vulnerable residents, including veterans of limited financial means, in an even more precarious situation. This prompted the State of New Jersey to work with housing developers such as Monarch to create perma- nent, affordable housing for people with special needs in communities impacted by the storm,” said Lt. Gover- nor Sheila Oliver , who also serves as DCA Commissioner and chair of NJHMFA board. “The American Legion Veter- ans Affordable Housing proj- ect is emblematic of this col- laboration. The Department of WASHINGTON, DC — KeyBank Community De- velopment Lending and Investment (CDLI) has ap- pointed Jonathan Wittkopf as senior vice president and senior banker. Wittkopf will be based in Washington, D.C., where he will be responsible for continuing KeyBank’s expan- sion in the Mid-Atlantic, East and Southeast territories. He will report to Kyle Kolesar , senior vice president. “Jonathan has extensive knowledge of the affordable housing market, with notable success in the Mid-Atlantic re- gion,” said Kolesar. “His strong

continued from page 6A Qualifying vacation property . . .

Community Affairs was proud to partner with NJHMFA and the project’s developer to pro- vide Sandy recovery funding and housing vouchers to help give six previously homeless veterans a permanent place to call home.” NJHMFA provided $1.3 million from its Sandy Special Needs Housing Fund, which was created in April 2013 with $60 million to facilitate the de- velopment of quality, support- ive permanent housing in the nine counties most impacted by SuperstormSandy. To date, the program has funded 48 projects providing 401 beds for special needs residents. DCA’s Division of Housing and Com- munity Resources awarded the project six project-based housing vouchers for military veterans, and the project also includes $855,000 in Hudson County Home Funds toward the construction of the overall building. “NJHMFA is proud to be included in this development partnership, which represents a deep commitment to help- American Legion VeteransAfford- able Housing industry relationships and wealth of affordable housing knowledge will be instrumental as we continue to expand our platform.” Wittkopf brings 14 years of multifamily affordable housing experience to the CDLI team. Prior to joining KeyBank, he served as vice president and debt originator at Citi Com- munity Capital, where he fo- cused on balance sheet and GSE executions for affordable housing in the Mid-Atlantic region. Previously, Wittkopf served as a senior analyst in the multifamily affordable sales & investments group at Freddie

Hard Money Loans versus Fix & Flip . . . continued from page 8A

Keybank Strengthens Community Development Lending And Investment team with addition of Jonathan Wittkopf

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