EDGE Communications from the
Portfolio Management Frontline
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DEC 2023
AFFORDABLE HOUSING FACT VS. FICTION MYTHS AND REALITIES OUTLINED IN AMERICAN DREAM COME TRUE
By: Tony Bertoldi, Co-President
Rent Control: Rent control is a program that limits the amount a landlord can charge for rent. While that may sound beneficial, it’s one of the worst ways to achieve affordable housing. Why? Rent control also limits supply—which ultimately is bad for the market. If there’s one takeaway from American Dream Come True, it is this: restrictions on the supply of all housing is the root cause of rising housing costs. Section 8: Section 8 is part of the Department of Housing and Urban Development (HUD), but it’s a rent subsidy program administered through local PHAs. One key difference of Section 8 is that some voucher recipients can choose any housing that meets the program requirements. In other cases, the contract is directly with the property. LIHTC: Finally, we’ve arrived at the affordable housing holy grail. Low- Income Housing Tax Credit (LIHTC) is a private-public program authorized by the US government but managed and operated by private developers, investors, and syndication companies. These partnerships are then managed and overseen by syndicators and the state’s
American True is written with the purpose of debunking common misconceptions and myths about affordable housing. In doing so, it becomes clear what affordable housing really is and the impact it has on policy, business, and all Americans. Dream Come MYTH: All Affordable Housing Programs Are Made Equal REALITY: There Are a Variety of Housing Programs To accurately understand affordable housing and debunk the myth that they are all basically the same, it’s important to distinguish the different types of affordable housing programs. Public Housing: Public housing includes government-owned and managed properties by local Public Housing Authorities (PHAs). While initially formed to address housing for low-income families, seniors, and people with disabilities, public housing has gained a poor reputation and is often referred to as “the projects.”
allocating agencies. Syndicators like CREA essentially serve as a conduit between the developer and investment side of the equation.
Since HUD and PHAs are more administrative, they don’t have the same level of resources - especially funding – for proper asset management. LIHTC, on the other hand, enables fund and investment entity resources to build...
Keep reading at tonybertoldi.com >>>
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PROPERTY IMPACT STORY CREA FOUNDATION NEWS
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CREALIVE RECAP
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AWARDS & KUDOS
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NEW HIRES
UPCOMING CONFERENCES
PAGE 2 PROPERTY IMPACT STORY: 49 SUPPORTIVE HOMES FOR VETERANS AT BUILDING 158
The transition from military to civilian life is not a straight path. All too often, troops return home from their service only to end up without one. Century Affordable Development, Inc.’s (CADI’s) Building 158 is part of a larger master-planned community at the West Los Angeles Veterans Affairs campus that combats this reality. The West Los Angeles VA Campus Draft Master Plan, started in June 2015, “represents unprecedented input and response to VA and the Secretary’s team with over 100 meetings and over 1,000 responses,” and provides a framework that guides the effective use of the
existing campus for Veterans. An integral part of the master- planned community is Building 158, an adaptive reuse of the current VA information technology staff building. The project will create 49 homes for homeless and at- risk Veterans – contributing to the total of nearly 1,700 new supportive homes as part of the master plan. “The redevelopment of the West LA Veterans Campus is an amazing accomplishment. Century and its partners should be applauded for their extensive role in bringing all the various constituencies together to make it a reality,” said Richard Shea, SVP, Originator at CREA. “Building
158 is the next step on the path to providing nearly 1,700 homes to those who were there for us when we needed them, and we can now thank them by helping to provide a place to call home. I couldn’t be prouder to have CREA help bring this impactful development to fruition.” While all homeless residents deserve a safe, affordable place to live, the redevelopment of the West LA VA focuses specifically on under- served and growing populations such as female and senior Veterans. According to a 2015 report by the National Housing Conference and
Center for Housing Policy, “The changing veteran population
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suggests a need to look critically at the programs that serve them, and to alter and expand services to better meet evolving needs.” In addition to modern amenities, Building 158’s homes will come furnished and residents will benefit from extensive on-site services provided by Century Oasis Residential Services (CORS) at no cost. These services are intended to promote housing stability while simultaneously maximizing each resident’s ability to live independently.
• substance abuse services • legal assistance • career planning
honoring their sacrifice. We are privileged to play a role in creating the nation’s largest supportive housing community for our Veterans at the West LA VA,” said Brian D’Andrea, SVP, Housing at Century and President at CADI. Financing In addition to $22MM in low-income tax credit (LIHTC) equity, Building 158 will be financed with a $4.2M permanent loan and nearly $27M in construction period bonds from Chase, as well as a $5M soft loan from California Assembly Bill 128, a $7.7M soft loan from Tunnel to Towers Foundation, and a $9.4M sponsor loan from Century Housing.
Rehabilitation will be underway in December 2023 with completion anticipated in August 2025. “This development builds on Century’s 28-year legacy of supporting our Veterans and “Building 158 is the next step on the path to providing nearly 1,700 homes to those who were there for us when we needed them, and we can now thank them by helping to provide a place to call home...” - Richard Shea, SVP & Originator
Services include:
• benefits/entitlements assistance • mental health and domestic abuse services • educational opportunities and computer competency
Read more Property Impact Stories Online >>>
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CREA FOUNDATION & CALIFORNIA STATE UNIVERSITY, NORTHRIDGE IDENTIFY 2023-24 CREA SCHOLARS
CREA Foundation, Inc., in conjunction with academic partner California State University, Northridge (CSUN), is pleased to announce the selection of the 2027 class of financial and supportive aid recipients in the form of the 2023 CREA Scholars. After reviewing applications and conducting interviews, CREA Foundation and CSUN leaders selected twenty incoming freshman students at CSUN to each receive a scholarship on average of $5,000, beginning with the 2023- 24 academic year and continuing each subsequent year, in the hopes of supporting their aspirations to achieve a post-secondary degree. “We are elated to launch the CREA Scholars at CSUN program and are excited about the opportunities for the scholars to create a community of support and connection over the next four years,” Jideonwo said. “We’re confident in our partnership with CSUN’s Educational Opportunity Program to provide a community for CREA Scholars to thrive, persist from year to year, and graduate.”
CREA, LLC’s Co-President , Charles Anderson, and Asia Williams, VP, Acquisitions , are both CSUN alumni, therefore, this partnership is extra special to CREA Foundation. The CREA Scholars Program at CSUN generated significant interest, resulting in a competitive application process. 35 students applied, 25 were interviewed, and 20 were selected as the first class of scholars, including Jose Mejia Acabal, Miguel Angel Garcia Luna, Lucio Aranda, Alexander Bonilla, Roman Buenrostro, Luis Cotto, Christian Galindo-Carrera, Ellen Garcia, Katherine Guinea, Levon Hakobyan, Carlos Hallman, Joel Ipatzi, Mariana Morales - Hernandez, Karla Moreno, Jacqueline Navarro, Annette Perez, Crystal Tellez, Yajaira Valencia, Jeremy Velasquez and Angelina Zuniga Kramer. “By creating the CREA Scholars Program at CSUN, CREA Foundation has opened the doors of opportunity for students to achieve their highest aspirations,” said CSUN President Erika D. Beck. “We are deeply grateful to CREA Foundation for its impactful investment in our students and our
mission of enabling human potential through the transformative power of a CSUN degree. We are so proud to welcome the inaugural cohort of CREA Scholars at CSUN as they begin their college journey, and we look forward to continuing to collaborate with CREA Foundation in building a brighter and more equitable future.” The official induction ceremony took place on October 15th at CSUN where each scholarship recipient walked across the stage to begin their journey as a CREA Scholar. The ceremony was attended by members of CREA, LLC, Nicole Ipach, President of CSUN Foundation, and other CSUN employees along with the students accompanied by their family members. Through strategic partnerships, CREA Foundation seeks to improve the lives of youth and young adults facing financial barriers to success in the communities we serve by creating opportunities to further their learning, development and education.
Meet the CSUN CREA Scholars Online >>>
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ALL COMPANY MEETING: CREALIVE 2023 RECAP CREALive 2023 has left a lasting impact on our organization. For one week, employees from across the country gathered in Indianapolis to meet, learn and network, serving as a reminder that people continue to be the heart of CREA, and reinforcing the importance of togetherness. We heard from department leaders, industry experts and collaborated with team members. The event not only inspired fresh ideas, but also encouraged teamwork and strengthened our commitment to staying at the forefront of our industry. We look forward to the exciting developments and progress that will undoubtedly stem from the creativity and connections that were realized during this event. Check out some pics below from our week together!
PAGE 6 GET TO KNOW OUR MOST RECENT NEW HIRES!
estate space as a broker and in property management. Outside of work, he enjoys Sunday football, playing card games with friends and family, traveling, and playing pickleball.
resides in Boston, MA. He graduated from the University of Iowa with a Bachelor of Business Administration degree in Finance. Prior to joining CREA, Stefan worked as both an underwriter and financing project manager for various companies in the industry. Stefan is happy to be a part of the CREA team and looks forward to continuing to further his knowledge of the affordable housing industry while helping CREA carryout its mission.
CJ Lambert Financial Analyst – Stabilized Indianapolis, IN
LaShae Woodward Asset Manager – Development Indianapolis, IN
CJ Lambert is an Indianapolis, Indiana native with a Bachelor of Science Degree in Marketing from Claflin University, an MBA from Indiana Wesleyan University, and a Business Analytics Certification from Cornell University. CJ previously worked in the LIHTC industry as a Finance Specialist for the Indiana Housing Authority. He recently became a homeowner and loves to spend time in the yard with his shih tzu, Pepper. CJ is an enthusiastic lover of sports and enjoys watching football and basketball with his family.
Tanelle Lopez Asset Manager – Stabilized San Antonio, TX
Along with being a mother and wife, LaShae is a property management aficionado with a wealth of experience in affordable housing. LaShae enjoys finding innovative solutions to enhance performance and problem solve. Beyond her professional expertise, LaShae is a passionate mental health activist and an ally to all. She believes in fostering inclusive, supportive communities both in and outside of the workplace, making a positive impact on people’s lives.
Tanelle was first introduced to the LIHTC industry in 2009 as a receptionist for a large affordable complex. She enjoys interacting and connecting with residents, on site staff, and management companies and feels she can relate to the difficult/positive situations from all sides. Tanelle is originally from Orange County, CA but currently resides in San Antonio, TX due to her husband being in the military. She loves to travel to historic sites, learn about culture, and art.
Jaclyn Mason Asset Manager – Stabilized Portland, OR
Lauren Simon, CPA Senior Asset Manager
Jaclyn spent the last 20+ years working in the real estate industry, most recently serving a national property management company specializing in Class A Development and Construction for the West Coast. Her passion for property management stems from a lifetime of wanting to make a positive change to families and children by providing housing and services to people in need. She and her husband have an eight year old son and a two year old daughter, along with their prized possession - a 9 year old bullmastiff named Tyson.
–Development Indianapolis, IN
Tim Kayser, CPA Asset Manager – Development Minneapolis, MN
Lauren graduated from Ball State University with a Bachelor of Science and Masters degree in Accounting. There, she participated on the varsity volleyball team. After graduation, Lauren earned her CPA license and spent three years in public accounting as an auditor. Outside of work, Lauren enjoys traveling, hiking and spending time with her husband, Trevor, and their golden retriever, Rookie. As a Buffalo native, Lauren is an avid Bills and Sabres fan.
Tim has been involved in many facets of affordable housing throughout his career. He spent 13 years working for a large institutional investor before moving to an Atlanta-based state credit syndicator. After 2008, Tim renovated properties in Illinois and Michigan, while studying electrical engineering before returning to the affordable housing industry. His experience includes providing consulting services to both LIHTC and solar developers.
John Clevenger Fund Analyst Indianapolis, IN
Stefan Wolkenhauer Senior Fund Analyst Boston, MA
John is a Ball State University graduate with a Bachelor of Science degree in Economics and Finance. Before joining CREA, John worked in the single-family investment real
Check out our full team on our website!
Stefan is from Burlington, IA and currently
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AWARDS & CELEBRATIONS
Seymour Lofts Seymour Lofts received a Lt. Governor’s Award for Excellence in Affordable Housing at the Indiana Housing Conference! Seymour Lofts is a newly constructed development that opened this past June and provides affordable homes to 50 families in Seymour, IN. We congratulate our partners at Midwest Support Foundation, Inc. and TWG. Mary D. Stone Apartments Mary D. Stone in Auburn, MA, was voted the winner of the AHTCC’s Charles L. Edson Tax Credit Excellence Award winner in the senior category. The development team, led by Pennrose, transformed a beloved but outdated local asset into modern affordable housing for seniors, ultimately creating 45 affordable, accessible and high quality homes.
Hale Kalele Developed by the Kobayashi Group, LLC (their first LIHTC project) through investments from the Hawaii Housing Finance and Development Corporation (HHFDC), Hale Kalele was a Mixed-Use Finalist for an AHF Reader’s Choice Award. is a newly constructed high-rise offering 200 affordable homes to Honolulu residents, as well as a juvenile services center and shelter.
CONNECT WITH US AT AN UPCOMING CONFERENCE! 2024 AHTCC Annual Meeting January 24-25, 2024 Attendees: Jeff Whiting, Chairman & CEO & Tony Bertoldi, Co-President NH&RA Annual Meeting February 20-24, 2024 Attendees: Charles Anderson, Co- President & Mike Boyle, SVP, Originator Georgia Affordable Housing Coalition Conference & Trade Show March 6-8, 2024 / Attendees TBD
LAAHP Annual Conference April 24-25, 2024 / Attendees TBD
2024 IRHP NYC Affordable Housing Symposium January 24, 2024 / Attendees TBD CARH Midyear Meeting January 29-31, 2024 Attendee: Michael Murray, SVP, Originator
Illinois Affordable Housing Forum February 26-27, 2024 / Attendees TBD
2024 Housing California Annual Conference March 6, 2024 / Attendees TBD
Stay up to date on conferences & events >
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