If the jobs bill passes, for-profit multifamily investors focusing on redevelopment of distressed properties will be able to apply for Project Rebuild funding through state agencies. The jobs bill is one of many potential upcoming changes to the industry. Investors are also keeping an eye on the LIHTC program, which may see changes proposed by the bipartisan congressional super committee responsible for finding $1.2 trillion in deficit cuts before Thanksgiving.
By: Les Shaver
From: Multifamily Executive
While the demolition and rehabilitation of single-family homes gets a lot more attention than multifamily properties do under the Neighborhood Stabilization Program (NSP), Project Rebuild, the next generation of the program offered in President Obama’s jobs bill, provides an opportunity for nonprofit and for-profit apartment owners alike.
The $15 billion Project Rebuild will provide funding to purchase, rehabilitate, and/or redevelop foreclosed, abandoned, demolished, or vacant properties, including apartment buildings. The funding can also be used to establish and operate land banks.
In the last round of NSP allocations, nonprofits and government agencies were the only entities allowed to compete for funds. In this round of allocations, however, for-profit, private companies, which could include apartment developers and owners, can compete for funds that could be used to rehab or demolish blighted apartment buildings. In this round, commercial properties are also covered, which could open the way for rehabilitation of older, mixed-use properties.
Rising up east of the downtown skyline is what Mayor R.T. Rybak refers to as the “Ellis Island” of Minneapolis. Home to more than 4,440 residents, primarily immigrant families, Riverside Plaza is undergoing a well-deserved face lift. Faded pink panels on the building’s highly noticeable exterior are being replaced with shiny bright white panels that reflect the building’s original modernist design.