Low Income Housing Tax Credit Program Smoke-free Housing Policies (2015) April 9, PDF Free Download

Low Income Housing Tax Credit Program Smoke-free Housing Policies (2015) April 9, 2015

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Laws and Policies Voluntary/Grassroots Incentives/Education Regulations Strength and breadth of policy option Common Law State and Local Statutes and Codes Federal Policies, Laws & Disability Statutes Basic Laws (not specific to smoke-free efforts)

Presenters Kayla Schuchman Manager of Multifamily Programs Minnesota Housing Anna Stein Legal Specialist Chronic Disease and Injury Section NC Division of Public Health Jessica Yamauchi Executive Director Hawaii Public Health Institute dba Coalition for a Tobacco-Free Hawaii

Public Health Law Center April 9, 2015 7

Our Mission: Minnesota Housing finances affordable housing for low- and moderate-income households while fostering strong communities. 8

Overview About the LIHTC LIHTC in Minnesota Minnesota Housing s QAP Minnesota Housing s Smoke-Free Policy 9

About the LIHTC 10

About the LIHTC LIHTC is a Federal Resource Governed by IRS law LIHTC Provides Tax Credits to Investors in Affordable Housing Reduces Investor s Federal Tax Liability for 10 Years In Exchange Investor Buys LIHTC & Agrees to 30 Years of Affordability Proceeds from Sale Used for Affordable Housing 11

About the LIHTC Volume Cap credits ( 9% credit ) Competitive credit Non-Volume Cap credits ( 4% credit ) Non-Competitive credit Associated with Tax Exempt Bonds 12

13 LIHTC in Minnesota

LIHTC in Minnesota The Statutes establish multiple allocating agencies Minnesota Housing Suballocators 14

LIHTC in Minnesota City of Minneapolis City of Saint Paul Dakota County Washington County Community Planning and Economic Development Department of Planning and Economic Development Dakota County Community Development Agency Washington County HRA 15

LIHTC in Minnesota MN Allocation: $12 Million, Raising $110M for Affordable Housing Annually Of the $12M Allocation: Minnesota Housing: $8M Suballocators: $4M Section 42 requires Allocation Plan Establishing Priorities Minnesota Housing & Suballocators each have a Qualified Allocation Plan 16

17 Minnesota Housing s QAP

Minnesota Housing s QAP Self-Scoring Worksheet - Memorialized in LURA Leverage/Readiness to Proceed Preservation of Federally Subsidized Housing/Rent Assistance Ending Long-Term Homelessness Economic Integration, Transit Access, Workforce Housing Communities 18

Minnesota Housing s Smoke-Free Policy 19

Minnesota Housing s Smoke-Free Policy Smoke-Free Housing Incentive Implemented June 2010 Goals: Reduced Operating Costs Reduced Future Rehabilitation Costs Reduced Risk of Fire Improved Health Outcomes 20

Minnesota Housing s Smoke-Free Policy Incentive is worth 1 point out of approx 200 Optional vs. Threshold Cultural/Religious & Supportive Housing Occupancy Policy Prohibiting Smoking in All Units & Common Areas Non-smoking Clause in All Leases 30-Year LURA 21

Minnesota Housing s Smoke-Free Policy 2,376 units since implementation June 2010 73% of 9% LIHTC projects funded are smokefree 22

For More Information Contact: Kayla Schuchman kayla.schuchman@state.mn.us 651.296.3705 www.mnhousing.gov 23

USING THE LOW INCOME HOUSING TAX CREDIT PROGRAM TO PROMOTE SMOKE-FREE HOUSING POLICIES: HAWAI`I S LESSONS By: Jessica Yamauchi, Executive Director Coalition for a Tobacco-Free Hawai`i A program of Hawai`i Public Health Institute

TYPES OF HOUSING Three types of housing in Hawai`i: Market-rate, Public Housing, Tax-Credit Properties(affordable housing). Public Housing: Hawai`i s housing is unique because we have ONE Public Housing Authority for the state. Hawai`i Public Housing Authority (HPHA) manages over 80 properties throughout the state Tax-Credit Properties (affordable housing) Managed by Hawaii Housing Finance and Development Corporation (HHFDC) Market-rate multi-unit dwellings Hawaii is also unique with very few apartments mainly condominiums.

HISTORY OF SMOKE-FREE HOUSING IN HAWAI`I 2010 smoke-free housing initiative picked up for the Coalition. CTFH started researching smoke-free housing and more effects of secondhand smoke, third hand smoke and began outreaching to all types of housing. Developed a website and a toolkit to help with process (focused on market rate). Hawaii Public Housing Authority:. Talks were stalled in 2010. New ED appointed in 2012 and HPHA was interested in a smoke-free policy 2012, Hawai`i State Legislature passed a law mandating all public housing be SF but the Governor vetoed it. In June 2014 a similar bill passed and became law, HRS 356D-6.5.

HHFDC (AFFORDABLE HOUSING) In 2011 the Coalition and DOH learned about the Qualified Action Plan (QAP). In 2011-2012 the (QAP) for HHFDC was undergoing changes and CTFH proposed a smoke-free housing QAP point to be implemented. The proposed policy: Developers would receive 1 point on the QAP for implementing a smoke-free policy for the development.

PASSING THE POLICY HHFDC senior staff in the organization were supportive but the Executive Director (ED) was not on board. CTFH and DOH continued to provide testimony for the QAP We also met with management agencies and developers that worked with HHFDC and supported the initiative. There was no support from ED to make significant changes in the QAP Lessons learned

HHFDC MANDATED SMOKE-FREE HOUSING POLICIES In 2014 DOH and CTFH were notified by HHFDC that the 2015 QAP was out for review with a mandated policy that all properties be smoke-free (moving forward). (A new ED was in place) Proposed policy: to mandate all new tax-credit properties and existing properties being sold/renovated will be smoke-free. In Fall of 2014 CTFH and DOH provided testimony for the QAP to HHFDC and the policy passed! We feel that the law that passed for public housing helped to move the needle with tax-credit properties. Current rule is: Smoke Free: All projects to be built smoke free or existing buildings being sold/renovated to become tax-credit properties. Owners must prohibit smoking in all indoor common areas, individual living areas (including balconies and lanais), and within 25 feet of building entries or ventilation intakes. A non-smoking clause must be included in the lease for each household. Submit certification (refer to exhibit list of the Consolidated Application).

NOW WHAT? CTFH and DOH still continue to work on smoke-free housing in Hawaii. HPHA- we assist with education and implementation of the law. Currently working on how HPHA can turn smoke-free policy into a new beginning for Public Housing. Also helps assist older affordable housing project like Towers of Kuhio Park (a private-public partnership)and others with education and implementation on a smokefree policy. Assist HHFDC in any questions regarding the new policy. Assist Market-rate housing BOD and individuals push smokefree polices.

With continued support, more multi-unit housing properties will be smoke-free saving thousands of people from secondhand smoke harms. We are changing social norms! www.hawaiismokefreehomes.org MAHALO!

Achieving a Threshold Requirement for Smoke-Free Housing in North Carolina s 2015 QAP Anna Stein, JD, MPH Legal Specialist, Chronic Disease and Injury Section NC Division of Public Health

Initial Discussions with Housing Finance Agency NC QAP has many provisions that contribute to residents health and well-being; smoke-free policies would seem to be a logical addition Examples: Points for lack of neighborhood blight Points for proximity to grocery store or pharmacy Points for not being near hazardous materials storage NC Housing Finance Agency indicated in 2011 that a request for smoke-free policies to be added to QAP would be most persuasive if it came from housing industry

Building Relationships with the Affordable Housing Industry Educating industry about smokefree policies at conferences, lunch and learns, sit-down meetings Providing technical assistance to affordable housing management companies to go smoke-free Help conducting resident meetings Cessation resources Results: Worked with 2 large affordable housing management companies in NC to go smoke-free at all their properties

Critical Connection: Equity Syndicators Met with contact at regional non-profit equity syndicator Equity syndicators are essential to the process of using tax credits to build affordable housing Affordable housing developers compete for tax credits through QAP process Once developers win tax credits, they still need money upfront to build properties Syndicators find investors to give money to developers to build affordable housing in exchange for investors use of the tax credits Given their critical role in the system, equity syndicators have clout with housing finance agencies Syndicators maintain an ownership interest in the properties they finance, so they are concerned about property maintenance and fire prevention; smoke-free policies are a natural fit for their interests Housing finance agency indicated in a March 2014 meeting with equity syndicator that it was receptive to adding smokefree requirement to QAP

The NC QAP Process August 2014: Deadline for written comments for 2015 QAP NC Alliance for Health made request for smoke-free requirement and gave suggested language Looked at other states incentives to craft language Wanted language to be concise but detailed enough for clear implementation NC Division of Public Health submitted information about the benefits of smoke-free policies http://www.nchfa.com/rental/rd2015commentsqap.aspx September 2014: NC Housing Finance Agency released proposed 2015 QAP containing smoke-free requirement October 2014: Public hearing on proposed QAP Developers supportive of smoke-free policies attended Head of NC Tobacco Prevention and Control Branch attended December 2015: Final version of 2015 QAP released with smoke-free requirement Owners must prohibit smoking in all indoor common areas, individual living areas (including patios and balconies), and within 25 feet of building entries or ventilation intakes. A non-smoking clause must be included in the lease for each household.

Lessons Learned The benefit of waiting to seek policy change until you have your ducks in a row Who is the proper messenger? Public health benefits from having industry partners when talking to regulators Smoke-free housing is a unique win-win for public health and industry