Affordable Housing and Community Development

Representative Affordable Housing and Community Development Group experience includes:

LIHTC

• Represented Beacon Interfaith Housing Collaborative in developing a 50-unit residential rental project for very low-income individuals in downtown Minneapolis, focused on homeless Native Americans. The project, a 4 percent LIHTC deal, secured bond financing from the Minnesota Housing Finance Agency (MHFA), as well as additional financing from the City, County, and various tax credits, including state historic credits. When a $6 million cost overrun was discovered due to façade deterioration, the firm arranged new bond financing and additional tax credits, with a private bank loan backed by state historic tax credit benefits.

• Represented Accessible Space, Inc., a Minnesota based nonprofit that develops housing for persons with disabilities, in the closing of a 70-unit development in Las Vegas. The project was one of the first in the country that was funded with the HUD Section 811 mixed finance program. There were 14 units financed with the HUD 811 program. The project also obtained financing through the HOME, NHTF, and FHLB Affordable Housing Programs and private construction and permanent financing. An investor contributed approximately $15.5 million of capital for LIHTC.

• Acting as special counsel to Yavapai-Apache Nation #9 Limited Partnership which is developing a 38-unit affordable housing project on the Yavapai-Apache Nation Indian Reservation in Arizona. The project is being financed with a loan from Yavapai-Apache Nation Tribal Housing, as well as equity from LIHTCs.

• Represented lender in a $30.4 million construction loan, as part of a LIHTC financing, for the redevelopment of 8 residential buildings with 147 affordable housing units and related improvements located at Woodlake Apartments located in Woodbury, NJ.

• Representing North10, a nonprofit corporation, in a mixed-use development project involving the rehabilitation of an existing building with 20,000 square feet of commercial space and the construction of a four-story building with commercial space and 41 affordable housing units. The project will utilize a condominium regime to legally separate the commercial and residential components, with plans for the commercial space to be sold to a local minority-owned healthcare organization and the residential segment benefiting from 9 percent LIHTCs.

RAD

• Representing the Tulsa Housing Authority (THA) in multiple phases of conversions from public housing to Section 8 under HUD's Rental Assistance Demonstration (RAD) program, encompassing projects like Country Club Gardens, Pioneer Plaza, Phoenix @36N, and Mohawk/Seminole. The financing for these projects involves complex layers, including low-income housing tax credits, debt financing, and federal funds. Additionally, THA has received advice on eminent domain issues, Choice Neighborhoods redevelopment, hotel-to-housing redevelopment, Section 8 property dispositions, and affiliate structures.
• Representing the New York City Housing Authority (NYCHA) in its Permanent Affordability Commitment Together (PACT) pipeline, which uses a combination of RAD, Section 18, and Part 200 conversions to redevelop public housing projects. Ballard has worked on more than a dozen closed projects, representing thousands of units, starting with NYCHA’s first PACT project that closed in 2016. The PACT conversions use complex and innovative funding structures to make these transactions work without low-income housing tax credits. These projects have used diverse funding sources such as Opportunity Zone equity, Historic Tax Credits, Energy Tax Credits, FEMA and CDBG disaster aid, as well as local subsidy, conventional debt, GSE financing, and bond financing.
• Represented Pennrose Properties, LLC, in the Wicomico County Housing Authority's RAD conversion project at Booth Street Town Houses in Salisbury, Maryland, involving the demolition of public housing units and redevelopment of 84 Section 8 units on authority-owned land. The firm managed all legal aspects, including financing through LIHTCs, Section 8 assistance, state housing funds, and private investment, while addressing compliance with HUD's fair housing rules. This engagement underscores Ballard Spahr's expertise in RAD transactions and Fair Housing Act matters.
• Represented the Housing Authority of the City of Pittsburgh (HACP) in the conversion and transfer of assistance for 86 former public housing units under HUD's RAD program, facilitating their rehabilitation and ownership transfer. The transaction involves HACP acquiring the project and establishing a 99-year ground lease to a new limited partnership formed by HACP, with financing from The Richman Group Affordable Housing Corporation through 4 percent LIHTCs and debt financing from HACP. Ballard Spahr is managing all aspects of the transaction, including tax and bond financing advice, loan and syndication negotiations, and HUD documentation, which will significantly contribute to the revitalization of the Manchester neighborhood in Pittsburgh.
• Represented the Housing Authority of Baltimore City (HABC) in a comprehensive portfolio RAD conversion, encompassing 26 developments with 4,200 units managed by 11 different developers, all completed by the end of 2021. The representation involved advising on issues related to HABC’s non-profit subsidiary, including obtaining 501(c)(3) status, addressing Payment in Lieu of Taxes (PILOT) issues, and advising on corporate resolutions. The conversions, which required minimal relocation due to in-place rehabilitation, utilized 4 percent LIHTCs, bonds, and FHA financing, with some transactions also incorporating state financing, focusing on RAD conversions of mixed-finance LIHTC developments within their 15-year tax credit compliance period.

Mixed-Finance

• Represented HABC in a large-scale portfolio RAD conversion, encompassing 24 developments and 4,200 units, developed by 11 different developers. Currently representing HABC in their 9-phase Choice Neighborhoods development, which spans two separate public housing sites. Most of HABC's RAD and CNI transactions include LIHTC and bonds, including one of the first LIHTC "twinning" projects (comprised of both 4 percent and 9 percent LIHTC) in Maryland. Several transactions involved RAD conversions of mixed-finance LIHTC developments still within their 15-year tax credit compliance period, and one of HABC’s RAD deals was the first to develop new mixed-finance that converted to RAD upon completion, creating the model for Restore-Rebuild (f/k/a Faircloth-to-RAD) conversions.
• Represented owner in the financing and development of Henry Avenue Tower, a 290,000 square foot mixed-use condominium located at 3232 Henry Avenue, Philadelphia, PA, 19129. When completed, the project will include approximately 158 rental apartment units that combine market-rate and affordable housing and 7,500 square feet of retail and commercial space. The financing consists of multiple sources including a construction loan, Historic Tax Credits (HTC), Property Assessed Clean Energy (PACE) Funding, and RAD Vouchers provided by The Philadelphia Housing Authority.
• Represented So Others Might Eat (SOME) in the Benning Road project, now known as the Conway Center. This development introduced a 32,000-square-foot green building providing 182 residential units for low-income tenants, alongside expanded facilities such as an employment center and a health clinic, financed through sources like LIHTCs, New Markets Tax Credits (NMTCs), and FHA 221(d)(4) HUD-insured debt, involving three Community Development Entities. Additionally, SOME's Spring Road project closed in May 2017, creating 36 affordable housing units with funding from 4 percent LIHTC, bonds, and the DC Housing Production Trust Fund, while the Altamont Place development, closed in November 2016, offers 38 supportive housing units utilizing 9 percent LIHTC and Neighborhood Stabilization Program funds.
• Represents Dover Housing Authority (DHA) through the Owens Manor and Queens Manor repositioning, which marked the first Restore-Rebuild conversion involving existing housing stock. The complex transaction included a RAD/Section 18 blend for a public housing segment and a Faircloth to RAD conversion of a LIHTC-only building on another section of the property. Ballard Spahr adeptly coordinated efforts among HUD's PIH and Recap teams to secure the necessary approvals, ensuring a smooth transition and compliance with federal regulations.
• Represents Home Forward (formerly the Housing Authority of Portland) in a multi-phase conversion of its entire public housing portfolio under the RAD program. The conversion process spanned several phases: beginning with the transformation of six mixed-finance projects and expanding through further phases involving HOPE VI developments and substantial rehabilitation efforts through RAD and Section 18 dispositions, culminating in phased closings from 2017 to 2021. Additionally, Ballard Spahr provided counsel on various significant development projects, including New Columbia and Humboldt Gardens, leveraging diverse financing sources such as HOPE VI grants, tax credits, and bonds to facilitate the revitalization of affordable and mixed-income housing in Portland.
• Represents HABC in the Hollander Ridge Restore-Rebuild development, focused on acquiring and rehabilitating 94 scattered site units in opportunity areas, leveraging HOPE VI and various financial instruments such as 4 percent LIHTC, state financing, and conventional loans. Despite closing at the onset of the COVID-19 pandemic in April 2020, which introduced significant challenges related to developer guarantees, construction schedules, and documentation processes, the project successfully converted to Section 8 via RAD in early 2022. This initiative notably pre-dated HUD's formal notice on Restore-Rebuild projects, underscoring HABC's pioneering efforts in navigating complex mixed-finance housing development landscapes.

Tax Exempt Bond Financing

• Represented the Philadelphia Housing Authority (PHA) in securing tax-exempt bond financing for the development of a new headquarters building, grocery store, and community school within the Blumberg/Sharswood neighborhood, a historically Black area once famed for its jazz clubs and nightlife, attracting musicians like John Coltrane. The representation involved preparing public offering and bond documents, obtaining necessary bond counsel opinions, and managing zoning, local approvals, title and survey reviews, as well as environmental and historic approvals. Funding was strategically sourced through tax-exempt bond financing, Moving to Work (MTW) fund deployment, and agreements with the school district to facilitate the revitalization of this culturally significant community.
• Represented the Houston Housing Authority (HHA) as bond counsel for a tax-exempt private placement transaction including preparation of the offering document, for an energy performance contract (EPC) transaction. The energy equipment was to be used in HHA-owned and tax credit projects, requiring additional tax analysis to meet the tax-exempt bond rules.

Fair Housing

• Represented Broward County Housing Authority (BCHA) in obtaining HUD’s dismissal of a Section 504 matter, providing Fair Housing regulatory advice that ensures compliance with federal standards. Additionally, Ballard Spahr offered BCHA counsel on federal and state tax exemption matters and guided them through joint ventures to enhance their operational capabilities. The firm also provided audit guidance, further supporting BCHA's financial transparency and regulatory compliance.
• Represented the District of Columbia Housing Authority (DCHA) in a variety of matters, including regulatory issues and local law matters concerning the use of affiliates and instrumentalities. Our team was instrumental in drafting and negotiating the MTW agreement with HUD, advising on its implementation, and facilitating NMTC transactions for DC Housing Enterprises. Additionally, our counsel included advising on issues related to fair housing, HUD OIG audit-related issues, and assessed the tax implications and authority for DCHA's subsidiary entities.
• Represented HHA by drafting an amicus brief for the U.S. Supreme Court in the Inclusive Communities fair housing case, focusing on the distinctive fair housing challenges encountered by the authority in developing housing in and near opportunity areas. Ballard Spahr has continued to provide HHA with ongoing advice on a range of fair housing issues, particularly concerning development work and the utilization of Section 8 housing choice vouchers. This legal guidance supports HHA's efforts to navigate complex fair housing dynamics while expanding housing opportunities in strategic locations.

HUD

• Represented the City of Houston in providing guidance on HUD regulatory matters, including CDBG and HOME program requirements and HUD environmental issues including matters pertaining to its approximately $1 billion in Community Development Block Grant Disaster Relief (CDBG-DR) funds, serving as lender’s counsel for millions in CDBG-DR loans to multifamily projects, serving as lead counsel in CDBG-DR litigation against the Texas General Land Office (GLO) related to the City’s CDBG-DR Subrecipient Agreement and negotiation of a settlement to the same, assisting with responses to CDBG-DR audits by the HUD Office of Inspector General, advising on CDBG-DR programmatic and legal requirements, and advising on other HUD regulatory issues. Additionally, we have advised the City on CDBG-Mitigation funding competition matters. We are also helping to design, draft documents for, and implement its HOME-funded single-family Community Housing Development Organization (CDHO) program, including advising the City on fair housing and civil rights matters.

Historic Tax Credits

• Representation of a 501(c)(3) public charitable organization in a matter involving the approval of an HTC financing transaction for our client’s renovation of its historic building in Philadelphia.
• Represented lender in a multifamily project located in Duluth, MN, called “Zenith”, a substantial rehabilitation of a historic high school into 122-unit mixed income (market rate and affordable) property. The high school was constructed in 1892 and will be renovated as part of this transaction. The financing included HUD-insured loan funds, federal and state HTCs, and tax increment financing.
• Represented nonprofit client in the HTC and NMTC financing of the renovation of an elementary school once attended by Justice Thurgood Marshall, now known as the Justice Thurgood Marshall Amenity Center at PS 103.

New Market Tax Credits

• Represented PHA in a mixed-use project involving market-rate apartments, retail and commercial space, and a parking garage, where a condominium regime was established to facilitate conveyance by ground lease. The project, excluding the parking garage, was financed with NMTCs, with PHA serving multiple roles including ground lessor, lender, and subtenant of the parking garage, while holding an ownership interest in the project owner. Ballard Spahr prepared and negotiated key documents such as the development agreement, ground leases, and loan documents, ensuring successful financial closure in October 2020, with ongoing consultation on post-closing and construction matters, which are vital for residential growth in Philadelphia's Sharswood neighborhood.
• Represented Beloved Community Services Corporation as federal NMTC and federal and state historic credit counsel in the development of a historic school building intended to serve as a community services, resources, and education center. Ballard Spahr provided legal guidance on the utilization of NMTCs and HTCs to facilitate the financing and redevelopment of the project. This involvement ensured the preservation and adaptive reuse of the historic structure for community benefit in Maryland.
• Represented Harbor Bankshares Corporation (HBC) as Community Development Entity (CDE) counsel in its role as a multi-year NMTC awardee, primarily deploying allocations in Baltimore and Washington, D.C. Ballard Spahr advised HBC on several twinned NMTC and HTC projects, extending beyond Maryland to include developments in Ohio and West Virginia. Recently, the firm assisted HBC in closing NMTC financing for the development of an office building in downtown Baltimore.