HUD announced on April 25 that they plan to pursue an overhaul of rental assistance programs, which assist about 4.7 million families and account for about 80 percent of HUD’s overall budget.
Among the proposed changes, HUD intends to increase the resident rent contribution to 35 percent of a household’s gross income – an increase of five percent. A yearlong freeze on annual rent adjustment increases, minimum resident rental payments and alterations to the current resident rent deduction policy have also been proposed.
This announcement comes on the heels of the White House’s 2019 budget proposal, which outlined support for “work and self-sufficiency” in rental assistance programs. According to HUD, the proposed changes are necessary to fiscally sustain the Department and better support those in need of affordable housing. In a press release, Secretary Carson noted, “The system we currently use to calculate a family's rental assistance is broken and holds back the very people we're supposed to be helping.”
While NAA/NMHC continue to study HUD’s proposal and receive feedback from our members, we will continue to work with lawmakers at HUD and in Congress on reforms that will make rental assistance programs more efficient and that incentivize greater private sector participation.
More information on NAA/NMHC’s efforts regarding rental assistance programs can be found here.
Jason Macklin has joined Wingspan Development Group as Director of Development. Macklin comes to Wingspan from Inland National Development Corporation where he was instrumental in developing a platform and pipeline for multi-family and mixed use development projects in multiple U.S. markets. “We’re very excited to have Jason join us,” said Chris Coleman, VP of Development at Wingspan. “He has an excellent track record and reputation. He’ll be a key addition to our team as we grow to the next level.”
Macklin will rely on his skills and relationships to source, negotiate, finance and oversee the full cycle of the development process for new Wingspan projects. Prior to his role at Inland, Macklin worked for Armstrong Development, managing the acquisition and development for new CVS stores in multiple markets throughout the southwestern U.S. “Jason will be successful at Wingspan because he’s very sharp and a great fit for our culture,” added Coleman.
Mr. Macklin is a licensed Illinois Real Estate Managing Broker and a member of ULI, NMHC and a graduate of Arizona State University’s W.P. Carey School of Business. Macklin says he’s looking forward to being a critical part in expanding Wingspan’s footprint. “Wingspan is a first-class organization that I’m thrilled to be a part of.”, said Macklin. When it comes to where he sees Wingspan in five years, Macklin has a pretty well developed vision. “In five years, I see Wingspan being a household name in the real estate development industry. Not necessarily the largest development group, but a company that defines industry best practices. We want to do repeat business with our lenders and partners because of how well we have executed and performed.”
Nick Papanicholas, Jr., one of Wingspan’s principals, said, “Wingspan already has several hundred million dollars of projects under construction or in the pipeline. Bringing Jason on-board will make us that much better.”
Wingspan Development Group delivers the highest quality projects across multiple real estate segments; residential, commercial and land development. The firm’s core team has nearly 100 years of real estate and construction experience combined with an unparalleled commitment to detail and execution. By blending broad capabilities and a nimble organization, Wingspan capitalizes on diverse market opportunities to create value for clients and stakeholders.
Wingspan has offices in Mount Prospect, IL and Milwaukee, WI. For more information, contact Ms. Lauren Rossi at 847.394.6200 or visit www.WingspanDevelopmentGroup.com.
April 16, 2018
Digested from Multi-Housing News
With a few simple steps, you can make life easier and safer for the runners who live in your communities.A lot of people run. Citing statistics from Running USA, Multi-Housing News’s Jessica Fuir says 17 million runners crossed the finish line in some type of race in 2016.
But any seasoned runner knows, you could be taking your life into your own hands when you decide to go for a jog on roadways.
Why does that matter to an apartment manager? Fuir says that if a community has a large number of residents who run, managers can promote runner safety and cement resident loyalty in the process. One way is by providing the right gear, such as providing reflective vests and whistles.
“A reflective vest helps with visibility, and a whistle can be used to alert other people if the person is in danger,” Fuir writes. “You can buy a few of these and keep them up front for people to borrow on their way out.”
Carrying keys while running can also be an annoyance for runners. Fuir suggests communities have a doorman (or really anyone onsite could handle this task) who holds them while the resident heads out for a jog.
“[Runners] don’t want to worry about dropping them and having to bend over to find them, because then people in cars can’t see them,” Fuir writes. “Plus, if they do lose their keys, you don’t want them stinking up your lobby while they sit around waiting for a spare.”
By Les Shaver; Image by Hub by Amazon
The online retailing giant is finally introducing locker systems for the apartment industry. Find out how the process is going with one early adopter.For years, apartment owners having been trying to get out of the package business. The long-rumored Amazon entry into the package locker business could offer them that opportunity.
Last week, Endgadet’s Mariella Moon reported that Amazon is launching its package locker solution, called The Hub, for apartment owners.
To access packages, residents will enter a pickup code onto a digital screen and a corresponding door with the package will open. The Hub will accept packages from all major retailers, but deliveries will be limited to apartment residents. The Hub comes in a variety of models, indoor and outdoor versions and three neutral colors.
The starter model is six-feet wide and 42 compartments. An expansion module can add 23 more compartments. “The modules link to each other to provide the right capacity for your property’s needs,” Amazon says on its website.
Amazon is not releasing pricing details, but is asking interested parties to sign up for more information. The online retailing giant has already inked agreements with some apartment firms. Amazon is installing its Hub system in at least 25 communities managed by Folsom, Calif.,-based FPI Management, according to Vanessa Siebern, a Vice President at FPI.
“What is exciting about the Amazon Hub is that you can place it anywhere in a community,” Siebern says. “Before we would have had to pour concrete and make sure there was an enclosure for the lockers to be under, if we were doing an outdoor installation. With Amazon, we can put the lockers anywhere and we will be able to install them in multiple locations on the community.”
Eventually, Amazon will also offer package-less returns and cold storage on site, according to Siebern. “With the Amazon partnership with Whole Foods, it makes a lot of sense to provide cold storage going forward, so residents can also have grocery delivery,” she says.
Freedom from Packages
The proliferation of packages arriving in its leasing offices has tested FPI’s onsite teams. At many sites the company has one staffer whose full-time job it is to check in packages and deliver them to residents.
“This allows us to focus on the operation of the buildings,” Siebern says. “We just started talking to Amazon and we realized this partnership makes a lot of sense for our residents and ownership groups.”
Victoria Cowart, CPM, the Vice President of Property Management at Darby Development Co., says the company is currently exploring package locker options and is curious about Amazon’s entrance into the market.
“We want to get out of the package business,” Cowart says. “It is not because it is too difficult to serve our clients. It is just not our forte and it is not what we do great.”
Right now, Cowart says the apartment owner has packages piling up in its leasing offices, which is not an ideal solution.
“You walk in our offices that we’ve spent a lot of money to decorate and delivery people are just putting them underneath a credenza in our leasing space, right across from the assistant’s desk, and it looks bad,” she says. “I don’t have the space for this, and I don’t have the hours to provide packages on demand as the lockers do.”
CHICAGO—The multifamily boom will not end any time soon, but 2018 is the year that the present construction cycle will hit a peak. That’s the conclusion reached by researchers from Marcus & Millichap, who just released their latest market report. They also say that even though developers have finished thousands of new residences in the city, further expansion of the downtown office market should attract enough new workers to eventually absorb these units.
“The Old Main Post Office, for example, is being redeveloped into 2.8 million square feet of class A office space and could be ready for occupancy in early 2019,” according to the market report. “Elsewhere, the former Chicago Tribune distribution site is being redeveloped into multifamily and office space. As new workspace comes online, employees will absorb nearby apartments.”
In 2017, developers finished 5,585 units in Chicago, and the city’s inventory increased 3.2%, Marcus & Millichap says. Apartment rent growth slowed to 3.4% in 2017, “marking the third year in a row that operators have been more conservative in the face of competition.”
And rising rents have finally sparked new development in the suburbs. Before last year, the five-year average rent hike was just 3.0%, but in 2017 effective rents soared 6.9% to $1,221 per month. And builders finished 5,000 suburban units in 2017, a big boost over previous years, when an annual average of about 1,900 units were completed. But suburban inventory only increased 1.0%, and “conditions in the suburbs are sufficiently tight to enable operators to lift rents significantly again this year.”
All that new construction in the city resulted in a 140 bp increase in vacancy last year to 6.5%, Marcus & Millichap also finds. Occupancy was more stable in the suburbs, where the rate inched up just 30 bps to 5.2%.
Multifamily developers will have another big year in 2018. Across the city and suburbs, they will complete another 10,500 units. The Loop, River North and Streeterville will remain a big focus. Completions in these submarkets will total 4,900 units. The metro region’s vacancy rate will go up again, and end the year at 6.3%, a boost of 30 bps. Rent growth will slow down to 3.0% after hitting 5.3% in 2017.
“Institutional buyers may shy away from core locations until demand has an opportunity to match the influx of supply coming online,” Marcus & Millichap says. “Lower-tier assets, however, should continue to draw capital from local and out-of-state investors. Average cap rates for lower-tier properties can reach into the low-7% range.”
Chris Coleman, VP of Development at Wingspan, periodically shares his thoughts and observations on property development news.