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Low Income Housing Tax Credit Program
Smoke-free Housing Policies (2015)
April 9, 2015
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Tobacco Control Legal Consortium
Webinar Series
• Providing substantive public health policy knowledge,
competencies & research in an interactive format
• Covering public health policy topics related to tobacco
control
• Visit http://publichealthlawcenter.org for more information
The legal information and assistance provided in this webinar does not constitute legal advice
or legal representation.
Tobacco Control Legal Consortium
A national network of legal centers
and attorneys supporting
tobacco control policy change.
Laws and Policies
Voluntary/Grassroots
Incentives/Education
Regulations
Strength and breadth of policy option
Common Law
State and Local Statutes
and Codes
Basic Laws
(not specific to smoke-free efforts)
Federal Policies, Laws &
Disability Statutes
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
•
•
•
•
9
About the LIHTC
LIHTC in Minnesota
Minnesota Housing’s QAP
Minnesota Housing’s Smoke-Free Policy
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
LIHTC in Minnesota
13
LIHTC in Minnesota
• The Statutes establish multiple allocating
agencies
– Minnesota Housing
– Suballocators
14
LIHTC in Minnesota
City of
Minneapolis
Community
Planning and
Economic
Development
15
City of
Saint Paul
Department
of Planning
and Economic
Development
Dakota
County
Dakota County
Community
Development
Agency
Washington
County
Washington
County HRA
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
Minnesota Housing’s QAP
17
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)
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.
 In
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
Contact us
Warren Ortland
warren.ortland@wmitchell.edu
(651) 290-7539
www.publichealthlawcenter.org