A federal chill on affordable housing?

The Portland Mercury in Oregon posted a detailed story yesterday on how the election of President Donald Trump has sent a chill through the affordable housing community:

The reason is Trump’s campaign promise to reduce the federal corporate tax rate from 35 percent. … “The bottom line is you will get less housing, and it will be harder to serve lower-income families,” says Michael Novogradac, managing partner at San Francisco-based accounting and consulting firm Novogradac and Company. “There’s no silver lining to having less funds available.”

For all the details on a very complicated matter, read the entire story here.

I shared the article with DFA Development’s Chris Flaherty and asked his thoughts. Flaherty’s company opened Stockton’s Cal Weber 40 affordable project last year and is in a collaboration with Ten Space on a planned affordable project in downtown’s Medico-Dental Building.

Flaherty responded with these comments in an email:

“The (Portland Mercury) article echoes exactly what we have been experiencing over the last 2 1/2 months on our most recent deals set to close.  We have 2 California projects with 102 affordable units that were scheduled to close this week. Following the election, the idea of corporate tax reform eroded the appetite for tax credits.  This compressed yields and deleted almost $2 million in equity.  Fortunately, we were able to resurrect the projects financing but not without contributing the eroded equity ourselves.   The state, recognizing this dilemma, extended the closing dates by 90 days, thus, offering a reprieve.   We are on track to close at the end of the month. 

“It affected many of our peers as well and all of our upcoming projects in Hawaii and California including our Medico Artist Lofts project.   We do feel, however, that we will be able to get them done.  We are restructuring our financial feasibility models to find ways to make up the gap in credit pricing.  The economics are just a lot more difficult.  The price for tax credits has dropped almost 20% on most deals for one dollar of credit.   This will make if very difficult to develop the much needed housing that not only our country and state need but more importantly our city and county needs.

President Trump’s father, Fred Trump, developed many affordable housing units in his life and I think he will remember the need is great and the financing extremely difficult.”

We’ll see.

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Accountant Leiba weighs in on city finances

New Stockton Mayor Michael Tubbs selected new Councilwoman Susan Lenz as the chair of the City Council’s audit committee. It’s a logical choice, considering Lenz has been an accountant for 38 years. Tubbs formerly chaired the audit committee.

The audit committee (Dan Wright and Christina Fugazi are the other members) is slated to meet at 4:30 p.m. today at City Hall. You can view the agenda here. It includes discussion of the city’s recently released Comprehensive Annual Financial Report, or CAFR.

Lenz will preside over today’s meeting. But another accountant — longtime Stockton budget hawk Ned Leiba — already has weighed in, as he is wont to do. Leiba posted his thoughts about the CAFR and city finances in general in one of his regular group emails Wednesday evening.

You can read Leiba’s email here.

A caveat: City officials have been known to dispute Leiba’s analysis on more than one occasion.

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Read the transcript of Michael Tubbs’ speech at tonight’s swearing-in ceremony

New Mayor Michael Tubbs just delivered a four-page speech at tonight’s swearing-in event at the Bob Hope Theatre.

You can read an advance copy of the speech here. 

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Tubbs: Holman ‘an exemplar of a public servant’

Ceremonial swearings-in will be held Tuesday night for Mayor Michael Tubbs and council members Jesús Andrade, Susan Lenz and Dan Wright. Also at 5:30 p.m. tomorrow at the Bob Hope Theatre: Tubbs’ committee assignments and Tubbs’ official appointment of Elbert Holman as vice mayor.

Click here for Tubbs’ City Council seating chart and his statement on Holman. To read more on the new vice mayor, click here.

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New mayor, new council, new committees

Today, the city released Tuesday night’s agenda for the first council meeting of the year.

Swearings-in of new Mayor Michael Tubbs, new council members Susan Lenz and Jesús Andrade. and newly elected Councilman Dan Wright will be the highlights of the meeting, at the Bob Hope Theatre starting at 5:30 p.m.

You can view the entire agenda, including new committee assignments, at this link. 

To compare the old committees of former Mayor Anthony Silva to those assembled by Tubbs, click here.

You’re welcome.

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Swearing-in ceremony at Bob Hope Theatre

New Mayor Michael Tubbs and new council members Susan Lenz and Jesús Andrade will be sworn in Tuesday at the year’s opening City Council meeting, which will be held not at City Hall but at the Bob Hope Theatre.

It’s always interesting to see who is granted the honor of swearing in new officials.

Tubbs has chosen his grandmother, Barbara Nicholson, to swear him in. Racole Dixon, Tubbs’ mother, swore him onto the council in 2013.

Andrade said he will be sworn in jointly by his wife, Andrea Andrade, and his father, Rafael Andrade Valencia. Lenz will be sworn in by her husband, Don Lenz.

Also to be sworn in Tuesday will be Dan Wright, who won the right to continue as the District 2 councilman in the November election. Wright will be sworn in by Dean McFalls, the former pastor at St. Mary’s Church. Wright said McFalls has officiated at several ceremonies for his family.

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Video of Measure A oversight committee meeting

I stayed for about the first 150 minutes before moving on to other obligations. You can view it here.

And here’s the handout from the meeting.

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The youngest mayor in U.S. history …

… was James Tufts.

As for real mayors of cities with populations larger than 100,000, however, Michael Tubbs may set the record when he takes over in 315,592-resident Stockton on Jan. 1. He will be 26 years, 152 days old when he officially assumes office.

According to Wikipedia, Luke Ravenstahl of Pittsburgh (304,391), was 26 years, 208 days old when he took office in 2006. Dennis Kucinich was 31 when he became mayor of Cleveland (396,815) in 1977.

There have been numerous mayors younger than Tubbs in cities with populations below 100,000, according to Wikipedia. My favorite, only because of his name, was 21-year-old Rusty Hammer of the 39,000-resident Bay Area suburb of Campbell.

When asked earlier this month about being elected mayor at such a young age, Tubbs said, “For young people it shows that age and experience are often correlated, but they’re not necessarily the same. For them it shows they’re part of the solution-making process. They don’t have to wait until they’re 50 or 60 to be involved.”

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Mayor-elect Tubbs on Capitol Public Radio

Click on this link to listen.

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Vote tallies finalized — unofficially

As we all know, the election is now 15 days in the past, but votes are still being counted nationwide. That said, the San Joaquin County Registrar of Voters posted “Unofficial Final Results” a few days ago, so if you are curious about Stockton “unofficial final results,” whatever those are, read on.

Michael Tubbs: 41,998, 70.6%
Anthony Silva: 17,486, 29.4%

City Council District 2
Dan Wright: 33,962, 60.6%
Steve Colangelo: 22,090, 39.4%

City Council District 4
Susan Lenz: 30,084, 53.8%
Michael Blower: 25,814, 46.2%

City Council District 6
Jesús Andrade: 31,910, 57.1%
Sam Fant: 23,980, 42.9%

A total of eight candidates ran for mayor and council in the just-completed election. Here’s a look at how they fared in order of votes received:

Tubbs: 41,998
Wright: 33,962
Andrade: 31,910
Lenz: 30,084
Blower: 25,814
Fant: 23,980
Colangelo: 22,090
Silva: 17,486

City residents also approved five Stockton ballot measures on Nov. 8. The library/recreation sales tax received the largest percentage of yes votes: 74.5 percent, but not one of the votes on city measures was remotely close.

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