I’ve gone through some local resources to bring you a list of the local, Cincinnati resources, for rental assistance programs that you can offer your tenants.
 
There are some restrictions that apply, and I have not independently verified that they’re able to help during this crisis; but it’s a start.
 
James Sauls Homeless Shelter
513.732.6464
2403 Old State Route 32; Batavia, OH 45103
Website: http://www.cccsi.org/shelter.html
Shelter for Individuals and Families; Operated by Clermont County Community Services Three meals and laundry service provided free of charge
Once a person enters the shelter they must adhere to standards including a curfew, no drugs or alcohol, and must obtain employment within one week or show social security benefits are available.
Case Management services are provided to assist clients with goals and obtaining housing. Financial Assistance is available for rent and security deposits for persons exiting the shelter.
 
Transitions: Warren Metropolitan Housing
513.695.3386
990 East Ridge Drive; Lebanon, OH 45036
Website: http://www.warrenmha.org/transitions.html
Supportive housing program that provides permanent housing, rent assistance, and case management to homeless families
 
Goodwill Industries
513.631.4500
10600 Springfield Pike; Cincinnati, OH 45215
Website: http://www.cincinnatigoodwill.org/services/veterans.php
Programs are operated for homeless individuals, including but not limited to Veterans. Assistance with rent payments, security deposits, and delinquent utility bills

Homeless Prevention & Rapid Re-housing Program --- 513.381.SAFE
Website: http://www.hamiltoncountyohio.gov/commdev/v2/HPRP.asp
Intensive case management and financial assistance provided to cover security deposits, rent and utility assistance, past due utility or rental payments
Program is designed to assist homeless individuals or families or to prevent individuals or families who are at imminent risk of homelessness
 
Mercy Franciscan at St. John's
513.981.5800
1800 Logan Street    Cincinnati, OH 45202
Website: http://e-mercy.com/foundation_new_st.john2.asp
Assistance with rent and utilities, fans and air-conditioners

Mercy Neighborhood Ministries
513.751.2500
1602 Madison Road #200; Cincinnati, OH 45206 (Desales Crossing Center)
Website: http://216.68.156.42/mnm/
Provides rent and utility emergency assistance for residents in Walnut Hills, Avondale, and Evanston
 
Salvation Army
513.762.5660
114 East Central Parkway; Cincinnati, OH 45202
Website: http://www.use.salvationarmy.org/use/www_use_cincinnati.nsf/
Hours: Monday through Friday 9am - 4:30pm; Occasional rent assistance
Utilities: once a year program starts in Jan. and lasts until funds run out
Heat-Share is administered by Salvation Army: applications accepted January-April
 
Salvation Army
513.863.1445
235 Ludlow Street; Hamilton, OH 45011
Website: http://www.salvationarmyusa.org/
Assists with rent and utilities
Accepts phone calls for assistance only Monday-Thursday from 9:30 a.m. - 11:30 a.m. Afternoon hours are for scheduled appointments. No walk-in services
 
Salvation Army
513.423.9452
1735 S. University Blvd.; Middletown 45044
Website: http://www.salvationarmyusa.org/
Hours: Mon-Fri: 9:00am-11am & 1:00-3:00pm; Assistance with rent and utilities
 
Salvation Army of Batavia
513.732.6328
87 North Market Street; Batavia, OH 45103
 Website: http://www.salvos.com/Batavia/default.htm
 Offers monetary assistance with rent evictions and utility disconnects
 
St. Vincent DePaul Emergency Services
513.562.8841
1125 Bank Street; Cincinnati, OH 45214
Website: http://www.svdpcincinnati.org/
Assistance with rent and occasionally with mortgages if funds are available Assistance with gas and electric bills; water bills
 Must complete Request Form either in person Monday-Friday from 8am-430pm, online, or over the phone by calling 513.421.0602

Please bring the following documentation with you: Picture ID, Social Security Cards or a printout for the entire household; Proof of income of entire household; Proof of address, for example a utility bill, lease or piece of dated mail.
 
Family Resource Center
513.523.5859
5445 College Corner Pike; Oxford, OH 45056
 Website: http://www.frcoxford.org/
 Assists with rent and utilities
 
Catholic Charities of SW Ohio
513.241.7745
100 E 8th Street, Cincinnati, OH 45202
 Website: http://www.catholiccharitiesswo.org/index.html
 Emergency assistance: rent programs
 
Clermont County Community Services, Inc
513.732.2277
3003 Hospital Drive; Batavia, Ohio 45103
Website: http://www.cccsi.org/about.html
Emergency HEAP, weatherization, and can direct people to rent assistance programs
 
Milford Miami Ministry
513.248.1114
844 State Route 131; Milford, OH 45150
Website: http://www.milfordmiamiministries.org/
Hours: Tuesdays and Thursdays 9am-12pm, Wednesdays 630pm-8pm
 Assistance provided to residents in the Milford School District or Miami Township only Assists with rent and utilities
Required to apply: picture ID, piece of mail to verify address, current utility bill, name and address of your landlord (if applying for rent assistance), and a disconnect notice from your utility provider or a leave premises notice from your landlord
 
Williamsburg Emergency Mission
513.724.6305
330 Gay Street; Williamsburg, OH 45176
Website: http://www.williamsburgumc.com/
 Must be a resident of Willamsburg and show proof of residency Provides assistance with rent and utilities
 
Homeless Prevention & Rapid Re-housing Program
513.934.5250
Website: http://portal.hud.gov/hudportal/HUD?src=/recovery/programs/homelessness
Intensive case management and financial assistance provided to cover security deposits, rent and utility assistance, past due utility or rental payments
Program is designed to assist homeless individuals or families or to prevent individuals or families who are at imminent risk of homelessness
 
O.A.S.I.S.                                                                                    859.655.9800
 1016 Greenup Avenue; Covington, KY 41011
Provides food and rent assistance to low income residents of Northern Kentucky
 Hours: Tuesday-Thursday 11am-4pm
 Fiscal Court
859.292.3838
1098 Monmouth Street; Newport, KY
Website: http://www.campbellcountyky.org/home/services/assistance-services.html
 Provides assistance with rent and utilities; Hours: Monday-Friday 830am-1130am Need to be Campbell County resident for at least 6 months verified through current ID
 
Community Action Commission: Kenton County
859.291.8607
315 East 15th Street; Covington, KY 41011
Website:  http://www.nkcac.org
Bring your bill, letter by landlord, and verification of your income. No apt. needed, but call ahead to make sure someone will be in the office. Will help for up to $75
Utility and winter heating assistance; Limited funds for rent assistance
 
Community Action Commission: Boone County
859. 586.9250
7938 Tanners Gate; Florence, KY 41042
Website:  http://www.nkcac.org
Bring your bill, letter by landlord, and verification of your income. No apt. needed, but call ahead to make sure someone will be in the office. Will help for up to $75
Utility and winter heating assistance; Limited funds for rent assistance
 
Holy Trinity SVDP
513.732.2024
140 North Sixth Street; Batavia, OH 45103
Website: http://www.clermontcountycatholics.org/
Intake appointment needed; Documentation required: Picture ID, proof of residence
Hours of operation: 2nd, 3rd, 4th Wednesday of the month from 7pm-830pm
 Assists residents within parish boundaries with food, utility disconnects, rent eviction notices, and vouchers for clothing & furniture
 

This morning I had the opportunity to attend the Greater Cincinnati-Northern Kentucky Apartment Association Multi-Family Finance Forum. 
My three major takeaways from the event are these:
1.  The fed drop in interest rate has spiked demand for new, lower interest rate debt to nearly three times the average.  Owners are considering eating the prepayment penalties they face to lock in that debt. 
2.  Lenders - Fannie Mae, Freddie Mac & Life Companies - are cautious, but still have a healthy appetite.  They are stress testing the loans for exit assumptions to make sure the loans can be refinanced at the end of the term, and are rejecting some that do not meet that criteria. 
3.  Demand from lenders remains strong, workforce housing is still a priority, as is green renovations, however the latter is no longer emphasized as much. Stabilized assets are king, however value-add is still ever en vogue. 

Over the past few week or so we’ve seen a barrage of market updates and statistics come out.  This morning CoStar published a nice little video summing up the activity in the multi-family market here in Cincinnati.
 
CLICK HERE – CoStar Market Update Video
 
Additionally, one of my colleagues passed this note onto our team:
 
I recently met with one of the top fund managers in the country (just closed on an $800M equity fund) who’s CEO met with the head of Freddie Mac this week.  Freddie Mac’s guidance for 2020:  “I would not plan on selling anything during the 4th quarter this year”.  Translation, the back half of this year will be worse than last year from an agency financing perspective.  The Agencies are lending at a bullish pace, very competitive and getting out dollars as fast as they can.  Affordable deals will be less impacted by volume cap but I suggest advising clients on the fence to market/sell sooner rather than later. 
 
If there’s anything you’re thinking about selling, or would like our team to provide a complimentary, confidential, broker opinion of value, please let me know – all we need to get started is a current rent roll and a trailing 12-Month income and expense statement.  
 

I wanted to share a quick follow up to my last legislative update, shared to me by my friend Michael G Reed at Porter Wright.
I’ll summarize the case and the ruling to the best of my ability below.  If you would like a copy of the ruling, please let me know and I’ll be happy to provide you a copy.
 
The Ohio Supreme Court has ruled that entity transfers can be used as evidence of the value of the property being conveyed by the entity transfer.
Here’s what transpired. A subject property, Palmer House, was valued for tax year 2015 at $16,000,000.  The Columbus City School board pulled a newly recorded mortgage of $25,536,000 and extrapolated a value of $34,000,000 by applying a loan-to-value ratio. 
The Franklin County Board of Revision rejected the School Board’s appeal, as did the property owner, citing that the sale of an entity was not equivalent to the sale of the real estate.
The School Board then presented evidence:

1. The conveyance of the real estate, as represented by a deed executed conveying the real property underlying from one LLC to a new LLC.
2. A loan secured by a mortgage on the real estate as represented by a notarized mortgage instrument recorded on the subject property.
3. The sale of the apartment complex – including both real estate and appurtenant personal property – as represented by a Purchase and Sales Agreement, with language granting the buyer the right to perform the transaction as a “Drop Down LLC sale” as well as the final settlement statement.
4. The real estate appraisals, the School Board had obtained a copy of the appraisal prepared in connection with the mortgage loan and offered the testimony of the appraiser.

Given the overwhelming evidence and of the entity transfer being intentionally used to shield the value from the School Board the courts sided with the School Board and agreed that the revised Tax Valuation should be adjusted the end sales price, and as a result the property taxes increased to levels that the buyers likely did not anticipate to rise to, if at all.
 
So, what does this mean for you?  As a buyer, it levels the playing field a bit.  Instead of winning the bid because you are the most aggressive on how you underwrite property taxes, now, perhaps, buyers can be selected on the merits of their offer and their ability to manage the asset they’re targeting to buy.
As a seller, it puts a dent in the value that can be achieved at sale because most buyers will take this ruling into account and underwrite property taxes to 100% of the purchase price – per the results above.
The good news is, though, that the Federal Reserve is likely to keep interest rates at historic lows and may even lower them still further if they see a need to do so.
If, as a seller, you would like to take advantage of these still historically high prices being paid and would like us to value an asset for you, we’d be happy to do so.
 

Check out the recent article I wrote about Cap Rates and why they don't matter: https://www.bizjournals.com/cincinnati/news/2020/01/02/three-reasons-the-cap-rate-doesnt-matter.html?iana=cco_author_news 

Follow this link to read the article" https://www.bizjournals.com/Cincinnati/news/2020/02/20/tifs-tax-abatements-and-cras-what-are-they-and-what-are-they-good-for.html?iana=cco_landing_news 

Several Evenings ago I had the occasion to attend the GCNKAA annual market update and forecast.  Below are my takeaways and summary of the presentation from that evening. 

National
Labor Shortage hurts Construction Cost
GDP growth to grow 2 to 3 %
Interest rates are low, government doesn’t want to raise rates b/c all the debt they have
10 yr. is forecasted to stay around 2%
Fannie/Freddie- Lended 140B in MF in 2019
Agencies are slated to lend 100B in 2020
Lenders are notice the workforce housing shortage and want to lend to Midwest.
 
USA MF Industry
Developers have issues with building Workforce Housing, labor shortage and an increase in construction cost.
Vacancy 4.1%
YoY Rent Growth 2.6%
 
Demographics contribute to the Multifamily Demand
National Demand for MF- 34M Renters have grown to 43M Renter Households the last 10 years
SFH buying went down 68-65%
Delayed marriages have had an impact on rentership
Student Debt 1.5 Trillion and continues to rise
Positive Absorption nationally
Lifestyle choices-Nimble
 
Challenges for Owners
Rent Growth in Urban Core
Workforce Housing- Rent growth is growing faster than wage growth
 
Local Cincy Market
Pop growing .5%/year
HH income- On pace with National average
Unemployment-Below National Ave, we are at full employment, labor strained.
Top 15th place to make a movie -75M into the local economy

​Occupancy
Cincinnati Occupancy 2019-95.1%
20 year Ave Occupancy in Cincinnati- 92.2%
NKY 96.8% Occupancy- Just wait until Amazon, the market needs more product
Rents- 5.9% Ave Rent Growth in Cincinnati- Workforce Housing value add deals are a major contributor
20 year ave rent growth 2.2%
Strong overall market performance
Rent Growth is out pacing wage growth
Positive Absorption
We are in expansion mode still
Sales: USA 184B Apartments Traded in 2019
Cincy Sales- 556M Traded- 69 transactions over 1M in 2019
Ave Sales Vol last 10 years 325M (last 2 years 525M,526M)
Price Per Unit: Ave 2013,2014,2015 62K/Unit 
Ave 2017,2018,2019 72K/Unit
66% Transactions in 2019 were from out of town investors- this is happening throughout the Midwest
 
Development
Pipeline-Next 3 years 7,200 units delivering
We are not seeing overbuilding

Enjoying the multifamily surge in Cincinnati
January 27, 2020 | Dan Rafter
​The multifamily market, as is it in most Midwest cities, is thriving in Cincinnati. To learn why, Midwest Real Estate News spoke with Stash Geleszinksi, managing director with Capstone Apartment Partners in Cincinnati.
If you want to learn even more about Geleszinksi’s view on the multifamily market, be sure to attend REjournals’ 4th annual Cincinnati Commercial Real Estate Summit. Geleszinksi is one of the market experts who will speak at this big event.
How strong is the multifamily market in Cincinnati today?
Stash Geleszinksi: There is demand for assets in Cincinnati. But the demand is for assets of size. The demand does not match our supply right now. We have lots of investors who want to build, say, a 140-unit multifamily portfolio. To do that in Cincinnati, they’d have to invest in three assets. There are a lot of investors who really want that single 140-unit asset.
People will come to me and say they want to buy 1,000 apartment units in Cincinnati. I’ll say, ‘Great. Good luck.’ It’s just not there right now.
How challenging is that lack of supply?
Geleszinksi: That’s the main reason why we don’t have the volume of transactions that we could have. We have a lot of longer-term owners. They keep their properties for a long time. What is interesting, though, is that when we do get newer groups or groups coming in from other cities, they are demonstrating that if you execute a good value-add you can push the apartment rents in Cincinnati. The old-school thinking was that you could never get $1-a-square-foot rent in downtown Cincinnati. Now we are seeing rents at the new 1010 On The Rhine in downtown approaching $3 a square foot.
Is that old-school mentality, then, starting to change in Cincinnati?
Geleszinksi: It is. As these newer groups have accumulated a mass of units, we are seeing changes. They are selling out of their older workforce housing assets and are trying to trade up into newer construction. They might be building something new or renovating something someone else has recently built. The best way to put it is that there is a flight to quality going on. That is leaving opportunities for other investors. Granted, they might have to purchase a building that has a lot of deferred maintenance. But the opportunities are there for the next person to come in, shine it up and make an opportunity out of it.
How strong is the multifamily market in downtown Cincinnati?
Geleszinksi: That is the most active submarket in the city. There are several projects that are either recently completed in downtown in the last couple of years or are under construction now. You have the new Kroger grocery store and 1010 On The Rhine above it. You have 4th & Race, the new luxury apartment tower by Flaherty & Collins. North American Properties has an apartment project under construction and completed two previously. Those are just the large projects. Between downtown and the Over-the-Rhine neighborhood, there has been a concerted effort by the city and developers here. They are injecting so much capital into the city’s core. They are revitalizing it and bringing it back to life.
Are those efforts making a big difference?
Geleszinksi: They really are. The core was rotten before. There was no investment here for far too many years. Now downtown Cincinnati is the cool, hip and trendy place to be. It’s partly a demographic shift, of course. People want to live in more walkable areas. They want to have amenities close enough so that they don’t need to get into cars all the time. They don’t want to be as dependent on cars. We are seeing both young people and older people moving into downtown Cincinnati. My wife works on a board here in the city. I ran into the woman who chaired that board walking in downtown Cincinnati recently. She was on the tail end of her career or maybe even had retired already. She said she had just moved to downtown and that she loved it. She was out walking with a friend and getting her exercise for the day. That is a tremendous thing. We are seeing both ends of the spectrum right now in downtown Cincinnati.
The apartment development there reflects that. We are seeing some three-bedroom units with two or three baths. There aren’t many of them, but there are some. Some of the rents are getting higher, too. We are seeing some of the higher-end units renting for $5,000 a month. A kid fresh out of college can’t afford that. That is for the empty nester, the retired executive or people at the tail end of their careers.
What amenities are you seeing in the newer apartment units coming to Cincinnati?
Geleszinksi: At 1010 On The Rhine, there is that Kroger on the first floor. There hasn’t been any new grocery store in downtown before this for 50 years. That is a nice change for the downtown. You’re also seeing the usual amenities, the fitness centers, laundry in the units, granite countertops, stainless-steel appliances.
What’s interesting is that North American Properties is completing an apartment project that has no parking by design. They are looking for those renters who are using ride shares or the Bird scooters we have in downtown. The streets in downtown Cincinnati are as crowded with those scooters as they are with cars. There are also plenty of surface lots around, so they are relying on those to fill the gap. Of course, we are not New York City. You do need a car sometimes even if you are in downtown Cincinnati.
I know you can’t predict the future, but what kind of year do you think 2020 will be Cincinnati multifamily?
Geleszinksi: I think it will be another strong one. The demand is there for existing assets with the value-add components. You can come in and renovate those units and get that rent pop. We are seeing that in Cincinnati. But we are also seeing the new developments. A lot of these will replace dead or dying former neighborhood centers. Shopping centers that are defunct are being redeveloped. There is a movement to look at the old big boxes not for the boxes but for the sites themselves. Can we put a mixed-use property there? We have our eyes on a few of those throughout the state and in the Cincinnati market in particular, too.

https://www.rejournals.com/enjoying-the-multifamily-surge-in-cincinnati-20200127 

​As a follow up to my post yesterday about the new security deposit legislation that the Cincinnati City Council enacted yesterday, I wanted to share some updated information with you on it care of Rob Calabrese of Prominent Title.
 
First, attached is a copy of the actual bill.
 
In summary if you own or control 25 or more units you have offer:
 

1. Rental security insurance that satisfies the following criteria:

 

1. The insurance provider is an approved carrier licensed by, and in good standing with, the Ohio Department of Insurance;

 

1. The coverage is effective upon the payment of the first premium and remains effective for the entire lease term; and

 

1. The coverage provided per claim is no less than the amount the landlord requires for security deposits.

 

1. Payment of the security deposit over a series of no less than six equal monthly installment payments, which installments shall be due on the same day as the monthly rent payment and which may be paid together with the monthly rent payment in a single transaction, absent separate agreement by the landlord and tenant, or

 

1. Payment of a reduced security deposit, which amount shall be no more than fifty percent of the monthly rental rate charged for the subject rental unit.

 
 
For those of you who are inclined to find a work around, its likely unwise to try to argue that since each asset, likely, is held in its own single purpose LLC, assuming each is less than 25 units, that the new legislation can be avoided.  In the end you’re probably going to be costing yourself more time money and energy that it is worth.  You should just abide by the new legislation.  
 
Instead, the best thing to do is to select a rental insurance provider of your choice.  Work with them to verify that they’ll be able to provide the coverage that the law dictates while giving you, the property owner, the surety you require that security deposit may have provided, at least in part.
 
If you would like to speak with an insurance agent familiar with the new legislation and can help provide solutions for you and your partners please reach out to my friend Jay Mueller at Camargo Insurance, 513.561.5311 or Jay@camargoinsurance.com.
 
I hope you’ve found these updates helpful.
 
Please let me know if there are any properties in your portfolio, be they in Cincinnati or otherwise, which we could value for your, or if you’re open to receiving offers.
 
Thank you,