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This information was published in the Novogradac Journal of Tax Credits. The complete version is available by paid subscription only. Click here for more information on subscribing.

Also in this Issue

  • Impact of a Minimum Yield Guaranty on LIHTC Investments

  • New LIHTC Funds Attract First-Time Investors

  • Industry Profile: Steven Johnson

  • Focus On: New Haven, Connecticut

  • HUD Updates Guidance for Multifamily Management Reviews

  • Q&A: Income Limits Applied to Rehabilitation Projects

  • Maine’s Island Communities Benefit from Bond-Funded Grants

  • New Jersey Tax Credits Revitalize, Rally Neighborhood

  • NMTCs Bring Glamour Back to Former Atlanta Macy’s

  • NMTC Working Group Update: Sept. 2010

  • Q&A: Tax Implications of an NMTC Exit Strategy

  • A Community of Choice: HTCs Preserve Mixed-Income Neighborhood

  • History and the Hill: August “Heat” on the Historic Tax Credit

  • Q&A: Historic Tax Credit and Deferred Developer Fees

  • Energy Efficiency Deduction Available to Owners and Designers

  • Community Solar Model Lights the Way

  • The Current: Monetizing the Advanced Energy Manufacturing Tax Credit

  • Q&A: SREC Underwriting Issues Related to Financing Solar Projects


September 2010, Volume I, Issue IX Published By Novogradac & Company LLP


The California Tax Credit Allocation Committee (TCAC) has recently experienced more frequent violations of the one-year rule related to placed-in-service applications, and in some cases has received placed-in-service applications many years after the last building’s placed-in-service date, according to an August memo. These projects have been operating for years without any TCAC compliance oversight. TCAC requires placed-in-service packages to be submitted within one year after the last building is placed in service, or else the committee assesses negative points within the competitive 9 percent scoring system and may contact the Internal Revenue Service (IRS). Overdue placed-in-service applications should be submitted to TCAC prior to December 31, 2010. TCAC will assess negative points to any submissions received after this grace period. More information is available at www.treasurer.ca.gov/ctcac.

The Georgia Department of Community Affairs’ (DCA’s) office of affordable housing compliance department began windshield physical inspections in July for all properties that have completed the initial 15-year compliance period. Windshield physical inspections certify that a building’s exterior and the site are in good physical condition. DCA has contracted inspectors to perform this tax credit requirement, and owners will receive no notification prior to inspection. E-mail questions or comments to compliance@dca.ga.gov. The windshield physical inspection forms are available at www.dca.state.ga.us.

Tricia Braden joined the Oklahoma Housing Finance Agency in July as an affordable housing tax credit compliance specialist. She will audit files and conduct on-site inspections to ensure properties stay compliant. Braden earned a bachelor’s degree in city and regional planning from California Polytechnic State and brings to OHFA more than 13 years of experience working with tax credit properties.




MassHousing’s Tenant Assistance Program (TAP) achieved record membership levels for both the number of developments and number of units enrolled in fiscal year (FY) 2010, which ended June 30. More than 400 sites comprising 50,339 units enrolled in TAP last fiscal year, an increase of eight sites and 1,728 units from FY 2009. TAP provides MassHousing’s rental communities access to resident programs, management trainings and conferences, and dispute resolution services. The program was initiated to treat tenants with addictions, but has since expanded to address mental illness, aging in place, domestic violence and reasonable accommodations. More information about TAP is available at www.masshousingrental.com.

Discrimination based on a person’s disability status continues to account for the largest-single category of complaints filed with the U.S. Department of Housing and Urban Development (HUD), according to a recent report on the state of fair housing. The report covers the last full fiscal year of HUD’s complaint investigations and fair housing activities. Of the 12,424 complaints HUD and its fair housing partners received, 44 percent alleged disability discrimination, 31 percent alleged racial discrimination and 20 percent alleged discrimination based on family status. HUD said the number and type of complaints are consistent with those received during the previous two years. This year’s report highlights enforcement efforts, including those leading to policy changes and equal housing opportunities for racial and ethnic minorities, persons with disabilities and others. To read the annual report, visit www.hud.gov.

Housing California is creating affordable housing development fact sheets in an effort to protect agencies’ low- and moderate-income housing funds. The fact sheets will make a case for the funds by showing how many affordable developments would not be possible without the funding, how the funds are leveraged to bring in other types of investment, and the quality and attractiveness of the architecture of developments that use the funds. Housing California is also providing owners copies of their development fact sheet that they can use to show off their property. Submit information about a development or view a sample property profile online at www.housingca.org.