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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

  • New Rental Research Report Demonstrates Growing Need for Affordable Housing

  • LIHTC Working Group Addresses Technical, Administrative Issues

  • HUD Sheds New Light on Housing Needs of People with Disabilities

  • Focus On: Fresno, California

  • Are You Ready to Travel Through the USDA and LIHTC Rent Labyrinth?

  • Massachusetts Property Has New Design, New Name, Same Mission

  • Health Center Will Provide Care for Thousands of Foster Children

  • Targeted Populations Guidance to Date Leaves Some Unanswered Questions

  • NMTC Loan Fund Benefits Small Not-For-Profits

  • NMTCs Help Vermont Dairy Tale Come True

  • NMTCs Make Solar Affordable to Low-Income Homeowners

  • Waves of NMTC Funding Shore Up Aquarium

  • NMTC Working Group Update: June 2011

  • Q&A: End of the Compliance Period

  • The Other Often Overlooked Review: Adaptive Reuse and Federal Section 106 Historic Process

  • Q&A: Some Considerations for Finding Investors in a Smaller HTC Deal

  • California College Lights the Way for Campus Solar Projects

  • The Current: A Few Things to Know About 1603 Grants in 2011

Home / Journal / 2011 / 06
June 2011, Volume II, Issue VI Published By Novogradac & Company LLP

Report Assesses Track Record of Low-Income Housing Tax Credit Financed Rental Properties

By Michael J. Novogradac, CPA

As discussions about the national deficit, federal spending and tax reform deepen and grow in number, budget hawks are dissecting all categories of government expense, including tax expenditures such as the low-income housing tax credit (LIHTC). Lawmakers may not be content to cut discretionary spending on the appropriations side alone and have begun proposing reductions to tax expenditures, which they describe as "spending in the tax code," as a way to increase federal revenue.

 

 

Allocatees Report Improvement in NMTC Market

By Jennifer Dockery, Assignment Editor, Novogradac & Company

When Congress reauthorized the New Markets Tax Credit (NMTC) program in late December, community development entities (CDEs) breathed a sigh of relief. Market activity had increased in 2010 and the CDEs expected a stronger 2011.

 


New Markets Tax Credits

History and the Hill: Annual Rutgers Study Shows Federal HTC Generated 145,000 Jobs and Benefited Lowest Income Areas

By John Leith-Tetrault, National Trust Community Investment Corporation

On June 1, the Historic Tax Credit Coalition and Rutgers University released their annual study on the economic impact of the federal historic tax credit (HTC). This year's update shows that the federal HTC continues to outpace other economic activities such as highway construction, manufacturing and service sector industries in its ability to generate jobs, labor income, taxes and gross domestic product.

 


Redevelopment of Mark-to-Market Properties

By Scott E. Fireison and Shel Schreiberg, Pepper Hamilton LLP

The U.S. Department of Housing and Urban Development's (HUD's) Mark-to-Market (M2M) restructuring program has matured fully under its administration by the Office of Affordable Housing Preservation (OAHP) and the passage of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRAA). M2M-restructured projects now represent a large portion of the national portfolio of Section 8 subsidized affordable housing.

 

Renewable Energy Tax Credits

Q&A: Foster Care Income

By Amanda Talbot, Novogradac & Company LLP

Question: A household has applied to live in a low-income housing tax credit (LIHTC) unit. There are three individuals that will be moving into the unit. The head of the household currently fosters a 16-year-old child and her 19-year-old brother who is a foster adult. The head of the household receives income from the local welfare agency for the care of these individuals. The 19-year-old foster adult is employed part time while attending school at the local university. The 16-year-old foster child has a savings account that earns interest. Which of these income sources should be included in the income calculation for this household?

Answer: The income received by the head of household for the care of the foster child and foster adult should not be included in the income calculation.

 


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News Briefs


Fannie Mae released two white papers that outline the
company's multifamily rental activities and the outlook
for affordable rental housing and the small multifamily
loan market.


In the wake of severe storms and tornadoes in April, the Alabama Housing Finance Authority (AHFA) issued procedures for low-income housing tax credit (LIHTC) property owners to participate in temporary emergency housing relief.


The U.S. Department of Housing and Urban Development (HUD) requested public comments on a proposed assessment of Native American, Alaska Native and Native Hawaiian housing needs.


The California Senate passed a bill that would require a seven-year sunset provision and specific objectives to be included in any bill enacting a new tax credit in 2012.


The Community Development Financial Institutions (CDFI) Fund announced that the new markets tax credit (NMTC) program was selected as one of 25 programs that will advance to the final stages of competition for the Innovations in American Government Award.


The National Park Service (NPS) has published guidance on making historic buildings more sustainable in a manner that will preserve their historic character and meet the Secretary of the Interior's Standards for Rehabilitation.


The Oregon Department of Energy (ODOE) implemented temporary rules that classify the Section 1603 grant in lieu of renewable energy tax credits as a federal grant to be deducted from Oregon business energy tax credit (BETC) project costs.

  

The Novogradac  Journal of Tax Credits offers news, opinions and features about affordable housing, community development and renewable energy tax credit industries. The complete version is available by paid subscription only. Click here for more information on receiving a monthly print subscription.

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