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IRS PROVIDES LIHTC RELIEF FOR DISASTER VICTIMS IN WISCONSIN

WASHINGTON, D.C.- July 2, 2008

The Internal Revenue Service today announced in Notice 2008-61 that it will suspend certain requirements under Section 42 of the Internal Revenue Code for certain low-income housing tax credit (LIHTC) properties in the United States as a result of the devastation caused by severe storms, tornadoes and flooding in Wisconsin beginning on June 5, 2008.

IRS TO WAIVE SOME LIHTC RULES FOR VICTIMS OF FLOODING IN INDIANA, IOWA

WASHINGTON, D.C.- June 19, 2008

The Internal Revenue Service (IRS) today announced that it will temporarily suspend certain limitations for qualified low-income housing tax credit (LIHTC) projects located anywhere in the states of Indiana and Iowa in an effort to expand the availability of housing for disaster victims and their families. Owners of LIHTC properties in those states will be allowed to provide housing to victims of recent storms and flooding under guidance that will be set forth in formal notices, which the IRS says will be issued shortly. The IRS says it will continue to monitor closely the housing situation in other states affected by the recent flooding and is prepared to act quickly as circumstances warrant.

SENATE TO CONSIDER LIHTC PROVISIONS IN HOUSING STIMULUS BILL

WASHINGTON, D.C.- June 19, 2008

Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Chuck Grassley, R-Iowa, yesterday announced that they would offer tax measures as part of a larger amendment to H.R. 3221 in cooperation with the Senate Banking Committee. The Baucus-Grassley proposal represents an agreement between House and Senate negotiators on the tax provisions that will be included in a final housing stimulus package. Reports indicate that negotiations continue on other, non-tax portions of the bill, which lawmakers are working to pass before July 4. The Baucus-Grassley package includes provisions to temporarily increase the cap for federal low-income housing tax credits (LIHTCs) and simplify the technical rules relating to the LIHTC and tax-exempt housing bonds. Click here for more information about the Baucus-Grassley tax provisions, or visit the Legislation page to review related legislation.

Novogradac & Company LLP will continue to follow the progress of the housing stimulus package and provide updates online at www.taxcredithousing.com and in the weekly Tax Credit Tuesday podcast.

NEW DIRECTOR NAMED FOR SAN FRANCISCO HOUSING AUTHORITY

SAN FRANCISCO, Calif.- June 13, 2008

San Francisco Mayor Gavin Newsom yesterday announced the appointment of Henry A. Alvarez III as the new executive director of the San Francisco Housing Authority (SFHA). Alvarez, who was profiled in the June 2008 issue of the Journal of Tax Credit Housing, is a seasoned housing professional with 20 years of management and leadership experience. For the past four years, Alvarez served as the president and chief executive officer of the San Antonio Housing Authority. Prior to his time in San Antonio, Alvarez served in several roles at housing agencies in Oregon and San Diego. He is scheduled to begin his new post at SFHA on July 14.

HUD PUBLISHES PROPOSED 2009 FAIR MARKET RENTS

WASHINGTON, D.C.- June 12, 2008

The U.S. Department of Housing and Urban Development (HUD) today published proposed fair market rents (FMRs) for fiscal year 2009. FMRs are used to determine payment standard amounts for the Housing Choice Voucher program, project-based Section 8 contracts and housing assistance payments (HAP) contracts in the moderate rehabilitation Single Room Occupancy (SRO) program. HUD will accept public comments on the proposed FMRs through August 1, 2008.

Analysis of the proposed 2009 FMRs will be published in the July issue of Novogradac's Property Compliance Report. To learn more about fair market rents and other compliance topics, join us for the LIHTC Property Compliance Workshop on September 10-11 in San Francisco.

SENATE CONFIRMS PRESTON AS HUD SECRETARY

WASHINGTON, D.C.- June 5, 2008

The Senate yesterday voted unanimously to confirm Steven Preston to serve as the Secretary of the U.S. Department of Housing and Urban Development. Click here to read President George W. Bush's statement about Preston's confirmation.

To learn more about Preston, tune in to the Novogradac Report on Tax Credits podcast. In the June 10 broadcast, Michael J. Novogradac, CPA, will discuss highlights of the Senate Banking Committee hearing about Preston nomination.

IRS RULING PROVIDES GUIDANCE FOR USING ENERGY TAX CREDITS IN BOND-FINANCED HOUSING PROJECTS

WASHINGTON, D.C.- May 21, 2008

A recent private letter ruling (PLR) published by the Internal Revenue Service (IRS) provides guidance to affordable housing developers regarding how to structure bond-financed projects to maximize renewable energy investment tax credits available under Section 48 of the Internal Revenue Code. In PLR 200820011, the IRS ruled that no reduction in investment credit basis was required for solar equipment placed in a tax-exempt bond-financed affordable housing project where: bond loan documentation prohibited the use of bond loan proceeds to finance the solar equipment; the bond proceeds were not actually used to finance the solar equipment; and the solar equipment did not serve as collateral for the bond loan.

Learn more about this ruling next week in the Novogradac Report on Tax Credits, a weekly podcast presented on Tax Credit Tuesdays.

HOUSE PASSES HOUSING STIMULUS LEGISLATION

WASHINGTON, D.C.- May 8, 2008

The House today passed H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act. The House bill would create a first-time home buyer tax credit, modernize the Federal Housing Administration, provide comprehensive reform for housing government sponsored enterprises Fannie Mae and Freddie Mac and make significant enhancements to the low-income housing tax credit (LIHTC) and tax-exempt housing bond programs to increase their effectiveness. The Senate approved a different housing stimulus package last month, and the two bills will likely now be reconciled in conference.

Learn what these developments may mean for affordable housing investors, developers and owners at Novogradac & Company LLP's Credit and Bond Financing Conference on May 15-16 in New Orleans, La.

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