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HUD APPROVES MORE THAN $1 BILLION IN TCAP FUNDS

WASHINGTON, D.C. - June 30, 2009

U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan today announced that HUD is approving plans submitted by state housing finance agencies for $1,035,322,485 to jump start affordable housing programs in states that are currently stalled due to the economic recession. Funded through American Recovery and Reinvestment Act of 2009, HUD's Tax Credit Assistance Program (TCAP) will allow 26 state housing finance agencies to resume funding of affordable rental housing projects.

The 2009 edition of the Low Income Housing Tax Credit Handbook includes information on the LIHTC provisions of the American Recovery and Reinvestment Act of 2009! Click here to learn more.

MEASURE WOULD ALLOW EXCHANGE OF GO ZONE, DISASTER LIHTCS

WASHINGTON, D.C. - June 24, 2009

Sens. Evan Bayh, D-Ind., and Richard Shelby, R-Ala., yesterday proposed legislation that would allow states that were allocated additional low-income housing tax credits (LIHTCs) in 2005 and 2008 for the rebuilding of affordable housing in the Gulf Opportunity (GO) Zone and Midwestern Disaster Areas to exchange those credits under the Section 1602 program created by the Recovery Act. As enacted, the Recovery Act did not specify that the GO Zone and Midwestern Disaster tax credits would be eligible for the exchange program; Sen. Bayh says that S. 1326, the Disaster State Housing Recovery Act clarifies congressional intent by allowing states to exchange GO Zone and Disaster tax credits under Section 1602. An identical bill was introduced in the House by Reps. Artur Davis, D-Ala., and Charles Boustany, R-La. A copy of the legislation will be posted online at www.taxcredithousing.com as soon as it becomes available.

TREASURY ANNOUNCES $268 MILLION MORE IN RECOVERY ACT LIHTC EXCHANGE FUNDS

WASHINGTON, D.C. - June 22, 2009

The Treasury Department today announced $268 million in funds allocated through the low-income housing tax credit (LIHTC) exchange program created by the American Recovery and Reinvestment Act (Recovery Act) to spur the development of affordable housing units in Indiana, Missouri, Tennessee and Washington D.C. The funds announced today include $164 million in Indiana; $17 million in Missouri; $53 million in Tennessee; and $ 33.7 million in the District of Columbia. This is the third round in a series of awards based on a rolling application process; the Treasury Department says it anticipates making similar announcements in the coming weeks.

NOVOGRADAC &. CO'S MANAGING PARTNER TO SPEAK AT NCSHA FORUM

SAN FRANCISCO, Calif. - June 11, 2009

Michael J. Novogradac, managing partner of Novogradac & Company LLP, will be one of 14 top low-income housing tax credit (LIHTC) practitioners to speak at the National Council of State Housing Agencies' (NCSHA) forum on housing credit investment. The forum, part of a three-in-one webcast, is one of the features of NCSHA's Housing Credit Conference & Marketplace, taking place in Los Angeles June 15-18. Click here for more information on the webcast and how you can participate.

TREASURY ANNOUNCES $135 MILLION MORE IN RECOVERY ACT LIHTC EXCHANGE FUNDS

WASHINGTON, D.C. - June 4, 2009

The Treasury Department today announced nearly $135 million in American Recovery and Reinvestment Act (Recovery Act) funds will be given to five states that have elected to exchange for direct cash assistance a portion of their unused allocation of low-income housing tax credits (LIHTCs) intended to spur the development of affordable housing units. The five states and the amounts they will receive are: $72 million in Iowa; $4 million in Maine; $10 million in New Hampshire; $36 million in Rhode Island; and $11 million in Washington. These funds are the second round in a series of awards based on a rolling application process; the Treasury Department says it anticipates making similar announcements in the coming weeks.

FRANK REQUESTS CHANGES TO LIHTC EXCHANGE PROGRAM RULES

WASHINGTON, D.C. - June 2, 2009

Financial Services Committee Chairman Barney Frank, D-Mass., yesterday sent a letter to Treasury Secretary Timothy Geithner requesting modifications to Treasury guidance regarding utilization of the low-income housing tax credit (LIHTC) exchange program under Section 1602 of the American Recovery and Reinvestment Act of 2009. In the letter, Frank asks that the guidance be changed to extend the disbursement deadline, allow state agencies to award the funding as loans, and simplify the recapture provision. Click here to download a copy of the letter.

IRS INVITES COMMENTS ON FORM 8611

WASHINGTON, D.C. - May 29, 2009

The Internal Revenue Service (IRS) today invited comments concerning Form 8611, Recapture of Low-Income Housing Credit. If a low-income housing tax credit (LIHTC) property is disposed of during or if it fails to meet certain requirements over a 15-year compliance period and a bond is not posted, the owner must recapture on Form 8611 part of the credits taken in prior years. There are no changes being made to the form at this time; the invitation to comment was issued as part of the Treasury Department’s continuing effort to reduce paperwork and respondent burden as required by the Paperwork Reduction Act of 1995. Written comments will be accepted until July 28, 2009.

HUD, TREASURY MAKE TCAP, EXCHANGE FUNDING ANNOUNCEMENTS

WASHINGTON, D.C. - May 22, 2009

The U.S. Department of the Treasury today announced more than $330 million in American Recovery and Reinvestment Act funding to spur the development of affordable housing units in Kansas, Michigan, Ohio, Wisconsin and Puerto Rico. The Department of Housing and Urban Development (HUD) also announced $83 million for housing development in Ohio. Treasury's announcement today includes the first round of recipients under the low-income housing tax credit exchange program: $115 million in Wisconsin; $99 million in Puerto Rico; $78 million in Michigan; $23 million in Kansas; and $21 million in Ohio. In addition, HUD announced the first award under the Tax Credit Assistance Program (TCAP), providing $83 million to kick-start stalled multifamily developments in Ohio. Submissions from the remaining states, Puerto Rico and the District of Columbia are due to HUD no later than June 3. This is the first of many similar announcements HUD anticipates making in the coming weeks. Click here for more information about today's announcement. Click here for more information about TCAP and the exchange program.

CALIFORNIA PUBLISHES APPLICATION FOR EXCHANGE PROGRAM

SACRAMENTO, Calif. - May 13, 2009

The California Tax Credit Allocation Committee today published an application for cash in lieu of tax credits. The program, created by the American Recovery and Reinvestment Act of 2009, allows those projects that have a 2007 or 2008 reservation of low-income housing tax credits (LIHTCs) that have been unable to secure an equity investor to receive an award equal to the stated equity in the original application up to 85 cents for every currently reserved federal tax credit dollar. In a memo that accompanied the application's release, TCAC says that uncertainty remains about the availability of funds to replace state tax credits. As such, the application published today is only for 2007 and 2008 9 percent LIHTC reservation holders who do not have state tax credits in the deal. Applications must be submitted by 4 p.m. on May 20, 2009. Click here for more information about TCAC's-and other LIHTC allocating agencies'-plans for the Recovery Act's LIHTC provisions.

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