WASHINGTON – Nov. 20, 2015
In Tuesday's Federal Register, the U.S. Department of Housing and Urban Development (HUD) will publish a notice designating difficult development areas (DDAs) and qualified census tracts (QCTs) for 2016 for purposes of the low-income housing tax credit (LIHTC). LIHTC developments in DDAs or QCTs are eligible for as much as 30 percent more LIHTC subsidy. For the first time in 2016, DDAs inside metropolitan statistical areas (MSA) will be divided by ZIP codes, rather than counties. As a result, the newly formed small area difficult development areas (SADDAs) will be substantially smaller and more numerous.
Compared to previous designations, this notice:
Learn more about comprehensive DDA changes on the Notes from Novogradac blog.
SACRAMENTO, Calif. – Nov. 19, 2015
California State Treasurer John Chiang yesterday invited discussion on the over-allocation of California state low-income housing tax credits (LIHTCs). If affordable rental housing developments qualify for more state credits than are available for a particular year, the California Tax Credit Allocation Committee (TCAC) draws state credits from the next year’s allocation round. Treasurer Chiang said the growing amount of state LIHTCs TCAC forward commits is becoming unsustainable. TCAC forward committed $10 million of 2015 state LIHTCs last year and $30 million of 2016 state LIHTCs this year. Forums to discuss improving allocation strategies will be held Dec. 3 in Los Angeles and Dec. 8 in Oakland.
WASHINGTON – Nov. 2, 2015
President Barack Obama today signed the Bipartisan Budget Act of 2015. The legislation suspends the debt limit through March 2017 and lifts spending limits through September 2017. The deal raises sequestration caps and increases discretionary spending by about $50 billion in fiscal year (FY) 2016 and $30 billion in FY 2017, split evenly between defense and domestic spending. Congress passed the legislation last week with votes of 64-35 in the Senate and 266-167 in the House.
Read about the bill’s implications for tax credit partnerships on the Notes from Novogradac blog.
WASHINGTON – Oct. 21, 2015
The Internal Revenue Service (IRS) today announced in Revenue Procedure 2015-53 the inflation-adjusted low-income housing tax credit (LIHTC) and private activity bond caps for 2016. For calendar year 2016, the amount used under §42(h)(3)(C)(ii) to calculate the state LIHTC ceiling is the greater of $2.35 multiplied by the state population or $2,690,000. Those amounts are up from $2.30 and $2,680,000 in 2015. The amount used under §146(d) to calculate the state ceiling for the volume cap for private activity bonds in 2016 is the greater of $100 multiplied by the state population—the same as 2015—or $302,875,000, up from $301,515,000.
WASHINGTON – Oct. 12, 2015
The Internal Revenue Service (IRS) today published the amounts of unused low-income housing tax credit (LIHTC) carryovers for calendar year 2015 that were allocated to 31 qualified states and Puerto Rico. Revenue Procedure 2015-49 details how $2.59 million of unused LIHTCs were divided among the recipients. California received the largest allocation, $388,272, in LIHTCs.
SACRAMENTO, Calif. – Oct. 9, 2015
The California Tax Credit Allocation Committee (TCAC) today issued its final proposed revisions to regulations for its low-income housing tax credit (LIHTC) program. The original proposals were released July 16, followed by four public hearings and time for written comments. Today’s release includes responses and revisions related to that feedback. The committee will consider the revised proposals for adoption Oct. 21.
WASHINGTON – Oct. 2, 2015
The U.S. Department of Housing and Urban Development (HUD) today announced the mortgage insurance premiums (MIPs) for Federal Housing Administration (FHA) multifamily, health care facilities and hospital mortgage insurance programs that have commitments to be issued or reissued in fiscal year (FY) 2016. The FY 2016 MIPs are the same as FY 2015 MIPs, which were published in the Federal Register March 31, 2014. The first-year upfront MIP fee for multifamily, health care facilities and hospital programs is 50 basis points. The FY 2016 MIPs became effective Thursday.
WASHINGTON – Sept. 30, 2015
Congress today passed a stopgap spending bill that will keep the federal government funded through Dec. 11. The Senate passed the bill this morning with a vote of 78-20 and the House later approved it 277-151. President Barack Obama is expected to sign the bill today. To avoid a government shutdown, a stopgap spending bill needs to be passed before the start of the 2016 fiscal year (FY) Thursday.
SACRAMENTO – Sept. 14, 2015
The California State Legislature last week passed two bills to make the state low-income housing tax credit (LIHTC) more effective. A.B. 35, a bill that would have increased the $70 million annual state LIHTC allocation cap by $300 million beginning in calendar year 2016, was amended so that it would only increase the allocation amount by $100 million for calendar years 2016 through 2021. S.B. 377 would allow a developer who is awarded state LIHTCs to sell the credits to an investor without admitting the investor to the ownership partnership, a practice that is commonly referred to as “certificating” the credit. It would also eliminate any sunset provision for bifurcation and would extend these provisions indefinitely. The bills now go to the governor for consideration.
WASHINGTON – Sept. 3, 2015
The U.S. Department of Housing and Urban Development (HUD) today released the fiscal year 2016 (FY 2016) proposed fair market rents (FMRs) to determine payment standards for the Housing Choice Voucher (HCV) program, initial renewal rents for some expiring project-based Section 8 contracts and initial rents for housing assistance payment contracts in the Moderate Rehabilitation Single Room Occupancy (SRO) program. FMRs also serve as rent ceilings in the HOME Investments Partnerships program. A preamble addressed the upcoming publication of FMRs in the Federal Register, as well as the advance notice of proposed rulemaking on small area FMRs that was published June 2. HUD also posted the proposed FY 2016 small-area FMRs for five demonstration participants and the proposed FY 2016 exception FMRs for manufactured home spaces in the HCV program.
Tune in to the Sept. 8 episode of the Tax Credit Tuesday podcast to learn more.