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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.

HUD MAKES $1 BILLION IN GRANTS AVAILABLE THROUGH 35 PROGRAMS

WASHINGTON, D.C.- May 8, 2008

The U.S. Department of Housing and Urban Development (HUD) yesterday published its fiscal year 2008 "SuperNOFA," an annual funding notice that makes available more than $1 billion in grants through 35 programs. HUD says it will offer an additional $1.5 billion in homeless grants later in the year through a new electronic application process. To make funding opportunities available to the public as soon as possible, HUD posted its SuperNOFA electronically through www.grants.gov in advance of the Federal Register publication, which is scheduled for May 12, 2008.

CALIFORNIA HOUSING FINANCE AGENCY RELEASES ANNUAL REPORT

SACRAMENTO, Calif.- May 1, 2008

There are more than 232,000 LIHTC units in California, according to the California Tax Credit Allocation Committee's (TCAC's) 2007 Annual Report on the Allocation of Federal and State Low Income Housing Tax Credits in California. In 2007, TCAC awarded nearly $75.9 million in competitive 9 percent federal LIHTCs to 70 proposed housing projects. In addition, $71 million in state tax credits were awarded to 19 competitive 9 percent projects, and $23.4 million state LIHTCs were allocated to nine projects receiving 4 percent LIHTCs with tax-exempt bonds. TCAC expects that 4,424 affordable housing units will be built using 9 percent tax credits awarded in 2007, bringing the total aggregate number of affordable units awarded credit in the competitive, 9 percent program in California to 104,901. Including tax-exempt bond financed projects, TCAC has assisted 232,550 total affordable units with LIHTCs since the program's inception in 1987.

HUD ANNOUNCES AVAILABILITY OF RURAL HOUSING AND ECONOMIC DEVELOPMENT PROGRAM FUNDS

WASHINGTON, D.C.- April 28, 2008

The U.S. Department of Housing and Urban Development (HUD) in today's Federal Register published its notice of funding availability (NOFA) for the fiscal year (FY) 2008 Rural Housing and Economic Development Program. Because HUD is required by statute to competitively award RHED assistance by September 1, 2008, HUD decided to publish this NOFA separately and in advance of its FY 2008 Notice of Funding Availability for HUD's Discretionary Programs (SuperNOFA) in an effort to provide potential applicants additional time to prepare and submit their applications. The deadline for applications is May 30, 2008; applications submitted through http://www.grants.gov must be received and validated by Grants.gov no later than 11:59:59 (EDT) on May 30, 2008. HUD warns in today’s NOFA that the validation process may take up to 72 hours. Click here for more information.

BUSH TO NOMINATE SBA CHIEF STEVE PRESTON TO HEAD HUD

WASHINGTON, D.C.- April 18, 2008

President George W. Bush today announced his intention to nominate Steve Preston to serve as the next Secretary of Housing and Urban Development (HUD). Preston is currently head of the Small Business Administration (SBA), a position for which he was unanimously confirmed by the Senate in July 2006. Click here for more information.

IRS INVITES COMMENTS ON LIHTC REGULATIONS

WASHINGTON, D.C.- April 15, 2008

The Internal Revenue Service (IRS) today invited comments concerning an existing final regulation, PS-62-87 (TD 8302), Low-Income Housing Credit for Federally-Assisted Buildings. This regulation provides state and local low-income housing tax credit (LIHTC) agencies and owners of qualified low-income buildings with guidance regarding compliance with the waiver requirement of section 42(d)(6) of the Internal Revenue Code (IRC). The regulation requires documentary evidence of financial distress leading to a potential claim against a federal mortgage insurance fund in order to get a written waiver from the IRS for the acquirer of the qualified low-income building to properly claim the LIHTC. No changes are being made to the regulation at this time and comments will be accepted until June 16.

The LIHTC program will be discussed at the Credit and Bond Financing Conference on May 15-16 in New Orleans, La.

SENATE PASSES HOUSING STIMULUS LEGISLATION

WASHINGTON, D.C.- April 10, 2008

The Senate today passed legislation intended to help reduce foreclosures and support the housing sector through new tax incentives by a vote of 84-12. H.R. 3221, the Foreclosure Prevention Act of 2008, was approved after legislators added an amendment to extend renewable energy tax credits. Unlike a separate package approved yesterday by the House Ways and Means Committee, the Senate’s housing stimulus package does not include any provisions related to the low-income housing tax credit (LIHTC).

To learn more about the different stimulus plans being considered in Congress, download the April 8 Novogradac Report on Tax Credits podcast.

HOUSE COMMITTEE ON WAYS AND MEANS PASSES H.R. 5720

WASHINGTON, D.C.- April 9, 2008

The U.S. House of Representatives Committee on Ways and Means today passed the Housing Assistance Tax Act of 2008. H.R. 5720 was introduced yesterday by House Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., and features several provisions to modify the low-income housing tax credit (LIHTC), including a temporary increase in the LIHTC per capita authority from $2.00 to $2.20. The legislation also confronts the issue of income limits in 2009 by providing LIHTC projects held harmless in 2007 and 2008 with an adjustment equal to the nominal increase in area median income (AMI). The legislation is intended to simplify the housing credit program and provide increased flexibility, efficiency and preservation opportunities. H.R. 5720 includes changes from the version distributed yesterday by Novogradac & Company LLP and the Affordable Housing Tax Credit Coalition. Click here for more information and related documents.

A webcast of today's House Ways and Means Committee meeting is available here. To hear the background on the bill and to follow its progress in Congress, tune in to the Novogradac Report on Tax Credits, a weekly podcast presented each Tuesday.

Affordable housing legislation will also be discussed by industry experts at the Credit and Bond Financing Conference on May 15-16 in New Orleans, La.

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