WASHINGTON – Jan. 26, 2015
The U.S. Department of Health & Human Services (HHS) last week issued its 2015 poverty guidelines, which the U.S. Department of Housing and Urban Development (HUD) will use to update its fiscal year (FY) 2015 income limits. The HHS 2015 poverty guideline for a four-person household increased by nearly 1.7 percent compared to 2014, so counties that adjusted their extremely low-income limits up to the poverty level in 2014 will likely see another increase of around 1.7 percent for 2015.
HUD anticipates that its FY 2015 income limits will be published in February. HUD delayed publishing its FY 2015 income limits, originally expected to be released in December, because of a change in the definition of an “extremely low-income” household, which is mainly used for setting admissions targets in the Housing Choice Voucher program. The change was made by the 2014 Consolidated Appropriations Act, and an extremely low-income household is now defined as one with an income that does not exceed the greater of the HHS poverty guidelines or 30 percent of area median income (AMI).
WASHINGTON – Jan. 20, 2015
The U.S. Department of Housing and Urban Development (HUD) today released “Understanding Whom the LIHTC Program Serves: Tenants in LIHTC Units as of December 31, 2012,” a compilation of demographic and economic data about the tenants of housing built or rehabilitated with low-income housing tax credits (LIHTCs). HUD worked with state housing agencies to collect data on ethnicity, disability status, family composition and age, household income, monthly rental payments and other facts.
Tune into the Jan. 20 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – Jan. 15, 2015
Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking Member Ron Wyden, D-Ore., today announced the co-chairs of the five working groups they created to advance tax-reform efforts in the 114th Congress. The groups will work with the Joint Committee on Taxation (JCT) to review current tax law, analyze available reform options and produce a comprehensive report that can serve as a foundation for bipartisan tax reform legislation. The report is expected to be released by the end of May.
The five working groups are community development and infrastructure, co-chaired by Sens. Dean Heller, R-Nev., and Michael Bennet, D-Colo.; business income tax, co-chaired by Sens. John Thune, R-S.D., Ben Cardin, D-Md.; individual income tax, co-chaired by Sens. Chuck Grassley, R-Iowa, Mike Enzi, R-Wyo., and Debbie Stabenow, D-Mich.; international tax, co-chaired by Rob Portman, R-Ohio, and Chuck Schumer, D-N.Y.; and savings and investment, co-chaired by Sens. Mike Crapo, R-Idaho, and Sherrod Brown, D-Ohio. The community and infrastructure group will encompass the low-income housing tax credit (LIHTC), the new markets tax credit (NMTC) and the historic tax credit (HTC), and the business tax reform group will encompass renewable energy tax credits (RETCs).
Tune into the Jan. 20 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – Dec. 19, 2014
President Barack Obama today signed “The Tax Increase Prevention Act of 2014” (H.R. 5571), a tax incentives bill that retroactively extends through the end of 2014 most temporary tax provisions that expired at the end of 2013. The one-year extension act passed the Senate earlier this week by a vote of 76-16. The House passed the legislation 378-46 on Dec. 3.
WASHINGTON – Dec. 17, 2014
The U.S. Senate on Tuesday night passed “The Tax Increase Prevention Act of 2014” (H.R. 5771), a tax incentives bill that retroactively extends for one year–through the end of 2014–most temporary tax provisions that expired at the end of 2013. The bill was passed with a vote of 76-16 and will become law when signed by President Barack Obama. The House passed the legislation 378-46 on Dec. 3.
Camp Introduces Tax Reform Legislation; Senate Finance Committee GOP Staff Releases Tax Reform Report
WASHINGTON – Dec. 11, 2014
Today House Ways and Means Committee chairman Rep. Dave Camp, R-Mich., officially introduced H.R. 1, the Tax Reform Act of 2014. Camp’s legislation proposes formalizing the tax reform discussion draft released last February. It retains the low-income housing tax credit (LIHTC), doesn’t mention the new markets tax credit (NMTC) and proposes the repeal of the historic tax credit (HTC) and renewable energy tax credits (RETCs). Camp called for the legislation to “spur further action” during the 114th Congress, which begins in January.
WASHINGTON – Dec. 11, 2014
The Federal Housing Finance Agency (FHFA) today sent letters to Fannie Mae and Freddie Mac, directing them to begin setting aside and allocating funds to the National Housing Trust Fund (NHTF) and the Capital Magnet Fund (CMF). Contributions to the NHTF and CMF were suspended since 2008, when Fannie Mae and Freddie Mac, the intended funding sources under the Housing and Economic Recovery Act of 2008 (HERA), were placed into conservatorship. The FHFA released an interim final rule to implement a statutory prohibition against the government-sponsored enterprises passing the cost of allocations through to the originators of loans they purchase or securitize.
Tune into the Dec. 16 episode of the Tax Credit Tuesday podcast to learn more.
WASHINGTON – Dec. 3, 2014
The U.S. Department of Housing and Urban Development (HUD) today announced that the publication of its fiscal year (FY) 2015 income limits will be delayed and will occur following the publication of 2015 poverty guidelines issued by the Department of Health and Human Services (HHS). The income limits are used to determine income eligibility for HUD’s assisted housing programs, including public housing, Section 8, Section 202 and Section 811. Instead of being issued this week as originally expected, HUD anticipates that the FY 2015 income limits will be published in February 2015.
The delay is related to a change in the definition of an “extremely low-income” household, which is mainly used for setting admissions targets in the Housing Choice Voucher program. The change was made by the 2014 Consolidated Appropriations Act and extremely low-income household is now defined as the greater of the Department of Health and Human Services (HHS) poverty guidelines or 30 percent of area median income (AMI).
Tune into the Dec. 9 episode of the Tax Credit Tuesday podcast to learn more.
WASHINGTON – Nov. 18, 2014
Hundreds of tax credit advocates have recently sent sign-on letters to Congress, urging lawmakers to extend expired or expiring tax credits during the lame-duck session. A letter from Affordable Rental Housing ACTION (A Call to Invest in Our Neighborhoods) urged Congress to extend the 9 percent low-income housing tax credit (LIHTC) minimum rate for new construction and substantial rehabilitation and the 4 percent LIHTC minimum for acquisition of affordable housing. The letter called for the floor rates to be made permanent, but said an extension for at least two years would strengthen the credit at virtually no cost to taxpayers. It featured signatures from a coalition of more than 900 national, state and local stakeholders.
Meanwhile, more than 1,500 organizations, including businesses, nonprofits and investors, signed a letter from the New Markets Tax Credit Coalition, urging Congress to extend the new markets tax credit (NMTC). The coalition letter argued that the economic activity spurred by NMTC investments has generated enough tax revenue to cover the cost of the program.
In sign-on letters addressed to the House of Representatives and the Senate, more than 500 organizations asked Congress to extend seamlessly, enhance or make permanent the expired and expiring tax provisions. That letter said that failure to extend the provisions would effectively act as a tax increase and would inject instability and uncertainty into the economy.
Tune into the Nov. 25 episode of the Tax Credit Tuesday podcast to learn more.
WASHINGTON – Oct. 30, 2014
The Internal Revenue Service (IRS) today announced in Revenue Procedure 2014-61 the inflation-adjusted low-income housing tax credit (LIHTC) and private activity bond caps for 2015. For calendar year 2015, the amount used under §42(h)(3)(C)(ii) to calculate the state housing credit ceiling for the LIHTC is the greater of $2.30 multiplied by the state population—the same as 2014—or $2,680,000, up from $2,635,000. The amount used under §146(d)(1) to calculate the state ceiling for the volume cap for private activity bonds in 2015 is the greater of $100 multiplied by the state population—the same as 2014—or $301,515,000, up from $296,825,000.
Tune into the Nov. 4 episode of the Tax Credit Tuesday podcast to learn more.
SACRAMENTO – Oct. 16, 2014
The Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014, which enacts and amends provisions of law necessary to support the District of Columbia’s fiscal year 2015 budget, became effective last week. Among other things, the act implements a low-income housing tax credit (LIHTC) for the District of Columbia. The Department of Housing and Community Development will make available $1 million in LIHTCs in 2015.
Tune in to the Oct. 21 Tax Credit Tuesday podcast to learn more about the District of Columbia’s new LIHTC.
SACRAMENTO – Oct. 13, 2014
A study measuring the factors that influence the cost of building affordable rental housing in California was released today by the California Department of Housing and Community Development, the California Tax Credit Allocation Committee, the California Housing Finance Agency and the California Debt Limit Allocation Committee. Affordable Housing Cost Study: Analysis of the Factors that Influence the Cost of Building Multi-Family Affordable Housing in California found that the factors influencing costs are multifaceted, with no single factor explaining all or even most of the cost of developing affordable housing. As such, the authors conclude that any approach to lowering costs must look across multiple factors, rather than focusing on a single issue.
Tune into the Oct. 21 Tax Credit Tuesday podcast to learn more about the report and what it means for the affordable housing community in California.
WASHINGTON – Oct. 2, 2014
In a notice in tomorrow’s Federal Register, the U.S. Department of Housing and Urban Development (HUD) will publish final fiscal year (FY) 2015 fair market rents (FMRs). The final FY 2015 FMRs took effect Oct. 1. HUD uses FMRs to determine payment standard amounts for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts and to determine initial rents for housing assistance payments (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy (SRO) program.
WASHINGTON – Oct. 2, 2014
In tomorrow’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 2015 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. The 2015 metropolitan DDA designations will be the last designated for entire metropolitan areas. HUD announced previously that beginning with the 2016 DDA designations, metropolitan DDAs will use small area fair market rents (FMRs), instead of metropolitan-area FMRs, for designating metropolitan DDAs.
Tune into the Oct. 7 Tax Credit Tuesday podcast to hear more about the 2015 DDAs and QCTs. And join other LIHTC professionals at the Novogradac Affordable Housing Conference in San Francisco on Oct. 9 and 10 to discuss the latest news in LIHTC development.
WASHINGTON – Sept. 25, 2014
In a notice in tomorrow’s Federal Register, the U.S. Department of Housing and Urban Development (HUD) will issue guidelines for conducting subsidy layering reviews for Section 8 project-based voucher housing assistance payment contracts and mixed-finance developments, including those with or without low-income housing tax credits (LIHTCs). Requirements in the notice do not supersede subsidy layering requirements of other federal programs.
Tune in to the Oct. 7 Tax Credit Tuesday podcast to learn more about what the guidelines mean for LIHTC developments.
WASHINGTON – Sept. 18, 2014
The Internal Revenue Service (IRS) today released its updated audit technique guide (ATG) for the Low-Income Housing Tax Credit (LIHTC) program. The ATG provides guidance for IRS examiners to audit owners of LIHTC properties. It was last updated in 1999. A draft of the guide was released for public comment last December and the IRS accepted comments until the end of March. The revised guide includes, among other changes, an expanded explanation of documents to request from the taxpayer during pre-contact analysis; a more developed definition of “residential rental property;” and a new section on emergency housing relief. The IRS provided an overview of the updates in LIHC Newsletter #56.
Tune in to the Sept. 23 Tax Credit Tuesday podcast to learn more about the changes and what they mean for the LIHTC community. The revised ATG will also be discussed in detail at the Novogradac Affordable Housing Conference, Oct. 9 and 10 in San Francisco.
WASHINGTON – Sept. 15, 2014
The Internal Revenue Service (IRS) today published the amounts of unused low-income housing tax credit (LIHTC) carryovers for calendar year 2014 that were allocated to 35 qualified states and Puerto Rico. Revenue Procedure 2014-52 details how $2.59 million of unused LIHTCs were divided among the recipients. California received the largest allocation, $364,756 in LIHTCs.
WASHINGTON – Sept. 8, 2014
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency today invited public comment regarding proposed revisions to the Interagency Questions and Answers Regarding Community Reinvestment. The document provides additional guidance to financial institutions and the public on the agencies’ regulations that implement the Community Reinvestment Act (CRA). Among other things, the proposed new and revised CRA questions and answers address community development-related issues by clarifying guidance on economic development; providing examples of community development loans and activities that are considered to revitalize or stabilize an underserved nonmetropolitan middle-income geography; and clarifying how community development services are evaluated.