Low-Income Housing Tax Credit
News Archive - 2002
December
Salem, Ore. - December 30, 2002
Oregon Housing and Community Services (OHCS) issued a request for applications (RFA) for projects that have received allocations (completed carryover) of low-income housing tax credits (LIHTC) and only require additional tax credits in order to be feasible financially. Only those projects that have yet to be placed in service are eligible. For this RFA, OHCS will make available the balance of its per capita allocation of 2003 tax credits; the total amount of which is approximately $150,000. Applications are due January 13. For more information, click here.
Montgomery, Ala. - December 24, 2002
The Alabama Housing Finance Authority last week approved awards of multifamily housing funds, including low-income housing credit (LIHTC) allocations. For the list of LIHTC allocations and HOME fund awards, click here.
Little Rock, Ark. - December 23, 2002
The Arkansas Development Finance Agency (ADFA) board of directors last week approved additional changes to the 2003 qualified allocation plan (QAP) and 2003 guidelines for allocating multifamily tax-exempt bond volume cap. For more information, click here.
Sacramento, Calif. - December 18, 2002
The California Tax Credit Allocation Committee (TCAC) this week released the first draft of the proposed regulations for administering its low-income housing tax credit (LIHTC) program in 2003. Changes include eliminating extra points for proposals in areas without recent tax credit development; establishing greater differentiation in distances, times and types of amenities in the site amenities category; and reconfiguring the geographic regions using new census data and various indices of “need.” TCAC has invited written comments, which should be received no later than 5 p.m. , January 7, 2003 . Additionally, two public hearings will be held to take public comment on the proposed regulations. For details, click here.
Washington, D.C. - December 12, 2002
The Department of Housing and Urban Development (HUD) today published a notice designating Qualified Census Tracts (QCTs) and Difficult Development Areas (DDAs) for 2003. Projects located in a QCT or DDA can claim greater eligibility for low-income housing tax credits (LIHTC) under § 42 of the Internal Revenue Code. Click here for the notice. Click here for more information from HUD.
Raleigh, N.C. - December 11, 2002
The North Carolina Housing Finance Agency (NCHFA) today released a final draft of its qualified allocation plan (QAP) for the administration of its low-income housing tax credit (LIHTC) program in 2003, including detailed project selection criteria. To view this and other QAPs, click here.
Tallahassee, Fla. - December 6, 2002
The Florida Housing Finance Corporation (FHFC) this week published a draft of its qualified allocation plan (QAP) for the administration of the low-income housing tax credit (LIHTC) program. Click here to find the draft QAP and draft application documents. For a table of low-income housing tax credit allocation caps and application deadlines in 2003, click here.
Washington, D.C. - December 3, 2002
The U.S. Department of Housing and Urban Development (HUD) yesterday published an announcement of funding awards for fiscal year 2002 to public housing agencies (PHAs) under the Section 8 housing choice voucher program. The awards included in the notice were provided to assist families living in HUD-owned properties that are being sold, families affected by the expiration or termination of assistance, or those families in properties where the owner has prepaid the HUD mortgage; and for various other uses. Click here for the complete list of awards.
Washington, D.C. - December 2, 2002
Terrorism insurance legislation signed into law by President Bush last week is expected to make it easier for property owners to obtain terrorism insurance and help to boost the economy and create new jobs by providing stability to the nation's commercial and multifamily real estate markets. The Terrorism Risk Insurance Act, H.R. 3210, voids any existing terrorism exclusion found in commercial property, general liability and other insurance lines and includes legal protections for property owners. Click here for the text of the legislation. A detailed synopsis will appear in the January issue of Novogradac & Company LLP’s Property Compliance Report.
November
Washington, D.C. - November 21, 2002
Initial endorsements of multifamily housing loans increased dramatically in fiscal year 2002 according to the U.S. Department of Housing and Urban Development (HUD), which endorsed 1,104 basic FHA & risk sharing loans totaling $6.5 billion and providing 146,991 units or beds. The number of basic FHA loans endorsed exceeded 2001 endorsements by 55 percent and was more than double fiscal year 2000 levels. For a list of low-income housing tax credit (LIHTC) projects by state that were initially endorsed by HUD for loans in 2002, click here. The list includes 81 loans totaling LIHTC 12,248 units.
Washington, D.C. - November 20, 2002
The nationwide pace of housing starts slowed by 11.4 percent to a seasonally adjusted annual rate of 1.6 million units in October, according to Commerce Department figures released today. Single-family starts fell 7 percent in October to a 1.35 million-unit pace, while multifamily starts dropped by more than 29 percent to a 253,000-unit rate.
Washington, D.C. - November 19, 2002
A list of Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs) for 2003 has been prepared and is awaiting final approval, according to sources at the U.S. Department of Housing and Urban Development (HUD). Projects located in a QCT or DDA can claim greater eligibility for low-income housing tax credits (LIHTC) under § 42 of the Internal Revenue Code. HUD sources say the list has been submitted to HUD Secretary Mel Martinez and once approved, QCT and DDA designations for 2003 will be published in the Federal Register. Click here for more information on QCTs and DDAs.
Washington, D.C. - November 18, 2002
The Treasury Department last week released a letter sent in late October to Assistant Secretary for Tax Policy Pamela Olson from Rep. Edward Shrock (R-Va.) opposing Chief Counsel Memorandum 200134006, which prohibits owners from receiving low-income housing tax credits (LIHTCs) while a dwelling unit or building is out of service because of a casualty loss. Shrock requested that the Internal Revenue Service revisit its ruling on the issue and permit owners to claim tax credits during the period they are restoring and marketing their property. Click here to read Shrock’s letter.
Washington, D.C. - November 12, 2002
The U.S. Department of Housing and Urban Development (HUD) this month published a notice providing instructions to public housing agencies (PHA) for calculating rent amounts under the tenant-based and project-based housing choice voucher programs when a project has been allocated low-income housing tax credits (LIHTCs).
Washington, D.C. - November 11, 2002
The Internal Revenue Service is seeking comments from exempt organizations, practitioners, state regulators, vendors and others on the recently published draft Form 1023, the application for organizations seeking recognition of exemption under Section 501(c)(3) of the Internal Revenue Code. In order to be recognized as exempt under §501, the law requires that most organizations submit an application with a detailed statement of their proposed activities sufficient to establish that they qualify for exemption. Interested parties should submit comments by December 2, 2002, to: Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, D.C. 20224, Attn: Amy Henchey — Form 1023; or via e-mail to: tege.eo2@irs.gov.
Albany, N.Y. - November 5, 2002
The New York State Division of Housing and Community Renewal (NYSDHCR) last week announced the availability of federal tax credits under the low-income housing tax credit (LIHTC) program. NYSDHCR expects to have approximately $24 million available for LIHTC reservations. Applicants for low-income housing tax credit allocation may request a maximum of $1.5 million in annual credits. Of the $24 million available, as much as $2 million may be made available for preservation projects as defined in NYSDHCR's qualified allocation plan (QAP) dated April 17, 2001. Applications for LIHTCs are due by 5 p.m., March 24, 2003 and NYSDHCR expects to mail notices regarding the status of applications in July 2003. Application packages will be available next week at NYSDHCR regional offices.
Washington, D.C. - November 4, 2002
Section 236 rental assistance payments and rent supplement payments are not considered grants made with respect to a building or its operation under § 42(d)(5) of the Internal Revenue Code, according to Revenue Ruling 2002-65. As such, under the low-income housing tax credit (LIHTC) program, they do not have to be subtracted from eligible basis. The Internal Revenue Service (IRS) also states that Rev. Rul. 2002-65 does not apply to interest reduction payments made under mortgage insurance programs, and that the Treasury Department and IRS are studying how to treat these payments under §42. Click here for Rev. Rul. 2002-65.
October
Washington, D.C. - October 31, 2002
The Internal Revenue Service (IRS) this week issued Revenue Procedure 2002-70, announcing the inflation-adjusted low-income housing tax credit (LIHTC) and private activity bond caps for 2003. The per-capita limits of $1.75 and $75, respectively, will remain the same, but the state minimums will increase to $2,030,000 for low-income housing tax credits and $228,580,000 for tax-exempt bonds. Click here for Rev. Proc. 2002-70.
Honolulu - October 29, 2002
The Housing and Community Development Corporation of Hawaii (HCDCH) yesterday published a final draft of its 2003 qualified allocation plan (QAP). The QAP includes HCDCH’s guidelines and priorities for implementing the federal and state low-income housing tax credit (LIHTC) in 2003. To access the QAP, click here.
Nashville, Tenn. - October 24, 2002
The Tennessee Housing Development Agency (TDHA) last week published an initial draft of the 2003 qualified allocation plan (QAP) for its 2003 low-income housing tax credit (LIHTC) program. The initial draft includes language regarding changes proposed by members of THDA’s board of directors and by its staff. To access the latest 2003 draft and final QAPs, click here.
Chicago - October 23, 2002
Reassuring the housing industry that U.S. Department of Housing and Urban Development (HUD) will not follow the lead of many private insurance companies, HUD Secretary Mel Martinez announced yesterday that the Federal Housing Administration (FHA) will not require insurance coverage against acts of terrorism as a condition of its multifamily mortgage insurance. In fiscal year 2001, FHA committed $1.5 billion toward ensuring multifamily programs for construction and rehabilitation, and in fiscal year 2002, FHA upped its commitment to $2.8 billion. In the event of an act of terrorism that destroys or partially destroys an FHA-insured multifamily property, Martinez says HUD would pay the partial or full claim to the lender.
Chicago - October 23, 2002
Reassuring the housing industry that U.S. Department of Housing and Urban Development (HUD) will not follow the lead of many private insurance companies, HUD Secretary Mel Martinez announced yesterday that the Federal Housing Administration (FHA) will not require insurance coverage against acts of terrorism as a condition of its multifamily mortgage insurance. In fiscal year 2001, FHA committed $1.5 billion toward ensuring multifamily programs for construction and rehabilitation, and in fiscal year 2002, FHA upped its commitment to $2.8 billion. In the event of an act of terrorism that destroys or partially destroys an FHA-insured multifamily property, Martinez says HUD would pay the partial or full claim to the lender.
Washington, D.C. - October 18, 2002
New homeownership tax credit legislation introduced this week in the Senate would provide nearly $2.4 billion in tax incentives for construction and rehabilitation of about 200,000 homes over its first five years. S. 3126, “The Community Development Homeownership Tax Credit Act” is sponsored by Sens. John Kerry (D-Mass.), Rick Santorum (R-Pa.), Paul Sarbanes (D-Md.) and Wayne Allard (R-Colo.). Similar House legislation, H.R. 5052, has gained bi-partisan support, but no action has been taken on the measure since its introduction in June. The text of S. 3126 is available at www.homeownertaxcredit.com.
Boston - October 16, 2002
Gov. Jane Swift announced last week that the Massachusetts Department of Housing and Community Development (MDHCD) is proposing major changes to the state’s 33-year-old comprehensive permit law—also known as Chapter 40B. To comply with 40B, every community must have at least 10 percent of its permanent housing affordable to low- and moderate-income families on a long-term basis. To help achieve that goal, the law authorizes comprehensive permits to be issued with limited exemptions from local zoning regulations provided that one-fourth of the developed units are affordable. MDHCD will hold a public hearing on the proposed changes to the statute Monday, October 21. For details, click here.
Lansing, Mich. - October 15, 2002
The Michigan State Housing Development Authority (MSHDA) is in the process of amending the qualified allocation plan (QAP) that governs the administration of the state’s federal low-income housing tax credit (LIHTC) in 2003. MSHDA released a draft QAP last week, and public hearings will be held in Detroit on November 14 at 10 a.m. at 3028 W. Grand Blvd., Suite 4-600, and in Lansing on November 15, at 10 a.m. at the MSHDA office at 735 E. Michigan Ave. For a copy of the draft QAP and summary of changes for 2003, click here.
Helena, Mont. - October 11, 2002
The Montana Board of Housing (MBOH) recently posted a proposed draft of its qualified allocation plan (QAP) for its 2003 low-income housing tax credit (LIHTC) program. The QAP delineates MBOH’s priorities and procedures for allocating the state’s low-income housing tax credit cap, which is approximately $2 million. Click here to access the QAP.
Washington, D.C. - October 10, 2002
This year, credits are set to expire for the first 23,000 units of affordable housing produced with the low-income housing tax credit (LIHTC) program. The Senate Committee on Banking, Housing and Urban Affairs Housing and Transportation Subcommittee met yesterday for a hearing on the preservation of this and other affordable housing. For copies of testimony submitted by witnesses including Dr. John Weicher, assistant secretary for housing and federal housing commissioner of U.S. Department of Housing and Urban Development (HUD); James Grow, staff attorney for the National Housing Law Project; and Louise Sanchez, president of the National Alliance of HUD Tenants, click here.
Washington, D.C. - October 9, 2002
The House Veterans Administration (VA), Housing and Urban Development (HUD) and Independent Agencies (IA) Appropriations Subcommittee met this week to mark-up its fiscal year 2003 spending bill. The Senate version, S 2797, was approved by the Senate VA/HUD/IA subcommittee July 25 and would allocate $32.1 billion for HUD next year. The House legislation proposes a budget of $36.1 billion for HUD, which provides a $1.8 billion increase in total program spending and a net appropriations increase of $1.2 billion. For details, click here.
Washington, D.C. - October 4, 2002
Two acres of farmland are converted to development use every minute, according to a new report from the American Farmland Trust. "Farming on the Edge," published yesterday, attributes the loss to urban sprawl and includes recommendations for curbing growth into agricultural areas. The National Association of Home Builders (NAHB) today released a statement opposing many of those recommendations, saying they would sharply increase the cost and restrict the supply of housing, particularly for moderate- and low-income families.
Washington, D.C. - October 3, 2002
Senator Christopher Bond (R-Mo.) last month introduced S. 2967, the Affordable Housing Expansion Act. The bill includes a new loan guarantee for local housing agencies and a housing production block grant administered through state housing finance agencies (HFAs), and authorizes "thrifty" production vouchers. Under the provisions of the bill, the U.S. Department of Housing and Urban Development (HUD) would allocate the $1 billion to state HFAs on a per capita basis, with no state receiving less than $6 million. States would be required to meet a 25 percent matching requirement and no more than 20 percent of the $1 billion may be used for rehabilitation and preservation of existing affordable housing. Click here to access S. 2967.
Washington, D.C. - October 2, 2002
The Department of Housing and Urban Development (HUD) this week published fiscal year 2003 fair market rents (FMRs). FMRs are gross rent estimates that include both shelter rent paid by the tenant to the landlord and the cost of tenant-paid utilities, except telephone. According to HUD, FMRs are set both high enough to permit a selection of units in various neighborhoods and low enough to serve as many families as possible. 2003 FMRs became effective October 1, the start of fiscal year 2003. FMRs are used for programs such as the Housing Choice Voucher program among others. Click here for the complete set of 2003 FMRs. They can also be found at www.huduser.org/datasets/fmr.html.
Sacramento, Calif. - October 1, 2002
The California Tax Credit Allocation Committee (TCAC) met last week to approve its second round of low-income housing tax credit (LIHTC) awards for 2002. TCAC had approximately $24 million in federal LIHTCs and $48 million in state LIHTCs available in the second round, and several projects received binding forward commitments from the 2003 federal LIHTC ceiling. TCAC approved $29,369,352 in federal low-income housing tax credits and $56,148,815 state credits. For a complete list of funded projects, click here. The California Debt Limit Allocation Committee (CDLAC) also met last week and awarded more $631,014,869 in tax-exempt housing bonds to applicants in its qualified residential rental project pool. Click here for details.
September
Austin, Texas - September 30, 2002
The Texas Department of Housing and Community Affairs (TDHCA) published a draft of its qualified allocation plan (QAP) for 2003. The QAP outlines TDHCA’s goals and for administering the state’s low-income housing tax credit (LIHTC) program. Detailed requirements for applicants seeking an allocation of low-income housing tax credits, as well as changes to the weighting of points in the application process, are included. Click here for TDHCA’s draft QAP.
Sacramento, Calif. - September 20, 2002
The California Tax Credit Allocation Committee (TCAC) today published its recommendations for funding in the second round of low-income housing tax credit (LIHTC) allocation. TCAC had $24,705,430 in federal low-income housing tax credits and $49,468,094 in state LIHTCs available in the second round. For details, click here.
New York - September 19, 2002
Several New York City Council members, including council speaker Gifford Miller, yesterday released a plan that would completely revamp the $1.6 billion Liberty Bond program for residential development in Lower Manhattan to provide more of the funds for affordable housing. The council is also actively lobbying Congress to amend the program to allow it to be used in conjunction with the low-income housing tax credit (LIHTC) program. Under the current plan, which is administered by the New York State Housing Finance Agency, 5 percent of housing units in Liberty Bond-financed buildings must be designated affordable; under the proposed plan, no less than 20 percent, or 1,000 total units, would be affordable to low- and very low-income families.
Washington, D.C. - September 18, 2002
A person working full-time would have to earn a national average of $14.66 an hour -almost three times the federal minimum wage of $5.15-to afford to rent a two-bedroom home, according to a report released today by the National Low Income Housing Coalition (NLIHC). The report, “Out of Reach,” annually calculates the “housing wage,” or the amount of money a household must earn in order to afford a rental unit at the area’s Fair Market Rent (FMR). According to NLIHC, six of the 10 least affordable Metropolitan Statistical Areas (MSA) are in California; in San Francisco, the least affordable MSA in the U.S., the housing wage is $37.31. For more information, click here.
Trenton, N.J. - September 17, 2002
Sixteen affordable housing developments were awarded low-income housing tax credit (LIHTC) reservations by the New Jersey Housing and Mortgage Finance Agency (NJHMFA) for its first round of LIHTC allocation this year. The projects were awarded $12,324,475 low-income housing tax credits, which will fund 986 units of which 966 will be reserved for low-income tenants. Click here for NJHMFA’s tax credit reservation list. Applications for NJHMFA’s final cycle are due September 25.
Washington, D.C. – September 16, 2002
Reps. Nancy Johnson (R-Conn.) and Charles Rangel (D-N.Y.) last week sent a letter to Pamela F. Olson, the assistant secretary for tax policy at the Treasury Department, asking that the Internal Revenue Service (IRS) ruling regarding low-income housing tax credit (LIHTC) in Chief Counsel Advice Memorandum 200134006, be reversed. The ruling held that an owner of a low-income housing tax credit property who suffers a casualty, such as a fire or wind storm damage, and who must take units out of service as a result, may not take tax credits on such units while they are out of service and that in such circumstances, states must issue noncompliance reports. To view the letter, click here.
Washington, D.C. – September 13, 2002
Legislative relief from a series of Internal Revenue Service (IRS) technical advice memoranda (TAMs), which found that impact fees are not includable in low-income housing tax credit (LIHTC) eligible basis, may still be possible this year, according to a report from the National Association of Home Builders (NAHB). Sen. Bob Graham (D-Fla.) may attach S.2006 to a small business tax bill in the Senate Finance Committee. For cost reasons, however, the measure could be implemented for one year only, requiring additional legislation to make it permanent next year. S. 2006 would ensure that developers of affordable housing under the low-income housing tax credit program could categorize impact fees as indirect costs and add them to eligible basis.
Washington, D.C. – September 10, 2002
The Internal Revenue Service (IRS) this week published the amounts of unused low-income housing tax credit (LIHTC) carryovers allocated to 35 qualified states under §42(h)(3)(D) of the Internal Revenue Code. Revenue Procedure 2002-56 is effective for allocations of LIHTC dollar amounts attributable to the National Pool component of a qualified state’s low-income housing tax credit ceiling for calendar year 2002. Click here for the text of Rev. Proc. 2002-56, which includes the list of low-income housing tax credit carryover amounts.
Washington, D.C. – September 9, 2002
Multifamily mortgages purchased by government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac rose sharply in 2001, according to a new report from the Office of Federal Housing Enterprise Oversight (OHFEO). “Purchases of multifamily loans were greatly encouraged by significant increases in the Department of Housing and Urban Development’s (HUD) affordable housing goals,” the paper says. In fact, by the end of last year, the GSEs collectively owned (held in portfolio) $33 billion of multifamily mortgages and guaranteed an additional $52 billion of such mortgages. Click here to access the report.
ATLANTA, Ga. – September 6, 2002
The Georgia Department of Community Affairs (DCA) this week announced low-income housing tax credit (LIHTC) allocations for its 2002 funding round. Georgia had approximately $13.7 million in LIHTCs available in 2002 for which DCA received 61 applications. Of those, 29 developments were awarded low-income housing tax credits that will fund total of 2,855 units of affordable housing. Click here for a list of Georgia’s LIHTC allocations. For more information about the qualified allocation plan, application and awards of low-income housing tax credits in your state, click here.
MADISON, Wis. – September 4, 2002
No evidence has been found that low-income housing tax credit properties cause property values to deteriorate, according to researchers at The University of Wisconsin Center for Urban Land Economics Research. “Low-Income Housing Tax Credit (LIHTC) Housing Developments and Property Values,” a study released earlier this summer, reports that contrary to conventional wisdom, LIHTC developments often cause surrounding property values to increase. The Wisconsin Housing and Economic Development Authority (WHEDA) provided the data on the sizes and locations of low-income housing tax credit properties throughout the state. To access the study, click here.
SEATTLE, Wash. – September 3, 2002
The Washington State Housing Finance Commission (WSHFC) is looking for a director of its Tax Credit Division. This person will be responsible for directing the statewide strategic and tactical development, administration and implementation of the principal financial resource for the development of WSHFC’s low-income housing, and the federal low-income housing tax credit (LIHTC) program. Interested candidates should submit application materials by September 6. For details, click here.
August
WASHINGTON, D.C. – August 30, 2002
The U.S. Department of Housing and Urban Development (HUD) today issued a notice regarding mortgage insurance premiums (MIPs) for certain Federal Housing Administration (FHA) multifamily mortgage insurance programs, including HOPE VI and low-income housing tax credit (LIHTC) programs. The MIPs included in the notice are effective October 1, and HUD will accept comments on the notice until September 30. For the full text of the notice and rates, click here.
MONTGOMERY, Ala. – August 28, 2002
The Alabama Housing Finance Authority (AHFA) is accepting low-income housing tax credit (LIHTC) applications this week only. AHFA has $7,812,623 available for its 2002 low-income housing tax credit round, and all applications must be submitted by 5 p.m. August 30. For more information, click here.
WASHINGTON, D.C. – August 27, 2002
The U.S. is among the best-housed nations in the world, but affordable housing remains a problem in many, if not most, housing markets in the country, according to a new research report by the National Multi Housing Council (NMHC). “Housing Affordability: The Apartment Universe” focuses solely on the apartment market and found that 26 percent of all apartment renters - 3.8 million - received some sort of federal housing assistance in 1999. For more information, visit www.nmhc.org.
COLUMBIA, S.C. – August 22, 2002
The South Carolina State Housing Finance and Development Authority (SCHFDA) today published a list of the final scores of applications for 2002 low-income housing tax credits (LIHTC). SCHFDA will release the list of low-income housing tax credit awards the second week in September.
WASHINGTON, D.C. – August 20, 2002
To assist grantees in planning their projects for the coming year, the U.S. Department of Housing and Urban Development (HUD) last week published estimated allocations for the Community Development Block Grant (CDBG) program for fiscal year 2003. The estimates are based on the 2002 appropriation and roster of entitlement communities; actual allocations in 2003 will change depending on HUD’s appropriation and changes in the roster of entitlement communities resulting from updated census data.
WASHINGTON, D.C. – August 16, 2002
The pace of nationwide housing starts slowed 2.7 percent in July to a seasonally adjusted annual rate of 1.65 million units, according to figures released today by the U.S. Department of Commerce. Multifamily starts declined 4.7 percent to a rate of 328,000 units; the average for multifamily starts in the second quarter of 2002 was 337,000 units.
WASHINGTON, D.C. – August 14, 2002
The Internal Revenue Service (IRS) yesterday invited comments on Form 8693, Low-Income Housing Credit Disposition Bond. Section 42(j)(6) of the Internal Revenue Code states that when a taxpayer disposes of a building (or an interest therein) on which the low-income housing tax credit (LIHTC) has been claimed, the taxpayer may post a bond in lieu of paying the recapture tax if the building continues to be operated as a qualified low-income building for the remainder of the compliance period. Form 8693 is used to post a bond under Code section 42(j)(6) to avoid recapture of the LIHTC. Comments must be submitted by October 15. For details, click here.
AUSTIN, Texas – August 8, 2002
The Governing Board of the Texas Department of Housing and Community Affairs (TDHCA) last week approved the allocation of federal low-income housing tax credits (LIHC) to 73 housing developments totaling $38 million. The allocations will help finance an estimated 7,000 units of affordable housing. To view a list of the approved developments, click here. For those considering the use of tax-exempt bonds in combination with the LIHC, Novogradac & Company LLP is hosting two comprehensive Tax-Exempt Private Activity Bond Workshops, Sept. 4 in Dallas and Sept. 5 in Houston. Click here for details.
WASHINGTON, D.C. – August 2, 2002
Bipartisan legislation was introduced yesterday in the Senate to index Federal Housing Administration (FHA) multifamily mortgage loan limits to inflation and adjust the limits in some very high cost cities. The proposal is intended to increase the supply of new rental housing by allowing FHA loan limits to keep pace with construction and land costs over time. S. 2841, introduced by Senators Jon Corzine (D-N.J.), Thomas Carper (D-Del.), John Ensign (R-Nev.) and Wayne Allard (R-Colo.), was referred to the Senate Committee on Banking, Housing and Urban Affairs.
WASHINGTON, D.C. – August 1, 2002
The U.S. Department of Housing and Urban Development’s (HUD) today announced the availability of $492.5 million in 2002 HOPE VI Revitalization Grants to help transform public housing. HOPE VI funds may be used for an array of eligible activities, including: capital costs of major rehabilitation, new construction and other physical improvements; demolition of severely distressed public housing; acquisition of sites for off-site construction; and community and supportive service programs for residents. According to HUD a maximum of $20 million per grant was set for the program this year to make funds available to more cities. Click here for the HOPE VI 2002 Notice of Funding Availability (NOFA).
July
SACRAMENTO, Calif. – July 30, 2002
The California Tax Credit Allocation Committee has published a list of applicants for its second round of low-income housing tax credit (LIHC) allocations. The second round of credits will be awarded September 25. For more information, click here.
WASHINGTON, D.C. – July 29, 2002
The U.S. Department of Housing and Urban Development (HUD) released a report summarizing recent updates to its low-income housing tax credit (LIHC) database, including information on projects initiated in 1999 and complete coverage of properties placed in service in 1998. It also provides a longitudinal and cross-sectional analysis of LIHC project characteristics. The analysis reveals that the number of projects placed in service remained constant over the study period but the number of units increased, indicating a larger average project size. Click here to download the report. To access the HUD’s LIHC database, click here.
OAKLAND, Calif. – July 26, 2002
The National Housing Law Project (NHLP), in cooperation with the Poverty & Race Research Action Council, Sherwood Research Associates and Everywhere and Now Public Housing Residents Organizing Nationally Together (ENPHRONT), this week released a report, “False HOPE: A Critical Assessment of the HOPE VI Public Housing Redevelopment Program,” which NHLP says identifies “serious shortcomings and inconsistencies in HUD’s administration of the HOPE VI public housing redevelopment program.” The report examines available HUD publications, General Accounting Office and Office of Inspector General program audits and other documents to trace HUD’s HOPE VI track record on the awarding of grants, citizen participation in redevelopment efforts, family relocation, data reporting and other issues, and proposes concrete reforms. To view the report, click here.
WASHINGTON, D.C. – July 25, 2002
The Senate Appropriations Subcommittee on Veterans Affairs, the U.S. Department of Housing and Urban Development (HUD) and independent agencies this week approved a proposed $32.1 billion in spending by HUD for the fiscal year starting October 1, including a provision that would create 15,000 Section 8 rental-assistance vouchers - less than half the number requested in President Bush’s proposed budget; the approved amount is more than the $31.5 billion requested, and 8.5 percent more than the $29.4 billion approved for the current fiscal year. The HUD appropriations bill is slated for mark-up by the complete Senate Appropriations Committee today.
WASHINGTON, D.C. – July 22, 2002
A measure introduced late last month by Rep. Rob Portman (R-Ohio) that would create a homeownership tax credit was referred to the House Committee on Ways and Means. House Resolution 5052, the Restoring the Dream Tax Credit Act, would provide a tax credit based on an applicable percentage of each qualified residence’s eligible basis to be allocated by a state agency from an annual ceiling and according to specific criteria outlined in a qualified allocation plan. For more information on single-family affordable housing tax credit proposals, click here.
WASHINGTON, D.C. - July 19, 2002
Multifamily housing starts dropped 6.7 percent to a 322,000 unit annual rate in June from 345,000 units in May, according to figures released this week by the U.S. Department of Commerce.
SANTA MONICA, Calif. – July 15, 2002
The Milken Institute, a nonprofit economic think tank, this week reports that many Americans are turning to housing as a safer investment option in times of economic uncertainty than stock or other investments. In a new study, “A New Kind of Gold? Investment in Housing in Times of Uncertainty,” the Milken Institute examines whether the recent decline in the stock market has helped the housing boom, and analyzes investment trends relating to housing and real estate in recent years. For details, click here.
WASHINGTON, D.C. – July 12, 2002
The House Financial Services Committee this week approved H.R. 3995, The Housing Affordability for America Act, introduced earlier this year by Rep. Marge Roukema (R-N.J.), chairwoman of the subcommittee on housing and community opportunity. Among the bill’s provisions is one that would call for periodic reviews of affordable housing rental properties that have been allocated low-income housing tax credits (LIHCs). Reviews would be required at least once every four years or more often as required under the regulations. Click here for the most recent version of H.R. 3995.
WASHINGTON, D.C. – July 11, 2002
Guidance on low-income housing tax credits (LIHC) under Section 42 of the Internal Revenue Code, as well as guidance under Section 45D regarding new markets tax credits (NMTC) will be forthcoming in 2002-2003, according to the Treasury Department. Treasury and the Internal Revenue Service (IRS) this week released the priorities for tax regulations and other administrative issues for 2002-2003 that they will address through regulations, rulings, notices and other forms of guidance during the year ending June 30, 2003. The plan reflects the combined input of taxpayers, practitioners and industry groups who were invited to submit comment earlier this year in Notice 2002-22. Click here for a copy of the plan.
WASHINGTON, D.C. – July 9, 2002
The U.S. Department of Housing and Urban Development (HUD) today published an invitation for public comment regarding the procedures for appealing Section 8 rent adjustments. Under Title II of the National Housing Act, HUD is charged with determining the method of rent adjustments and facilitating them. Because rent adjustments are considered benefits to project owners, HUD also provides the means for owners to appeal the decisions concerning these adjustments, which are made by the Department of Contract Administrator. According to HUD, this appeal process, and the information collected as a result, play an important role in preventing costly litigation and ensuring the accuracy of the overall rent adjustment process. Comments are due by September 9. The notice can be found at www.hudclips.org.
WASHINGTON, D.C. – July 8, 2002
The debate over impact fees and eligible basis continues with the Internal Revenue Service’s (IRS) release today of technical expedited advice memorandum (TAM) 200227009, which amends TAM 200043016, released October 27, 2000, to make it consistent with Revenue Ruling 2002-9 as it applies to impact fees. Today’s TAM also lifts the suspension on consideration of the impact fee issue in TAM 200203013, published January 18. For these and other relevant rulings, visit Novogradac & Company LLP’s IRS Rulings page.
MCLEAN, Va. – July 2, 2002
Freddie Mac announced yesterday that its portfolio of low-income housing tax credit (LIHC) investments now exceeds $2 billion. This was accomplished through 153 separate limited partnerships covering 2,300 housing developments. Freddie Mac's LIHC investments have produced more than 170,000 new or refurbished units of affordable housing, of which 70 percent are family housing, 15 percent are senior housing and 15 percent are used for special needs supportive housing.
June
SAN FRANCISCO – June 28, 2002
Speaking yesterday to participants at the National Council of State Housing Agencies (NCSHA) Housing Credit Conference and Marketplace, Edwin B. Neill, vice president of equity investments at Fannie Mae, reiterated Fannie Mae’s commitment to the low-income housing tax credit (LIHC) program. Neill reports that Franklin D. Raines, Fannie Mae chairman and CEO, sent a letter this month to President Bush outlining a 10-point plan to help advance the Bush administration's homeownership proposals, including the creation of a single family affordable housing tax credit, while pledging that the new credit would not diminish Fannie Mae’s investment in the LIHC. “Fannie Mae will purchase single family affordable housing tax credits proposed by your administration upon enactment, while also maintaining at least our current level of investment in [LIHCs] as the nation's largest investor in these tax credits,” the letter says. Click here to view Fannie Mae’s letter and for more information on homeownership proposals.
CAMBRIDGE, Mass. – June 27, 2002
The Joint Center for Housing Studies at Harvard University this week released its annual report, “State of the Nation’s Housing 2002.” The study, which tracks trends and makes long-term industry forecasts, says 2001 saw rising home equity for millions of homeowners and an increasingly diverse homeownership population. For affordable multifamily housing, however, the report found rising costs, diminishing supply and deteriorating properties. Click here for the complete report.
WASHINGTON, D.C. – June 26, 2002
The House Financial Services Committee is expected to resume mark-up of the Housing Affordability for America Act of 2002, H.R. 3995, today at 10 a.m. During a June 20 mark-up, Rep. Barbara Lee (D-Calif.) filed two amendments to the measure, one of which would require local housing agencies (LHAs) to prove that a tenant knew or should have known of the criminal activity of a household member or guest as a prerequisite to evicting a family in both public housing and Section 8 terminations of tenancy. The Supreme Court’s recent decision in HUD v. Rucker supported LHAs’ zero-tolerance policy regarding drug evictions. Click here for additional information about committee action on this bill.
SACRAMENTO, Calif. – June 25, 2002
A bill to amend prevailing wage law as it applies to the construction of affordable housing in California is slated for a hearing before the Assembly Appropriations Committee tomorrow. Senate Bill 972 was introduced February 23 to amend changes made by Senate Bill 975, which passed last year requiring that projects financed through industrial development bonds by the California Infrastructure and Economic Development Bank comply with existing prevailing wage laws. SB 972 would exclude from the requirements of public works and prevailing wage laws the construction, expansion or rehabilitation of privately-owned residential projects that are self-help housing projects, operated on a not-for-profit basis as housing for homeless persons or that provide for housing assistance.
WASHINGTON, D.C. – June 21, 2002
In his weekly national radio address, President Bush this week outlined his plan to create a single-family affordable housing tax credit, which he says would provide approximately $2.4 billion to produce 200,000 affordable homes for sale to low- and moderate-income families. The Bush administration has also released a booklet, “A Home of Your Own: Expanding Opportunities For All Americans,” detailing its comprehensive homeownership agenda. Click here for the booklet, and additional information on the homeownership tax credit proposal.
WASHINGTON, D.C. – June 19, 2002
The House Subcommittee on Housing and Community Opportunity yesterday approved the text of H.R. 3995, omnibus housing legislation introduced earlier this year by Rep. Marge Roukema (R-N.J.). H.R. 3995, or “The Housing Affordability for America Act,” would amend several federal affordable housing programs and features a provision to create a “thrifty voucher,” which would be based on a property’s operating costs rather than fair market rents. The bill is scheduled for mark up by the full Committee on Financial Services tomorrow at 10 a.m. For a copy of H.R. 3995, click here.
WASHINGTON, D.C. – June 18, 2002
Housing starts surged 11.6 percent in May to a seasonally adjusted annual rate of 1.73 million units, according to figures released today by the U.S. Department of Commerce. Both single-family and multifamily components of the market posted large increases and every region in the country recorded solid gains in housing production.
WASHINGTON, D.C. – June 17, 2002
Forty-one percent of working families believe the lack of affordable homes is a very or fairly big problem as compared to the lack of affordable health care, unemployment or crime, according to a new study released Sunday by the Fannie Mae Foundation. The study found a broad base of support for government leadership on the problem. Sixty-five percent of Americans agree that local government should provide leadership, while 59 percent say the federal government should take action. The survey found that at least 7 in 10 adults supported a variety of policy measures to address the lack of affordable homes with roles for the government, private and nonprofit sectors. For the complete report and more information about proposed programs to promote homeownership, click here.
WASHINGTON, D.C. – June 10, 2002
The CDFI Fund today released a notice of allocation availability and application materials for the New Markets Tax Credit program. For details, visit www.newmarketscredits.com.
WASHINGTON, D.C. – June 6, 2002
Speaking to a gathering of industry professionals at Novogradac & Company LLP’s New Markets Tax Credit Conference, CDFI Fund Financial and Program Advisor Matt Josephs today announced that the CDFI Fund’s new markets tax credit program notice of allocation availability (NOAA) will be released officially in the Federal Register on Tuesday, June 11. For more information, visit www.newmarketscredits.com.
SACRAMENTO, Calif. – June 5, 2002
The California Tax Credit Allocation Committee (TCAC) today released a list of approved reservations for its first round of low-income housing tax credit (LIHC) allocations in which it approved set-aside reservations totaling $10,565,239 in federal LIHCs and $23,298,335 in state credits. $23,384,720 in federal credits and $32,822,048 in state credits were reserved for TCAC’s geographic apportionment allocations. For a complete discussion of these awards, attend Novogradac & Company LLP's Low-Income Housing Tax Credit and Tax-Exempt Bond Applications: 2nd and 3rd Round Issues Workshop, June 25 in Los Angeles and June 26 in San Francisco.
May
WASHINGTON, D.C. – May 31, 2002
The Millennial Housing Commission yesterday released a report, “Meeting Our Nation’s Housing Challenges,” which is the culmination of a 17-month examination of the federal government’s role in meeting the nation’s housing needs at Congress’ request. The 124-page report cites a need to reform the existing practices and suggests the creation of new programs including a homeownership tax credit and a new mixed-income, multifamily rental production program. Click here for the complete report.
SACRAMENTO, Calif. – May 29, 2002
The California Debt Limit Allocation Committee (CDLAC) this week published the final proposed revisions to its procedures for allocating the state’s tax-exempt private activity bond cap. The revisions will be considered for adoption at a meeting May 31. CDLAC has also published preliminary recommendations for its second round of bond allocation, which can be appealed until May 31. Final recommendations will be posted June 10, appeals will be accepted until June 14 and CDLAC will hold its allocation meeting June 24. For a complete discussion of CDLAC's recommendations, attend Novogradac & Company LLP's Low-Income Housing Tax Credit and Tax-Exempt Bond Applications: 2nd and 3rd Round Issues Workshop, June 25 in Los Angeles and June 26 in San Francisco.
SACRAMENTO, Calif. – May 28, 2002
The California Tax Credit Allocation Committee (TCAC) on Friday, May 24, published its recommendations for 37 projects to receive funding in its first round of low-income housing tax credit (LIHC) allocations for 2002. TCAC received 129 applications requesting more than $111 million in federal credit and $125 million in state credit for its first round, and meets tomorrow to make awards. The application deadline for the second round of funding is July 16 and awards are slated for September 25. For more information, visit TCAC’s web site
WASHINGTON, D.C. – May 23, 2002
The U.S. Department of Housing and Urban Development (HUD) today published a notice of its proposed fiscal year 2003 fair market rents (FMRs) for the Housing Choice Voucher Program and Moderate Rehabilitation Single Room Occupancy Program. HUD sets FMRs to assure that a sufficient supply of rental housing is available to participants in the voucher program and publishes them annually. HUD has invited public comments regarding the proposed FMRs, which reflect estimated 40th and 50th percentile rent levels trended to April 1, 2003. Comments are due July 22 and should be submitted to the Office of the General Counsel, Rules Docket Clerk, Room 10276, Department of Housing and Urban Development, 451 Seventh Street SW, Washington, DC 20410. Click here to access the May 23 Federal Register notice online.
WASHINGTON, D.C. – May 21, 2002
The U.S. Conference of Mayors today convene a national housing forum where they will meet with members of Congress, housing policy experts and members of the community to discuss and draft a detailed set of housing policy recommendations. Specific priorities to be addressed include homeownership, rental housing, public housing and preservation of low-income housing. For a detailed agenda, visit www.usmayors.org.
WASHINGTON, D.C. – May 20, 2002
The U.S. Department of Housing and Urban Development (HUD) today released a notice soliciting public comment on “the overall scope and direction” of the draft of its tenant occupancy handbook, 4305.3 “Occupancy Requirements of Subsidized Multifamily Housing Programs.” Comments must be received by June 4 and can be mailed to HUD, Attention: Handbook 4350.3 Comments, Room 6134, 451 Seventh St., SW., Washington, D.C. 20410, or submitted electronically to occupancy_handbook_comments@HUD.gov.
WASHINGTON, D.C. – May 16, 2002
Housing starts fell 5.4 percent in April to a seasonally adjusted annual rate of 1.56 million units from a revised March estimate of 1.64 million units according to figures released today by the U.S. Department of Commerce. Much of the loss can be attributed to declines in multifamily housing starts, which fell to a seasonally adjusted rate of 261,000 units from 295,000 in March.
SACRAMENTO, Calif. – May 14, 2002
The Little Hoover Commission last week released a report that addresses California’s affordable housing crisis and recommends several solutions, including strengthening the state’s housing laws. “Rebuilding the Dream: Solving California's Affordable Housing Crisis” cites conflicting regulatory mandates, divergent policies and a lack of incentives as obstacles that have prevented state and local government from meeting the need for affordable housing. To download the report, click here. A detailed analysis of the report will be available in the June issue of the LIHTC Monthly Report.
WASHINGTON, D.C. – May 13, 2002
The Internal Revenue Service (IRS) today published Revenue Ruling 2002-24, which identifies bond factor amounts for taxpayers disposing of qualified low-income buildings or interests during the period of April through June 2002. To view the latest bond factor amounts, click here.
WASHINGTON, D.C. – May 10, 2002
The U.S. Department of Housing and Urban Development (HUD) today released a draft of its tenant occupancy handbook, 4305.3 “Occupancy Requirements of Subsidized Multifamily Housing Programs.” Willie Spearmon, HUD director of the Office of Housing Assistance and Grant Administration, in December said the handbook is being revised to reflect changes in the law, and with the hope that it will be made more “user-friendly.” HUD is also expected to publish an invitation for public comment. To download a copy of HUD Handbook 4350.3 draft, click here.
WASHINGTON, D.C. – May 8, 2002
The U.S. Department of Housing and Urban Development (HUD) today published a request in the Federal Register for comments regarding its public housing financial management template. HUD uses the template to collect financial data from public housing agencies (PHAs) using Generally Accepted Accounting Principles (GAAP) as required by the Uniform Financial Reporting Standards. Using GAAP is meant to provide comprehensive financial assessment of the PHAs receiving federal funds from HUD. Comments are due July 8.
TRENTON, N.J. – May 7, 2002
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) this week announced a new version of its Unified Application for Housing Production Programs (UNIAP), which incorporates new changes to the tax credit application approved by the NJHMFA board in March. The 2002 UNIAP Version 2.0 has also been updated with the new income limits for 2002 as well as the utility allowance chart released by the New Jersey Department of Community Affairs late last month. To access the new UNIAP, visit www.nj-hmfa.com and click on “Tax Credits.”
AUSTIN, Texas - May 3, 2002
The Texas Department of Housing and Community Affairs (TDHCA) hosted today the first in a series of weekly meetings that will be open to the public and applicants for low-income housing tax credit allocation. The meetings, held every Friday at 10:30 a.m. through June 21, are intended to provide director-level clarification on specific questions as well allowing for open discussion between applicants and TDHCA’s allocation and underwriting staff without violating the ex-parte communications statute in Title 10 of the Texas General Government Code Section 2306.113. For more information, click here.
April
SACRAMENTO, Calif. - April 29, 2002
California Gov. Gray Davis last week signed legislation to put a $2.1 billion housing bond on the November 2002 ballot. Senate Bill 1227, introduced by Senate President pro tem John Burton (D-San Francisco) and approved by the Legislature earlier this month (see Breaking News item, April 8), authorizes the $2.1 billion general obligation bond to be placed on the November 2002 ballot. If approved by voters, the measure will provide $195 million for the Emergency Housing Assistance Program and $910 million for the Multifamily Housing Program.
WASHINGTON, D.C. - April 26, 2002
The nation's affordable housing crisis has become a key issue in Congress. H.R. 3625, the reauthorization of the Temporary Assistance for Needy Families (TANF) program, is being supported by S. 2116, a bill introduced earlier this month by Sen. John Kerry (D-Mass.). S. 2116 would provide greater flexibility for states to use TANF funding to support affordable housing and plan for the housing needs of families leaving welfare. For copies of H.R. 3625 and S. 2116, click here.
WASHINGTON, D.C. – April 17, 2002
A bill introduced last week in the House would amend the Internal Revenue Code to include a provision regarding property located immediately adjacent to qualified census tracts (QCT). House Resolution 4194, introduced by Rep. John Lewis (D-Ga.), would modify Section 42(d)(5)(C)(ii) to allow land contiguous to a QCT, which meets certain criteria of a qualified allocation plan, to be treated as if it were located in a QCT for purposes of the low-income housing tax credit. Click here for more information on QCTs. For a copy of H.R. 4194, click here.
WASHINGTON, D.C. – April 16, 2002
Housing starts fell 7.8 percent in March to a seasonally adjusted rated of 1,646,000 units, according to figures released today by the U.S. Department of Commerce. Single-family building, which fell 11 percent from February, accounts for the steep decline; multifamily starts last month rose to a seasonally adjusted rate of 292,000 units.
WASHINGTON, D.C. – April 10, 2002
Representatives from the National Council of State Housing Agencies, National Low Income Housing Coalition and Mortgage Bankers Association of America today testified at a House Financial Services Housing and Community Opportunity Subcommittee hearing regarding HR 3995. The measure, introduced last month by Rep. Marge Roukema (R-N.J.), features a proposal for a new “thrifty production voucher,” which would be based on a property’s operating costs rather than fair market rents and could be combined with other affordable housing funding including low-income housing tax credits. For more information, click here.
SACRAMENTO, Calif. – April 8, 2002
The California Assembly last week passed Senate Bill 1227 to place a measure on the November ballot to authorize the issuance of $2 billion in bonds for various housing programs, including $910 million for the Department of Housing and Community Development’s multifamily housing program. SB 1227 was passed by the Senate in June 2001, and now must be signed by Gov. Gray Davis before it can be included on the ballot.
WASHINGTON, D.C. – April 3, 2002
The U.S. Department of Agriculture (USDA) Rural Housing Service today published a notice of funding availability for the Rural Community Development Initiative (RCDI), including program eligibility requirements and evaluation criteria. Approximately $12 million in grants is available for the RCDI; applications are due July 2. For more information, click here.
March
WASHINGTON, D.C. – March 27, 2002
The Community Development Financial Institutions Fund (CDFI) has published lists of the 188 community development entities (CDEs) that are currently certified to participate in the New Markets Tax Credit (NMTC) Program and eligible for NMTC allocation. CDFI is still accepting applications for certification. Click here for lists of certified CDEs. For more information, visit www.newmarketscredits.com.
WASHINGTON, D.C. – March 26, 2002
The U.S. Department of Housing and Urban Development (HUD) today announced the availability of more than $2.2 billion in a Super Notice of Funding Availability (SuperNOFA) for its 41 discretionary grant programs for fiscal year 2002. Additional information is available at www.hud.gov.
WASHINGTON, D.C. – March 21, 2002
House Resolution 3995, introduced in the House earlier this week by Reps. Marge Roukema (R-N.J.) and Mark Green (R-Wisc.), would make changes to several federal affordable housing programs in an attempt to increase the availability of affordable housing. The bill would make more families eligible for the Section 8 rental vouchers program by simplifying income limit regulations and would also modify the HOME Investment Partnerships Program, FHA multifamily mortgage limits and Public Housing programs. Click here to view HR 3995.
WASHINGTON, D.C. – March 20, 2002
Housing starts in February rose 3 percent above the revised January estimate to a seasonally adjusted rated of 1,796,000 units, according to figures released today by the U.S. Department of Commerce. Much of the activity was single-family building; multifamily starts in February fell 12 percent to a seasonally adjusted rate of 264,000 units.
SAN FRANCISCO – March 19, 2002
The Board of Supervisors yesterday approved a proposal to amend the city’s planning code to require residential developers building 10 or more rental units to provide at least 10 percent of those at prices affordable at 60 percent or less of the San Francisco median income, or $36,150 a year. Under the plan, builders who choose not to include affordable units would be required to pay a fee to an affordable housing fund determined by the number of units in the project. To become law, the proposal must be signed by Mayor Willie Brown. Click here for details.
SEATTLE – March 18, 2002
The Washington State Housing Finance Commission (WSHFC) today published its low-income housing tax credit application, which includes the final 2002 qualified allocation plan (QAP). Applications are due May 10. Click here for WSHFC's QAP and application materials.
WASHINGTON, D.C. – March 15, 2002
Senate Bill 2006, introduced by Sen. Bob Graham (D-Fla.) earlier this week, would clarify specific development costs that may be included when calculating the amount of tax credits for which a multifamily project qualifies under the federal low-income housing tax credit (LIHC) program. S.B. 2006 is the companion bill to House Resolution 3324, introduced by Rep. Nancy Johnson (R-Conn.) in November. The measures are intended to specifically identify costs that would be included in eligible basis under the LIHC program, such as state and local impact fees and site preparation costs. For copies of the legislation, click here.
WASHINGTON, D.C. - March 8, 2002
Congress today passed House Resolution 3090, an economic stimulus bill, which along with extended benefits for the unemployed, includes significant tax cuts, such as a provision that would modify depreciation expensing rules. The measure, which yesterday passed the House 417-3 and today was approved by the Senate 85-9, will now be sent to President Bush, who is expected to sign it. For more information, click here.
WASHINGTON, D.C. – March 4, 2002
The Internal Revenue Service (IRS) published bond factor amounts for taxpayers disposing of qualified low-income buildings or interests during the period of January through March 2002 in Revenue Ruling 2002-08. To view the latest bond factor amounts, click here.
February
WASHINGTON, D.C. – February 25, 2002
The Internal Revenue Service in Notice 2002-13 published population figures for calculating the 2002 calendar year population-based component of the state low-income housing tax credit (LIHC) ceiling under § 42(h)(3)(C)(ii) of the Internal Revenue Code and the 2002 calendar year volume cap for tax-exempt private activity bonds under § 146. Click here for Notice 2002-13 and the latest figures.
WASHINGTON, D.C. – February 22, 2002
The Internal Revenue Service (IRS) has published applicable federal rates and tax credit percentage rates for February. To view the latest rates, click here. To download Revenue Ruling 2002-10, click here.
WASHINGTON, D.C. – February 21, 2002
The U.S. Department of Housing and Urban Development today published an invitation for comments regarding the reasonableness of the Annual Adjustment Factor (AAF) Rent Increase Requirement of the Housing Appropriations Act of 1994, which is used to adjust contract rents. Comments are due by March 25, and should be sent to: Joseph F. Lackey, Jr., OMB Desk Officer, Office Of Management and Budget, Room 10235, New Executive Office Building, Washington D.C. 20503. For more information, click here.
WASHINGTON, D.C. – February 19, 2002
Housing starts rose 6.3 percent in January to the highest level in almost two years, according to figures released today by the U.S. Department of Commerce. Building permits also rose in January, by 3.1 percent, to their highest level in a year.
WASHINGTON, D.C. – February 15, 2002
The IRS has released Revenue Ruling 2002-9 which says that state and local impact fees can be included in eligible basis for low-income housing tax credit projects. The ruling concludes that impact fees are indirect costs that should be capitalized and included in the basis of the building(s). Click here for the ruling. For the IRS' announcement on its guidance to including impact fees in basis of building, click here.
WASHINGTON, D.C. – February 13, 2002
The U.S. Department of Housing and Urban Development (HUD) today published corrections to its final rule determining adjusted income in HUD programs servicing persons with disabilities, such as HOME Investment Partnerships, Housing Opportunities for Persons with AIDS, supportive housing and housing choice voucher programs. The amendments were made to correct technical errors, and included clarification of the definition of “qualified family.” For more information, click here.
WASHINGTON, D.C. – February 11, 2002
The U.S. Department of Housing and Urban Development today published operating cost adjustment factors (OCAFs) for fiscal year 2002. OCAFs are used to calculate rent adjustments under section 524 of the Multifamily Assisted Housing Reform and Affordability act of 1997, as amended by the Preserving Affordable Housing for Senior Citizens and Families into the 21st Century Act of 1999, and under the Low-Income Housing Preservation and Resident Homeownership Act of 1990. For more information, click here.
WASHINGTON, D.C. – February 7, 2002
The U.S. Department of Housing and Urban Development late last month announced the designation of 40 Renewal Communities (RCs), which are eligible to share in an estimated $17 billion in tax incentives to stimulate job growth, promote economic development and create affordable housing. For a list of RCs and more information about the incentives for which they are entitled, click here.
WASHINGTON, D.C. – February 6, 2002
The U.S. Department of Housing and Urban Development (HUD) will reduce the section 221(d)(4) mortgage insurance premium from 80 to 57 basis points in fiscal year 2003. The reduction, effective October 1, 2002, is included in President Bush’s proposed budget for 2003, which was released February 4. For more information, visit www.whitehouse.gov/omb.
WASHINGTON, D.C. – February 5, 2002
President Bush yesterday announced a proposed budget for 2003 that provides $31.5 billion for the U.S. Department of Housing and Urban Development (HUD). That sum includes funding for approximately 34,000 additional Section 8 incremental vouchers, $2.1 billion for the HOME program and a proposed $1.7 billion tax credit to support the rehabilitation or new construction of an estimated 100,000 homes for purchase by low-income households.
WASHINGTON, D.C. – February 4, 2002
The Internal Revenue Service (IRS) today published corrections to the proposed and temporary regulations governing the New Markets Tax Credit Program. According to the IRS, “as published, the temporary regulations (TD 8971) contain errors that may prove to be misleading and are in need of clarification.” For more information, go to www.newmarketscredits.com.
WASHINGTON, D.C. – February 1, 2002
The U.S. Department of Housing and Urban Development (HUD) yesterday released fiscal year 2002 income limits. These figures, based on HUD estimates of median family income for 2002, are used to determine the income eligibility for applicants for the Public Housing, Section 8 and other programs. The new limits went into effect yesterday, January 31.
January
SACRAMENTO, Calif. – January 30, 2002
The California Tax Credit Allocation Committee TCAC) today released its 2002 final regulations for implementing the federal and state low-income housing laws. To view TCAC’s qualified allocation plan and 2002 regulations, click here.
SACRAMENTO, Calif. - January 25, 2002
The California Tax Credit Allocation Committee (TCAC) today released the second draft of its proposed regulation changes for the 2002 Housing Tax Credit Program. After publication of TCAC’s first draft of the proposed 2002 regulations in mid-December, two public hearings were held, during which 39 people testified. The Committee also received 82 written comments on the regulations. As a result of that input, several of the initially suggested changes have been either dropped or modified.
WASHINGTON, D.C. - January 24, 2002
Twenty-six housing and community development groups have formed the Community Homeownership Credit Coalition to support the enactment of a homeownership tax credit program that would increase the supply of affordable homes for sale. The community homeownership tax credit program, which would be modeled after the federal low-income housing tax credit program, was included in the Bush administration’s fiscal year 2002 budget proposal. Coalition members include: the National Association of Realtors, the Mortgage Bankers Association of America, the National Association of Home Builders, the National Association of Local Housing Finance Agencies and the National Council of State Housing Agencies. Click here to learn more.
WASHINGTON, D.C. - January 23, 2002
The Internal Revenue Service (IRS) is seeking comments on Form 8609, Low-Income Housing Credit Allocation Certification, and related Schedule A, Annual Statement. Comments should address whether the collection of information has practical utility, and suggest ways to minimize the burden borne by respondents in collecting information. Comments are due by March 18.
WASHINGTON, D.C. - January 22, 2002
The Internal Revenue Service (IRS) last week released Technical Advice Memoranda (TAMs) that concluded that previous TAMs, which ruled that impact fees were intangible expenditures not associated with project development, and thus were not includable in tax credit eligible basis, should apply retroactively to tax credit partnerships. It then suspended the application of the TAMs and declined to consider relief on the issue "at this time." Meanwhile, eligible basis remains the subject of an IRS Industry Issue Resolution Pilot Program; findings are expected early this year.
WASHINGTON, D.C. – January 21, 2002
The Internal Revenue Service (IRS) has published applicable federal rates and tax credit percentage rates for February.
SEATTLE – January 18, 2002
The Washington State Housing Finance Commission (WSHFC) today released a draft of its 2002 proposed program policy changes for its low-income housing tax credit program. A preliminary timeline has also been posted to the WSHFC website outlining tentative dates including the release of tax credit application packets in mid-March and a deadline for applications in late May. To view the proposed draft, click here. To access the latest QAPs and tax credit applications, click here.
WASHINGTON, D.C. – January 17, 2002
Housing starts rose 2.2 percent in 2001, according to figures released today by the U.S. Department of Commerce. Figures also showed a 3.4 percent drop in housing starts for the month of December, caused predominately by a decline in multifamily production, which fell 26.5 percent to a rate of 277,000 units in December.
WASHINGTON, D.C. - January 16, 2002
The U.S. Department of Housing and Urban Development yesterday announced it had designated seven new empowerment zones (EZs). Chosen from 35 applications, the new zones are: Pulaski County, Ark.; Fresno, Calif.; Jacksonville, Fla.; Syracuse and Yonkers, N.Y.; Oklahoma City, Okla.; and San Antonio, Texas. This brings the total number of urban EZs to 30. The designation allows area businesses and residents access to a federal, state, local and private funding as well as business tax credits and housing, health care, education benefits within the EZ.
WASHINGTON, D.C. - January 15, 2002
The U.S. Department of Housing and Urban Development Office of the Inspector General today released an update of the Consolidated Audit Guide for Audits of HUD Programs. Handbook 2000.04 REV-2 CHG-1 incorporates revised reporting standards and program compliance for multifamily housing and is available online. The updated chapters are available at www.hudclips.org on the library page, under the heading "Inspector General."
COLUMBIA, S.C. – January 11, 2002
The South Carolina State Housing Finance & Development Authority today released its final 2002 qualified allocation plan (QAP). Included in the QAP is a schedule for the two-tiered applications process; the deadline for Tier One applications is March 5 and Tier Two applications are due May 13. To view states’ draft and final 2002 QAPs, click here.
SAN FRANCISCO – January 10, 2002
The Federal Home Loan Bank of San Francisco this week announced that it awarded more than $38 million though its Affordable Housing Program (AHP) in 2001. In total, AHP subsidized 123 affordable housing projects in Arizona, California and Nevada.
WASHINGTON, D.C. - January 9, 2002
A binding commitment, such as a carryover resolution, does not allocate § 42 credit and therefore it should not be treated as an allocation, according to Internal Revenue Service (IRS) Information Letter 2001-0292. This means a state’s housing credit ceiling is reduced only in the year the credit is allocated - not in the year in which the carryover resolution was made. Accordingly, credit agencies completing Form 8610 should not treat carryover resolutions as allocations; only actual LIHC allocations should be listed. For more information, click here.
CHICAGO - January 3, 2002
The Illinois Housing Development Authority announced late last month the launch this year of a new state housing tax credit program that will provide as much as $26 million for affordable housing. Application deadlines for the new state credit are January 7 and April 8. The credit can be used by itself or with other financing tools, such as the federal low-income housing tax credit (LIHC), bank loans or other government housing funds.
SACRAMENTO, Calif. – January 2, 2002
The California Debt Allocation Committee (CDLAC) late last month published proposed procedures for its 2002 bond allocation. The revision includes, among other things, requirements for market studies and changes to what constitutes a “taxable tail.” Written comments on the changes will be accepted through February 1. According to a revised allocation schedule, the application deadline for the first of three rounds has been set for January 23; the proposed changes will take effect by the second allocation round, for which applications are due April 17.