Sacramento, Calif. - December 28, 2004
The California Tax Credit Allocation Committee (TCAC) will hold public hearings on January 12 and January 14, 2005 with respect to proposed amendments to the low-income housing tax credit (LIHTC) qualified allocation plan (QAP).
Austin, Texas - December 22, 2004
The Texas Department of Housing and Community Affairs (TDHCA) approved on December 13, the 2005 qualified allocation plan (QAP) with emergency amendments. That QAP, with one modification, was signed yesterday by Gov. Rick Perry and is available online here. Several sections were changed through the modification and amendments, including the definition for at-risk development, maximum number of points and several scoring items.
Washington, D.C. - December 21, 2004
The Rural Housing Service (RHS) has made available three handbooks that accompany the recent overhaul of its Multi Family Housing (MFH) program regulations that consolidated and simplified 14 existing regulations, including Section 515 Rural Rental Housing (RRH) loan program, the Section 514/516 Farm Labor Housing loan and grant program, and the Section 521 Rental Assistance (RA) program. The handbooks are effective as of February 24, 2005.
Sacramento, Calif. - December 20, 2004
The California Tax Credit Allocation Committee (TCAC) last week published a draft of its regulations for the administration of the 2005 low-income housing tax credit (LIHTC) program. Click here for a copy of the draft regulation.
The Affordable Housing Tax Credit Coalition (AHTCC) reports that the House is expected to pass the bill quickly and send it to the President for signature before the congressional holiday recess.
Raleigh, N.C. - December 17, 2004
The North Carolina Housing Finance Agency (NCHFA) and Virginia Housing Development Authority (VHDA) have issued policies regarding qualified contracts for Year 15 low-income housing tax credit (LIHTC) properties. The rules cover administration of requests and include an application form. Future guidance is expected to cover calculation of the qualified contract price. Click here for NCHFA's policy. Click here for VHDA's policy.
To discuss qualified contracts and other Year 15 issues, join Novogradac & Company LLP in Miami January 5-7 for the 11th Annual Tax Credit Developers Conference where a set of three panels will be offered on Year 15: Exit Strategies for the Owner/Developer, Strategies for the Housing Agency, and Taking Action – a case study. Don't miss this chance to hear practical guidance on partnership agreement language regarding rights of first refusal, buyout options, qualified contracts, negative capital accounts, exit taxes and bargain sales.
Washington, D.C. - December 14, 2004
The U.S. Department of Housing and Urban Development today published a final rule making a regulatory change that allows the proceeds from syndication of low-income housing tax credits (LIHTCs) and historic tax credits to be treated in the same manner as loan or grant funding provided through federal, state or local government agencies. Click here for a copy of the rule.
Washington, D.C. - December 13, 2004
Federal agencies, including the Department of Housing and Urban Development, Internal Revenue Service (IRS) and Treasury, published their semiannual regulatory agendas, listing hundreds of regulations and other guidance projects that are planned or that will be developed in the coming year. Among the guidance listed in the final rule stage is a rule proposed by HUD that amends 24 CFR 200.54(b) to provide that low-income housing tax credit (LITHC) syndication proceeds and historic tax credit syndication proceeds will be treated in the same manner as funds provided by a grant or loan from a federal, state or local government agency or instrumentality to the extent that these proceeds do not have to be fully disbursed before the disbursement of mortgage proceeds. Click here for a copy of HUD's regulatory agenda. Treasury also has guidance planned regarding multifamily housing bonds and the LIHTC program. Click here for Treasury's guidance agenda.
Washington, D.C. - December 9, 2004
President George W. Bush yesterday signed the $388 billion H.R. 4818 “Consolidated Appropriations Act, 2005,” which provides fiscal year 2005 appropriations for nine of the 13 regular appropriations bills, including the Department of Housing and Urban Development (HUD). The bill includes $37.3 billion for HUD, $618 million below last year's level and $521 million above the president's request. Click here for a copy of H.R. 4818.
New York, N.Y. - December 8, 2004
In a keynote address to New York Housing Conference and National Housing Conference (NHC) Annual Awards Luncheon – his first public speech as new member of Senate Finance Committee –Sen. Charles E. Schumer yesterday proposed doubling the low-income housing tax credit (LIHTC), and saving 1 million existing units of affordable housing by fixing a federal tax Catch-22 that blocks aging buildings being sold to rehabilitation groups. Schumer's proposal would double the current LIHTC – from the fiscal year 2005 level of $1.85 per capita to $3.70 in FY 2006. Click here for a transcript of Schumer's address.
Washington, D.C. - December 1, 2004
The U.S. Department of Agriculture (USDA) Rural Housing Service (RHS) last week issued an interim final rule intended to consolidate and simplify 14 existing regulations. RHS is streamlining and reengineering its regulations, as well as utilizing several private sector processes and techniques in the administration of the origination, management, servicing and preservation of its Multi-Family Housing (MFH) programs. These programs include the section 515 Rural Rental Housing (RRH) loan program, the section 514/516 Farm Labor Housing loan and grant program, and the section 521 Rental Assistance (RA) program. The interim final rule is effective February 24, 2005 but written or e-mail comments will be considered if they are received on or before December 27, 2004. Click here for a copy of the rule.
Washington, D.C. - November 30, 2004
The U.S. Department of Housing and Urban Development today published a notice designating difficult development areas (DDAs) for purposes of the low-income housing tax credit (LIHTC) under Section 42 of the Internal Revenue Code (IRC). HUD makes new DDA designations annually; the 2005 lists of DDAs are effective for LIHTC allocations after December 31, 2004 or for purposes of IRC Section 42(h)(4)(B), if the bonds are issued and the building is placed in service after December 31, 2004. The designations of qualified census tracts published December 12, 2002, as supplemented on December 19, 2003, remain in effect. Click here for a copy of the notice.
Washington, D.C. - November 23, 2004
The U.S. Department of Housing and Urban Development (HUD) today proposed a rule that would require all applicants for HUD grants and other financial assistance to submit applications electronically through a web site. HUD says it expects that electronic grant application submission will standardize, simplify and improve the integrity of the grant making process. HUD is required to make this transition by goals set out in the President's Management Agenda for Fiscal Year 2002, which includes a requirement for federal agencies to allow applicants for federal grants and other federal financial assistance to find, apply for, and ultimately manage grant funds online through a common government-wide portal. Click here for details.
Washington, D.C. - November 22, 2004
The Internal Revenue Service (IRS) announced in Revenue Procedure 2004-71 the inflation-adjusted low-income housing tax credit (LIHTC) and private activity bond caps for 2005. For calendar years beginning in 2005, the amount used under §42(h)(3)(C)(ii) to calculate the state LIHTC ceiling is the greater of $1.85 multiplied by the state population or $2,125,000. The amount used under §146(d)(1) to calculate the state ceiling for the volume cap for private activity bonds in 2005 is the greater of $80 multiplied by the state population or $239,180,000. Click here to view Rev. Proc. 2004-71.
Sacramento, Calif. - November 19, 2004
The California Tax Credit Allocation Committee (TCAC) this week published a tentative schedule for its 2005 low-income housing tax credit (LIHTC) program. Click here for a copy of the schedule.
Washington, D.C. - November 19, 2004
The Internal Revenue Service (IRS) today invited comments on PS-106-91 (T.D. 8563), State Housing Credit Ceiling and Other Rules Relating to the Low-Income Housing Credit (Sec. 1.42-14). The regulation provides rules relating to the order in which housing credit dollar amounts are allocated from each state's LIHTC ceiling under Section 42(h)(3)(C) and the determination of which states qualify to receive credit from a national pool of credit under section 42(h)(3)(D). The regulation affects state and local housing credit agencies and taxpayers receiving credit allocations, and provides them with guidance for complying with Section 42. No changes are made to the existing regulation. Comments must be submitted on or before January 18, 2005. Click here for details.
Austin, Texas - November 17, 2004
The Texas Department of Housing and Community Affairs (TDHCA) today published a final draft of its 2005 qualified allocation plan (QAP) and information about the application process for next year's low-income housing tax credit (LIHTC) allocation round. TDHCA will have approximately $40 million in LIHTC authority available in 2005. The cycle opens December 8 (listed originally as December 10) and applications are due January 5, 2005.
Washington, D.C. - November 16, 2004
The U.S. Department of Housing and Urban Development (HUD) today published a notice finalizing mortgage insurance premiums (MIP) for Section 221(d)(4) and Section 232 Federal Housing Administration (FHA) mortgage insurance programs whose commitments issued in fiscal year (FY) 2005, including project mortgages with and without low-income housing tax credits (LIHTCs). HUD published a notice in August inviting comments on the proposed FY 05 MIPs and did not receive any comments; today HUD made the August 23 notice final without change. Click here for the FY 05 MIPs effective December 16, 2004.
Lansing, Mich. - November 15, 2004
A total of 552 units of affordable rental housing will be built or renovated for low- and moderate-income Michigan families, the elderly, people with disabilities and those at risk of homelessness as a result of more than $6 million in low-income housing tax credit (LITHC) allocations approved by the Michigan State Housing Development Authority (MSHDA), the agency announced this month. MSHDA acting executive director Rick L. Laber said the entire $6,281,599 total was awarded in distressed areas and rural communities throughout the state. Click here for details about the developments awarded credits.
Albany, N.Y. - November 10, 2004
The New York State Division of Housing and Community Renewal (NYDHCR) last week announced the availability of low-income housing tax credits (LIHTCs) for 2005. NYDHCR expects to have approximately $20 million available for LIHTC reservations. The maximum amount of the annual tax credit allocation that may be requested per application is $1 million. Applicants requesting LIHTCs for projects in which 50 percent or more of the units will serve large families or special needs populations, and that will provide services to those special populations, may request as much as $1.2 million. Of the $20 million available, as much as $2 million may be made available for preservation projects as defined in NYDHCR's qualified allocation plan (QAP) dated April 17, 2001. Additionally, an amount of as much as $2 million may be made available for redevelopment of public housing that has met the conditions for approvals required under the New York State Public Housing Law. Applications must be delivered to NYDHCR by 5 p.m., February 28, 2005.
Salem, Ore. - November 9, 2004
Oregon Housing and Community Services (OHCS) announced the awards in its most recent round of low-income housing tax credit (LIHTC) allocation. OHCS awarded $3,678,158 in LIHTCs to seven projects to create a total of 408 units of housing.
Idaho Falls, Idaho - November 8, 2004
Affordable housing property owners, managers and landlords in Eastern and Southeastern Idaho are invited attend a free workshop hosted by the Idaho Housing and Finance Association (IHFA) to hear the latest on fair housing, rental assistance and program compliance. The session will be held at 9:30 a.m. Wednesday, November 17, at the Red Lion Hotel, 475 River Parkway. Dr. Richard Stewart of Idaho Legal Aid will speak on fair housing issues, and the workshops will include information about the Section 8 Rental Assistance Program and a question-and-answer session. Seating is limited and attendees are required to call to reserve space by contacting IHFA's Idaho Falls office at (208) 522-6002, or toll-free 1-866-684-3756.
Washington, D.C. - November 4, 2004
The Internal Revenue Service (IRS) today issued three notices expanding previous relief from Notice 2004-66, which suspended certain income limitations requirements under Section 42 of the Internal Revenue Code for certain low-income housing tax credit (LIHTC) properties in Florida that were affected by the devastation caused by Hurricane Charley and Hurricane Frances. Notice 2004-74 provides similar relief for Alabama areas struck by Hurricane Ivan; Notice 2004-75 includes relief for Ohio areas struck by severe post-hurricane storms and flooding; and Notice 2004-76 amplifies and supersedes Notice 2004-66 expanding relief to Florida areas struck by Hurricanes Ivan and Jeanne as well as the original areas affected by Charley and Frances. Click here for copies of the notices.
Denver, Colo. - November 4, 2004
The Colorado Housing & Finance Authority (CHFA) announced a low-income housing tax credit (LITHC) application workshop December 2, 2004 from 9 a.m to 12 p.m. in Denver, Colo. CHFA will explain the new features of its LIHTC application for 2005 and share tips that will expedite the processing of the application. Interested participants can RSVP by e-mail to firstname.lastname@example.org. Attendance is limited to 40 participants and reservations will be taken on a first-come, first-served basis and priority will be given to multifamily housing developers. A second workshop will be scheduled for December 7, 2004 if interest from multifamily housing developers exceeds the 40 spaces available.
Washington, D.C. - November 3, 2004
The U.S. Department of Housing and Urban Development (HUD) today published a notice of funding availability for $140 million in HOPE VI grants. Approximately $120 million of the fiscal year 2004 HOPE VI appropriation has been allocated to fund revitalization grants and will be divided among approximately six awardees. An additional $20 million of the HOPE VI appropriation will be allocated for Housing Choice Voucher (HCV) assistance that will be provided to the revitalization awardees. Click here for a copy of the NOFA.
Washington, D.C. - November 2, 2004
The U.S. Department of Housing and Urban Development (HUD) today published a notice extending eligibility for areas that were designated as difficult development areas (DDAs) in 2003, but not in 2004. In the notice, HUD says that a “reasonable accommodation should be made to allow the DDA and qualified census tract (QCT) features of the low-income housing tax credit (LITHC) to work effectively.” HUD says it is revising the definition of effective date of the 2004 DDAs, because tying the effective date of DDAs and QCTs to the allocation of LIHTC (or the issuance of tax-exempt bonds and placement in service) without regard to the application date for these federal subsidies increases uncertainty in the development and financing process of affordable rental housing in areas that lose DDA or QCT designations. Click here for the notice. Click here for information on DDAs and QCTs.
Washington, D.C. - November 2, 2004
The U.S. Department of Housing and Urban Development (HUD) today finalized a rule setting annual housing goals for government sponsored entities (GSEs) Fannie Mae and Freddie Mac for the next four years. These targets will increase year-by-year from 2005 through 2008. HUD's rule establishes new subgoals for low- and moderate-income, underserved areas, and special affordable percentages of home purchase loans that are purchased by the GSEs. HUD says the final rule includes consideration of more than 300 comments received from the GSEs, Congress and a broad spectrum of organizations within the mortgage finance industry. After analyzing the comments and reviewing Home Mortgage Disclosure Act (HMDA) data, HUD reduced by one percentage point some of the housing goals from the levels contained in the proposed rule.
Washington, D.C. - November 1, 2004
The Internal Revenue Service (IRS) today requested applications for membership to serve on the Advisory Committee on Tax Exempt and Government Entities (ACT). Applications will be accepted for the following vacancies that will occur in May 2005: Two vacancies on employee plans; two on exempt organizations; one on federal, state and local governments; and one on tax exempt bonds. There are no vacancies for Indian tribal governments. To ensure appropriate balance of membership, the IRS says final selection from qualified candidates will be determined based on experience, qualifications and other expertise. Written applications or nominations must be received on or before December 1, 2004. Information about applying for membership in the ACT can be found here.
Washington, D.C. - October 27, 2004
The Rural Housing Service (RHS) today announced the availability of $6 million of grant funds for the Rural Community Development Initiative (RCDI) program. Applicants must provide matching funds in an amount at least equal to the federal grant. These grants will be made to qualified intermediary organizations that will provide financial and technical assistance to recipients to develop their capacity and ability to undertake projects related to housing, community facilities or community and economic development. The deadline for receipt of an application is 4 p.m. Eastern Standard Time January 25, 2005. Click here for more information.
Washington, D.C . - October 22, 2004
President George W. Bush today signed into law H.R. 4520, the “American Jobs Creation Act of 2004,” which contains provisions to enhance community revitalization incentives in economically distressed regions by enhancing eligibility criteria for Renewal Communities and the New Markets Tax Credit (NMTC). However, despite some progress earlier this year, housing provisions including a repeal of the mortgage revenue bond 10-Year Rule were dropped prior to its passage by Congress. The new law also repeals the extraterritorial income exclusion in current tax law; provides domestic manufacturing and other business tax relief, including energy-related tax credits; allows for itemized deduction of state and local sales taxes; provides for reform of tobacco subsidies; includes international tax reform and simplification provisions; and includes various revenue-raising provisions. Click here for a copy of H.R. 4520.
Columbia, S.C . - October 19, 2004
The South Carolina State Housing Finance and Development Authority (SCSHFDA) will accept public comment on the proposed 2005 qualified allocation plan (QAP) and 2005 manual to be used in making allocations of the low-income housing tax credit (LIHTC) under Section 42 of the Internal Revenue Code. A public hearing has been scheduled for November 4, 2004.
Nashville, Tenn . - October 14, 2004
The Tennessee Housing Development Agency (TDHA) 2005 low-income housing tax credit (LIHTC) qualified allocation plan (QAP) and exhibits have been approved by Gov. Phil Bredesen and are available here.
Frankfort, Ky. - October 12, 2004
The Kentucky Housing Corporation (KHC)'s draft qualified allocation plan (QAP) references October 15, 2004, as the beginning date for open window low-income housing tax credit (LIHTC) application submission, but KHC has instructed applicants to disregard this date. Many comments on the draft QAP were received during the comment period and the public hearing and in order to consider these comments fully and to make any necessary changes in the draft QAP, KHC says it will delay the opening of the LIHTC application window until the QAP has been finalized. Interested parties can contact Tom Wolfe by e-mail at email@example.com or by telephone at (502) 564-7630, extension 416.
Phoenix - October 11, 2004
The Arizona Department of Housing has announced the schedule for their annual focus group meetings to gather public comment on the qualified allocation plan (QAP).Click here for copy of the draft QAP.
Sacramento, Calif. - October 8, 2004
The California Tax Credit Allocation Committee (TCAC) announced this week that due to the under subscribed at-risk set-aside in the second funding round of 2004, it will hold a third funding round for projects qualifying for the at-risk set-aside. Applicants may submit applications until Friday November 5, 2004 at 5:00 p.m. TCAC will make the awards at its regularly scheduled meeting in December.
Columbus, Ohio - October 7, 2004
While it has been by no means a major issue, presidential candidates have each expressed their support for affordable housing in recent forums. In an address to the National Association of Home Builders (NAHB) Board of Directors last week President George W. Bush reiterated his commitment to making housing more affordable through regulatory reform and several legislative proposals, including the Homeownership Tax Credit. Democratic presidential candidate Sen. John F. Kerry expressed his views on affordable housing in written answers to questionnaires sent to both candidates by the Campaign for Housing and Community Development Funding (CHCDF).
Washington, D.C . - October 4, 2004
Upon the sunset of the Office of Multifamily Housing Assistance Restructuring (OMHAR) on September 30, 2004, the U.S. Department of Housing and Urban Development (HUD) announced the creation of its successor organization, the Office of Affordable Housing Preservation (OAHP) effective October 1, 2004. OAHP will be responsible for administration of the Mark to Market program and will be directed by Deputy Assistant Secretary Charles “Hank” Williams, under HUD's Office of Housing and FHA Commissioner John Weicher. Click here for the new office's contact information.
Washington, D.C . - September 28, 2004
Today the U.S. Department of Housing and Urban Development (HUD) announced its final annual fair market rents (FMRs), which will appear in the Federal Register on Friday, Oct. 1, 2004 and will take effect immediately. HUD received more than 350 comments on the proposed 2005 FMRs published in early August. Those FMRs utilized both 2000 Census data and new Office of Management Budget definitions of metropolitan statistical areas. Many of the comments HUD received from industry partners centered around the new OMB area definitions that caused wide swings for certain communities. To alleviate these concerns, HUD will implement the new rent levels using 2000 Census data, as required by Congress, but without using the new OMB area definitions.
Washington, D.C . - September 27, 2004
The Federal Historic Rehabilitation Tax Credit program has been and remains one of the most powerful and successful federal tools to preserve our nation's historic inner cities and town centers, the National Park Service (NPS) said last month. In a paper released in August, NPS proposed an initial work plan for improving the administration of the historic rehabilitation tax credit program in response to recommendations developed and submitted to NPS by the Historic Preservation Development Council (HPDC), the National Trust for Historic Preservation (NTHP) and the National Conference of State Historic Preservation Officers (NCSHPO).
To discuss the NPS report and other recent developments in the Historic Rehabilitation Tax Credit industry, join Novogradac & Company LLP in San Francisco for the Historic Tax Credit Conference October 27-29, 2004.
Washington, D.C . - September 24, 2004
The Internal Revenue Service (IRS) today invited public comments concerning Notice 2004-66, which suspended certain income limitations requirements under Section 42 of the Internal Revenue Code for certain low-income housing tax credit (LIHTC) properties in Florida that were affected by the devastation caused by Hurricane Charley and Hurricane Frances. Comments are due by November 23, 2004.
Meanwhile, the Florida Housing Finance Corporation (FHFC) announced that it is drafting guidelines for owners and property management companies who will be leasing units to displaced individuals. Once complete, these guidelines will be posted online at www.floridahousing.org. FHFC has also posted to its web site a statewide list of vacant rental units that could be available for rent to displaced individuals, including properties financed with or without LIHTCs. More than 6,000 units were identified as vacant as of August 31.
Washington, D.C . - September 22, 2004
The Rural Housing Service's (RHS) internal controls do not provide adequate oversight of rental assistance funds because RHS guidance is inadequate and tenants' incomes are not adequately verified, according to a report released today by the Government Accounting Office (GAO). In its report, the GAO recommends that the Secretary of Agriculture require that program officials establish centralized guidance on transferring unused rental assistance, improve sampling methods to select tenant household files for supervisory reviews, and improve verification of tenant information. Click here for a copy of the report.
Washington, D.C . - September 21, 2004
The Senate Appropriations Committee met today to mark-up the District of Columbia and VA-HUD Fiscal Year 2005 Appropriations bills. The Senate draft bill is expected to be unveiled at today's hearing. The House Appropriations Committee approved its version of the FY 2005 VA-HUD appropriations bill (H.R. 5041) in late July.
Washington, D.C . - September 16, 2004
The Internal Revenue Service (IRS) and Treasury Department today issued a notice that provides that the temporary housing of displaced individuals in low-income units in Florida will not cause the owners to lose low-income housing tax credits (LIHTCs). Notice 2004-66 suspends certain income limitation requirements under Section 42 of the Internal Revenue Code for certain LIHTC properties in Florida as a result of the devastation caused by Hurricane Charley and Hurricane Frances. This relief is being granted pursuant to the IRS's authority under §42(n) and Section 1.42-13(a) of the Income Tax Regulations. The Treasury Department and the IRS also indicated they would entertain similar requests from other states affected by recent natural disasters.
Denver, Colo . - September 15, 2004
The Colorado Housing Finance Agency (CHFA) is currently accepting comments on its qualified allocation plan (QAP) for the administration of the 2005 low-income housing tax credit (LIHTC) program. Written comments can be mailed to 1981 Blake St., Denver, Colo. 80202, e-mailed to qapInput@colohfa.org, or faxed to (303)297-0911. Changes to the QAP will be discussed at the Colorado Housing NOW Conference October 4-5 in Steamboat Springs. Click here for copies of draft and final QAPs for 2005.
Frankfort, Ky. - September 14, 2004
The Kentucky Housing Corporation (KHC) will hold a public hearing at 1 p.m., EDT, tomorrow at the Salato Wildlife Education Center at the Kentucky Department of Fish and Wildlife Resources Game Farm to gather comments for the 2005-2006 low-income housing tax credit (LIHTC) qualified allocation plan (QAP). Click here for a copy of the draft QAP.
Columbus, Ohio - September 13, 2004
The Ohio Housing Finance Agency (OHFA) will hold three public hearings to gather comments for the 2005 qualified allocation plan, the plan OHFA will use to administer the low-income housing tax credit (LIHTC) program.
Washington, D.C. - September 9, 2004
Acting Agriculture Under Secretary for USDA Rural Development Gilbert Gonzalez announced the selection of Rodney E. Hood as associate administrator for Rural Development's housing programs. Hood, of Durham, N.C., comes to USDA after serving as marketing director and group sales manager for North Carolina Mutual Life Insurance Company. Hood has nearly two decades of experience in affordable housing and community development, including employment with Wells Fargo Home Mortgage, Bank of America and G.E. Capital Corporation.
Austin, Texas - September 8, 2004
The Texas Department of Housing and Community Affairs yesterday published a request for proposals for legal services in connection with the administration of the low-income housing tax credit (LIHTC) program. Proposals are due by Friday, September 17, 2004.
Tallahassee, Fla. - September 7, 2004
Florida Gov. Jeb Bush last week asked the Internal Revenue Service not to take regulatory action against investors and developers otherwise qualified for low-income housing tax credits (LIHTCs) who lease property to homeless hurricane victims with incomes that exceed local limits. BNA TaxCore reports that in a letter to Treasury Secretary John W. Snow and IRS Commissioner Mark W. Everson, Bush said that a survey by the Florida Housing Finance Corporation found that approximately 3,000 housing units were available in 12 counties affected by Hurricane Charley. Bush asked the IRS for temporary relief for 12 months, with a six-month extension, for investors and developers to lease units to tenants whose incomes exceed area median limits.
Denver, Colo. - September 3, 2004
The Colorado Housing Finance Agency (CHFA) announced that effective immediately and until further notice, the agency can no longer accept applications for the competitive 9 percent low-income housing tax credits (LIHTCs) in 2004. CHFA explained that even though the state's official cap of annual 9 percent LIHTCs is $8,191,238 for 2004, the agency was able to reserve a total of $11,000,000 in annual credit in 2004. However, CHFA has already received applications exceeding the $11,000,000 limit on reservations and cannot accept additional requests for LIHTCs in 2004.
Washington, D.C. - August 31, 2004
The National Association of Home Builders (NAHB) interviewed President George W. Bush and U.S. Sen. John Kerry, D-Mass., about housing issues. The candidates' responses were featured this week in NAHB's Nation's Building News Online.
Sacramento, Calif. - August 30, 2004
The California State Senate recently passed A.B. 2846 to prohibit appraisers from considering low-income housing tax credits (LIHTCs) as income when appraising affordable housing properties. Considering tax credits as income often leads to higher appraisal values and therefore higher tax assessments. Click here for a copy of the bill.
Washington, D.C. - August 26, 2004
A new partnership designed to help maintain existing affordable rental housing units in rural areas has been formed between mortgage lender Freddie Mac and the U.S. Department of Agriculture (USDA), reports GlobeSt.com. The program will assist owners of rental communities to restore and maintain the properties. The site reports that Freddie Mac will acquire $10 million in new loans secured by properties that have USDA Rural Development Section 515 housing mortgages on them.
Washington, D.C. - August 24, 2004
The Internal Revenue Service (IRS) this week published the amounts of unused low-income housing tax credit (LIHTC) carryovers allocated to 32 qualified states under §42(h)(3)(D) of the Internal Revenue Code for calendar year 2004. According to the figures in Revenue Procedure 2004-52, the total unused LIHTC carryover amount allocated from the National Pool is $6,090,001. For the amount of LIHTCs available from the National Pool for each state, click here.
Washington, D.C. - August 23, 2004
The U.S. Department of Housing and Urban Development (HUD) today published a notice changing the mortgage insurance premiums (MIP) for the Section 221(d)(4) and the Section 232 Federal Housing Administration (FHA) mortgage insurance programs whose commitments will be issued in fiscal year (FY) 2005. The notice includes MIPs for project mortgages with and without low-income housing tax credits (LIHTCs). Click here for a copy of the changes in MIPs.
Nashville, Tenn. - August 18, 2004
The Tennessee Housing Development Agency has released the draft qualified allocation plan (QAP) for the administration of the low-income housing tax credit (LIHTC) program in 2005.
Washington, D.C. - August 17, 2004
The U.S. Department of Housing and Urban Development (HUD) published a notice today announcing the availability of approximately an additional $20 million in fiscal year 2003 funds for HOPE VI Demolition grants. HUD will award the additional FY2003 funds in accordance with the application submission and selection requirements contained in the October 21, 2003 NOFA, as corrected by the technical correction published on December 9, 2003. The October 2003 NOFA was for approximately $40 million in FY2003 HOPE VI Demolition funds. Applications for the additional demolition funds will be accepted until September 17, 2004.
Sacramento, Calif . - August 16, 2004
California Treasurer Phil Angelides last week announced the appointment of Lynn Wehrli as executive director of the California Tax Credit Allocation Committee (TCAC). TCAC operates the federal and state low-income housing tax credit (LIHTC) programs. Wehrli has extensive experience in affordable housing finance, most recently serving as director of housing development for the New Mexico Mortgage Finance Authority since 1993.
Washington, D.C . - August 13, 2004
The U.S. Department of Housing and Urban Development (HUD) today published the operating cost adjustment factors (OCAFs) for Section 8 rent adjustments at contract renewal.
Frankfort, Ky . - August 12, 2004
Kentucky Housing Corporation (KHC) will conduct a public hearing regarding the qualified allocation plan (QAP) for the low-income housing tax credit (LIHTC) program that will go into effect January 1, 2005. The hearing will be held at 1 p.m. EDT on September 15, 2004 at the Salato Wildlife Education Center at the Kentucky Department of Fish and Wildlife Resources Game Farm in Frankfort, Ky.
Washington, D.C. - August 10, 2004
President George W. Bush yesterday published a fact sheet outlining several points of the Administration's political platform that include affordable housing programs, particularly those that encourage homeownership. “America's Ownership Society: Expanding Opportunities” highlights Bush's support for the American Dream Downpayment Initiative, a proposed single-family affordable housing tax credit, the Self-Help Homeownership Opportunities Program and initiatives to simplifying the home buying process and expand financial education efforts. Click here for more information.
Washington, D.C. - August 9, 2004
States should concentrate low-income housing tax credit (LIHTC) developments in areas that have both needy households and shortages of rental households, according to a paper released today by the U.S. Department of Housing and Urban Development (HUD) Office of Policy Development and Research (PD&R). “Making Best Use of Your LIHTC Dollars: A Planning Paper for State Policy Makers” is intended to help state officials think about how to make strategic use of the LIHTC. The paper was prepared for HUD by Abt Associates Inc. and is based on research and theory about where and for whom the development of subsidized rental housing is most effective. Click here for a copy of the paper.
Washington, D.C. - August 6, 2004
The U.S. Department of Housing and Urban Development (HUD) today published the proposed fiscal year 2005 fair market rents (FMR). These are the first FMRs calculated using 2000 Census data; they also reflect a change in metropolitan area definitions. As a result the proposed FMRs for many areas differ from the 2004 levels. The FMRs are effective October 1, 2004, and, in the meantime, HUD has opened a 30-day comment submission period on the proposal.
Austin, Texas - August 5, 2004
The Texas Department of Housing and Community Affairs (TDHCA) governing board last week approved the final 2004 low-income housing tax credit (LIHTC) allocation, awarding just more than $40 million in LIHTCs that will help create an estimated 6,690 units for affordable rental housing. Seventy-six applicants received an allocation in this year's cycle, out of an original 182 applications active in the full application cycle, meaning just less than one in two received LIHTCs. The allocation included nearly $3.7 million to five developments committed in 2003 as part of the 2004 credit ceiling.
Sacramento, Calif. - August 4, 2004
Sixty-seven applicants requested $63,601,227 in federal low-income housing tax credits (LIHTCs) and $46,457,659 in state LIHTCs in the California Tax Credit Allocation Committee's (TCAC) second allocation round for 2004. TCAC has approximately $33,673,578 in federal credits available. In all, applicants proposed 4,791 units of housing, 4,714 of which would be affordable.
Washington D.C. - July 30, 2004
The Internal Revenue Service on July 29 issued Revenue Ruling 2004-82, answering 12 questions about the low-income housing credit under tax code Section 42. Among other things, the IRS clarified that if a tenant occupies a unit at the end of the month (and the unit was in service for the entire month) then that unit qualifies for LIHTC for the entire month. To read the ruling, click here.
Austin, Texas - July 27, 2004
The Texas Department of Housing and Community Affairs (TDHCA) posted the final staff recommendations for the 2004 low-income housing tax credit (LIHTC) allocation. In addition, TDHCA posted documents that will be used at the July 28 meeting. The 2004 staff recommendations provide readers with an exhaustive background regarding this year's allocation cycle, a review of the program's regional allocation formula and set-asides, a summary of all 2004 application submissions, the list of applications staff is recommending for an allocation and recommendations regarding the 2004 waiting list. The board will vote on this year's LIHTC allocation tomorrow. The board meeting will be available via live webcast via the Texas House of Representatives web site to interested parties unable to attend the meeting at the Capitol.
Washington, D.C . - July 26, 2004
Senate Finance Committee Chairman Charles Grassley, R-Iowa, Ranking Member Max Baucus, D-Mont., and Sens. Gordon Smith, R-Ore., and Kent Conrad, D-N.D., last week included a homeownership tax credit provision designed to spur the production of affordable housing in S. 2761, the Heartland Investment and Rural Employment Act.
Washington, D.C . - July 23, 2004
Sen. Blanche Lincoln, D-Ark., this week introduced S. 2689, a bill to amend the Internal Revenue Code of 1986 to replace the recapture bond provisions of the low-income housing tax credit (LIHTC) program. Upon introduction, the bill was referred to the Committee on Finance. Sen. Jim Jeffords, I-Vt., also introduced this week S. 2692, the Affordable Housing Preservation Act of 2004, a bill that would provide federal matching grants to states and localities. The measure would allow the proposed grants to be used in coordination with LIHTCs. S. 2692 was co-sponsored by Sens. Paul Sarbanes, D-Md., Lincoln Chaffee, R-R.I., and Dianne Feinstein, D-Calif.
Washington, D.C . - July 22, 2004
Democratic presidential candidate Sen. John Kerry (Mass.) and vice-presidential candidate Sen. John Edwards (N.C.) yesterday released an “Opportunity Agenda” outlining several points of their political platform that include homeownership and rental housing programs. The candidates pledged their support for Section 8 housing, HOPE VI and the low-income housing tax credit (LIHTC).
Washington, D.C . - July 21, 2004
The House VA-HUD Appropriations Subcommittee yesterday approved the initial FY 2005 funding proposal introduced by Chairman James Walsh (R-N.Y.) by a voice vote. As approved, the subcommittee's markup provides $1.5 billion more for the Section 8 housing voucher program than proposed by President Bush's budget and rejects the administration's flexible voucher proposal. In order to accommodate this and other increases, the proposal reduces funding for most other critical housing and community development programs by more than 4 percent from amounts provided in FY 2004. The bill also instructs HUD to continue the policy of funding vouchers using the budget-based funding system implemented through PIH Notice 2004-7, while leaving the exact funding formula to HUD's discretion. The House Appropriations Committee is expected to vote tomorrow on the funding bill.
Denver, Colo. - July 19, 2004
The Colorado Housing Finance Agency's (CHFA) annual meeting to discuss changes to the qualified allocation plan (QAP) will, for the first time, be held at the Colorado Housing NOW Conference. A session, “The Tax Credit Program Allocation Plan for 2005,” is scheduled on October 5, 2004 at 10 a.m. In the meantime, CHFA is soliciting comments on the QAP. Comments may be submitted in writing to: 1981 Blake St., Denver, CO 80202; e-mail: firstname.lastname@example.org; fax: (303) 297-0911; or by calling (303) 297-7331. CHFA will also accept comments on the tax credit application.
Washington D .C. - July 15, 2004
Funding shortfalls in the Section 8 voucher program resulting from a recent policy change at the U.S. Department of Housing and Urban Development (HUD) are causing widespread reductions in housing assistance to low-income families, seniors and people with disabilities, new research finds. The Center on Budget and Policy Priorities, the National Low Income Housing Coalition and the Council of Large Public Housing Authorities today released information gathered from 190 state and local housing agencies in 35 states revealing the extent of reductions in the amount of rental assistance they provide and/or the number of people they help. CBPP says this is the first large-scale compilation of cuts in assistance that are occurring as a result of the funding shortfalls. Click here for more information.
Washington D .C. - July 14, 2004
The House of Representatives yesterday passed H.R. 4766 , the fiscal year 2005 appropriations bill for the U.S. Department of Agriculture (USDA) and related agencies, by a vote of 389-31. The bill includes funding for rural housing and other USDA Rural Development programs.
Washington D .C. - July 13, 2004
U.S. Department of Agriculture (USDA) Secretary Ann M. Veneman announced the selection of Russell T. Davis as administrator for Rural Housing Service (RHS). Davis will be responsible for managing the programs and support functions of Rural Development's housing programs. He fills the vacancy created when Arthur Garcia left the administrator position on May 17, 2004 to serve as director of the Community Development Financial Institutions (CDFI) Fund.
Washington D .C. - July 12, 2004
The Internal Revenue Service (IRS) today published an invitation for public comment on Form 8877, Request for Waiver of Annual Income Recertification Requirement for the Low-Income Housing Credit. Owners of low-income housing tax credit (LIHTC) buildings that are 100 percent occupied by low-income tenants may request a waiver from the annual recertification of income requirements using Form 8877, as provided by Internal Revenue Code Section 42(g)(8)(B). The IRS last month released Revenue Procedure 2004-38 to formalize and standardize the process by which owners can request waivers of the annual tenant income recertification requirement. In-depth analysis of the ruling and form will be available in the August issue of the Property Compliance Report.
Raleigh, N.C. - July 9, 2004
The North Carolina Housing Finance Agency (NCHFA) is accepting comments on its 2005 qualified allocation plan (QAP). NCHFA will host meetings to encourage public comment. In related news, the sunset date for the state’s low-income housing tax credit (LIHTC) was extended from 2006 to 2010 in legislation passed by the General Assembly this week.
New York - July 8, 2004
Investments in federal low-income housing tax credit (LIHTC) projects continue to meet investor yield expectations, exceeding anticipated returns by an average of one percent, according to an updated survey of the LIHTC investment sector. The survey captures more than a third of all LIHTC properties produced to date – more than 7,000 properties representing nearly $15 billion of equity investment since 1987. In “Understanding the Dynamics II: Housing Tax Credit Investment Performance,” Ernst & Young LLP analyzed 2002 operating data reported by these properties and compared the data with the original study released in 2000. Additional information from the study will be available in the August issue of the LIHTC Monthly Report.
Washington D.C . - July 7, 2004
The Internal Revenue Service (IRS) this week announced new procedures for determining whether a residential rental project is in compliance with the applicable set-aside requirements during a qualified project period. Revenue Procedure 2004-39 clarifies that the set-aside requirements under either IRC Section 142(d)(1)(A) or IRC Section 142(d)(1)(B, which require a specified percentage of units be leased to low-income tenants, apply to the total number of available units. Also, under certain circumstances, Rev. Proc. 2004-39 says that failure to satisfy the set-aside requirement will not cause the project to not be a qualified residential rental project during a transition period beginning on the issue date of the first bonds.
Sacramento, Calif. - July 2, 2004
The California Tax Credit Allocation Committee (TCAC) this week published a memo providing guidelines for applicants that were unsuccessful in this year's first round of low-income housing tax credit (LIHTC) allocation inviting them to reapply for the second cycle. Sixty-seven applications were submitted in the first round, requesting a total of more than $63 million in federal LIHTCs and more than $54 million in state LIHTCs, against approximately $27 million available in federal credit and $31 million available in state credit. The result, TCAC says, is that many applications that would have resulted in worthwhile new or preserved affordable rental housing were not allocated credits. As such, TCAC encouraged unsuccessful first cycle projects to reapply in the second round, which closes on July 22, 2004.
St. Louis, Mo . - July 1, 2004
The Missouri Housing Development Commission (MHDC) has published documents for owners to use after the 14th year of the low-income housing tax credit (LIHTC) compliance period to find a buyer who will present a “qualified contract” to purchase the owner’s LIHTC property. In addition to a form request letter addressed to MHDC, the agency has created a worksheet for owners to calculate the qualified contract price for an LIHTC project. Click here for more information.
Washington, D.C. - June 30, 2004
The Internal Revenue Service (IRS) today published a notice soliciting comments concerning Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. The IRS says Form 1023 is being redesigned to reduce taxpayer burden by ensuring that all information needed to make an accurate determination is available to the IRS when the application is filed, and by improving the taxpayer’s understanding of the requirements for receiving tax-exempt status under section 501(c)(3). Click here for details.
Austin, Texas - June 25, 2004
The Texas Department of Housing & Community Affairs (TDHCA) last week updated its Cost Certification Procedures Manual. The manual sets forth procedures and guidelines for the filing of requests for IRS Forms 8609 for low-income housing tax credit (LIHTC) developments placed in service as described in the qualified allocation plan (QAP).
Washington, D.C . - June 24, 2004
The Internal Revenue Service (IRS) this week invited comments concerning the existing final regulations ( TD 8520 ) Carryover Allocations and Other Rules Relating to the Low-Income Housing Credit. Comments will be accepted through August 23. Click here for more information.
Washington, D.C . - June 23, 2004
The Internal Revenue Service (IRS) today invited comments concerning several existing final regulations: Procedure for Monitoring Compliance With Low-Income Housing Credit Requirements (TD 8430); Rules To Carry Out the Purposes of Section 42 and for Correcting Administrative Errors and Omissions (TD 8521); and Compliance Monitoring and Miscellaneous Issues Relating to the Low-Income Housing Credit (TD 8859). Written comments will be accepted through August 23.
Washington, D.C . - June 22, 2004
The office of Tax Exempt Bonds (TEB), of the Internal Revenue Service (IRS), Tax Exempt and Government Entities division recently published IRS Publication 4078, Tax-Exempt Private Activity Bonds Compliance Guide. The guide provides state and local government issuers and borrowers of bond proceeds an overview of the general post-issuance rules under the federal tax law that apply to qualified private activity bonds.
Sacramento, Calif. - June 21, 2004
The California Tax Credit Allocation Committee last week awarded $28,689,117 in federal low-income housing tax credits (LIHTCs) and $16,266,320 in state LIHTCs in the first round of funding for 2004. Click here for more information.
Phoenix, Ariz. - June 16, 2004
The Arizona Department of Housing has announced 23 developments, in 11 Arizona counties, that were chosen to receive low-income housing tax credit (LIHTC) awards for 2004. The awards will assist in the production of 1,452 units of rental housing. Click here for a list of awardees.
Trenton, N.J. - June 15, 2004
The New Jersey Department of Community Affairs Division of Housing & Community Resources is accepting nominations for 2004 Excellence in Housing Awards to be awarded at Governor James E. McGreevey’s 2004 Conference on Housing and Community Development. Projects, organizations or programs that best demonstrate the advancement of the state’s comprehensive housing policies through the promotion, preservation or creation of affordable housing are eligible. The awards encompass the following general categories: affordable housing, smart growth, community revitalization and efficiency in government. Nominations may be made based on the physical design of a housing project, the planning and/or educational efforts of an organization made in conjunction with housing, or other housing related activities that fall within the general categories. Click here for more information.
St. Paul, Minn. - June 14, 2004
The Minnesota Housing Finance Agency (MHFA) has adopted new compliance and monitoring requirements for low-income housing tax credit (LIHTC) projects during the extended use period. Click here to download a copy of MHFA’s Post Year 15 Compliance & Monitoring Plan.
Boston - June 4, 2004
Lt. Governor Kerry Healey today announced that $62.4 million in state resources will be used to create and preserve 1,058 rental homes in 14 cities and towns across Massachusetts. Approximately $42 million of the funds announced will be generated through federal low-income housing tax credits (LIHTCs) and an additional $1.1 million will be leveraged through state issued tax credits. The remaining $19.3 million will be awarded from the state Department of Housing and Community Development's (DHCD) Housing Stabilization Fund (HSF), Facilities Consolidation Fund (FCF), HOME program and the Housing Innovations Fund (HIF), as well as the Affordable Housing Trust Fund, which is administered by DHCD and MassHousing.
Washington, D.C. - June 3, 2004
The U.S. Department of Housing and Urban Development (HUD) this week revised its national database that provides comprehensive project-level data regarding low-income housing tax credit (LIHTC) property production to include properties placed in service through 2001. The database, created and maintained by HUD, contains information on nearly 19,700 projects and more than 935,000 housing units placed in service since 1987. Click here for more information.
Nashville, Tenn. - May 28, 2004
The Tennessee Housing Development Agency (TDHA) multifamily and special programs division is beginning the process of drafting the 2005 low-income housing tax credit (LIHTC) qualified allocation plan (QAP) and the 2005 multifamily tax-exempt bond authority program description. As part of this process, THDA will be hosting developer forums to interested parties the opportunity to give input regarding changes that the development community would like staff to consider and elements of the 2004 QAP and program description that the development community would like to remain unchanged.
Washington, D.C . - May 25, 2004
Alleviating some of the immediate pressure it caused by a recent decision to change its method for renewing existing Section 8 vouchers, the Department of Housing and Urban Development announced that it will make available $150 million in 2003 carryover dollars to replenish the reserves of approximately 525 public housing authorities (PHAs). The move will offset budget shortfalls in the Sec. 8 programs for fiscal year 2004. HUD Secretary Alphonso Jackson testified last week before the House Financial Services Committee and introduced a plan that will provide a "full inflation factor" for payments to PHAs. This adjustment to the funding formula will be retroactive to Jan. 1, 2004. Housing agencies stood to lose at least $270 million under the regulatory change, according to an estimate by the National Association of Housing and Redevelopment Officials (NAHRO).
Washington, D.C . - May 20, 2004
Greater flexibility is needed to improve the Section 8 voucher program, regardless of budget pressures, according to a white paper, “The Flexible Voucher Program: Why A New Approach to Housing Subsidy Is Needed,” published this week by the U.S. Department of Housing and Urban Development (HUD). While recent attention has focused more on cost savings and concerns expressed by Congress and HUD about the spiraling costs of the voucher program, the paper says the program needs reform because the present statutory framework leads to large errors in the distribution of assistance amounts, indefinite support of some assisted households, targeting that may not reflect locally determined needs and priorities, and negative incentives for tenants and lack of focus on transitioning families to self-sufficiency. Click here for a copy of the white paper.
Sacramento, Calif . - May 19, 2004
The California Debt Limit Allocation Committee (CDLAC) this week published a memo to outline the anticipated allocation process for the remainder of the program year. In the memo, CDLAC explains that due to the lack of certainty associated with committee approval of a new application system, and in order to provide predictability for the bond allocation process, the second application round will occur as previously scheduled. The deadline for the second round of applications will remain July 7 and current procedures (adopted December 17, 2003) will remain in effect for that round. Also at its June committee meeting, CDLAC staff will recommend a third application round for this program year with an October 1 application deadline. By that time, CDLAC expects to have revised procedures (to be adopted June 23, 2004) in effect and applicants will need to use revised application forms (which the committee expects to have posted online by June 25, 2004).
Washington, D.C. - May 17, 2004
Breaking a stalemate, the U.S. Senate on May 11 voted 92-5 on the Jumpstart Our Business Strength, JOBS Act (S. 1637), which contains a deduction of $2.25 per square foot for energy efficiency investments in new and renovated buildings, a tax "extenders" package that would reinstate brownfields cleanup cost deductibility (under Section 198 of the tax code) and extend it for two years, and an agreement to drop a provision in the bill that would have repealed the 10 percent rehabilitation tax credit for non-historic buildings.
Washington, D.C. - May 14, 2004
Housing and Urban Development (HUD) Secretary Alphonso Jackson today unveiled HUD's simplified SuperNOFA, a notice that makes available $2.3 billion in funding opportunities to help produce more affordable housing, assist homeless individuals and families, and promote community development. The Fiscal Year 2004 NOFA includes 49 separate funding opportunities that will help states, local governments and not-for-profit organizations house and serve low-income families living in their communities.
Washington, D.C. - May 14, 2004
The U.S. Senate on Tuesday, May 11 approved S 1637, the Jumpstart Our Business Strength Act, by a vote of 92-5. The bill will now go to The House of Representatives. The JOBS Act, in addition to extending $50 million in new market tax credits to Native American Reservations, provides Indian economic development measures that will also provide a tax credit for employing Native Americans, accelerate depreciation for business property on reservations and extend and expand a tax credit for wind-powered electricity produced on reservations. In addition, the bill gives tribes broader authority to issue tax-exempt bonds, establishes a new category of Qualified Tribal Modernization Bonds and provides a tax credit to bond holders, as long as 95 percent or more of the net proceeds are used to rehabilitate Bureau of Indian Affairs schools.
Frankfurt, Ky. - May 12, 2004
On May 3, 2004, Kentucky Housing Corporation announced the award recipients of the 2004 competitive housing credit round. Approximately $4.7 million of annual housing credit was awarded to 21 recipients for the production of 734 affordable housing units across the Commonwealth. For more information, you can view project funding information using KHC's new User Interactive Funding Report at http://www.kyhousing.org/center/reports.
Sacramento, Calif. - May 10, 2004
The California Tax Credit Allocation Committee (TCAC) last week released the list of applicants for the first low-income housing tax credit (LIHTC) funding round of 2004. TCAC has approximately $272,515,100 in LIHTCs available; 67 applicants requested credits totaling $637,365,460, a substantial decline in applications from previous years. There is strong competition in certain set-asides such as the nonprofit set-aside (18 applications) and rural set-aside (23 applications). There is also significant competition in certain geographic areas such as the Central Region (9 applications), Inland Empire (6 applications) and Capital/Northern Area (4 applications). However, there are very few or no applications in some set-asides such as the following: small development set-aside (one applicant) and at-risk set-aside (no applicants). There are also very few or no applications in some geographic areas such as: South and West Bay (1 application), Coastal California (2 applications) and San Francisco (no applications). Click here for a complete list of first round LIHTC applicants.
Washington, D.C . - May 5, 2004
Rep. Barney Frank (D-Mass.) yesterday introduced legislation to fully fund the Section 8 program to counteract a new U.S. Department of Housing and Urban Development (HUD) policy on reimbursing local housing authorities for Section 8 Housing Choice vouchers. The measure would clarify the calculation of per-unit costs payable under expiring annual contributions contracts for tenant-based rental assistance that are renewed in fiscal year 2004. HUD’s new policy is an interpretation of the fiscal year 2004 appropriations act and several housing industry organizations have warned that the policy change could create a funding crisis for hundreds of housing agencies and affect thousands of voucher holders. H.R. 4263 was introduced with 24 co-sponsors and was referred to the House Committee on Financial Services.
Washington, D.C . - May 4, 2004
A new report from the U.S. Department of Housing and Urban Development’s (HUD) Office of Policy Development and Research (PD&R) examines the current literature on rental housing markets and on housing policies for low-income renters in an attempt to answer the fundamental question of what constitutes the most effective use of government subsidies that are made available for the production of rental housing. A subsequent report is expected to suggest design elements for a new housing production program based on these findings. Click here for a copy of "Targeting Housing Production Subsidies: Literature Review".
Frankfort, Ky . - May 3, 2004
Due to the large number of applications for low-income housing tax credit (LIHTC) received through the Kentucky Housing Corporation’s (KHC) open window funding process, the window for LIHTC has been closed. KHC announced that applications currently under review will continue to be processed until all LIHTCs available through the open window funding process have been awarded. KHC anticipates that the window for LIHTCs will open again in late fall 2004 for applicants requesting 2005 credit.
Washington, D.C . - April 28, 2004
The U.S. Department of Housing and Urban Development (HUD) last week issued guidance to to public housing authorities (PHAs), participating landlords and residents regarding the implementation of a provision in HUD’s 2004 Appropriations Act that modifies the method for renewing existing Section 8 vouchers. The National Association of Housing and Redevelopment Officials (NAHRO) says HUD has proceeded with a “narrow interpretation” of the congressional mandate despite appeals by members of Congress, Gov. Mitt Romney (R-Mass.), public housing agencies, voucher-assisted households, participating property owners and housing industry groups. The National Multi Housing Council (NMHC) warns that thousands of existing voucher holders could lose their housing subsidies and property owners will be “put in an untenable situation.” Under current projections, HUD says it expects fewer than half of 2,500 public housing authorities that participate in the Housing Choice Voucher Program will experience any change. Click here for a copy of PIH Notice 2004-7.
Washington, D.C . - April 27, 2004
A proposed rule published last week by the U.S. Department of Housing and Urban Development (HUD) would revise the department’s regulations to require all participants in HUD's multifamily housing programs to file previous participation certificates by a specified date using HUD’s Active Partner Performance System online. For details, see the April 19 Federal Register.
Sacramento, Calif. - April 23, 2004
The California Debt Limit Allocation Committee (CDLAC) yesterday met to allocate the first round of tax-exempt bond volume cap for the year. At the meeting, a number of changes to the allocation system and CDLAC’s procedures were proposed, such as the adoption of an “open window” application process that would permit applicants to apply for an allocation at any time during the open window period, with an expected 60 day turnaround from CDLAC. Other changes include expanding the definition of at-risk projects, disqualifying applicants with a significant record of noncompliance, adopting cost containment limits, removing the evaluation criteria awarding points for restricted rents that are more than 20 percent below market rents, and creating greater coordination with the Tax Credit Allocation Committee (TCAC) requirements and application process. The proposed changes are available for public comment until May 24, 2004. CDLAC has scheduled public hearings in Los Angeles on May 13 and in Sacramento on May 20. Adoption of the revisions will be considered at a CDLAC meeting tentatively set for June 23, 2004.
Washington, D.C. - April 22, 2004
The Campaign for Affordable Housing (TCAH) announced a new alliance with the Fannie Mae Foundation to launch a major public education initiative to inform the American public -- specifically local, state and federal policy makers -- about the need for affordable housing and to correct misperceptions about its impact upon communities. The alliance’s mission is to build widespread support by demonstrating that the word “affordable” is not synonymous with shoddy, high-rise or crime-ridden. TCAH says the alliance’s next steps will be to undertake additional public opinion research, raise funds and build a broad coalition from the private and public sectors. TCAH also announced the release of “What We Know About Public Attitudes on Affordable Housing,” a compendium of opinion poll research.
Sacramento, Calif. - April 21, 2004
The California Tax Credit Allocation Committee (TCAC) meets today to consider awarding 4 percent federal low-income housing tax credits (LIHTCs) to 15 projects that have been recommended reservations of tax-exempt housing bonds by the California Debt Limit Allocation Committee (CDLAC) in the first round of 2004. CDLAC also meets today to consider the final staff recommendations for bond allocation. Applications for CDLAC’s second round are due July 7, 2004; Novogradac & Company LLP will present two Tax-Exempt Private Activity Housing Bond Application Workshops, June 3 in San Diego and June 4 in San Francisco, to explore the challenges and rewards of successfully completing an application.
Washington, D.C . - April 16, 2004
The National Multi Housing Council (NMHC) today warned that the U.S. Department of Housing and Urban Development (HUD), under its interpretation of the FY 2004 omnibus appropriations act, is expected to publish a notice that could result in insufficient funding for existing Section 8 Housing Choice Voucher holders in several states. Specifically, the HUD notice is expected to calculate Section 8 voucher renewal funding based on the number of units each public housing agency (PHA) had under lease as of August 1, 2003 and the per-unit cost as of that date adjusted by HUD's annual adjustment factor (AAF). Under this method, NMHC says that PHAs that have experienced increased per-unit costs beyond HUD's AAF will not be allocated enough funding to cover existing voucher holders. NMHC and other housing advocates have urged HUD to reconsider its intentions, but in the meantime, they are concerned that this will put property owners in an “untenable situation of possibly having to evict subsidized families or accept drastically reduced rents until the funding situation is corrected.”
Washington, D.C . - April 14, 2004
The Internal Revenue Service (IRS) this week published bond factor for the period April through June 2004 in Revenue Ruling 2004-40. The monthly bond factor amounts are used in calculating the amount of bond considered satisfactory under §42(j)(6) of the Internal Revenue Code or the amount of U.S. Treasury securities to pledge in a Treasury Direct Account for taxpayers that dispose of qualified low-income buildings or interests therein.
Washington, D.C . - April 8, 2004
The U.S. Department of Housing and Urban Development (HUD) this week proposed new federal regulations that would significantly raise the targeted lending requirements for Fannie Mae and Freddie Mac. HUD estimates that over the next four years an additional one million low-and moderate-income families would be served as a result of the new goals. By statute, HUD sets the annual affordable housing goals that require a percentage of Fannie Mae and Freddie Mac's lending go to underserved borrowers and communities. The proposal is currently under a 15-day congressional review after which the proposed rule will be published in the Federal Register for public comment. In the meantime, an unofficial copy of the rule is available from HUD.
Washington, D.C . - April 5, 2004
The Internal Revenue Service (IRS) recently released a revised version of Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition. The most recent revision has more emphasis on standards to determine suitability for occupancy, listing more examples in the instructions. Also, the new Form 8823 appears to require the state agencies to report any minor violation of habitability and not just a pattern of minor violations. More detailed analysis will be available in the May issue of the Property Compliance Report.
Washington, D.C . - April 1, 2004
The Senate yesterday unanimously confirmed Alphonso Jackson for Secretary of the U.S. Department of Housing and Urban Development (HUD). The Senate Banking, Housing and Urban Affairs Committee on Tuesday also voted unanimously to approve the nomination. Jackson has served as the acting HUD Secretary since then-Secretary Mel Martinez stepped down on Dec. 12, 2003.
Washington, D.C . - March 30, 2004
The U.S. Department of Housing and Urban Development (HUD) today published an interim rule that establishes regulations for a new downpayment assistance component under the HOME Investment Partnerships Program, the American Dream Downpayment Initiative (ADDI). Through the new initiative, HUD will make formula grants to participating jurisdictions to assist low-income families achieve homeownership. This interim rule – effective April 29, 2004 - codifies the statutory formula for allocation of ADDI funds, identifies eligible activities and costs under the initiative and establishes other applicable requirements. HUD will accept comments on the rule until June 1, 2004. For information about other proposed homeownership initiatives, visit www.homeownertaxcredit.com.
Washington, D.C . - March 29, 2004
The U.S. Department of Housing and Urban Development (HUD) last week published an interim rule that implements an Office of Management and Budget (OMB) policy directive that requires grant applicants, other than individuals, to provide a Data Universal Numbering System (DUNS) number when applying for federal grants or other assistance agreements. HUD says it is applying this policy widely to its assistance programs in order to have a single identifier for applicants and facilitate the transition to electronic application submission. The interim rule is effective April 26, 2004 and HUD will accept comments through May 25, 2004.
Washington, D.C . - March 25, 2004
In Notice 2004-26, the Treasury Department and Internal Revenue Service (IRS) invite public comment and suggestion for items to be included on the agencies’ 2004-2005 Guidance Priority List. Treasury's Office of Tax Policy and the IRS use the guidance priority list each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance. The 2004-2005 Guidance Priority List will establish the guidance that the Treasury Department and IRS intend to issue from July 1, 2004, through June 30, 2005. Click here for a copy of Notice 2004-26 and instructions for submitting comments.
Washington, D.C . - March 24, 2004
Legislation to enact a one-year repeal of the 10-Year Rule for outstanding mortgage revenue bonds (MRBs), and prospective repeal of the rule for MRBs issued going forward, made considerable progress yesterday. A portion of S. 595 was included in Senate Amendment 2886, which was offered as a substitute to the Finance Committee-reported version of S.1637, the Jumpstart Our Business Strength (JOBS) Act. For now, a lack of sufficient revenue has prevented the amendment provision from including the proposed MRB purchase price limit or low-income housing tax credit (LIHTC) rule changes outlined in S. 595. However, amendments filed by Sens. Orrin Hatch (R-Utah), John Breaux (D-La.) and Mark Dayton (D-Minn.) could allow legislators to include more – possibly all – of S. 595 provisions, if they could raise sufficient revenue to offset the additional cost.
Washington, D.C . - March 18, 2004
The U.S. Department of Housing and Urban Development (HUD) today proposed comprehensive regulations for the new project-based voucher program. In this program, HUD pays rental assistance for eligible families that live in specific housing developments or units. The proposed project-based voucher program replaces the Section 8 project-based certificate program and these regulations would replace the current regulations for the certificate program. The regulations include special provisions for establishing the project-based voucher rent for units in low-income housing tax credit (LIHTC) buildings.
Washington, D.C . - March 17, 2004
The U.S. Department of Agriculture Rural Housing Service (RHS) today announced the availability of housing funds for fiscal year 2004. The total available for RHS’s Farm Labor Housing (Section 514 loan program) is $42,574,374. The Rural Rental Housing Guaranteed Loan Program (Section 538) has $ 99,410,000 available and the Rural Rental Housing program (Section 515) total allocation for 2004 is $115,857,375. Click here for more information.
Washington, D.C . - March 15, 2004
In Notice 2004-21, the Internal Revenue Service (IRS) has released new population figures for calculating the 2004 population-based component of states’ low-income housing tax credit (LIHTC) ceilings, 2004 volume caps and the 2004 volume limit. The population figures for the 50 states, the District of Columbia, and Puerto Rico were released by the Census Bureau on Dec. 18, 2003. The population figures for American Samoa, Guam, Northern Mariana Islands and U.S. Virgin Islands were released on July 17, 2003. Click here for the text of Notice 2004-21.
Washington, D.C . - March 10, 2004
The Internal Revenue Service (IRS) this week invited comments concerning Form 8328, Carryforward Election of Unused Private Activity Bond Volume Cap. Internal Revenue Code § 146(f)(3) provides that the unused amount of the private activity bonds for specific programs can be carried forward for three years depending on the type of project. In order to carry forward the unused amount of the private activity bond, an irrevocable election can be made by the issuing authority. Form 8328 allows the issuer to execute the carryforward election. There are no changes being made to the form at this time, but comments will be accepted on or before May 7, 2004.
Washington, D.C . - March 5, 2004
In response to questions from owners and accountants of Mark to Market-restructured properties, and in anticipation of owners submitting their Annual Financial Statements (AFS) in the coming weeks (for projects with fiscal year ending December 31), the U.S. Department of Housing and Urban Development (HUD) Office of Multifamily Housing Assistance Restructuring (OMHAR) released a letter for the owners of all closed Mark to Market projects. The letter addresses the most common accounting questions for these properties, and the most common errors in last year’s filings. Click here for a copy of the letter.
Washington, D.C . - March 4, 2004
The U.S. Department of Housing and Urban Development (HUD) yesterday proposed to add a new Section 5.109 to its regulations in 24 CFR part 5, subpart A – the section containing definitions and federal requirements generally applicable to all of HUD's programs. The new section would include the requirements of Executive Order 13279, which requires that, within the framework of constitutional church-state guidelines, faith-based organizations should be able to compete on an equal footing with other organizations for federal funding. In addition, more specific policies and requirements for individual HUD programs may be provided in the regulations for those programs. For example, under this proposed rule program regulations for Section 202 Supportive Housing for the Elderly Program and the Section 811 Supportive Housing for Persons with Disabilities Program would be amended to permit faith-based organizations to take part in these programs as project owners. Existing procedures governing these two programs currently prohibit a project owner from having a religious purpose in its articles of incorporation.
Washington, D.C . - March 3, 2004
The U.S. Department of Housing and Urban Development (HUD) today published a final rule increasing the amount by which HUD may increase the maximum mortgage limits in certain Federal Housing Administration (FHA) multifamily mortgage insurance programs. The new rule conforms HUD's regulations to the recent statutory changes in Section 302(b) of the FHA Multifamily Loan Limit Adjustment Act of 2003 (Public Law 108-186), which revises the statutory exceptions to maximum mortgage amounts for certain FHA multifamily housing programs. Section 302(b) substitutes 140 percent for the 110 percent exception for any geographical area, and substitutes 170 percent for 140 percent as the maximum exception allowed for a specific project. The statutory revision also allows the HUD Secretary to grant exceptions to maximum mortgage limits for certain multifamily housing programs up to 140 percent in geographical areas where cost levels so require, and up to 170 percent where necessary on a project-by-project basis.
Salem, Ore. - March 2, 2004
Oregon Housing and Community Services (OHCS) released a list of applicants for the spring 2004 low-income housing tax credit (LIHTC) allocation round. OHCS received applications for eight projects totaling 413 units. Applicants requested $1,367,101 in tax credits. Click here for details.
New York - March 1, 2004
Standard & Poor's Ratings Services last week lowered the cap rates used for valuing affordable multifamily housing projects to reflect downward trends in cap rates due to the long-term drop in interest rates and lower cap rates being demanded by buyers of multifamily properties. The new cap rates are: 8.25%-9.25% for urban properties and 8.75%-9.25% for suburban properties. The rating agency says it will reserve the lower end of the cap rate range for new construction low-income housing tax credit (LIHTC) properties or non-subsidized properties receiving a quality ranking of 2 or higher by Standard & Poor's. More information will be available in the April issue of The Valuation Report.
Washington, D.C. - February 26, 2004
To facilitate electronic filing of low-income housing tax credit (LIHTC) returns, the Internal Revenue Service (IRS) in Treasury Decision 9112 eliminated the requirement to include a third-party signature from an authorized state or local housing credit agency official when filing Form 8609. Today, the IRS released updated versions of Form 8609 and Schedule A (an attachment to Form 8609) to reflect this change. State housing agencies will use the revised Form 8609 when making final credit allocations. Click here for the revised forms.
Washington, D.C. - February 25, 2004
The Internal Revenue Service (IRS) today invited comments concerning Revenue Procedure 2004-18, which provides issuers of qualified mortgage bonds, as defined in Section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in Section 25(c), with nationwide average purchase prices for residences located in the United States, and average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands and Guam. Written comments should be received on or before April 26, 2004 to be assured of consideration. Direct all written comments to Glenn P. Kirkland, Internal Revenue Service, Room 6411, 1111 Constitution Avenue N.W., Washington, D.C. 20224. Click here for a copy of Rev. Proc. 2004-18.
Sacramento, Calif. - February 23, 2004
The California Tax Credit Allocation Committee (TCAC) last week adopted the final version of the 2004 regulations for the low-income housing tax credit (LIHTC) program. Click here for a copy of the final regulations.
Washington, D.C. - February 19, 2004
The White House Office of Management and Budget (OMB) today published Bulletin 2004-03 that updates and supersedes OMB Bulletin No. 03-04, issued on June 6, 2003, regarding the definitions of all Metropolitan Statistical Areas (MSAs), Metropolitan Divisions, Micropolitan Statistical Areas, Combined Statistical Areas, and New England City and Town Areas in the United States and Puerto Rico. The changes to the statistical areas take effect immediately. The OMB also provides additional guidance to federal agencies that use the definitions for program administrative and fund allocation purposes, which include some calculations relevant to affordable housing programs. Click here for a copy of OMB Bulletin 04-03.
Washington, D.C. - February 18, 2004
The U.S. Department of Housing and Urban Development (HUD) today published the fiscal year 2004 nominal interest rate for the Section 202 and Section 811 Capital Advance programs. Under the programs, a capital advance bears no interest and its repayment is not required as long as the housing remains available for very low-income elderly persons or for very low-income persons with disabilities, for a period of 40 years, in accordance with Section 202 of the Housing Act of 1959, as amended, or Section 811 of the National Affordable Housing Act of 1990 (whichever is applicable). However, in the event of default, at the option of the HUD Secretary, the entire principal with interest becomes due and payable. The annual interest rate of 5.375 percent established in Housing Notice 2004-03 applies to the Section 202 and Section 811 projects that proceed to initial closing by September 30, 2004.
Washington, D.C. - February 17, 2004
The Internal Revenue Service (IRS) last week issued the second quarterly update of the 2003-2004 Priority Guidance Plan, announcing new projects dealing with consolidated returns, financial institutions, and products and other areas. Assistant Treasury Secretary for Tax Policy Pam Olson, Commissioner of Internal Revenue Mark Everson and IRS Acting Chief Counsel Emily Parker said the update includes 34 items of new guidance, some of which already have been published as part of the government’s "commitment to increased and more timely published guidance." The IRS may also add more guidance during the year even if the plan indicates an item is finished. Click here for an updated copy of the plan.
Sacramento, Calif. - February 16, 2004
Following the publication of the first draft of the 2004 proposed program regulations for California’s low-income housing tax credit (LIHTC) program, the Tax Credit Allocation Committee (TCAC) held two public hearings, at which 25 people testified, and had a public comment period that resulted in 55 written responses. According to a memo published February 11, staff is preparing to recommend proposed regulations that incorporate many of those comments. Click here for a second draft of the 2004 program regulations and a summary of changes from the first draft.
Washington, D.C. - February 13, 2004
The U.S. Department of Housing and Urban Development (HUD) this week published a notice soliciting comments from members of the public and affected agencies concerning the Survey of Market Absorption (SOMA). HUD says the SOMA provides the data necessary to measure the rate at which new rental apartments and new condominium apartments are absorbed over the course of the first 12 months following completion of a building. The survey also provides estimates of certain characteristics such as asking rent/price, number of units and number of bedrooms. The data provides a basis for analyzing the degree to which new apartment construction is meeting the present and future needs of the public. Additionally, beginning with new construction in 2002, the survey will attempt to ascertain the number and degree of services provided by assisted living units.
Washington, D.C. - February 12, 2004
The current housing government sponsored entity (GSE) regulatory structure is fragmented, which limits the federal government’s ability to oversee the GSEs’ activities, according to a report published this week by the General Accounting Office. Recent financial reporting problems at Freddie Mac raised concerns about the quality of the GSEs’ corporate governance and regulatory oversight. To assist Congress in reviewing the adequacy of GSE oversight, the GAO submitted this report, which recommends several steps that GSEs, regulators and Congress can take to strengthen GSE oversight, including strengthening GSE corporate governance, creating a single housing GSE regulator and establishing standards to measure GSE mission compliance. Click here for a copy of the report.
Sacramento, Calif. - February 11, 2004
The California Debt Limit Allocation Committee (CDLAC) announced today that it will now consider the Federal Home Loan Bank’s Affordable Housing Program (AHP) an acceptable source of public funds and will award leveraging points for AHP funds beginning in the first round of tax-exempt private activity bond allocation of 2004. In order to receive the leveraging points, the applicant must provide documentation evidencing a commitment for AHP funds at the time of application. Click here for a copy of CDLAC’s notice. Click here for more information on the AHP program.
Washington, D.C. - February 11, 2004
The Internal Revenue Service (IRS) yesterday issued Revenue Procedure 2004-18, which provides revised safe harbors for mortgage revenue bond purchase price limits for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands and Guam. These safe harbors were last updated in Rev. Proc. 94- 55, and were based on housing price estimates calculated by the Department of Housing and Urban Development from mortgage data collected by the Federal Housing Finance Board (FHFB). The safe harbors in Rev. Proc 04-18 are based on the annual loan limits set by the Federal Housing Administration (FHA) on FHA-insured mortgages. Because FHA loan limits do not differentiate between new and existing residences, this revenue procedure sets forth a single average area purchase price that may be used as a safe harbor for both new and existing residences in each of the listed statistical areas. This revenue procedure also reflects the Office of Management and Budget’s (OMB) current definitions for the nation’s metropolitan statistical areas (MSAs), as contained in OMB Bulletin No. 03-04, dated and effective June 6, 2003.
Washington, D.C. - February 10, 2004
The Internal Revenue Service today invited comments on Form 8703, Annual Certification of a Residential Rental Project. Form 8703 is used by the operator of a residential rental project to provide annual information that the IRS will use to determine whether a project continues to be a qualified residential rental project under Internal Revenue Code section 142(d). If so, and certain other requirements are met, bonds issued in connection with the project are considered “exempt facility bonds” and the interest paid on them is not taxable to the recipient. The IRS is not making any changes to the form at this time, but written comments will be accepted through April 12, 2004. Click here for details.
Providence, R.I. - February 6, 2004
The Rhode Island General Assembly yesterday passed a one-year moratorium on affordable housing plans by for-profit builders. The moratorium follows a 2002 change in the state’s affordable housing law that allowed private developers to apply for comprehensive permits for developments where at least 10 or 15 percent of the units would be affordable housing – an incentive previously available only to not-for-profits. Advocates of the moratorium claim that the result was a flood of applications to small towns forced to accommodate large developments in areas zoned for a fraction of the number of units. The moratorium provided by S.B. 2139 and H.B. 7437 freezes through Jan. 31, 2005 all for-profit affordable housing plans not already approved locally. The House approved the measure 60-3, and the Senate vote was unanimous; the governor is expected to sign the bill into law. Click here for text of state affordable housing legislation.
Washington, D.C. - February 2, 2004
President George W. Bush’s proposed fiscal year 2005 budget, released today, includes $31.3 billion for the U.S. Department of Housing and Urban Development (HUD) - $846 million more than FY 2004. The proposal includes $2 billion in the budget for the HOME Investment Partnerships Program and $200 million for the American Dream Downpayment Initiative. The administration again recommended the termination of the HOPE VI, brownfields, EZ/ECs and Rural Housing and Economic Development programs; Congress restored funds for all these programs in the FY 2004 budget despite a similar proposal last year. The budget also proposes a tax credit for developers of up to 50 percent of the cost of new construction or rehabilitation of affordable single-family housing targeted to families with incomes equal to 80 percent or less of area median income.
Washington, D.C. - January 29, 2004
The Department of Housing and Urban Development (HUD) has released income limits for 2004, effective 1/28/04. Click here for links to Median Family Income, Income Limits and accompanying information and tables from HUD. Some changes are a result of increases to FMRs because HUD incorporates FMRs in its income calculation in areas that meet the definition of high housing cost. For more coverage, look for articles in the March issue of Novogradac & Company LLP's Property Compliance Report. Novogradac & Company LLP has updated its Rent & Income Limit Calculator© to include 2004 data.
Washington, D.C. - January 27, 2004
In 1998, Congress enacted the Internal Revenue Service (IRS) Restructuring and Reform Act. Section 2001(a) of the act states Congress’s preference for paperless filing of filing federal tax returns and sets a long-range goal for the IRS to have at least 80 percent of all federal tax returns filed electronically by 2007. The IRS has identified Sec. 1.42-1T(e)(1) and (h)(2) as regulatory provisions that impede electronic filing of Form 8609, "Low-Income Housing Credit Allocation Certification," by requiring a taxpayer to include a third-party signature from an authorized state or local housing credit agency official when filing the form. Treasury Decision 9112, published today, eliminates that requirement. Click here for a copy of T.D. 9112.
Sacramento, Calif. - January 26, 2004
The California Debt Limit Allocation Committee (CDLAC) last week set funding priorities, procedures and application deadlines for the 2004 program year. Due to population increases, the available federal allocation of private activity bond authority to California will be $2,838,756,240 for 2004, an increase of approximately $200,000,000 over last year’s cap. Of that, CDLAC authorized the allocation of approximately $1,550,000,000 to qualified residential rental projects for 2004, an increase of approximately $100,000,000 over 2003. The first round application deadline is February 18.
Washington, D.C. - January 23, 2004
On December 19, 2003, the U.S. Department of Housing and Urban Development (HUD) published a proposed document that addresses efforts recipients of federal financial assistance must make to serve persons with limited English proficiency (LEP). Comments on the proposed guidance were due by January 20, 2004, but because of the significant public interest the notice has generated, HUD has extended the public comment period by an additional 14 days. A group of national housing provider trade associations - the National Apartment Association, National Affordable Housing Management Association, National Association of Housing and Redevelopment Officials, National Leased Housing Association, Council of Large Public Housing Authorities, National Multi Housing Council, American Association of Homes and Services for the Aging, Council of Affordable and Rural Housing and Institute of Real Estate Management – this week submitted joint commentary of unified concerns suggesting the notice be overhauled to provide a more realistic and less burdensome division of LEP responsibilities between HUD and its private sector partners. HUD will accept additional comments on or before February 5, 2004. Click here for a copy of the proposed guidance. Click here for a copy of the housing providers' joint commentary.
Washington, D.C. - January 22, 2004
The Senate today approved the fiscal year 2004 Consolidated Appropriations bill (H.R. 2673) conference report by a vote of 65 - 28. The $820 billion omnibus measure encompasses seven of the 13 annual federal appropriations bills, including the Veterans Administration, Housing and Urban Development (HUD) and Independent Agencies funding (H.R. 2861/S. 1584). President Bush is expected to sign the bill into law before the current continuing resolution expires Jan. 31. Bush is expected to submit his FY 2005 Budget to Congress February 2.
Nashville, Tenn. - January 21, 2004
The board of directions of the Tennessee Housing Development Agency (TDHA) will meet tomorrow at 1 p.m. (CST) to consider and possibly adopt amendments to the 2004 low-income housing tax credit (LIHTC) qualified allocation plan (QAP). Click here for a copy of the QAP and the proposed amendments.
Washington, D.C. - January 19, 2004
The Department of Housing and Urban Development (HUD) today announced the names of the awardees and the amounts of the awards made under the Super Notice of Funding Availability (SuperNOFA) for the Rural Housing and Economic Development Program. For the fiscal year 2003 funding round, a total of $24,590,272 was awarded to 87 projects nationwide. The Rural Housing and Economic Development Program is designed to build capacity at the state and local level for rural housing and economic development and to support innovative housing and economic development activities in rural areas. Funds are awarded through a competitive process to local rural not-for-profit organizations, community development corporations, federally recognized Indian tribes and state housing finance agencies. Click here for a list of the 2003 program year awardees.
Washington, D.C. - January 14, 2004
The U.S. Department of Housing and Urban Development (HUD) will temporarily cease issuance of FHA multifamily firm commitments no later than the close of business today. HUD says it will exhaust the commitment authority available under the continuing resolution under which the department is operating pending final action on the fiscal 2004 appropriations bill. The current continuing resolution provides $7.667 billion in commitment authority for the General Insurance (GI) Fund or Special Risk Insurance (SRI) funds through January 31. The suspensions of activity were announced in Mortgagee Letters 2004-02 and 2004-03 and Title I Lender TI-475, issued January 12.
Frankfort, Ky. - January 12, 2004
This month the Kentucky Housing Corporation (KHC) opens the competitive round of applications for approximately $7.5 million in low-income housing tax credits (LIHTC) as part of the 2004 housing credit program. This week, KHC staff members will conduct two allocation workshops to provide information about the LIHTC program and to make application materials available to interested participants. The workshops will be held in Frankfort, Ky. on January 14, 2004 and in Louisville, Ky. on Thursday, January 15, 2004. Click here for more information.
Sacramento, Calif. - January 9, 2004
Staff of the California Tax Credit Allocation Committee (TCAC) yesterday published new draft regulations for the 2004 low-income housing tax credit (LIHTC) program. The first draft of the regulations shows the proposed changes (both deletions and additions). Public hearings and a public comment period will be held to receive comments on the proposed regulations in Los Angeles on January 28 and in Sacramento on January 29. Click here for more information.
Sacramento, Calif. - January 8, 2004
The California Housing Consortium (CHC) and the California Coalition for Affordable Housing (CCAH) are taking aim this month at prevailing wage requirements established by legislation passed in recent years. They have requested a meeting with members of Gov. Schwarzenegger’s administration to discuss potential administrative relief from the prevailing wage requirements mandated on affordable housing developments through implementation of SB 975, the most significant of which went into effect January 1. SB 975 was passed in 2001 and subjected many types of affordable housing development to prevailing wage requirements for the first time. In a letter to Schwarzenegger, CHC and CCAH cite two independent studies that have since documented a future significant decrease in the number of affordable housing units due to the increase in construction costs caused by the prevailing wage requirements. Click here for a copy of the letter and related legislation.
Washington, D.C. - January 7, 2004
The Internal Revenue Service (IRS) yesterday published final regulations that amend carryover and stacking rule regulations under Section 42 of the Internal Revenue Code concerning the low-income housing tax credit (LIHTC). The regulations affect both owners of LIHTC projects and the state or local housing credit agencies that administer the credit. The final rules clarify the IRS’s position that each building in a multibuilding housing project does not have to separately meet a basis requirement for certain allocations related to the LIHTC. Click here for a copy of the final rule.
Washington, D.C. - January 6, 2004
The Internal Revenue Service today announced that the much anticipated Form 8823 Guide is now available for public review and comment. The document is intended to provide guidance to state agencies on how to complete Form 8823: Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition, by creating standardized operational definitions for the noncompliance categories listed on the form. Comments are due by March 31, 2004; complete instructions for submitting comments on the guide are included in the file. To request a copy of the draft guide, contact IRS Senior Program Analyst Grace Robertson at Grace.F.Robertson@irs.gov or 202-283-2516.