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CALIFORNIA LIHTC AGENCY & OTHERS RESPOND TO NEW HOUSING LAW

SACRAMENTO, Calif.- July 31, 2008

The California Tax Credit Allocation Committee (TCAC) released a memo today that discusses its plans to address issues of immediate concern and interest to the low-income housing tax credit (LIHTC) community resulting from changes to the law made by H.R. 3221, the Housing and Economic Recovery Act of 2008. Today's memo lists five specific changes that TCAC is considering, as well as the staff's proposed recommendations that will be presented to the committee at its August 20, 2008 meeting.

Several other states' housing finance agencies have announced similar plans. For example, the Colorado Housing Finance Authority announced yesterday that it is reviewing changes to the law and discussing the best way to incorporate them into the state's 2009 qualified allocation plan (QAP). Similarly, the Texas Department of Housing and Community Affairs (TDHCA) announced today that it will host a work group to gather input on the options for implementing the provisions of the new law that relate directly to the LIHTC program. Click here for more information about these announcements, as well as a statement from the National Council of State Housing Agencies (NCSHA) regarding state agencies' eagerness to deploy the resources authorized by H.R. 3221.

To learn about the full range of changes made by the new law to the LIHTC program, register for Novogradac and Company's Affordable Housing Webinar on the 2008 Housing Act to be held on August 12. The impact of the new law will also be discussed in San Francisco on September 10-11 at the 15th Annual San Francisco Affordable Housing Conference, where California Treasurer Bill Lockyer, who serves as chair of the California Tax Credit Allocation Committee (TCAC), is slated to deliver the keynote address.

PRESIDENT BUSH SIGNS HOUSING STIMULUS BILL INTO LAW

WASHINGTON, D.C.- July 30, 2008

President George W. Bush this morning signed into law H.R. 3221, the Housing and Economic Recovery Act of 2008, the Associated Press reports. H.R. 3221 is a package of housing legislation approved by Congress last week that includes modifications to the low-income housing tax credit (LIHTC), rehabilitation tax credit and tax-exempt bond programs, as well as a temporary LIHTC cap increase and numerous other provisions designed to bolster the housing and financial markets.

To learn how this new law will impact both existing and future LIHTC projects, join Novogradac & Company on August 12 for the Affordable Housing Webinar on the 2008 Housing Act. This webinar will summarize the LIHTC provisions contained in the Housing and Economic Recovery Act of 2008 and discuss the many unanswered questions posed by the new law.

These topics will also be discussed at the 15th Annual San Francisco Affordable Housing Conference on September 9-11.

Click here for access to summaries of the new law, as well as analysis from the Journal of Tax Credit Housing and other resources.

IRS PUBLISHES FINAL UTILITY ALLOWANCE RULES

WASHINGTON, D.C.- July 29, 2008

The Internal Revenue Service (IRS) today published final regulations regarding utility allowances for low-income housing tax credit (LIHTC) properties. The final rule made several changes, including amending the regulations to allow owners of LIHTC buildings that are neither Rural Housing Service (RHS)-assisted nor U.S. Department of Housing and Urban Development (HUD)-regulated, and in which no tenant in the building receives RHS tenant assistance, to choose from five options when determining the applicable utility allowance: the public housing authority (PHA) utility allowance; the local utility company estimate; the state agency estimate; HUD's utility schedule model; or an energy consumption model.

Click here for background information and related documents. A complete discussion of the changes made by the final regulations will be available in an upcoming issue of the Property Compliance Report.

SENATE PASSES HOUSING STIMULUS BILL

WASHINGTON, D.C.- July 28, 2008

The Senate on Saturday approved H.R. 3221, the Housing and Economic Recovery Act of 2008, by a vote of 72-13. The measure includes modifications to the low-income housing tax credit (LIHTC) and several other provisions of interest to the affordable housing community. President George W. Bush is expected to sign the bill into law this week.  

HOUSE PASSES HOUSING STIMULUS BILL

WASHINGTON, D.C.- July 23, 2008

The House of Representatives today approved H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act, by a vote of 272 to 152. The measure now goes back to the Senate before being sent to the President for his signature. President George W. Bush today indicated he would sign the bill. Click here for a draft of the current version of H.R. 3221 and related documents.

LOUISIANA AGENCY ANNOUNCES LIGHTNING ROUND FOR LIHTCS

BATON ROUGE, La.- July 22, 2008

The board of commissioners of the Louisiana Housing Finance Agency (LHFA) approved the implementation of a "Lightning Round" to allocate returned Gulf Opportunity (GO) Zone and per capita low-income housing tax credits (LIHTC) currently available in calendar year 2008. LHFA says there are approximately $11.1 million in GO Zone credits available for projects located in the GO Zone and $6 million in per capita LIHTCs available that will be awarded only to projects outside of the GO Zone. Any additional credits returned or recaptured before the end of calendar year 2008 will be offered to applicants participating in the Lightning Round. Additionally, the Office of Community Development and the Louisiana Recovery Authority have indicated that as much as $90 million in Community Development Block Grant (CDBG) funds may be available to fund financing gaps for projects located in the GO Zone. Click here for a memo containing detailed information about the tax credit allocation plan for the remaining GO Zone and per capita credits. LHFA has also published a list of frequently asked questions about the Lightning Round.

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