Neighborhood Homes Tax Credit

‘Dear Colleague’ letter in support of a modified version of the Community Development Homeownership Tax Credit Act
October 26, 2005, Sens. John Ensign, R-Nev., John Kerry, D-Mass., Rick Santorum, R-Pa., and Debbie Stabenow, D-Mich.

‘Dear Colleague’ letter in support of S. 859, the Community Development Homeownership Tax Credit Act
April 20, 2005

H.R. 1549 Renewing the Dream Tax Credit Act
April 12, 2005

2003-04

Introduced

S. 875, Community Development Homeownership Tax Credit Act
April 10, 2003

S. 811, American Dream Downpayment Act
April 8, 2003

H.R. 1276, American Dream Downpayment Act
March 13, 2003

H.R. 839 Renewing the Dream Tax Credit Act
Feb. 13, 2003

2001-02

Introduced

S. 3126, Community Development Homeownership Tax Credit Act
October 16, 2002

H.R. 5052, Renewing the Dream Tax Credit Act
June 27, 2002

H.R. 4446, American Dream Downpayment Act
April 17, 2002

State Legislation

2023

Enacted

Ohio H.B. 33, Establishes operating appropriations for fiscal years 2024-2025 (Section 175.17)
Enacted July 4, 2023

Introduced

Ohio H.B. 33, Establishes operating appropriations for fiscal years 2024-2025 (Section 175.17)
Introduced April 27, 2023

2021

Introduced

Iowa SF 373, Act creating a homeownership development tax credit
Introduced Feb. 16, 2021

2020

Enacted

Michigan S.B. 319, An act to provide for the development and rehabilitation of residential housing
Jan. 20, 2020

Comment Letters and Advocacy

CRA Notice of Proposed Rulemaking for Docket ID OCC-2022-0002/RIN 7100-AG/RIN 3064-AF81
Aug. 5, 2022

Joint Industry Letter to Leadership Urging Inclusion of Neighborhood Homes Investment Act and Other Homeownership Proposals in Reconciliation Bill
Aug. 25, 2021

Neighborhood Homes Coalition: Joint Letter Urging Inclusion Of The Neighborhood Homes Investment Act In The Administration’s Infrastructure Proposal
March 17, 2021

Reports

Neighborhood Homes Investment Act FAQs 2021
National Council of State Housing Agencies
March 2021

Towards a Targeted Homeownership Tax Credit
By J. Michael Collins, Eric S. Belsky, and Nicolas P. Retsinas
Brookings Institution’s Center on Urban and Metropolitan Policy
January 1999

Other Resources

Provide a Neighborhood Homes Credit (FY 2024 Greenbook)
Department of the Treasury, April 2023

General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposal (FY 2022 Greenbook)
Department of the Treasury, May 2021

Working Group

Who We Are

The Neighborhood Homes Tax Credit (NHTC) Working Group was founded by Novogradac in 2021 following the introduction of the Neighborhood Homes Investment Act; the NHTC was also included in President Joe Biden’s American Jobs Plan, the administrations infrastructure proposal, and the FY 2022 budget request. The NHTC Working Group was created to identify and address technical and administrative issues that arise under the federal Neighborhood Homes Tax Credit. Its members primarily include investors, syndicators, lenders, community development financial institutions (CDFIs), for-profit and nonprofit developers, consultants, law firms and other community development professionals who work together to suggest consensus solutions to technical NHTC issues and provide recommendations to make the tax credit more efficient in delivering benefits to low- and moderate-income homeowners in distressed communities.

What We Do

Established to provide a platform for community development industry participants who wished to be on the leading edge, the NHTC Working Group encourages and facilitates the collaboration of industry stakeholders in their efforts to use the incentive and resolve technical and administrative issues. Each month members of the group participate in a conference call to discuss issues, answers to frequently asked questions, practical applications for using the incentive in various business models, recommended practices for compliance, and issues needing further guidance and–based on those discussions–provide comments and suggestions that are submitted in writing to the U.S. Department of the Treasury and Internal Revenue Service, members of Congress and other federal and state agencies.

Also, members have the opportunity participate in various subgroup calls which address the needs of members in a more focused way by concentrating shared attention on particular applications of the incentive and specific industry sectors.

Benefits of Membership

Membership in the NHTC Working Group provides:

Access to a platform where members can collaborate on similar opportunities and issues to better understand how they can use the tax credit to finance single-family homes in distressed communities.
Access to Novogradac legislative and economic analysis of key issues in the Neighborhood Homes Tax Credit.
The ability to keep abreast of emerging issues and provide input for shaping proposed rulemaking so that the rules and markets work well together.
The ability to cost share in resolving similar issues more efficiently as a group rather than having to address them individually.
The chance to participate directly but have ideas and suggestions included anonymously in letters submitted to governmental agencies.
Access to Novogradac’s congressional update on issues as they happen.
Access to conceptual models and analysis to assist in the understanding of the value of the tax credit.

Priority Issues

The NHTC Working Group’s priority issues include:

Discovering the most effective, impactful and efficient use of the tax credit with various business models.
Review legislative language and identify areas that may need clarified.
Provide comments to state housing agencies regarding NHTC policies and best practices.
Making requests for guidance and providing recommendations around statutory requirements, regulations and other guidance.
Discovering how the Neighborhood Homes TC Credit can be combined with various community development tax and other incentives to achieve the maximum benefit for eligible households and distressed communities.

Membership

For information regarding the group and how to become a member, complete this form or contact Dirk Wallace at (330) 365-5364 or [email protected]. Membership fees cover the time incurred by Novogradac professionals to research, collaborate and prepare written and verbal communications to the respective agencies. Each month, Novogradac updates the group on the status of each issue and the necessary actions to address them.

Public Input

The NHTC Working Group does consider input from non-members when drafting of comment letters, recommended practices and other content. To submit input on an NHTC topic, contact Dirk Wallace at (330) 365-5364 or [email protected].