Wednesday, May 25, 2022

Maryland Gov. Larry Hogan signed legislation extending the state historic tax credit (HTC) by seven years, altering annual caps for specific uses of the state HTC, increasing funding for the HTC reserve fund and increasing the annual set-aside for a small commercial project trust account. H.B. 27 extends the credit sunset from 2024 through the end of fiscal year 2031 and increases the annual state HTC cap for developments in a Level 1 opportunity zone (OZ) to $5.25 million, Level 2 OZ to $5.5 million and any other commercial rehabilitation outside a Level 1 or Level 2 OZ to $5 million. The annual budget set-aside for the reserve fund will increase from $12 million to $20 million for 2023 through 2031 and the annual funding for the small commercial project trust account will have an annual appropriation of $2 million.

Wednesday, May 25, 2022

Legislation to extend the state low-income housing tax credit (LIHTC) through 2031 passed both houses of the Legislature and is on the desk of Gov. Jared Polis. H.B. 1051 extends the sunset date for the credit from Dec. 31, 2024, to Dec. 31, 2031. The legislation also provides that state credits allocated to developments in counties impacted by federally declared disasters–solely for leveraging state and federal natural disaster funds–do not count against the annual state cap.

Wednesday, May 18, 2022

South Carolina Gov. Henry McMaster signed into law H. 5075 on May 16, restricting the allocation of the state low-income housing tax credit (LIHTC) to $20 million annually and defining specific areas and types of housing that must receive at least a minimum amount of credits. The total amount of state LIHTCs allocated to qualified developments using the federal 9% LIHTC cannot exceed 40% of the $20 million limit. Of those, not less than 50% of the state LIHTCs must be allocated to qualified developments in eligible rural areas, with the remainder allocated to developments serving older persons or persons with special needs, workforce development and other qualified developments. 

Monday, May 16, 2022

The Biden administration today announced its Housing Supply Action Plan to close the housing supply shortfall in five years, including the creation and preservation of hundreds of thousands of affordable homes in the next three years. The plan calls for investments in housing production and preservation, such as those outlined in the House reconciliation bill to increase the annual low-income housing tax credit (LIHTC) allocation cap and create the Neighborhood Homes Tax Credit. The White House cited  Novogradac analysis that found that the reconciliation bill could finance nearly 1 million affordable homes over 2022-2031.

Wednesday, May 11, 2022

Bipartisan legislation introduced Wednesday in the U.S. Senate would allow governments to use Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to make long-term loans to low-income housing tax credit (LIHTC) developments. The LIHTC Financing Enabling Long-Term Investment in Neighborhood Excellence (LIFELINE) Act would allow states and local governments to use SLFRF funds to make long-term loans to LIHTC developments. The bill seeks to ease financing gaps due to rising construction costs, price increases, supply chain issues, workforce difficulties and more related to the COVID-19 pandemic. Sens. Patrick Leahy, D-Vermont, and Susan Collins, R-Maine, introduced the legislation. A companion bill, H.R. 7078, was introduced in the House in March.

Wednesday, May 11, 2022

Georgia Gov. Brian Kemp recently signed legislation to extend the sunset date for Georgia’s historic property rehabilitation tax credit (HTC) to Dec. 31, 2027, from the end of this year. H469 boosts the amount of credits for historic homes to $5 million in calendar years 2023 and 2024 before expiring in 2025. From 2023 to 2027, credits are capped at $30 million for structures other than homes.

Tuesday, May 10, 2022

Illinois Gov. J.B. Pritzker signed legislation to institute a $3 million transaction cap for the state historic tax credit (HTC), while retaining the current $15 million annual statewide cap. S.B. 1711 also extends eligibility for the HTC to limited liability companies and provides clarity on how the credits can be granted to a partnership, limited liability partnership taxed as a partnership or other multiple owners of property.

Friday, May 6, 2022

Kansas Gov. Laura Kelly signed legislation Thursday to create a state low-income housing tax credit (LIHTC) for up to the amount of the federal LIHTC award to a property. The legislation also increased the state historic tax credit (HTC) percentages for certain properties. H.B. 2237 would create the state LIHTC effective for tax years beginning Jan. 1, 2023 or after. The state HTC percentage–which is currently 25%–will be increased to 30% of qualified rehabilitation expenditures (QREs) in cities of 9,500 to 50,000 residents and to 40% in cities of less than 9,500 residents. The legislation also creates the Kansas housing investor tax credit, which is a credit of up to $35,000 per unit for single-family homes with an annual cap of $13 million.

Thursday, May 5, 2022

The three major federal bank regulatory agencies today issued a joint notice of proposed rulemaking to strengthen and modernize Community Reinvestment Act (CRA) regulations. The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Fed) and Federal Deposit Insurance Corporation (FDIC) jointly issued the proposal, which would be the first significant interagency revision to the CRA since 1995. The proposal would adopt a metrics-based approach to CRA evaluation of retail lending and community development financing that includes public benchmarks. The rule would also clarify eligible CRA activities that are focused on low- and moderate-income, rural and underserved communities, including affordable housing. 

Wednesday, May 4, 2022

Legislation to create a Kansas state low-income housing tax credit (LIHTC) is on the desk of Gov. Laura Kelly. H.B. 2237 would create a Kansas affordable housing tax credit for up to the amount of the federal LIHTC and would apply to tax years beginning Jan. 1, 2023 or later. The legislation would also change the state historic tax credit (HTC) to increase the credit to 30% of qualified rehabilitation expenditures (QREs) in cities of 9,500 to 50,000 residents and 40% of QREs for cities of less than 9,500 residents. The current Kansas HTC is for 25% of QREs, with 30% for nonprofits.