Affordable Housing Advocates Ask Treasury to Modify Average-Income Set-Aside Regulations
A group of 32 commenters, including Novogradac, the Affordable Housing Tax Credit Coalition, Enterprise, LISC and the National Association of Home Builders, sent a letter to the Treasury Department urging modifications to proposed regulations on the average income minimum set-aside test or for Treasury to issue a set of new rules. The letter says the proposed regulations have “substantially chilled interest” in the average-income test set-aside, because as proposed the rule creates a level of risk not intended by Congress. The letter suggests two possible approaches to the average-income set-aside, modifications to unit designations, flexibility concerning casualty loss, mitigating actions and relief for existing average-income set-aside developments.
Efforts to refine the average income test and other advocacy efforts will be topics at the Novogradac 2022 Affordable Housing Developers Conference, Jan. 13-14, in San Juan, Puerto Rico.