The U.S. Department of Housing and Urban Development (HUD) announced that it will use 2021 American Community Survey (ACS) data to determine fiscal year 2023 (FY23) median family incomes and income limits for low-income housing tax credit (LIHTC) properties. HUD will release the FY23 information on or about May 15, 2023, which is approximately six weeks later than normal.
The Virginia Department of Taxation amended regulations concerning the housing opportunity tax credit, the state’s low-income housing tax credit (LIHTC). Among the amendments and clarifications are that taxpayers with unused credits can carry them forward up to five years and that the state can carry forward up to 15% of annual credits. Awardees of 9% LIHTCs can amend their application to a 4% LIHTC in connection with their points and rankings for the state credit and in doing so, change their requested federal LIHTC amount. The amended regulations prioritize 4% LIHTC developments not yet placed in service that have funding gaps. The regulations also prioritize $20 million of state LIHTCs annually for areas in areas with populations of 35,000 or fewer residents. The amendments include a clarification that awards made in 2021 are unchanged by proposed amendments for 2022.
The Internal Revenue Service (IRS) will publish an announcement in the upcoming Internal Revenue Bulletin reminding state and local low-income housing tax credit (LIHTC) agencies that disaster-related credits for calendar years 2021 and 2022 cannot be carried over to years after 2022. Announcement 2022-27 applies to LIHTCs authorized in 2020 legislation, which allowed an allocation of $1.25 billion in disaster-area credits to 11 states and Puerto Rico for use in the construction or rehabilitation of buildings in qualified disaster areas.
The Internal Revenue Service (IRS) will publish a notice in Wednesday’s Federal Register providing guidance on the prevailing wage and apprenticeship requirements that allow bonus credit percentages for certain renewable energy provisions of the Inflation Reduction Act (IRA). The notice also provides guidance for determining the beginning of construction date for certain credits. Under the IRA, properties that meet prevailing wage and apprenticeship requirements qualify for the 30% renewable energy investment tax credit (ITC) and the $26 per megawatt-hour production tax credit (PTC).
Bipartisan legislation introduced in both houses of Congress would allow college students who have experienced homelessness or are currently homeless to live in properties financed by the low-income housing tax credit (LIHTC). The Housing for Homeless Students Act of 2022 (S. 5108 and H.R. 9313) would change LIHTC regulations–which currently do not allow tenants to be full-time students.
The Community Development Financial Institutions (CDFI) Fund published a notice in today’s Federal Register, inviting comments concerning the new markets tax credit (NMTC) program allocation and qualified equity investment tracking system (AQEI).
A group representing more than 2,400 public and private organizations involved in affordable housing–including Novogradac–sent on Monday an open letter to Congress calling for an increase in low-income housing tax credit (LIHTC) allocation authority. The letter from the A Call to Invest in Our Neighborhoods (ACTION) Campaign called on Congress to expand LIHTC authority by 50% (or at least reinstate the 12.5% increase to LIHTC authority) and to lower the financed-by bond financing threshold for affordable housing from 50% to 25%. The letter called for those moves to be made before the end of 2022.
The fiscal year 2023 budget for Rhode Island extended the sunset date for the Rhode Island state historic tax credit (HTC) by one year, to June 30, 2023, according to an advisory document published by the Rhode Island Department of Revenue, Division of Taxation. To receive HTCs, participants must also comply with prevailing wage requirements passed as part of H.B. 7985.
The Community Development Financial Institutions (CDFI) Fund today released the notice of allocation availability (NOAA) for the calendar year (CY) 2022 round of the new markets tax credit, along with application materials and an updated application FAQ document. The NOAA will be published in the Federal Register Nov. 22. Up to $5 billion of allocation authority is available under the CY 2022 round. NMTC applications are due Jan. 26, 2023. The CDFI Fund also announced some NMTC program updates, including revised qualified equity investment (QEI) issuance requirements. The deadline for community development entity certification application submission is Dec. 2 and the deadline to register in the CDFI Fund Awards Management Information System for NMTC application is Dec. 15. The QEI issuance and qualified low-income community investment (QLICI) requirements are due May 4, 2023.
Legislation introduced in the Texas House of Representatives would amend the state’s ranking system for low-income housing tax credit (LIHTC) applications to include whether the units in a development have air conditioning. H.B. 191 would make whether a property has air conditioning the 11th scoring criteria in order of importance. It would also require any statement of support from a state representative about a property applying for LIHTC allocation to disclose the percentage of units owned by the applicant that are equipped with air conditioning.
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