Notes from Novogradac
While the American Institute of Certified Public Accountants (AICPA) issued Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, back in May 2019, it has implications now.
Inflation directly affects low-income housing tax credit (LIHTC) properties’ operating expenses and repair costs. However, the effect of inflation on income limits is less obvious and not as well understood.
On Jan. 11, the Internal Revenue Service (IRS) issued Notice 2022-05 providing new and extended relief for various low-income housing tax credit (LIHTC) requirements addressed in Notice 2021-12. Like the previous guidance, this iteration is a mix of helpful allowances and provisions, which are one month too late. While the description summarizes the notice, it is not a substitute for reading the notice itself.
The IRS defines the term “original deadline” to mean the deadline without regard to any extension under Notices 2020-23, 2020-53 or 2021-12.
To better promote housing equity, on Dec. 22, 2021, the Federal Housing Finance Agency (FHFA) published a new final rule for Fannie Mae and Freddie Mac (the housing government-sponsored enterprises, or GSEs) determining both their 2022 multifamily housing goals and 2022-2024 single-family housing goals.
The start of a new year brings back a familiar topic: the countdown for the release of the 2022 U.S. Department of Housing and Urban Development (HUD) income limits.
Here are some key questions and answers about the income limits to be prepared for 2022.
In fiscal year (FY) 2020, the historic tax credit (HTC) created 122,000 jobs across the country, contributed $7 billion to the GDP, and generated $1.8 billion in tax revenue at the federal, state and local levels, according to the U.S. Department of the Interior’s National Parks Service (NPS) “Annual Report on the Economic Impact of the Federal Historic Tax Credits for Fiscal Year 2020,” a report that details the impacts of the HTC in FY 2020 and since the tax incentive’s enactment in 1979. The NPS partnered with the Rutgers University Center for Urban Policy Research in producing the report.
As the opportunity zones (OZ) incentive enters its fifth year, one of the main priorities among legislators and stakeholders is the need to disseminate and collect more data. Having more data made available is key to truly assess the incentive and what has been accomplished thus far.
Novogradac estimates that the Senate Finance Committee’s Dec.
December has been and will continue to be a busy month for Congress. Determining how they will decide to address the debt ceiling is one of the many issues facing lawmakers. While ensuring the United States does not default on its obligations for the first time in its history is crucially important for the economy, devoting precious time to addressing it will delay action in the Senate on the Build Back Better Act (BBBA) and its affordable housing, community development, and clean/renewable energy tax incentive and spending proposals.
Every year, thousands of affordable homes are at risk of being lost. However, provisions in the Build Back Better Act (BBBA) could alleviate some of that loss.
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