Notes from Novogradac

Published by H. Blair Kincer on November 24, 2020

News headlines suggest that New York City has experienced a sudden population loss since the start of the COVID-19 pandemic. According to U.S. Postal Service data, in 2019 New York City ranked second in the nation for the number of persons leaving the city and the city garnered the top spot for 2020. Postal Service data also shows that more than 110,000 people left Manhattan between February and July. But is it true that recent population losses are attributed solely to the pandemic?

Published by H. Blair Kincer on November 19, 2020

In a time when affordable rental housing is as needed as ever, during the COVID-19 pandemic, there is a new subsidy available for low-income housing tax credit developments in California: the Homekey program.

The Homekey program is a new housing initiative announced July 16 by the California Department of Housing and Community Development. It expands housing opportunities for households experiencing homelessness and those impacted by the COVID-19 pandemic.

In the initial legislation, $600 million in funding was available for Homekey grants in two pools:

Published by H. Blair Kincer on November 16, 2020

Comparing apples to oranges can lead to a possibly incorrect conclusion that fruit is getting more citrusy.

On one hand, it’s possible that apples are actually getting more tart. On the other hand, the comparison may be flawed: Apples and oranges are fruits that grow on trees, but they are not the same thing.

Published by Peter Lawrence on November 4, 2020

As of the writing of this post, the presidential election remains uncalled, and it appears that it may take several days for results to be clear.

As for Congressional races, Democrats currently have a net gain of one seat in the Senate with five seats uncalled. Democrats are projected to retain control in the House, albeit likely with net losses of at least five seats, according to AP.

Published by Mark Shelburne on November 2, 2020

On Oct. 30 the Internal Revenue Service (IRS) issued a notice of proposed rulemaking for the low-income housing tax credit (LIHTC) average income (AI) minimum set-aside. There are three overall conclusions to draw at this point:

Published by John Sciarretti on October 22, 2020

The closing months of 2020 will certainly be eventful, and opportunities zones (OZs) stakeholders will be watching to see how the incentive may be affected. There will be a flurry of government activity in the coming days and week – including ongoing negotiations around the next phase of COVID-19-related relief, efforts to seat a new Supreme Court justice, possible year-end tax legislation and another continuing resolution to fund the government – the most consequential of which are the upcoming elections.

Published by Thomas Stagg on October 21, 2020

In the Sept. 24, 2020 Federal Register the U.S. Department of Housing and Urban Development (HUD) designated difficult development areas (DDAs) and qualified census tracts (QCTs) for 2021. Low-income housing tax credit (LIHTC) properties located in these areas are qualified to increase their eligible basis by up to 30 percent for new construction and rehabilitation costs (known as a boost).

Published by H. Blair Kincer on October 19, 2020

Family properties spend more and earn more.

That’s one of the conclusions from the 2020 Multifamily Rental Housing Operating Expense Report, the annual report published by Novogradac.

The data shows that low-income housing tax credit (LIHTC) properties for families have higher operating expenses, but also more net operating income (NOI) than senior properties.

Published by Bob Ibanez on October 12, 2020

Despite the New Markets Tax Credit (NMTC) providing two decades worth of patient, flexible capital to businesses and projects located in distressed rural and urban communities, thereby creating jobs and growing business opportunities, the authorization for the NMTC is set to expire yet again at the end of this year. This is familiar ground; since its enactment, the NMTC has been extended seven times.