Notes from Novogradac

Published by Peter Lawrence on March 15, 2018

The Federal Housing Finance Agency (FHFA) recently released the 2018-2020 Enterprise Housing Goals, which remain relatively unchanged from 2015-2017 levels. The FHFA, as required by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, sets the mortgage purchase goals for the housing government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.

Published by Thomas Stagg on March 7, 2018

The U.S. Department of Housing and Urban Development (HUD) has set a target release date for new income limits of April 1 of each year. In 2011, HUD set a target release date for income limits of Dec. 1 of every year.  However, in 2015 Congress changed how the extremely low-income limit was determined, making it infeasible for HUD to be able to achieve the Dec. 1 income limit release target.

Published by John Sciarretti, Michael Novogradac, Peter Lawrence on February 23, 2018

As noted in a recent client alert, opportunity zones (OZs), the new community development tool authorized in the tax law enacted in December, represent the first new tax incentive for private capital in low-income communities since the creation of the new markets tax credit (NMTC) in 2000.

Published by Michael Novogradac on February 19, 2018

The release of Fannie Mae’s and Freddie Mac’s Securities and Exchange Commission 10-K filings for 2017 show that while single family volume decreased over 2016, multifamily volume increased.

Published by Michael Novogradac on February 13, 2018

With the award of calendar year 2017 new market tax credits (NMTC), the total amount allocated through the program stands at $54 billion. The CDFI Fund allocated $3.5 billion in tax credit authority to 73 community development entities (CDEs), which are again expected to invest more in operating businesses than real estate projects, continuing a trend that began in 2011. This round, the funds awarded to CDEs investing in operating businesses and real estate accounted for $3.419 billion of the total $3.5 billion awarded.

Published by Peter Lawrence on February 12, 2018

The Trump administration released its $4.4 trillion fiscal year (FY) 2019 budget request Feb. 12, which includes $716 billion in defense discretionary spending and $540 billion for nondefense discretionary spending, a cut of $49 billion from FY 2018 spending cap and $57 billion from the FY 2019 spending cap. Of the nondefense discretionary budget, the administration requested $41.2 billion (including $2 billion as proposed in the FY 2019 budget addendum) in gross U.S.

Published by H. Blair Kincer on February 5, 2018

The understanding of equity and equity pricing can help guide understanding and effects of policy, as well as a glimpse at what proposed changes could mean for affordable housing production.

Published by Michael Novogradac on January 24, 2018

An observational study Novogradac & Company is conducting suggests anticipation of a reduction in the corporate tax rate has already reduced production of affordable housing by approximately 11 percent.


Published by Thomas Stagg on January 18, 2018

Small area fair market rent (SAFMR) were required to be implemented in 23 areas beginning Jan. 1. In addition, SAFMRs were already being used in Dallas, Texas, bringing to 24 the number of areas required to use SAFMRS. 

Published by H. Blair Kincer on January 9, 2018

Real estate economics are key drivers in the success or failure of mixed-use developments, even those using equity from historic tax credits (HTCs) and new markets tax credits (NMTCs)–something that’s becoming more and more evident as Novogradac & Company LLP provides market analysis for clients on a broad range of mixed-use properties. More and more investors, lenders, developers and others are recognizing the importance of deeper understanding of the real estate market.

Consider one recent investor who asked, “How many boutique hotels does one small town need?”