Notes from Novogradac
The House Appropriations Transportation-HUD (THUD) Subcommittee approved its $71.8 billion fiscal year (FY) 2018 spending bill May 15, which is expected to be approved by the full House Appropriations Committee May 23.
Twenty-five years of affordable housing conferences have gathered thousands of development, investment and compliance professionals to discuss the opportunities and challenges they were facing at the time. Looking back at those challenges and opportunities, Michael Novogradac, CPA, shared some lessons and strategies gleaned from those years for attendees at Novogradac's 25th Annual Affordable Housing Conference yesterday in San Francisco.
The bond market for affordable multifamily housing in California took a step back in 2017.
A year after the California Debt Limit Allocation Committee (CDLAC), which is responsible for administering the state’s tax-exempt private activity bond program, issued $4.8 billion in 2016 to help fund rental housing developments, the amount dropped to $3.4 billion in 2017 – a 30 percent decrease. The result was 114 properties funded in 2017, a drop from 179 funded in 2016.
Released today, the White House’s proposed rescissions package calls for $15.4 billion in appropriated funds to be voided. Much of the proposed rescinded funding was approved in prior year spending bills, but some of the appropriations were approved in March as part of the fiscal year 2018 omnibus spending bill.
The U.S. Department of Housing and Urban Development (HUD) last week released its fiscal year (FY) 2018 allocations for various block grant programs, including for the Housing Trust Fund (HTF).
Population increases reported by the Internal Revenue Service (IRS) in Notice 2018-45 mean the 2018 low-income housing tax credit (LIHTC) ceiling and tax-exempt private activity bond (PAB) cap for all states will increase. The nation’s population grew by 0.8 percent during the period ending July 1, 2017.
The Treasury Department last week designated 1,312 qualified opportunity zones (OZs) in Alabama, Delaware, Missouri, Ohio, Texas and the Northern Marianas Islands. Last week’s announcement brings the total number of states and territories in which OZ designations have been certified by Treasury to 20 and four, respectively, and the total number of OZs to 4,831.
The Consolidated Appropriations Act, 2018, also known as the omnibus spending bill, made two changes to the low-income housing tax credit (LIHTC). In addition to increasing the amount of LIHTC volume cap by 12.5 percent over the next four years, Congress created a new occupancy set-aside option known as “income averaging” (IA).
As previously discussed in this space, Novogradac estimates that the tax bill enacted in December would have reduced the future supply of affordable rental housing by about 235,000 rental homes nationwide over the next 10 years.
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