Notes from Novogradac

Published by Michael Novogradac on April 23, 2018

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.

Published by Michael Novogradac, Peter Lawrence on April 4, 2018

As described in a recent Novogradac analysis, the 12.5 percent increase in 9 percent low-income housing tax credit (LIHTC) allocations included in the fiscal year 2018 omnibus spending law would partially offset the loss of

Published by Mark Shelburne, Thomas Stagg on April 3, 2018

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).

Published by Kevin Wilson, CPA, Michael Novogradac on March 30, 2018

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.

Published by Michael Novogradac on March 27, 2018

It’s a great down payment, but don’t confuse it with paying the full bill.

Published by Peter Lawrence on March 26, 2018

The low-income housing tax credit (LIHTC), continues to serve the nation’s most vulnerable households, according to “Understanding Whom the LIHTC Program Serves: Data on Tenants in LIHTC Units as of December 31, 2015,” a U.S. Department of Housing and Urban Development’s (HUD) report released March 20, 2018.

Published by Peter Lawrence on March 22, 2018

Congressional leaders Wednesday announced agreement on a $1.29 trillion fiscal year (FY) 2018 omnibus spending bill, of which nearly $700 billion was for defense and $591 billion for nondefense.

Published by Michael Novogradac, Peter Lawrence on March 21, 2018

Congressional leaders today released a fiscal year (FY) 2018 omnibus appropriations bill that includes several tax provisions, including an expansion of the low-income housing tax credit (LIHTC).

The LIHTC provisions were included in the bill along with a correction to Section 199A enacted in tax reform to address the tax advantage that cooperatives have as compared to other businesses, a top priority for congressional Republicans.

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.