Notes from Novogradac

Published by Peter Lawrence on March 4, 2020

The Tax Policy Center (TPC) recently released a paper titled "Are Tax Expenditures Worth the Money?" that critically misunderstands housing and community development tax incentives and as a result mischaracterizes their value.

Published by Peter Lawrence on March 2, 2020

The Federal Housing Finance Agency (FHFA) announced Feb. 27 that it released $502.3 million for the 2020 allocations for the Housing Trust Fund (HTF) and Capital Magnet Funds (CMF).

Published by Peter Lawrence on February 27, 2020

While national attention is turned to South Carolina for the democratic primary, now is a good time to assess how the community development tax incentives have benefited the state. By highlighting the positive impacts the incentives have had on the state’s communities and residents, support for these incentives can be strengthened.

Published by Peter Lawrence on February 18, 2020

Community development tax incentives have tangible positive impacts on the states and individuals they serve. The presidential caucuses and primaries are a useful time to highlight those impacts, as it raises awareness and provides support for advocates who specialize in these community development tax incentives. This look at Nevada (the third in the series) follows a profile on New Hampshire.

Published by Thomas Stagg on February 17, 2020

It’s that time of year again: the countdown phase for the release of the 2020 U.S. Department of Housing and Urban Development (HUD) income limits.

Published by Peter Lawrence on February 11, 2020

The Trump administration this week released its $4.8 trillion fiscal year (FY) 2021 budget request, which includes $741 billion in defense spending including overseas contingency operations and other adjustments and $590 billion for nondefense spending including adjustments, a cut of $37 billion or nearly 6 percent from the current law FY 2021 spending cap.

Published by Mark Shelburne, Thomas Stagg on February 10, 2020

Developers and investors have been interested in timely issuance of Internal Revenue Service (IRS) Form 8609 since the beginning of the low-income housing tax credit (LIHTC). However, a law that recently went into effect has greatly increased the stakes.

Published by Peter Lawrence on February 10, 2020

Along with low-income renter households, the middle-class are facing a housing crunch as affordability issues are moving up the income scale, according to the new study from the Harvard Joint Center for Housing Studies (JCHS). The study found that while extremely low-income renters are the most cost-burdened (those paying more than 30 percent of income towards rent), more higher-income earners are having trouble finding affordable rental housing.

Published by Peter Lawrence on February 7, 2020

With the presidential caucuses and primaries underway, it can be useful to highlight the importance and influence the main community development tax incentives have had on each of the early nomination contest states as a way to raise awareness and support for those incentives. These financing tools have made real, positive differences in the lives of low-income communities in every state.

Published by Mark Shelburne, Peter Lawrence on February 3, 2020

As described in an earlier post, the demands on tax-exempt private activity bond (PAB) volume are growing in many states. For several years after the financial crisis and recession of 2008-9, the vast majority of states had plenty of PAB cap available, and rental market conditions often made using PABs for potential affordable rental housing developments financially difficult.