Notes from Novogradac

Published by Dirk Wallace, Mark Shelburne on April 8, 2020

The Internal Revenue Service (IRS) today issued Revenue Procedure 2020-23 that allows taxpayers to amend Bipartisan Budget Act of 2015(BBA) partnership tax returns by September 30, 2020 to take advantage of Coronavirus Aid, Relief, and Economic Security (CARES) Act provisions as well as “any other tax attributes to which the partnership is entitled by law.” The latter aspect will help certain low-income housing tax credit (LIHTC) properties.

Published by Peter Lawrence on April 3, 2020

While affordable housing advocates continue to fight for the expansion of low-income housing tax credit (LIHTC) to address the critical lack of affordable rental housing, especially in the context of the COVID-19 pandemic, it is important to argue that the LIHTC also serves those most vulnerable households who need it.  

Published by Mark Shelburne on March 31, 2020

[Edited at 1:50 p.m. on April 2, 2020]

Affordable rental housing properties across the nation will soon face difficulties covering their expenses as tenants in many thousands of apartments stop paying rent. The historic levels of unemployment mean households have less or no income, and the new federal moratorium on evictions (or similar state/local limits) could result in paying rent being less of an immediate priority for residents than other needs.

Published by Mark Shelburne on March 31, 2020

The CARES Act imposes a 120-day moratorium on tenant eviction filings and charging late fees for almost all of the nation’s affordable housing properties.

Published by Michael Novogradac, Todd Crow on March 31, 2020

As the COVID-19 pandemic continues and the federal government works to mitigate both the health and economic fallout, operators of low-income housing tax credit (LIHTC) properties face the reality of a decline in short-term rent receipts. The amount of rent received–starting Wednesday, April 1–will drop, with the central questions being how far and for how long. The depth and length of the decline and how tenants, owners, lenders, investors and governments react to the decline will affect both individual properties and, more broadly, the future of affordable housing.

Published by Michael Novogradac, Peter Lawrence on March 25, 2020

[Updated March 31, 2020; 9:20 p.m.; originally titled Senate Leadership Agrees to nearly $2 Trillion Phase 3 COVID-19 Response Bill]

Today, President Trump signed the $2 trillion CARES (Coronavirus Aid, Relief, and Economic Security) Act (H.R. 748). The bill contains numerous tax, grant, and loan provisions designed to provide financial aid to individuals, businesses, nonprofits and state and local governments, to help address the tremendous health and economic fallout from the public health emergency.

Published by Thomas Stagg on March 24, 2020

Although it is likely too early to understand the long term effects of the COVID-19 pandemic on the economy, there are a lot of questions about the 2020 income limits that are anticipated to be released in the coming weeks. In short, the 2020 limits will not be impacted by COVID-19, but there likely will be consequences for 2021 and beyond.

Published by Peter Lawrence on March 18, 2020

On Feb. 5, the House Financial Services Subcommittee on Housing, Community Development, and Insurance held a hearing entitled “A Future Without Public Housing? Examining the Trump Administration’s Efforts to Eliminate Public Housing.”

Published by Mark Shelburne on March 13, 2020

The agencies responsible for administering the low-income housing tax credit (LIHTC) have hard-earned experience dealing with challenges and disasters. Whether its legislation enacted with no notice, historic hurricanes/flooding, or sudden equity market changes, allocators respond quickly and effectively.