Notes from Novogradac

Published by Thomas Stagg on January 5, 2018

Understanding HUD’s income limits can be a difficult endeavor. Terms like high housing cost or and state non-metro median adjustment can turn off even the most ambitious user. However, this primer will help better explain how HUD determines income limits.

Published by Thomas Boccia on December 29, 2017

The 10 percent non-historic tax credit is history under the recently passed tax reform act, but perhaps more significant to those in the historic preservation world, the 20 percent historic tax credit (HTC) was retained and altered.

The final version of the legislation, which was signed into law Dec. 22 by President Donald Trump, eliminates the non-historic credit for buildings built before 1936 and requires that the 20 percent HTC be taken over five years, rather than when it was placed in service, as under current law.

Published by Mark Shelburne on December 28, 2017

The National Council of State Housing Agencies (NCSHA) today released its updated and revised “Recommended Practices in Housing Credit Administration” (RPs). Although technically not binding, the RPs are influential because they represent near consensus among allocators on low-income housing tax credit (LIHTC) policy.

Published by Mark Shelburne on December 28, 2017

A Dec. 23 ruling by a U.S. District Court means the determination of fair market rent (FMR) in two dozen of the nation’s largest metropolitan areas has come full circle. Much like how it is important to know what the U.S. Supreme Court actually held in the ICP v. Texas DHCA decision (as opposed to some of the reporting), interested parties should understand what the court’s opinion says and does.

Published by Mark Shelburne on December 21, 2017

One of the many unexpected areas of concern during tax reform was the fate of low-income housing tax credit (LIHTC) properties serving artists. Explaining the reason why involves a description of recent history and the applicable rules.

General Public Use

Published by Michael Novogradac on December 20, 2017

As described in Novogradac & Company analysis, the final version of H.R. 1, the Tax Cuts and Jobs Act would reduce the future supply of affordable rental housing by nearly 235,000 rental homes, a loss that will add to the already significant current gap in unmet needs for affordable rental housing nationwide.

Published by H. Blair Kincer, Michael Novogradac on December 19, 2017

In recent years a new term emerged: naturally occurring affordable housing (NOAH). The term may lead some to think of Mesa Verde cliff dwellings built in naturally occurring features.

Published by Michael Novogradac on December 19, 2017

According to Novogradac & Company analysis, the final version of the Tax Cuts and Jobs Act, tax reform legislation approved by the House-Senate conference committee on Dec.

Published by Michael Novogradac on December 15, 2017

(as of 2017-12-15 7:05 p.m. ET)

The House-Senate Conference Committee today approved the conference report containing the final version of the Tax Cuts and Jobs Act by a party-line 17-12 vote. The bill now goes to the full House and Senate next week for final passage, which is expected next week. The lone Republican to vote against the Senate bill, Sen. Bob Corker, R-Tenn., today announced his support for the final bill.

Published by Bentley D. Stanton on December 14, 2017

With all of the attention on tax reform efforts and potential changes to the tax code, companies should pause to consider and evaluate the impact that these changes could have on their financial reporting under generally accepted accounting principles (GAAP). For years many companies have developed tax strategies, utilizing both short-term and long-term tax credit investments, to reduce their overall tax liability.