Notes from Novogradac

Published by Michael Novogradac on November 5, 2019

Housing finance agencies issued $14.7 billion in tax-exempt multifamily rental housing bonds in 2018, a 3.7 percent decrease in multifamily issuance from last year, according to the Council of Development Finance Agencies (CDFA).

Published by Thomas Stagg on November 4, 2019

Novogradac estimates the U.S. median income will increase by just under 4 percent in 2020 and 3.4 percent in 2021. The change in U.S. median income is especially important as increases in low-income housing tax credit (LIHTC) and Section 8 income limits are limited to the greater of 5 percent or two times the change in U.S. median income. Based on this formula, the cap for 2020 will be just under 8 percent and the cap for 2021 will be just under 7 percent. This is a slowdown in median income growth from the last couple of years, however, it is still very robust growth in median income. 

Published by Peter Lawrence on October 31, 2019

The U.S. as a whole has lost nearly 4 million low-cost (see definition below) rental homes since 1990, according to a recent working paper released by the Harvard Joint Center for Housing Studies (JCHS). “Documenting the Long-Run Decline in Low-Cost Rental Units in the U.S. by State” looks at the loss of affordable housing supply nationally and through an individual state analysis to view the magnitude of the loss, as well as the timing of the loss, variance across states.

Published by Mark Shelburne, Michael Novogradac on October 30, 2019

The Internal Revenue Service (IRS) published Revenue Procedure 2019-41, announcing $2,709,998 of unused low-income housing tax credit (LIHTC) allocated from the national pool to 31 qualified states for calendar year 2019. (Note that the term state includes a possession of the United States and constitutional home rule cities Chicago and New York City.)

Published by Michael Novogradac on October 24, 2019

Investment in opportunity zones (OZs) continues to grow, with qualified opportunity funds (QOFs) focused on residential development leading the way.

Published by Peter Lawrence on October 22, 2019

In 2018, the Federal Home Loan Banks (FHLBanks) awarded approximately $458 million in Affordable Housing Program (AHP) funds, approximately a 15 percent increase from 2017, according to the Federal Housing Finance Agency’s (FHFA) recently released 2018 Low-Income Housing and Community Development Activities of the Federal Home Loan Banks.

Published by Mark Shelburne on October 15, 2019

On Feb. 26, 2019 the Internal Revenue Service (IRS) published final regulations regarding low-income housing tax credit (LIHTC) allocating agencies’ responsibilities for monitoring properties’ compliance. The provisions replaced temporary requirements contained in Rev. Proc. 2016-15 and represent a significant departure from current practices.

Published by John Sciarretti, Michael Novogradac on October 14, 2019

The Treasury Department is widely expected to release updated opportunity zones (OZ) regulations in the near future–with the regulations first going to the Office of Information and Regulatory Affairs, perhaps this month, for clearance before being released to the public 30-plus days later.

Published by John Sciarretti, Michael Novogradac on October 7, 2019

Treasury is expected to release updated opportunity zones (OZ) regulations in the coming weeks, and we expect that the updated regulations will merge the first two tranches of regulations into one and provide more clarity on many remaining issues, as well as some outright changes. Before their release, however, Treasury must first send the updated regulations to the Office of Information and Regulatory Affairs (OIRA) for their review and comment, after which, the regulations can be released.

Published by Peter Lawrence on October 7, 2019

It is systematic barriers, not pure preference, that prevent lower-income families from moving to areas of high opportunity, according to research released by Brookings at a Sept. 19 event. This new research from Harvard University’s Opportunity Insights serves as a reminder of the importance of affordable housing in areas of high opportunity.