Notes from Novogradac

Published by Peter Lawrence on December 16, 2019

The Rental Assistance Demonstration (RAD) program has “accomplished its principal statutory goals of leveraging private and other sources of capital, preserving affordable housing by addressing projects’ short-term capital needs and financial viability, and mitigating effects on tenants in terms of relocation.”

Published by Michael Novogradac on December 9, 2019

With a potential investment deadline looming, funds formed to invest in opportunity zones (OZs) report having raised nearly $4.5 billion, according to the Novogradac Opportunity Funds Listing.

Published by Annette Stevenson on December 2, 2019

With the Dec. 31 deadline to realize the maximum benefits for opportunity zone (OZ) investments nearing, interest in the OZ incentive continues to rise. Developers are continually looking for ways to make use the OZs incentive to drive investment to their projects. Among them, historic tax credit (HTC) developers are exploring ways to combine the OZs incentive with HTC investments for their often difficult to finance projects. Many HTC projects are located in OZs, which makes considering the potential to raise OZ capital a worthwhile exercise for these developers.

Published by Peter Lawrence on November 26, 2019

The shortage of affordable housing is well documented and there are many causes.

Published by Thomas Stagg on November 20, 2019

Using the American Community Survey (ACS) and the Congressional Budget Office’s (CBO) CPI estimate Novogradac is able to estimate area median income and very low income for 2020 and 2021, and those estimates also provide some insight into overall income limit trends.

Published by Peter Lawrence on November 19, 2019

In its 2018 Annual Housing Report the Federal Housing Finance Agency’s (FHFA) declared that the housing government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac

Published by Peter Lawrence on November 14, 2019

The number of cost-burdened households (those paying more than 30 percent of their income on housing) aged over 65 has reached a new high of 10 million, according to "Housing America's Older Adults 2019," a supplemental report to the State of the Nation’s Housing Report, released by Harvard’s Joint Center for Housing Studies (JCHS).

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.