Notes from Novogradac
With the release in September of 2016 American Community Survey (ACS) data, Novogradac & Company was able to estimate the national median income, state median incomes as well as low-income housing tax credit (LIHTC) income limits for many areas for 2018 and 2019.
About the Calculations
The (ACS) is an integral part of HUD’s calculation of area median income. The 2016 ACS data will be used by HUD to calculate the 2019 income limits for LIHTC and Section 8 properties.
As 2018 begins it is a time to reflect and ask ourselves the important life changing questions like when will HUD publish income limits and will my limits increase or stay the same. Although we don’t have a crystal ball below is some need to know information about the FY 2018 HUD income limits.
When will income limits be released?
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.
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.
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.
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.
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
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.
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.
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.