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Notes from Novogradac

Published by Peter Lawrence on February 18, 2020

Community development tax incentives have tangible positive impacts on the states and individuals they serve. The presidential caucuses and primaries are a useful time to highlight those impacts, as it raises awareness and provides support for advocates who specialize in these community development tax incentives. This look at Nevada (the third in the series) follows a profile on New Hampshire.

Published by Thomas Stagg on February 17, 2020

It’s that time of year again: the countdown phase for the release of the 2020 U.S. Department of Housing and Urban Development (HUD) income limits.

Looking ahead, here are some key questions and answers about the income limits.

Published by Peter Lawrence on February 11, 2020

The Trump administration this week released its $4.8 trillion fiscal year (FY) 2021 budget request, which includes $741 billion in defense spending including overseas contingency operations and other adjustments and $590 billion for nondefense spending including adjustments, a cut of $37 billion or nearly 6 percent from the current law FY 2021 spending cap.

See below for summary chart:

 

Published by Mark Shelburne, Thomas Stagg on February 10, 2020

Developers and investors have been interested in timely issuance of Internal Revenue Service (IRS) Form 8609 since the beginning of the low-income housing tax credit (LIHTC). However, a law that recently went into effect has greatly increased the stakes.

Published by Peter Lawrence on February 10, 2020

Along with low-income renter households, the middle-class are facing a housing crunch as affordability issues are moving up the income scale, according to the new study from the Harvard Joint Center for Housing Studies (JCHS). The study found that while extremely low-income renters are the most cost-burdened (those paying more than 30 percent of income towards rent), more higher-income earners are having trouble finding affordable rental housing.

Published by Peter Lawrence on February 7, 2020

With the presidential caucuses and primaries underway, it can be useful to highlight the importance and influence the main community development tax incentives have had on each of the early nomination contest states as a way to raise awareness and support for those incentives. These financing tools have made real, positive differences in the lives of low-income communities in every state.

Published by Mark Shelburne, Peter Lawrence on February 3, 2020

As described in an earlier post, the demands on tax-exempt private activity bond (PAB) volume are growing in many states. For several years after the financial crisis and recession of 2008-9, the vast majority of states had plenty of PAB cap available, and rental market conditions often made using PABs for potential affordable rental housing developments financially difficult.

Published by James R. Kroger, Thomas Stagg on January 31, 2020

The California Tax Credit Allocation Committee (TCAC) is holding public hearings this week to discuss how to apportion additional 2020 low-income housing tax credits (LIHTCs) granted in federal year-end budget legislation.

Published by Mark Shelburne, Thomas Stagg on January 31, 2020

On Jan. 30, the Internal Revenue Service (IRS) released Revenue Ruling 2020-4 addressing the average income (AI) minimum set-aside.

Published by Michael Novogradac on January 29, 2020

A looming crunch for private activity bonds (PABs) is the result of simple math: Demand has dramatically increased in many states, meaning less supply. The result could be bad news for affordable housing development.

Those involved in affordable housing are well aware of the value of PABs. The bonds are accompanied by 4 percent low-income housing tax credits (LIHTCs) to help finance affordable housing properties, a pairing that’s widely beneficial. The result is tens of thousands of units annually. For PABs, it’s an additional federal benefit–unique in the PAB world.