Journal of Tax Credits Volume 3 Issue 8
The August 2012 issue of the Novogradac Journal of Tax Credits.
As we all recently learned from the Supreme Court ruling on the Obama administration’s health care legislation, it can be difficult to predict a decision from what the judges say in oral arguments.
The need for a broad and varied investor base was one of many market tenets underscored by the Great Recession and the resulting market disruption. In the years since the start of the recession, affordable housing, community development, historic preservation and renewable energy professionals have sought support for various legislative improvements that would boost investor interest in the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic tax credit (HTC) and renewable energy tax credits (RETCs).
In today’s low-income housing tax credit (LIHTC) market, competition is getting fierce. Community Reinvestment Act-motivated investors are vying against economic investors for a finite number of credits and syndicators are again seeing credit prices rise above the dollar mark. Uncertain tax policy and expiring provisions are also contributing to a challenging environment.
Question: If a low-income housing tax credit (LIHTC) building (or an interest therein) is sold, and there is a subsequent reduction in the qualified basis of said building during the 15-year compliance period, who is subject to LIHTC recapture, the seller or buyer?
The U.S. Department of Veterans Affairs (VA) and the Department of Housing and Urban Development (HUD) are working to improve data on the HUD-VA Supportive Housing (HUD-VASH) program.
San Antonio Food Bank (SAFB) secured $27 million in new markets tax credit (NMTC) financing to help fund a $28 million expansion. The expansion will double the food bank’s capacity and enable it to increase the amount of food provided to families in need.
The Ohio Department of Development (ODOD) awarded $35.8 million in Ohio Historic Preservation Tax Credits to 18 owners planning to rehabilitate 44 historic buildings in 10 communities.
SolarCity and U.S. Bancorp Community Development Corporation announced the creation of their sixth and largest renewable energy tax credit fund. The fund will finance as much as $250 million in solar energy projects.
All state housing finance agencies (HFAs) met their December 2011 funding disbursement deadline under the Section 1602 low-income housing tax credit exchange program, according to a Government Accountability Office (GAO) report on Recovery Act programs.