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Novogradac Journal of Tax Credits Volume 1 Issue 1

The January 2010 issue of the Novogradac Journal of Tax Credits.

Journal cover January 2010

Articles

Jennifer Dockery

Friday, January 1, 2010

Question: What can community development entities (CDEs) do to help prepare for the next new markets tax credit (NMTC) allocation application?Answer: The NMTC industry is working hard to obtain permanent status for the NMTC program, but in the meantime there are still two NMTC allocation application rounds thanks to the Protecting Americans from Tax Hikes (PATH) Act of 2015, which extended the authorization for the NMTC program for five calendar years, through 2019, with $3.5 billion in annual NMTC authority. CDEs may be tempted to put their applications on the shelf after they submitted the 2017 round June 21 and dust them off when the next notice of allocation authority (NOAA) is announced (estimated summer of 2018). However, given the competitive nature of the previous rounds (the 2017 round had 230 applications submitted requesting $16.2 billion, which is 4.5 times the authority available), CDEs should spend time over the next few months working on strengthening their application.Where should a CDE start? Through the scoring system, the Community Development Financial Institutions (CDFI) Fund has stressed the importance of the business strategy and community outcomes sections of the application. These two sections, which are scored during Phase 1 of the application review process, are used during Phase 2 to rank the applications. Given the significance of the business strategy and community outcomes, a CDE can maximize its efforts by working on strengthening these

Jennifer Dockery

Friday, January 1, 2010

Palmer’s Dock, an affordable housing development on Brooklyn’s Greenpoint-Williamsburg waterfront, can claim many firsts. It was the first affordable housing property developed in Williamsburg under New York City’s Inclusionary Housing Program (IHP). It was the first affordable housing development to receive a loan from the New York City Department of Housing Preservation and Development (HPD) City Council Mixed-Income Initiative. It was one of the first affordable housing developments in the area to welcome residents who found it increasingly difficult to find affordable rents in the waterfront area after New York City rezoned it for residential development.

Daniel J. Smith

Friday, January 1, 2010

Question: Can the cash grant in lieu of investment tax credit created under Section 1603 of the American Recovery and Reinvestment Act of 2009 (Recovery Act) be used in a transaction and still monetize the depreciation benefits with a tax investor?

Michael J. Novogradac

Friday, January 1, 2010

Welcome to the inaugural issue of the Novogradac Journal of Tax Credits. As all of us who work in the low-income housing, new markets, historic and renewable energy tax credit industries step into 2010, we do so with great hope that the coming year will bring increased opportunity and success for the families and communities we serve.


News Briefs

Friday, January 1, 2010

The National Multi Housing Council (NMHC) and National Apartment Association (NAA) announced on November 18 that they will continue their joint legislative program, the NMHC/NAA Joint Legislative Program (JLP)...

Friday, January 1, 2010

The Ohio Housing Finance Agency (OHFA) announced on December 4 that it had revised its compliance forms. Property managers or owners must use the revised forms for certifications or verifications on or after January 1, 2010. Revisions include a new Student Status Verification (PC-E42), ...

Friday, January 1, 2010

As part of the Obama Administration’s commitment to increase transparency through the Open Government Directive, the U.S. Department of Housing and Urban Development (HUD) announced on December 9 two measures that will make information more accessible to the general public.

Friday, January 1, 2010

Citi announced on November 23 that it would provide $15 million in financing for the renovation of Bedford Stuyvesant Restoration Corporation’s (BSRC’s) Restoration Plaza in Brooklyn, N.Y. Citi’s financing consists of a $4 million new markets tax credit (NMTC) investment and an $11.4 million short-term bridge loan. Citi donated an additional $200,000 to the Centers for Financial Empowerment in partnership with BSRC.

Friday, January 1, 2010

On November 19, Reps. Eric Cantor, R-Va., and Artur Davis, D-Ala., introduced H.R. 4133, a bill that would amend Internal Revenue Code Section 47 to exempt public school rehabilitation from the tax-exempt use exception to the historic rehabilitation tax credit...

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