Sign Up For Novogradac Industry Alert Emails

Novogradac Journal of Tax Credits Volume 1 Issue 9

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

Journal cover September 2010

Articles

Michael J. Novogradac

Wednesday, September 1, 2010

Given the current economic environment, it should come as little surprise to tax credit professionals that tax expenditures and their role in the federal budget have become the focus of increasing scrutiny in recent months.

Novogradac & Company LLP

Wednesday, September 1, 2010

Affordable housing built with low-income housing tax credits (LIHTCs) creates millions of dollars in local income, taxes and local jobs for the Denver metro area, according to a recent study by Dr. Elliot Eisenberg, senior economist at the National Association of Home Builders (NAHB). Eisenberg presented the study results to public policy makers and other housing advocates at an event on June 15 that was hosted by the Urban Land Conservancy (ULC) and the Home Builders Association of Metro Denver (HBA).

Jennifer Hill

Wednesday, September 1, 2010

Bond-financed developments and the associated 4 percent low-income housing tax credits (LIHTCs) have never been as attractive to investors as their 9 percent counterparts. The risks and losses are traditionally greater and the amount of tax credits is typically lower – a tricky combination to underwrite even in a healthy economy. But as the market slowly began to recover, investors told the Novogradac Journal of Tax Credits in May that they intended to increase LIHTC investments in 2010. Now, more than halfway through the year, banks and attorneys report that 4 percent deals are becoming an increasingly larger piece of the LIHTC pie.

Jennifer Dockery

Wednesday, September 1, 2010

On July 6 the Federal Housing Administration (FHA) released Mortgage Letter (ML) 2010-21. The letter updates policies and outlines four major changes to FHA’s multifamily rental programs: it revises underwriting standards; enhances verification of property financial performance; expands borrower mortgage credit analysis; and sets up a process for the prescreening of proposals. ML 2010-21 will have the greatest effect on market rate properties, but will also increase the loan costs for affordable housing properties.

Tony Grappone, Novogradac & Company LLP RETC Working Group

Wednesday, September 1, 2010

A new Congress will be sworn in this month, so it’s time to reload and reboot following a tumultuous election cycle that saw the House of Representatives flip to the Democrats and Republicans expand control of the Senate.For those in affordable housing, community development, historic preservation and renewable energy, it’s the same song, new verse: time to raise awareness of important issues, begin educating the many new legislators and identify new champions for important legislation.And, as always, we continue work to preserve and expand tax incentives that have both social and economic benefits.Make no mistake: 2019 is an important year.Historical PrecedenceThe biggest change in the new Congress is control of the House of Representatives, where Democrats are in charge for the first time since 2010.The shift is dramatic, but not unprecedented. The 112th Congress (2011-2012) provided a mirror image of this Congress: President Barack Obama entered the 2010 midterms with his Democratic party in control of the House and Senate, but lost the House. Starting in 2011, Republicans held 242 seats in the House (Democrats hold 235 seats this year); while Democrats (and the Independents who caucus with them) held 53 Senate seats (the same as Republicans now hold). That Congress, like this, featured a president and Senate control by one party, House control by the other.With opposing parties controlling the different chambers of Congress, there are obvious hurdles. Specifically,


News Briefs

Wednesday, September 1, 2010

The National Council of Affordable Housing Market Analysts, of which Novogradac & Company LLP is a member, has been renamed the National Council of Housing Market Analysts (NCHMA). This change, which was prompted by a rebranding initiative spearheaded by NCHMA’s executive committee...

Wednesday, September 1, 2010

Minnesota Housing’s multifamily division merged its low-income housing tax credit (LIHTC), HOME and deferred loan monitoring staff into one consolidated compliance team. The team, led by compliance supervisor Karen Hassan, is responsible for the overall compliance monitoring of Minnesota Housing’s portfolio...

Wednesday, September 1, 2010

New York State Homes and Community Renewal (HCR) announced the availability of $4 million under the state low-income housing tax credit (SLIHC) program. Interested developers that construct or rehabilitate low-income housing must apply in the Unified Funding 2012 Capital Application round...

Wednesday, September 1, 2010

The U.S. Department of Housing and Urban Development (HUD) announced the availability of $12.7 million under the Native Hawaiian Housing Block Grant (NHHBG) program. The funds will go to the Department of Hawaiian Home Lands (DHHL) to produce affordable housing for low-income native Hawaiian families...

Wednesday, September 1, 2010

U.S. Bank celebrated the grand opening of the Union Gospel Mission (UGM) Center for Women and Children in Coeur D’Alene, Idaho. The bank provided more than $2.7 million in new markets tax credit (NMTC) equity in support of the new development and made a $145,000 donation to support its operations...

Learn more about Novogradac's expertise and many services