Novogradac Journal of Tax Credits Volume 12 Issue 8
Abridged version of the August 2021 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
Articles
In accordance with Treasury Regulation Section 1.42-5, at least once every three years, the state housing finance agency (agency), will conduct a review of the tenant certifications and a physical inspection of low-income housing tax credit (LIHTC) properties. Every year, the owner of a LIHTC project must certify to certain provisions of Internal Revenue Code (IRC) Section 42, known as the annual owner certification (AOC).
Although generally accepted accounting principles (GAAP) remain silent on the specifics of accounting for new markets tax credit (NMTC) investments and investments in qualified community development entities, principles and guidelines from various other authoritative literatures prove relevant and helpful to investors and their accountants in determining proper accounting treatment for such investments.
Completion of a financial forecast model for an affordable housing property is a tool that can be used throughout a property’s life span. Each property is different and it is important that a financial forecast model be built to include and handle all aspects specific to that property.
The opportunity zones (OZ) incentive that became law in late 2017 as a part of tax reform (H.R. 1) has generated a tremendous amount of investment into low-income communities, particularly since the final regulations were issued in late 2019. In addition to resolving most of the uncertainties stakeholders had around the OZ incentive, the final regulations also detailed a number of the tests that qualified opportunity funds (QOFs) and qualified OZ businesses must pass to
maintain compliance.
Since the COVID-19-related declaration of a national emergency in March 2020, property owners and their managers have lived in a changed world due to Internal Revenue Service (IRS) guidance that temporarily changed regulations for low-income housing tax credit (LIHTC) compliance.
News Briefs
Sens. Ben Cardin, D-Maryland; Bill Cassidy, R-Louisiana; Maria Cantwell, D-Washington; and Susan Collins, R-Maine, introduced the Historic Tax Credit Growth and Opportunity (HTC-GO) Act in late June.
The New Markets Tax Credit Coalition released June 17 its 2021 progress report, which reports that 272 developments totaling $5.5 billion received $2.9 billion in NMTCs in 2020.
Four Democratic senators introduced the Solar Energy Manufacturing for America (SEMA) Act June 21 in an effort to spark solar manufacturing, speed the transition to clean energy and propelling American energy independence.
The U.S. Centers for Disease Control and Prevention announced June 24 an extension of its COVID-19-related federal eviction moratorium through July 31.
The Ohio Housing Finance Agency (OHFA) announced June 8 that its compliance division expects to resume physical inspections in late summer, with inspections of buildings as well as vacant and occupied homes.
