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Novogradac Journal of Tax Credits Volume 5 Issue 7

The July 2014 issue of the Novogradac Journal of Tax Credits

Journal cover July 2014

Articles

Michael J. Novogradac

Tuesday, July 1, 2014

After two-and-half years of planning, U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson announced the expansion of the low-income housing tax credit (LIHTC) pilot program to include new construction and substantial rehabilitation projects under the Section 221(d)4 and Section 220 loan programs at the National Association of Homebuilders’ Show in February. HUD launched its LIHTC pilot program in 2012 to streamline processing of Section 223(f) LIHTC transactions with repairs up to $40,000 per unit. The success of the pilot program can’t be disputed, as 34 percent of HUD’s 912 loans insured in 2018 were LIHTC transactions. Of the 148,726 apartment units insured last year, 31 percent were LIHTC units. When the pilot program started in 2012, less than 5 percent of HUD’s loan volume was LIHTC. The expansion to include Section 221(d)4 and Section 220 transactions will now make the majority of LIHTC transactions eligible for the pilot program.The goal of the pilot program is to ensure faster and more efficient processing for low-risk LIHTC transactions by eliminating redundant reviews. HUD’s average processing time for its LIHTC construction loans is 90 days. The pilot program promises a 30-day processing time for loans processed under the expedited approval process and 60 days under the standard approval process. The maximum loan amount for pilot transactions is $25 million, and at least 25 percent, but not more than 75 percent, of the developer fee must

Jennifer Dockery

Tuesday, July 1, 2014

After more than a decade, the state of Colorado once again has a state low-income housing tax credit (LIHTC) program. The first time around, Colorado’s LIHTC supported the development of more than 800 affordable housing units. In its second incarnation, affordable housing stakeholders hope to surpass that number and use the credit as a tool for recovery in flood-ravaged areas.

Mark O’Meara

Tuesday, July 1, 2014

The Community Development Financial Institutions (CDFI) Fund in June awarded approximately $3.5 billion in new markets tax credit (NMTC) allocation to 87 community development entities (CDEs) in the program’s 11th allocation round. Because the most recent NMTC program extension expired Dec. 31, 2013, Round 11 is technically the last round of awards under the current program.

Thomas Boccia

Tuesday, July 1, 2014

It has been six months since the Internal Revenue Service (IRS) issued Revenue Procedure 2014-12 providing safe harbor guidance for historic tax credit (HTC) investments. Since the guidance was released, the HTC market has adapted and adjusted. Here’s a look at how the market, deal terms, pricing and other factors have changed.


News Briefs

Tuesday, December 1, 2015

On May 14, the Louisiana Joint Legislative Committee on the Budget approved H.B. 1144, which alters the Louisiana Housing Corporation (LHC) fee schedule. H.B. 1144 also removes provisions that require the LHC to charge only those fees determined by the Louisiana Housing...

Tuesday, July 1, 2014

On May 20, Texas Attorney General Greg Abbott released Opinion No. GA-1060 regarding the authority of Texas Department of Housing and Community Affairs (TDHCA) when determining the eligibility of at-risk development set-asides under the low-income housing...

Tuesday, July 1, 2014

The New Markets Tax Credit (NMTC) Coalition released the annual report, “New Markets Tax Credit Progress Report, 2014,” in early June. The NMTC Coalition conducted a survey of community development entities (CDEs) and their activity in 2013. In the responses...

Tuesday, July 1, 2014

On June 10, former U.S. Senate Majority Leader George Mitchell and former U.S. Senator Christopher Bond issued a statement supporting H.R. 4717. The bill would amend the Internal Revenue Code of 1986 to make permanent the 9 percent credit rate floor for new construction, and create...

Tuesday, July 1, 2014

The Oklahoma Affordable Housing Tax Incentive Act of 2014 (S.B. 2128) was signed by Gov. Mary Fallin on June 3. The bill enacts the state low-income housing tax credit (LIHTC) for qualifying developments. A qualifying development is a low-income building located in a county...

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