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Novogradac Journal of Tax Credits Volume 6 Issue 5

The May 2015 issue of the Novogradac Journal of Tax Credits

Journal cover May 2015

Articles

Michael J. Novogradac

Friday, May 1, 2015

The seemingly endless discussion of tax reform in Congress continued last month as Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking Member Ron Wyden, D-Ore., accepted public comment by way of the five tax reform working groups they formed in January. Each group–individual income tax, business income tax, savings and investment, international tax, and community development and infrastructure–has been examining different components of the tax code and they are slated to produce a report this month. ...

Thomas Stagg

Friday, May 1, 2015

Exempt units are an important part of a low-income housing tax credit (LIHTC) development. From property managers to security officers to maintenance workers, on-site employees are often the backbone to a successful LIHTC property. However, there has been considerable gray area in the LIHTC industry about whether employees living in exempt units could pay rent. Last month, the Internal Revenue Service (IRS) released a program manager technical assistance (PMTA) memo dated June 2, 2014 (PMTA 2014-22), which clarified the IRS position regarding charging for exempt units. In the memo, the IRS states, “Charging resident managers or maintenance personnel rents, utilities, or both for units in a qualified low-income building does not make the units residential rental units and not facilities reasonably required for the project under §1.103-8(b)(4)(iii).” ...

Mark Shelburne

Friday, May 1, 2015

Part one of this article addressed many different aspects of the National Housing Trust Fund (HTF). This installment focuses on a few specific topics. State housing finance agencies will begin planning this year for how to use funding scheduled to be available in 2016. One of the most important of the numerous factors to consider is who will live in HTF-funded units. Under the Interim Rule published by the Department of Housing and Urban Development (HUD) in January, households must be at or below 30 percent of area median income (AMI), which also is known as being extremely low income (ELI). ...

John M. Tess

Friday, May 1, 2015

It is not uncommon in a historic tax credit (HTC) project to need an expansion of a building at the roof to accommodate specific programmatic uses or to accommodate new building systems. Construction of habitable rooftop additions or the installation of rooftop equipment, such as new cooling towers, may be possible in a HTC project, provided the construction is designed in a manner that is sensitive to the historic character of the building and contemplates the context of the building and the visual impact of the new construction. The following paragraphs identify the criteria used by the National Park Service (NPS) in assessing the appropriateness of rooftop construction and evaluating proposed designs. ...


News Briefs

Friday, May 1, 2015

On March 23, the Internal Revenue Service (IRS) released Notice 2015-23, which updates the resident population figures to be used by states and localities in calculating the 2015 calendar year state housing credit ceiling and the 2015 private activity bond volume cap and volume limit. ...

Friday, May 1, 2015

Rep. Maxine Waters, D-Calif., released a letter March 25 addressed toJulián Castro, the U.S. Department of Housing and Urban Development (HUD) secretary, asking him to provide guidance on the “one-strike-and-you’re-out” policy. ...

Friday, May 1, 2015

The Historic Tax Credit Coalition (HTCC), the National Trust for Historic Preservation and several other organizations sent a letter April 15 to Sen. Dean Heller, R-Nev., and Sen. Michael H. Bennet, D-Colo....

Friday, May 1, 2015

U.S. Bancorp and ONIX USA Corporation, an investment company, announced March 16 the closing of U.S. Bancorp’s first renewable energy syndication. The syndication is expected to enable Solar City ...

Friday, May 1, 2015

On April 2, the Iowa Department of Revenue adopted amendments to the Iowa Administrative Code relating to the Redevelopment Tax Credits program for brownfield and grayfield sites. ...

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