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Novogradac Journal of Tax Credits Volume 6 Issue 6

The June 2015 issue of the Novogradac Journal of Tax Credits

Journal cover June 2015

Articles

Michael J. Novogradac

Monday, June 1, 2015

The low-income housing tax credit (LIHTC) is widely hailed as the most successful housing program in the United States. Attributed with creating or preserving more than 2.7 million affordable rental housing units, the LIHTC is a model of how public-private partnerships can provide benefits for a neighborhood’s economy and its residents. For the economy, the LIHTC creates nearly 96,000 jobs a year and estimates suggest almost $100 billion in private investment has been leveraged by the program, while generating $3.5 billion in federal, state and local taxes and $9.1 billion in economic income. For low- and moderate-income households, the LIHTC can provide a place to call home, which is sorely needed in light of the more than 11 million households that pay more than half their income in rent. ...

Mark O’Meara

Monday, June 1, 2015

The biggest question for the low-income housing tax credit (LIHTC) market midway through 2015 is how the inevitable increase in interest rates will affect the LIHTC industry.“We have been in an incredibly low-interest-rate environment for a long time. I think much longer than anybody expected,” said Thomas Vandiver, partner at Dentons and moderator of the panel “Debt and Equity Trends for 2015” at the Novogradac Affordable Housing Conference in San Francisco in early May. “There has been a lot of discussion from a lot of the press lately about where interest rates are going. The Federal Reserve has indicated that they are expecting to start increasing the Federal Reserve rate.” ...

Brad Stanhope

Monday, June 1, 2015

North Carolina renewable energy developers got a measure of good news in late April when the state’s investment tax credit’s safe harbor deadline was extended by a year for some renewable projects.The legislation, which passed the state House of Representatives by an 87-28 vote and the Senate by a 37-7 vote, was signed into law April 30 by Gov. Pat McCrory. It changed the expiration date of the state tax credit from Jan. 1, 2016, to Jan. 1, 2017, for projects that are fairly advanced in the development.The extension applies to smaller projects (less than 65 megawatts capacity) that are at least 80 percent complete by Jan. 1, 2016, and larger projects (those with 65 megawatts capacity or more) that are at least 50 percent complete by that date. The state estimates that about $180 million in additional tax credits will be granted due to the extension, credits that will be granted over a five-year period. ...

John M. Tess

Monday, June 1, 2015

Typically, when we think of historic tax credit (HTC) projects, we picture large, architecturally significant buildings located in densely populated urban downtowns and commercial areas, such as the IBM Building in Chicago; vast industrial facilities repurposed for residential use, such as the Colt Factory in Hartford Conn.; or textile mills-turned-loft-apartments throughout the mid-Atlantic and New England regions. These types of HTCs involve a lot of square footage–and usually a lot of capital, due to the fact that the rules of the HTC program require that the qualified rehabilitation expenditures (QREs) must exceed the pre-rehabilitation cost of the building. ...


News Briefs

Monday, June 1, 2015

On March 19, Dan E. Arvizu, director and chief executive of the U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL), announced his intent to retire at the end of September....

Monday, June 1, 2015

The Wisconsin Housing and Economic Development Authority (WHEDA) announced April 17 an update to the recertification exemption policy. The policy was amended to clarify that if an owner has elected certain building identification numbers ...

Monday, June 1, 2015

The Wisconsin Department of Revenue released Private Letter Ruling W1511005 in April. The ruling involved a nonprofit, non-stock corporation incorporated in Wisconsin. ...

Monday, June 1, 2015

On May 5, the U.S. Department of Housing and Urban Development (HUD), Office of Policy Development and research released the report, “Effect of QAP Incentives on the Location of LIHTC Properties.” ...

Monday, June 1, 2015

The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund released a notice of guarantee availability (NOGA), inviting qualified issuer applications and guarantee applications for the CDFI Bond Guarantee program ...

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