Novogradac Journal of Tax Credits Volume 7 Issue 10
The October 2016 issue of the Novogradac Journal of Tax Credits.
When the Tax Reform Act of 1986 was enacted 30 years ago–Oct. 22, 1986–few thought that the low-income housing tax credit (LIHTC), a small provision in the sweeping legislation, would change affordable housing in America. Yet as it celebrates three decades, the LIHTC is widely viewed as the most successful federal affordable housing program in history, surpassing even the most optimistic views in 1986.
By most accounts the low-income housing tax credit (LIHTC) pioneers didn’t fully know what they were creating 30 years ago, when they wrote and shepherded legislation that launched America’s most successful affordable housing program.
When using the single-tier “partnership flip” structure in a solar or another Section 48 investment tax credit (ITC) transaction, it is important to watch out for the interaction of several important tax rules.
When you visit a city, you’re bound to see all types of buildings: commercial, residential institutional and ecclesiastical. These come in all ranges of styles and sizes, depending on your location.
The U.S. Department of Housing and Urban Development (HUD) issued final fair market rents (FMRs) for HUD fiscal year (FY) 2017, which will be effective Oct. 1. FMRs in FY 2017 increased for the majority of the country. FY 2017 FMRs are higher than FY 2016 FMRs for approximately 77 percent of counties and lower for approximately 23 percent of counties. The average change in FMR is an increase of approximately 3 percent.
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The Community Development Financial Institutions (CDFI) Fund announced Aug. 31 that approximately $93.5 million in grants will be available to community development financial institutions (CDFIs) through the Capital Magnet Fund. For this second round of funding, the CDFI Fund received 125 applications requesting $609 million. The CDFI Fund officials expect about 30 awards to be made. Annie Donovan, director of the CDFI Fund, said in a press release that this round will include funding from Fannie Mae and Freddie Mac. Grants will be awarded to community development financial institutions (CDFIs) and nonprofit housing organizations and can be used to finance affordable housing activities, as well as related economic development activities and community service facilities. The Capital Magnet Fund had one previous round in 2010, awarding $80 million appropriated from Congress to 23 organizations.
The U.S. Department of Energy (DOE) released its, “2015 Wind Technologies Market Report” in mid-August. The report concluded that wind power’s low cost makes it an attractive option for utilities and corporate buyers. The report found that wind power was the biggest source of electric-generating capacity additions in 2015, and that wind made up 41 percent of new generation capacity in the United States last year. In addition, DOE found that the bigger turbines have enhanced the performance of wind projects and the falling price of turbines helped push down the cost of wind projects. The report says that the growth in the industry is supported by the federal production tax credit (PTC), which was extended for five years. The DOE stated that 2016 and 2017 will likely be the peak of project finance activity for the foreseeable future. The report was prepared by the Lawrence Berkley National Laboratory and is available at www.energytaxcredits.com.
The Advisory Council on Historic Preservation (ACHP) announced Aug. 5 that President Barack Obama declared his intent to appoint Luis Hoyos to an expert member seat on the ACHP. Hoyos is an architect and professor of architecture at the California State Polytechnic University. He serves on the board of the National Trust for Historic Preservation and is a member of the Landmarks Committee of the National Park System advisory board. Hoyos was previously a member and chairman of the California State Historical Resources Commission and a member of the board of directors and chairman of preservation advocacy at the Los Angeles Conservancy. The ACHP includes 23 members who address policy issues, direct program initiatives and make recommendations regarding historic preservation to President Obama, Congress and heads of other federal agencies.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) announced Aug. 22 a second round of funding to help provide permanent homes to homeless veterans. The rental assistance, provided through the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program, will support an estimated 108 veterans experiencing homelessness in seven states. Awards ranged from $34,860 to $247,152. The states are California, Georgia, Kentucky, Michigan, North Dakota, Pennsylvania and Tennessee. In June, HUD awarded nearly $38 million to help more than 5,200 homeless veterans find homes.
The Ohio Housing Finance Agency (OHFA) Aug. 1 released updates to DevCo Online. The updates are for sections concerning the OHFA database, utility allowances, annual certification and property details. More information is available at www.ohiohome.org.