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Novogradac Journal of Tax Credits Volume 7 Issue 7

The July 2016 issue of the Novogradac Journal of Tax Credits.

Journal cover July 2016

Articles

Mark O’Meara

Tuesday, February 16, 2021

When Grandin Properties purchased two historic buildings, now known collectively as the Hogan Building, in the Over-The-Rhine neighborhood of Cincinnati, founder and CEO Peg Wyant wanted to pay tribute to the history of the area and her family lineage. The Hogan Building now provides market-rate housing.

Teresa Garcia

Monday, July 11, 2016

After 17 years of planning, the Kingsley House community services center in New Orleans is finally nearing completion of its campus expansion–thanks in large part to federal new markets tax credit (NMTC) allocations provided by Chase New Markets Corporation and the Low Income Investment Fund (LIIF), which helped provide the closing capital needed.

Brad Stanhope

Friday, July 8, 2016

The forecast for the historic tax credit (HTC) from industry insiders sounds a lot like a late spring day: sunny, with a few clouds on the horizon.Compared to a few years ago, that’s great news. “I would say the market is as strong and robust as I’ve seen in recent years,” said Leigh Ann Smith, senior vice president and equity manager at Bank of America Merrill Lynch, who manages the bank’s national investment origination platform for HTCs. “There are a lot of developments in the pipeline. That lines up with what we’re seeing in the general real estate market.”

Mark Shelburne

Thursday, July 7, 2016

The Department of Housing and Urban Development’s (HUD) Office of General Counsel (OGC) issued guidance April 4 on the use of criminal records. The guidance applies to all housing providers (not just those participating in a government program) when making any adverse decision based on criminal history. Screening out potential tenants is the most common instance, but other activities (e.g., evictions) are also covered.

Teresa Garcia

Wednesday, July 6, 2016

It’s a great time to build low-income housing tax credit (LIHTC) housing. The 9 percent credit minimum was made permanent in December, bipartisan legislation has been introduced to increase allocation authority by 50 percent and the economy has recovered enough for LIHTCs to command top-dollar pricing.


News Briefs

Tuesday, February 16, 2021

Mississippi Senate Bill 2922 was signed by Gov. Phil Bryant May 12. The bill increases the amount of credits that may be allocated under the state historic tax credit (HTC). The cap will double, reaching $120 million. However, the S.B. 2922 limits the available annual allocation amount to $12 million. The original cap was $60 million, but there was no annual limit. The bill was effective July 1, and applies to properties that are issued a certificate of eligibility before the end of 2020.

Tuesday, July 12, 2016

The Internal Revenue Service (IRS) May 25 released Notice N-2016-31. The notice clarifies previous guidance on the beginning-of construction date and when a facility must be placed in service to claim the renewable energy production tax credit (PTC).

Tuesday, July 12, 2016

The New Markets Tax Credit Coalition (NMTCC) released a sign-on letter May 4 in support retaining the NMTC. The letter asks House Ways and Means Committee Chairman Kevin Brady to make the NMTC a priority in tax reform discussions. Leading the bipartisan effort are Ohio Republicans Reps. Steve Stivers and Mike Turner, as well as Rep. Jose Serrano, D-N.Y. A total of 55 Congressional Members signed the letter. The deadline to sign was May 16. In addition, the NMTCC May 23 submitted testimony urging lawmakers to make the NMTC program permanent. The written testimony was authored by NMTC Coalition board president Robert Davenport. He highlighted several reasons the program should be made permanent, such as that the NMTC has a proven track record in meeting the capital needs of struggling urban, rural and Native American communities across the country. The program also provides a return on investment to the federal government. The NMTC program has generated $38 billion in direct investment from 2003 through 2014, and investments in 2012 nationwide generated more than $540 million in state and local tax revenue. Between 2003 and 2015, the U.S. Treasury received allocation applications for about $315 billion. In conclusion, Davenport said that the NMTC needs to be expanded and made permanent. The testimony was submitted for consideration to the House Ways and Means Subcommittee on Tax Policy.***On May 5, RDistrict One LLC announced $18.6 million in NMTCs for the rehabilitation a

Monday, July 11, 2016

(TIGTA) released an audit May 25 titled, “Available Data Are Not Being Used to Proactively Identify Potentially Erroneous Rehabilitation Credit Claims.” The goal of the audit was to evaluate how effectively the Internal Revenue Service (IRS) ensures that business taxpayer claims for the HTC are valid.

Friday, July 8, 2016

The U.S. Department of Housing and Urban Development (HUD) released a proposed rule May 17 that would require installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing that is funded or supported by HUD.

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