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Novogradac Journal of Tax Credits Volume 8 Issue 2

The February 2017 issue of the Novogradac Journal of Tax Credits.

Journal cover February 2017


Brad Stanhope

Wednesday, February 8, 2017

Maybe it’s appropriate that a historic development in Cleveland took a long time for completion.

Teresa Garcia

Tuesday, February 7, 2017

Patrick Crow remembers a time in the early 1990s when his plans to renovate the historic, 65,000-square-foot Woodward Opera House in Mount Vernon, Ohio, seemed infeasible to local residents. It was too overwhelming and too expensive.

John M. Tess

Monday, February 6, 2017

The importance of documentation in a historic tax credit (HTC) development cannot be overemphasized. There are actually three distinct forms of documentation, all of which are critical to a successful historic tax credit application.

JR Aube

Friday, February 3, 2017

Question: What new accounting pronouncements could affect my new markets tax credit (NMTC) audits for the year ended Dec. 31, 2016?

Thomas Stagg

Thursday, February 2, 2017

The U.S. Department of Housing and Urban Development (HUD) released Nov. 16, 2016, a final rule implementing small area fair market rents (SAFMRs). In the notice, HUD wrote, “The use of Small Area FMRs is expected to give HCV [Housing Choice Voucher] tenants access to areas of high opportunity and lower poverty areas by providing a subsidy that is adequate to cover rents in those areas, thereby reducing the number of voucher families that reside in areas of high poverty concentration.”

News Briefs

Wednesday, February 8, 2017

On Dec. 13, 2016, the Community Development Financial Institutions (CDFI) Fund opened the application period for its fiscal year 2017 CDFI Bond Guarantee program. The program allows selected CDFIs or their designees to issue bonds guaranteed by the federal government in order to extend capital for financing and for long-term community investments. A notice of guarantee authority (NOGA) was published in the Federal Register, making up to $750 million in bond guarantee authority available upon Congressional authorization. Bond issues have a minimum size of $100 million and application material is available through the CDFI Fund’s website.

Wednesday, February 8, 2017

Ohio Gov. John Kasich vetoed H.B. 554, a bill that would have retained the current freeze on renewable energy standards, Dec. 27, 2016. The legislature set renewable energy standards in 2008, mandating that investor-owned utilities obtain 25 percent of their energy from advanced energy sources by 2025, with half the energy coming from renewable sources. The Senate voted 18-13 on the bill to extend the freeze. However, Kasich’s veto reinstated the standards at the beginning of 2017.

Tuesday, February 7, 2017

The Oklahoma Incentive Evaluation Commission released, “2016 Tax Incentive Evaluation Report,” Dec. 1, 2016. The commission recommended that Oklahoma retain its state historic tax credit (HTC), but with an annual cap. The report stated that adding a program cap would ensure some measure of future budget predictability. Once a cap is established, the report recommends that projects be accepted on a first-come, first-served basis. The commission found that the 20 percent state tax credit program has been highly successful in rehabilitating historic structures across Oklahoma, with total development investments having increased from $1 million in 2005 to nearly $86 million in 2015. The report is available at 

Monday, February 6, 2017

Julián Castro, the U.S. Department of Housing and Urban Development (HUD) secretary, announced a final rule Nov. 30, 2016, that public housing developments in the U.S. will be required to provide a smoke-free environment for their residents. The new rule will provide resources and support to more than 3,100 public housing agencies (PHAs) to implement required smoke-free policies during the next 18 months. HUD now prohibits lit tobacco products (cigarettes, cigars or pipes) in all living units, indoor common areas, administrative offices and all outdoor areas within 25 feet of housing and administrative office buildings. According to the Centers for Disease Control and Prevention (CDC), HUD’s national smoke-free policy will save public housing agencies $153 million annually in repairs and preventable fires, including $94 million in secondhand smoke-related health care, $43 million in renovation of smoking-permitted units, and $16 million in smoking-related fire losses. HUD’s final rule included input from more than 1,000 comments from PHAs, housing and health partners, and tenant advocates.

Friday, February 3, 2017

The California Tax Credit Allocation Committee (TCAC) released Dec. 19, 2016, a notice and announced a public comment period for a proposed schedule of compliance violation fines. Because the IRS does not enforce deeper affordability or other requirements or commitments applicable to a development during the first 15 years or any requirements after Year 15, TCAC is authorized to levy fines for noncompliance violations. As such, for smaller violations, the schedule provides a correction period, generally 30 days. In all cases, the schedule proposes additional fines if violations remain uncorrected. In the event that fines assessed against a property owner are not paid within six months of initial assessment, TCAC will provide reasonable notice to the owner and file a lien against the property. Comments were due Jan. 31. TCAC anticipates a target date of March 15 for presentation of the schedule and resolution to the committee.

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