Novogradac & Company LLP provides online resource centers that present the most comprehensive and up-to-date information for the affordable housing and community development industries.
News
California Gov. Gavin Newsom today approved legislation to streamline oversight of affordable housing compliance in the state by requiring three state administrative agencies to enter a memorandum of understanding (MOU) to coordinate their compliance monitoring. A.B. 2006 requires the Department of Housing and Community Development, California Housing and Finance Agency and the California Tax Credit Allocation Committee to coordinate efforts and ensure that only one state agency conducts physical inspections for a particular property. The MOU must be signed by July 1, 2024.
Novogradac has resources available for private companies and nonprofits affected by Accounting Standards Codification (ASC) 842, which changed lease accounting standards. The change–which took effect Jan. 1 for fiscal years beginning after Dec. 15, 2021–affects the way certain contracts are accounted for under generally accepted accounting principles, particularly entities that are lessees. Rather than disclosing operating leases in notes to financial statements, but not on balance sheets, the new guidance requires lessees to record a right-of-use asset for the leased asset and a corresponding lease liability equal to the financial obligation over the lease term, as well as new disclosure requirements.
Internal Revenue Service (IRS)-published inflation adjustment rates for Internal Revenue Code Section 45Q carbon oxide sequestration for calendar year 2022 are a slight increase over 2021. Notice 2022-38 provides a 1.2534 adjustment multiplier, putting the credit for calendar year 2022 at $25.07 per metric ton of qualified carbon oxide under Section 45Q(a)(1) and $12.53 per metric ton of qualified carbon oxide under Section 45Q(a)(2). Those totals are $1.06 per ton and 48 cents per ton more than the 2021 figures.
The U.S. Department of Housing and Urban Development (HUD) will publish in Tuesday’s Federal Register a request for information for input regarding the development of its Green and Resilient Retrofit Program (GRRP), which will receive $1 billion after its inclusion in the Inflation Reduction Act (IRA). The GRRP will provide grant and loan funding for facility retrofits of properties participating in HUD’s multifamily assisted housing programs, including Section 8, Section 202 and Section 811. HUD is seeking input on the GRRP program design features, energy-saving measures, low-emission technology and resilience design measures that have proven effective in multifamily buildings. Comments are due on or before Oct. 27.
The Community Development Financial Institutions (CDFI) Fund today announced the largest technical assistance awards amount in the history of the CDFI program and the Native American CDFI Assistance (NACA) program, with $27.57 million going to 218 organizations. The awards are to help the organizations build their capacity to provide services to low-income and underserved people. The CDFI Fund said that 202 organizations received $25.22 million in CDFI program awards and 16 organizations received $2.35 million in NACA program awards.
The U.S. Department of Housing and Urban Development (HUD) will publish in Thursday’s Federal Register a final rule to change the method to determine jurisdictions’ compliance with the statutory 24-month commitment requirements on the use of HOME Investment Partnership program funds. The final rule implements a grant-specific method to determine compliance with requirements for the set-aside for community housing development organizations. The final rule also revises the method of administering program income to prevent jurisdictions from losing allocated HOME funds when they expend program income. This rule finalizes, without change, a Dec. 2, 2016, interim rule by HUD.
Affordable housing developments have seen unexpected cost increases averaging 30% in recent years, and state housing finance agencies have taken extraordinary actions to help them, according to a report released today by the National Council of State Housing Agencies (NCSHA). Filling Funding Gaps: How State Agencies are Moving to Meet a Growing Threat to Affordable Housing, produced by Abt Associates for NCSHA, analyzed trends in 11 states and conducted interviews with officials and developers in other states. The report concluded that nearly all properties awarded low-income housing tax credits (LIHTCs) from 2019 to the present have faced “significant, unexpected cost increases after being awarded credits.” NCSHA calls for Congress to increase funding for HOME housing block grants and to expand the LIHTC incentive before this session ends in December.
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