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Wednesday, March 29, 2023

Bills in the Arkansas Legislature would increase the statewide cap and credit percentage for the state historic tax credit (HTC) while extending the incentive for five years. S.B. 460 would increase the annual statewide HTC cap from $8 million to $15 million beginning in fiscal year 2024. S.B. 461 would change the tax credit percentage from 25% to 40% for properties in cities with fewer than 10,000 residents, 35% for cities with populations of 10,000 to 50,000 and 30% for properties in cities with more than 50,000 residents.  S.B. 462 would extend the state HTC sunset date from June 30, 2025, to June 30, 2030. The bills were all sponsored by Sen. Jonathan Dismang and Rep. Les Eaves.

Wednesday, March 29, 2023

A bill introduced in the Pennsylvania Legislature would create a homeowner historic tax credit (HTC) worth 20% of qualified rehabilitation expenditures (QREs). H.B. 724 would create the credit for historic properties in census tracts that either have family median incomes at or below 100% of the state median family income or that are in opportunity zones (OZs). There would be a project cap of $50,000 and an annual statewide cap of $3 million. Applications would be accepted each June and the program would sunset Feb. 1, 2032. Pennsylvania currently has a state HTC that does not apply to residential properties.

Wednesday, March 29, 2023

Legislation in Florida that would increase spending on affordable housing, reduce the ability of local governments to impose certain restrictions on affordable housing development and allow property tax exemption for certain affordable housing has been approved by both chambers in the Legislature and is now on the desk of Gov. Ron DeSantis. S.B. 102 would provide up to $150 million to the Florida Housing Finance Corporation for specified uses such as infill and projects near military installations; allow corporate taxpayers to direct certain tax payments to the State Apartment Incentive Loan (SAIL) program; increase the amount of tax credits available through the state’s Community Contribution Tax Credit Program for affordable housing from $14.5 million to $25 million; preempt requirements by local governments concerning zoning, density and height to allow streamlined development of affordable housing on commercial and mixed-use zoned areas under certain circumstances; allow local governments to bypass state and local laws to approve affordable housing in commercial and industrial parcels, but not residential parcels; remove the ability to install local rent control; allow property tax exemptions for land owned by a nonprofit and leased for at least 99 years for the purpose of affordable housing, affordable housing properties with at least 70 units and for extremely low-income or very-low-income properties if authorized by a local county or municipality; and more.

Wednesday, March 29, 2023

Legislation introduced in the Texas Senate would double the applicant cap for allocation of low-income housing tax credits (LIHTCs) and forbid the state qualified allocation plan from including a land use restriction agreement or affordability beyond the federally required minimum period. S.B. 1925 would increase the maximum allocation amount to a single applicant from $30 million to $60 million for a single round. The individual development amount would remain $20 million.

Wednesday, March 29, 2023

The Financial Accounting Standards Board (FASB) today published Accounting Standards Update (ASU) 2023-02, which expands the proportional amortization method to account for investments in all tax credit structures. That accounting method was previously allowed only for low-income housing tax credit (LIHTC) investments, but now is available, by election, to all community development tax credit investment reporting that meets five conditions. Under the new guidance, reporting entities can make accounting policy elections on a tax-credit-program-by-tax-credit-program basis, rather than for individual investments or at the reporting entity level. For public business entities, the new amendments are effective for fiscal years beginning after Dec. 15, 2023. For all other entities, the amendments are effective for fiscal years beginning after Dec. 15, 2024. Early adoption is permitted for all entities in any interim period. For calendar-year-end entities, this would include the first quarter ending March 31, 2023.

Tuesday, March 28, 2023

A bill introduced in the New York Senate would add a commitment to provide end-to-end fiberoptic architecture for delivering broadband to properties to the state’s low-income housing tax credit (LIHTC) scoring and ranking criteria. S.B. 5911 would take effect immediately upon being signed into law.

Monday, March 27, 2023

The U.S. Department of Housing and Urban Development (HUD) today published updated guidance for the Section 8 project-based rental assistance (PRBA) program. The updates–part of Chapter 9 of HUD’s Section 8 Renewal Policy Guidebook–are designed to make it easier for owners to prepare and submit rent comparability studies that help establish contract rents. The updates revise options for owners seeking to renew their contracts without a rent comparability study (when eligible) to reduce administrative and processing costs; enhance consistency in valuing non-shelter services to better supporter properties with services to residents; and allow internet and broadband services to be considered eligible non-shelter services for valuation purposes.

Industry-Leading LIHTC Guide
The Low-Income Housing Tax Credit Handbook is the authoritative guide for affordable rental housing owners, developers, managers and investors, and the professionals who counsel them.
Comprehensive NMTC Insights and Information
From application and financing to development and compliance, the Novogradac New Markets Tax Credit Handbook is your definitive guide to the new markets tax credit (NMTC).
Essential Historic Rehabilitation Resource
The Novogradac Historic Rehabilitation Handbook contains the most current guidance on rehabilitating historic properties with the historic tax credit.