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Oregon Gov. Kate Brown signed legislation this week that clarifies laws on certain tax credits concerning community development. H.B. 2433 increases the limit of the total amount of outstanding affordable housing lender tax credits allowed in any fiscal year to $35 million (from $25 million) from Jan. 1, 2022, through Dec. 31, 2025. A qualification for this credit is expanded to include loan proceeds used to finance certification construction, development, acquisition or rehabilitation of housing if such preserved housing is or will be occupied by households earning no more than 80% of the area median income (AMI) and subject to a rental assistance contract limiting a tenant’s rent to no more than 30% of their income.
The Mississippi Home Corporation (MHC) will consider requests from developers for additional low-income housing credits (LIHTCs) for properties that face construction cost increases due to the COVID-19 pandemic. In Program Bulletin #21-003, the MHC said it would consider requests for properties that were awarded credits in 2019 and 2020, with an additional-award limit of 15% of the original credit award. The bulletin outlined what must be included in the requests and said the requests must be submitted by email before the close of business Aug. 2. The award recommendations will be submitted for approval at the Sept. 8 MHC board meeting and will be funded from the 2023 annual LIHTC authority.
Arizona Gov. Doug Ducey signed legislation that creates a state low-income housing tax credit (LIHTC) worth at least 50% of the federal credit. S.B. 1124 sets an annual state LIHTC cap of $4 million. The state LIHTC can be allocated among the partners, members or shareholders and can be carried forward up to five years. Properties placed in service on or after June 30, 2022, are eligible for the credit and the state LIHTC sunsets Dec. 31, 2025.
Hawaii Gov. David Ige signed legislation July 6 extending the state’s low-income housing tax credit (LIHTC) through Dec. 31, 2027. H.B. 80 also clarifies when and how taxpayer partners may claim the LIHTC on state taxes, regardless of whether the partner is deemed to be a partner for federal income tax purposes. The legislation is applicable after Dec. 31, 2020, and requires an IRS Form 8609 to claim the credit.
The U.S. Department of Housing and Urban Development (HUD) will publish a notice in Friday’s Federal Register extending the period by 180 days for which certain 2019 and 2020 qualified census tracts (QCTs) and difficult development areas (DDAs) are effective for purposes of the low-income housing tax credit (LIHTC).
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