U.S. Reps. Mike Kelly, R-Pennsylvania, and Brian Higgins, D-New York, today introduced the Neighborhood Homes Investment Act (NHIA), a bill which would create a single-family tax credit similar to the low-income housing tax credit (LIHTC) to help finance the new construction or acquisition and rehabilitation of owner-occupied homes in distressed neighborhoods. The NHIA coalition estimates 500,000 homes would be built or substantially rehabilitated and more than $125 billion of total development activity over a decade of the tax incentive.
Proposed budget legislation in Rhode Island includes the allocation of up to $30 million annually for a new state low-income housing tax credit (LIHTC). H. 5200 includes the LIHTC provision, with the credits to be taken over five years. Under the legislation, a taxpayer could redeem 90% of the value of the tax credit. The spending bill needs the approval of the state Legislature and the signature of Gov. Daniel McKee. If enacted, the LIHTC would begin July 1 and would sunset June 30, 2028.
The Internal Revenue Service (IRS) and the U.S. Department of Energy (DOE) today released additional guidance on provisions in the Inflation Reduction Act of 2022 (IRA) concerning investment in underserved communities and hard-hit coal communities. Included in the guidance is a notice of proposed rulemaking for the investment tax credit (ITC) bonus for low-income communities. The proposed rule supplements February guidance released in Notice 2023-17. It provides definitions of terms, including energy storage technology and “financial benefits” for low-income residential buildings. Comments on the notice of proposed rulemaking are due by June 30.
A group of more than 2,600 businesses, nonprofits and public agencies signed a letter sent today by the ACTION Campaign to Congressional leadership supporting the Affordable Housing Credit Improvement Act of 2023. The AHCIA was introduced in both chambers of Congress May 11 and currently has 94 co-sponsors in the House and 14 in the Senate. The letter lauds the sponsors and co-sponsors and suggests that legislators join as co-sponsors. Novogradac is among the signees.
The Federal Housing Finance Agency (FHFA) today issued a request for input on tenant protections at multifamily properties with mortgages backed by Fannie Mae and Freddie Mac, including low-income housing tax credit (LIHTC) properties. The request seeks information on what information to collect that would highlight tenants’ experiences and stakeholders’ perspectives. It also seeks ideas for improved data collection. FHFA’s decision to evaluate tenant standards for Fannie and Freddie are based on lessons from COVID-19, increasing rents and a shortage of safe and affordable housing. Comments are due by July 31.
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