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Tuesday, April 13, 2021

A bill introduced in the North Carolina Senate would reinstate the state low-income housing tax credit (LIHTC) that expired in 2015. S.B. 588 would allow credits worth varying percentages, depending on the makeup and location of the development, to properties that receive a federal LIHTC allocation. 

Friday, April 9, 2021

President Joe Biden released a $1.5 trillion federal spending outline for fiscal year 2022 today, a discretionary funding request that includes $68.7 billion for the U.S. Department of Housing and Urban Development (HUD), an increase of 15% over 2021 levels. The outline also requests $330 million for the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund, a 21% increase from 2021 levels.

Friday, April 9, 2021

The Urban Institute released a brief report about the nation’s housing supply shortage, calling for “policymakers … [to] expand the Low-Income Housing Tax Credit [LIHTC], Section 142 tax-exempt bonds for the development of rental housing, and the New Market Tax Credit [NMTC], each of which has proven effective in promoting development in underserved communities.”

Wednesday, April 7, 2021

The U.S. Department of Treasury today released the Made in America Tax Plan report, providing additional details on the infrastructure plan announced March 31 by President Joe Biden’s administration. The description includes a statement that there would be “a marked increase in the resources available through the low-income housing tax credit [LIHTC] and other housing incentives,” but the report focuses on renewable energy provisions.

Tuesday, April 6, 2021

Legislation introduced in the Louisiana House of Representatives would repeal the state low-income housing tax credit (LIHTC) and reduce the state new markets jobs act credit and historic tax credit (HTC) by 50% each. H.B. 454 includes the repeal of 12 tax credits and the reduction by 50% of 45 other credits.

Friday, April 2, 2021

Virginia Gov. Ralph Northam signed into law legislation creating a state low-income housing tax credit (LIHTC). S.B. 1197 creates the Virginia housing opportunity tax credit, which will have a $15 million annual allocation for five years, applying to taxable years beginning on or after Jan. 1, 2021. The state credit will match federal 4% and 9% LIHTC allocations. Virginia becomes the 21st state (plus the District of Columbia) with a LIHTC. Legislation to create a state LIHTC has been introduced this year in Arizona, Indiana, Iowa and Montana.

Thursday, April 1, 2021

The U.S. Department of Housing and Urban Development (HUD) has posted income limits to determine eligibility for HUD-assisted programs, as well as eligibility for low-income housing tax credit (LIHTC) and tax-exempt bond properties for fiscal year 2021. The limits are effective today. HUD publishes income limits for public housing, Section 8, Section 221(d)(3) and Section 236 properties. HUD also publishes Multifamily Tax Subsidy Projects (MTSP) income limits to determine eligibility for the LIHTC and tax-exempt bond properties

Wednesday, March 31, 2021

The Biden administration today released a fact sheet on its $2.25 trillion infrastructure proposal.

Monday, March 29, 2021

Legislation introduced in the Nevada Legislature would lift the sunset date on the ability to transfer state low-income housing tax credits (LIHTCs), but would require the transfer to take place before a property is completed. S.B. 284 would require that the final application for transferable tax credits be submitted at least 45 days before the project is closed and would give the Housing Division of the Department of Business and Industry the right to determine whether the amount of credits should be lowered based on the cost.

Monday, March 29, 2021

The Center for Disease Control and Prevention (CDC) today announced an extension of the federal COVID-19 eviction moratorium through June 30. After the CARES Act provided an eviction moratorium that expired July 24, 2020, the CDC issued an order that prohibited evictions of renters who meet certain requirements through Dec. 31, 2020, an order that was extended to Jan. 31 and then March 31 before today’s extension.

The extended moratorium comes as communities and landlords navigate emergency rental assistance. Novogradac’s Emergency Rental Assistance practice can help grantees and grant recipients navigate the program, which provides $25 billion to assist renters in paying unpaid rent and utilities.

Monday, March 29, 2021

Legislation introduced in the Vermont House of Representatives would create a surcharge on property transfers of more than $1 million, with a portion of the funding going for purchasing and restoring manufactured homes through the state low-income housing tax credit (LIHTC). H. 437 would institute a tax of 1.25% of the value of property transferred in excess of $1 million, with the state LIHTC allocating agency using some of the funds to make an additional $2.5 million in annual allocations for manufactured home purchase and replacement.

Friday, March 26, 2021

Novogradac partner Thomas Stagg and 14 other speakers this week addressed a United States Department of the Treasury public hearing on low-income housing tax credit (LIHTC) average income test proposed regulations. Speakers commented on a notice of proposed rulemaking published in the Federal Register Oct. 30, 2020. Speakers included seven representatives of state housing agencies as well as other LIHTC stakeholders. Stagg, speaking on behalf of the LIHTC Working Group, addressed that the average income test should be calculated on the unit’s designation, re-designation of units and the grace period for curing noncompliance.

The proposed regulations will be among the topics at the Novogradac 2021 Affordable Housing Virtual Conference, April 29-30.

Friday, March 26, 2021

The Internal Revenue Service (IRS) answered five frequently asked questions this week concerning the Emergency Rental Assistance (ERA) program. The questions relate to whether ERA payments are includable in gross income for various stakeholders in different situations. The answers highlight that renters do not include ERA payments in their gross income, while landlords and utility companies do.

Novogradac offers consulting services for both grantees and grant recipients in the ERA program.

Thursday, March 25, 2021

Legislation in the Texas Legislature would change the scoring system for the state’s competitive low-income housing tax credit (LIHTC) to encourage development near veterans hospitals. H.B. 1558 would require the state’s ranking system to grant bonus points for properties located not more than 5 miles from a veteran’s hospital that provide a preference for leasing units to low-income veterans.

Wednesday, March 17, 2021

Legislation in the Iowa Senate would create a state low-income housing tax credit (LIHTC) and would double the cap for the state’s workforce housing tax incentive. S.F. 295 would create a 4%  Iowa LIHTC with an annual cap of $15 million plus any unallocated or recaptured credits from previous years. The legislation would also increase the state workforce housing incentive cap from $25 million to $50 million for the period of July 1, 2021, through June 30, 2024, with $20 million reserved for small cities.

Tuesday, March 16, 2021

The Internal Revenue Service (IRS) issued a notice that will be included in the April 5 Internal Revenue Bulletin, providing a more precise reference citation for a section of previous guidance that provided COVID-19 relief and clarifying how increases in qualified occupancy six months after year-end affect the ability to claim low-income housing tax credits (LIHTCs). Notice 2021-17 specifically cites IRC Section 42(f)(3)(A)(ii) in a provision of Notice 2021-12 that provided an extension for LIHTC properties to satisfy occupancy obligations. In Notice 2021-12, the IRS merely cited IRC Section 42(f). The new notice citation clarifies that increases in qualified occupancy six months after year-end help property owners avoid two-thirds LIHTCs in the future, but cannot be used to claim additional LIHTCs in the first year.

Tuesday, March 16, 2021

The Alaska Supreme Court ruled that a developer that received low-income housing tax credits (LIHTCs) from the Alaska Housing Finance Corporation in 2001 is ineligible to exercise a qualified contract option to exit the agreement after 15 years, because the developer claimed extra points in its LIHTC application by agreeing to provide an additional 15 years of affordability. In Creekside Limited Partnership; Creekside-Alyeska LLC and Community Development Inc. v. Alaska Housing Finance Corporation, the developer sued after the housing agency denied its desire to end affordability restrictions after 15 years.

Monday, March 15, 2021

The Internal Revenue Service (IRS) today published the Internal Revenue Bulletin No. 2021-11, which includes calendar year 2021 resident population figures to calculate state allocations of the 9% low-income housing tax credit (LIHTC) and private activity bond (PAB) cap. Notice 2021-19 includes population figures for 50 states, the District of Columbia, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands and the U.S Virgin Islands. Nationally, 9% population-based LIHTC allocations will increase by 0.4% ($3.7 million) in 2021 and PAB allocations will increase by 0.5% ($182 million).

Wednesday, March 10, 2021

The U.S. Senate today confirmed Rep. Marcia Fudge, D-Ohio, as the 18th secretary of the U.S. Department of Housing and Urban Development (HUD). Fudge, who was in her seventh term in the House of Representatives, becomes the first Black woman to hold the position since Patricia Harris was HUD secretary in 1980 and 1981. The vote to confirm Fudge was 66-34.

Saturday, March 6, 2021

The United States Senate Saturday approved the American Rescue Plan Act, a $1.9 trillion COVID-19 relief bill that includes $27.4 billion for rental housing assistance. The legislation passed by a 50-49 vote and now goes to the House of Representatives for approval on Tuesday before advancing to President Joe Biden’s desk. The rental housing assistance includes $21.55 billion for emergency rental assistance, $5 billion in emergency housing vouchers, $750 million for tribal housing needs and $100 million for rural housing.