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Budget support legislation enacted in Washington, D.C., makes changes to the district’s low-income housing tax credit (LIHTC), including requiring that properties must have at least five units to be eligible. Act 25-506 includes a provision that sets the annual district credit cap at $8,575,000 in 2025, going up $175,000 per year through 2028 before increasing 5% each year thereafter. Previously, the district’s LIHTC was worth 25% of the value of the federal LIHTC received.

President Joe Biden today called on Congress to pass legislation requiring corporate landlords to cap rent increases on existing housing in the next two years at 5% or risk losing certain tax advantages. In a fact sheet, the Biden administration also called for federal agencies to assess surplus public land and enable affordable homes to be built there and announced the award of $325 million in Choice Neighborhoods grants to build deeply affordable homes and spur economic development in distressed communities. Under the rent-cap proposal, corporate landlords with more than 50 apartments in their portfolio who exceeded the 5% rent increase limit would lose the ability to claim accelerated depreciation on their property.

Bipartisan legislation introduced in the U.S. House of Representatives this week would create a federal tax credit for the conversion of older, underused office and other commercial buildings into residential housing. The Revitalizing Downtowns and Main Street Act (H.R. 9002) has 12 initial co-sponsors (six Democrats and six Republicans) and a companion bill is to be introduced in the Senate.

The Federal Housing Finance Agency (FHFA) today announced new required tenant protections for multifamily properties financed by Fannie Mae and Freddie Mac. An FHFA blog post described the changes and reasons. Beginning with new loans signed on or after Feb. 28, 2025, covered housing providers will be required to provide tenants with a 30-day written notice of a rent increase, a 30-day written notice of lease expiration and a five-day grace period for rent payments.

Rep. Wiley Nickel, D-North Carolina, introduced legislation this week to allow low-income housing tax credit (LIHTC) sponsors to access private activity bonds (PABs) 15 years after a property is placed in service without affecting a state’s cap in return for a 50-year affordability period. The Keep Housing Affordable Act (H.R. 8900) would reset the affordability period if the PABs (and 4% LIHTCs that go with PABs) were accessed after 15 years, with the option to commit to 50 years of affordability with access to PABs after 15 additional years or 30 years of affordability (without superseding the previous 50-year period) without further access to the bonds.

The California Debt Limit Allocation Committee (CDLAC) last week issued a series of proposed regulation changes for private activity bond (PAB)-financed housing in the state. CDLAC staff will conduct a public hearing on the proposed changes July 18 and CDLAC anticipates the adoption of the changes at a CDLAC meeting Aug. 6. The changes include extending one of the expiration date options for allocation to properties from 194 to 201 days, while adding a third option of 222 days.

The California Tax Credit Allocation Committee (CTCAC) this week released a memo with guidance concerning the low-income housing tax credit (LIHTC) rent increase limit adopted in April. The memo provides the maximum percentage increase for cost-of-living adjustment rent increases through July 31 for four metro areas and all other counties and reminds stakeholders of the situations under which an owner can exceed the rent increase limit without a waiver.

The Federal Housing Finance Agency (FHFA) today released proposed Duty to Serve (DTS) Underserved Markets Plans for 2025-2027 for Fannie Mae and Freddie Mac, as well as a request for input.

Colorado Gov. Jared Polis last week signed legislation creating a pilot program for a state middle-income housing tax credit. H.B. 1316 provides a credit for rental housing for individuals and families with a household income between 80% and 120% of the area median income, except in rural resort counties, where the range is 80% to 140%.

Colorado Gov. Jared Polis Thursday signed legislation to increase the annual statewide cap for the state’s low-income housing tax credit (LIHTC), accelerate the rate at which taxpayers can claim the credit and create a state LIHTC for transit-oriented communities. H.B. 1434 increases the annual general state LIHTC cap from $10 million to $20 million for 2024, $16 million in 2025, $12 million in 2026 and 2027, $16 million in 2028 and $20 million in 2029, 2030 and 2031. It also allows taxpayers to take 70% of the credit in the first year and 6% per year for the following five years, compared to the current credit taken evenly over six years.

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