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Wednesday, December 12, 2018

The Montana state Senate will consider legislation that would create a state workforce housing tax credit in 2022 that largely mirrors the federal Low-Income Housing Tax Credit (LIHTC) program. State Sen. Maggie MacDonald introduced SB 18, which would establish an annual allocation of up to $8.5 million in state credits, which would be allocated to match 4 percent federal LIHTC allocations, beginning Jan. 1, 2022.

Wednesday, December 12, 2018

President Donald Trump this week announced his intention to nominate Mark Calabria as the director of the Federal Housing Finance Agency (FHFA). Calabria, who would succeed Mel Watt as the FHFA chief, is currently the chief economist for Vice President Mike Pence and previously served as a senior aide on the Senate Banking Committee and as deputy assistant secretary for regulatory affairs at the U.S. Department of Housing and Urban Development. The FHFA oversees Fannie Mae and Freddie Mac. Calabria must be confirmed by the U.S. Senate for the five-year term.

Monday, December 10, 2018

Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee, today introduced a retooled year-end tax relief package that continues to include a provision to clarify that veterans are a specified group for purposes of the low-income housing tax credit. The legislation also includes disaster tax relief and several minor, time-sensitive technical corrections to the tax reform legislation passed last year.

Tuesday, November 27, 2018

The Internal Revenue Service today issued Revenue Procedure 2018-59, which provides a safe harbor for taxpayers to treat certain infrastructure trades or businesses as real property trades or businesses solely to qualify under Internal Revenue Code Section 163(j)(7)(B). That election makes the expense not subject to the limitation on business interest expense in the 2017 tax reform legislation.

Tuesday, November 27, 2018

The Federal Housing Finance Agency will publish in the Federal Register Wednesday its final rule to amend regulations for the Federal Home Loan Banks’ Affordable Housing Program (AHP).

Tuesday, November 27, 2018

The Community Development Financial Institutions (CDFI) Fund today announced that 116 organizations submitted eligible applications requesting more than $570 million in funding under the fiscal year (FY) 2018 Capital Magnet Fund round, compared to the $143 million in awards available. Fifty-seven percent of applicants are certified CDFIs and the remaining 43 percent are nonprofit affordable housing organizations. The awards can be used to finance affordable housing activities, as well as related economic development activities and community service facilities.

Tuesday, November 27, 2018

House Ways and Means Committee Chairman Kevin Brady, R-Texas, yesterday released a year-end tax and oversight package that clarifies the general public use requirement for tax-exempt bond-financed low-income housing tax credit properties, especially for veterans. The package also includes tax extenders, including one-year extensions until Dec.

Monday, November 26, 2018

The Internal Revenue Service issued a notice of proposed rulemaking today for a provision of last year’s tax reform legislation that limits the business interest expense deduction for certain taxpayers.

Monday, November 19, 2018

The Internal Revenue Service today published Revenue Procedure 2018-55, announcing the amounts of unused low-income housing tax credit (LIHTC) carryovers allocated to qualified states for calendar year 2018. The $2.69 million of unused LIHTC carryovers was placed in a national pool and reallocated to 32 qualified states and Puerto Rico.

Thursday, November 15, 2018

The Internal Revenue Service today announced the 2019 inflation-adjusted amounts for low-income housing tax credit (LIHTC) and private activity bond (PAB) caps. Revenue Procedure 2018-57 sets the state LIHTC ceiling at the greater of $2.75625 multiplied by the state population or $3,166,875.

Friday, November 9, 2018

The Treasury Department on Thursday released the 2018-2019 Priority Guidance Plan, which includes plans to provide guidance for the low-income housing tax credit (LIHTC), new markets tax credit (NMTC) and historic tax credit (HTC). The Priority Guidance Plan covers the period from July 1, 2018, through June 30, 2019.

Wednesday, November 7, 2018

Results from Tuesday’s elections–with Democrats taking control of the House of Representatives and Republicans maintaining control of the Senate–and their effect on the affordable housing, community development and renewable energy communities are the subject of a Notes from Novogradac blog post and a

Tuesday, November 6, 2018

The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac each have $35 billion multifamily lending caps for 2019. Those figures are unchanged from 2018 and are based on FHFA’s projections of the size of the 2019 multifamily originations market. The FHFA will review its estimates of the multifamily loan origination market each quarter and will adjust caps if necessary, although it will not reduce the caps.

Friday, October 26, 2018

The National Council of State Housing Agencies (NCSHA) submitted a letter to the Internal Revenue Service asking for guidance clarifying that residential real estate property qualifies as opportunity zones (OZs) property and addressing five other OZ issues.

Thursday, October 25, 2018

Freddie Mac published two white papers that highlight how the low-income housing tax credit (LIHTC) is used to bring affordable rental housing to underserved markets. “LIHTC in Rural Middle Appalachia” reports that rental housing is rarer in rural Middle Appalachia than the rest of the nation, but a high percentage of renters live in LIHTC properties.

Wednesday, October 24, 2018

A release from the California Department of Business Oversight (DBO) says that state-chartered banks must receive approval from the state commissioner of business oversight before making a passive equity investment in a low-income housing tax credit development–or any other tax-credit investment that meets the definition of “real property investment.” The agency further clarified to Novogradac that those banks must submit a letter to DBO with the general plan for

Friday, October 19, 2018

In a Notes from Novogradac blog post, Michael J. Novogradac, discusses how the opportunity zones guidance issued today by Treasury provides answers to many questions and includes information that will help guide investors, fund managers and others.

Friday, October 19, 2018

The California Debt Limit Allocation Committee (CDLAC) today asked potential applicants, project sponsors or related parties for upcoming low-income housing tax credit applications to complete a demand survey. The survey is not mandatory, but will help CDLAC prepare the 2019 reservations for various tax credit pools. Completed demand surveys should be emailed to by Nov.

Friday, October 19, 2018

The U.S. Department of Housing and Urban Development today released the list of difficult development areas (DDAs) and qualified census tracts (QCTs) for 2019 for the low-income housing tax credit (LIHTC). DDAs and QCTs are eligible for as much as a 30 percent basis boost while receiving the LIHTC.

Friday, October 19, 2018

The Treasury Department today released the first tranche of proposed guidance for the opportunity zones (OZ) incentive, addressing gains invested in qualified opportunity funds. Treasury also released a related revenue ruling. Treasury will accept comments for 60 days.