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Thursday, June 17, 2021

The Internal Revenue Service (IRS) today published a revenue procedure that explains how to comply with changes from a 40-year to a 30-year recovery period under the alternative depreciation system (ADS) for certain residential rental property based on a provision of the Consolidated Appropriations Act, 2021. Revenue Procedure (Rev. Proc.) 2021-28 addresses the changes available for certain property placed in service before 2018 that is held by an electing real property trade or business. The 2020 legislation expanded a change made in 2017 tax reform legislation that applied only to property placed in service after 2017. Rev. Proc. 2021-28 provides explanations and examples of the changes.

Thursday, June 17, 2021

The Ohio Housing Finance Agency published an addendum to its 2020-2021 qualified allocation plan that provides the possibility of additional low-income housing tax credit (LIHTC) and Housing Development Loan (HDL) funding for 2019 and 2020 9% LIHTC awardees who face a funding gap due to increases in construction costs related to increased material and supply costs.

Wednesday, June 16, 2021

More than 80% of renters earning less than $25,000 were cost-burdened (spending more than 30% of their income on housing) in 2019, highlighting housing challenges that the COVID-19 pandemic amplified in 2020, according to The State of the Nation’s Housing 2021. The annual report from the Joint Center for Housing Studies at Harvard University focuses on rising home prices, but also points out the high rate of cost-burdened renters and addresses the racial and ethnic disparities in homeownership. The report’s authors say that the Biden administration’s proposal to increase federal spending on affordable housing would address many of the nation’s housing issues.

Wednesday, June 9, 2021

The Illinois Legislature sent last week the COVID-19 Affordable Housing Grant Program Act to the desk of Gov. J.B. Pritzker. H.B. 2621 would extend the state’s low-income housing tax credit (LIHTC) five years through Dec. 31, 2026. The bill authorizes grant funding to bolster construction and rehabilitation of as many as 3,500 affordable homes by Dec. 31, 2024, in areas disproportionately affected by the global pandemic.

Wednesday, June 9, 2021

Texas legislation that would change the scoring system for allocating low-income housing tax credits (LIHTCs) to encourage the development of affordable housing near veterans hospitals passed both houses of the Legislature and is on the desk of Gov. Greg Abbott. H.B. 1558 would add a provision to the state’s LIHTC scoring system adding points for an application for a property in a county of between 1 million and 4 million residents that is located within 2 miles of a veterans hospital, veterans affairs medical center or veterans affairs health center.

Monday, June 7, 2021

Nevada Gov. Steve Sisolak signed legislation that lifts the sunset date on the ability to transfer state low-income housing tax credits (LIHTCs) while requiring that the transfer take place at least 45 days before the project is closed. S.B. 284 eliminates the previous sunset date of Jan. 1, 2030, for transferring state credits.

Friday, May 28, 2021

The White House today released a summary, fact sheet and Greenbook on President Joe Biden’s proposed $6 trillion budget for fiscal year 2022. Of this amount, the Biden administration requests $1.67 trillion in discretionary spending, $754 billion for defense and $913 billion for nondefense, the first such request where nondefense exceeded defense in recent history.

Thursday, May 27, 2021

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation today published a statement that extends for 36 months the period for favorable Community Reinvestment Act (CRA) regulation consideration for bank activities that help revitalize or stabilize disaster areas in Puerto Rico and the U.S. Virgin Islands hit by Hurricane Maria. The extension now lasts through Sept. 20, 2023, and applies to institutions located outside of the areas.

Wednesday, May 26, 2021

Florida Gov. Ron DeSantis signed legislation that makes certain low-income housing tax credit (LIHTC) property exempt from property taxes. H.B. 7061 increases the previous 50% exemption from taxes to 100% for properties with at least 70 units of affordable housing.

The Novogradac Introduction to Low-Income Housing Tax Credits booklet provide the basics of the LIHTC incentive, including the interaction with state LIHTCs.

Wednesday, May 26, 2021

A fact sheet released by the White House today provides details on the $318 billion for housing and community development-related provisions, including $213 billion of direct spending and $105 billion for tax proposals of the American Jobs Plan, President Joe Biden’s multi-trillion-dollar infrastructure proposal. The fact sheet specifies $55 billion for low-income housing tax credit (LIHTC) proposals and $45 billion for the national Housing Trust Fund (HTF). Other proposals include $40 billion for the public housing capital fund, $35 billion for the HOME Investments Partnership program, $17.5 billion for weatherization assistance, $12 billion for the Capital Magnet Fund and $2 billion for new project-based Section 8 assistance.

Wednesday, May 19, 2021

The Iowa House of Representatives this week passed legislation that would expand the state workforce housing tax incentive program sending the bill to Gov. Kim Reynolds’ desk for final approval. S.F. 619 would increase the workforce housing tax incentive program annual cap to$35 million, of which $12 million must be reserved to properties in small cities during the fiscal year of July 1, 2021, through June 30, 2022. 

Wednesday, May 19, 2021

Legislation in South Carolina that became effective this week allows a state historic tax credit (HTC) or state low-income housing tax credit (LIHTC) to be passed through to members or partners of a partnership or limited liability partnership that is taxed as a partnership and allocated among any of its partners or members on an annual basis, including the allocation of the entire credit to any partner or member who held that position at any time during the year. S. 677 permits the allocation regardless of any provision of the Internal Revenue Code (IRC) or regulation based on the IRC.

Tuesday, May 18, 2021

The Federal Housing Finance Agency (FHFA) today published the proposed Underserved Markets Plan for Fannie Mae and Freddie Mac for 2022-2024. The plans cover Jan. 1, 2022, through Dec. 31, 2024. The Housing and Economic Recovery Act of 2008 requires Fannie and Freddie to serve three specific underserved markets by increasing the liquidity of mortgage financing for families with very-low, low and moderate incomes. Those markets are manufactured housing, affordable housing preservation and rural housing. FHFA will accept public input on the proposed plans during a 60-day public input period that ends July 19.

Tuesday, May 18, 2021

The Office of the Comptroller of the Currency (OCC) today announced that it will reconsider its final rule to modernize the agency’s regulations for the Community Reinvestment Act (CRA) and will not implement much of the evaluation criteria in the May 2020 rule. The announcement, in OCC Bulletin 2021-24, says the OCC will continue to implement certain provisions that had a compliance date of Oct. 1, 2020. OCC issued the final rule after stakeholders provided more than 7,500 comments–most of them in opposition to the final rule.

Monday, May 17, 2021

Montana Gov. Greg Gianforte vetoed a bill that would have created a state low-income housing tax credit (LIHTC). Gianforte vetoed H.B. 397, which was approved by both houses of the state Legislature and would have created a Montana workforce housing tax credit that could be paired with federal LIHTCs for tax years beginning on or after Jan. 1, 2022. The statewide cap would have been 50% of the federal cap. Gianforte’s veto message highlighted the fact that the federal LIHTC allocations could increase, which would increase Montana’s tax credit responsibility. He wrote that a reduction in regulations is the best way to address housing affordability in his state.

Tuesday, May 11, 2021

A bill that would make certain low-income housing tax credit (LIHTC) property in Florida exempt from property taxes has passed both houses of the state Legislature, but awaits agreement on amendments before going to Gov. Ron DeSantis. H.B. 7061 would increase the current 50% exemption from taxes to 100% for properties that contain at least 70 units of affordable housing.

Tuesday, May 11, 2021

A bill introduced in the Massachusetts House of Representatives would change the word “owner” to “allocatee” in virtually all references concerning the state low-income housing tax credit (LIHTC). H.B. 2939 would make that change in 12 sections of the state laws.

Monday, May 10, 2021

The Novogradac Rent & Income Limit Calculator© has been updated to include fiscal year (FY) 2021 rent and income limit data that was released April 1 by the U.S. Department of Housing and Urban Development (HUD). Using the HUD-published data, the Novogradac Rent & Income Limit Calculator© will calculate low-income housing tax credit (LIHTC) rent and income limits for every county and every metropolitan statistical area in the United States.

Friday, May 7, 2021

The U.S. Department of Treasury and the U.S. Department of Housing and Urban Development (HUD) today announced the allocation of an additional $21.6 billion in emergency rental assistance (ERA) allocation. The allocations are made under the American Rescue Plan for Emergency Rental Assistance.

Wednesday, May 5, 2021

A federal judge ruled today that the Centers for Disease Control and Prevention lacked statutory authority to issue a nationwide eviction moratorium. In his ruling in Alabama Association of Realtors vs. United States Department of Health and Human Services, U.S. District Court Judge Dabney Freidrich wrote, “The question for the Court is a narrow one: Does the Public Health Service Act grant the CDC the legal authority to impose a nationwide eviction moratorium? It does not.” The current eviction moratorium is set to run through June 30. There was no immediate word on whether the CDC would appeal the ruling.