Ben Carson, secretary of the U.S. Department of Housing and Urban Development (HUD), today said HUD will make it easier for builders to use Federal Housing Administration (FHA)-insured loans on low-income housing tax credit (LIHTC) properties and emphasized the opportunity zones (OZ) incentive for housing.
Legislation introduced in the Ohio Legislature would require subsidized residential rental property to be valued by county auditors according to the market-rent value, not the contract-rent value. SB36 specifically includes low-income housing tax credit (LIHTC)-financed property, which would increase the property tax for LIHTC property. The bill was assigned today to the Senate Ways and Means Committee.
The U.S. Department of Housing and Urban Development (HUD) today announced a policy to grant public housing authorities and private owners of HUD-subsidized developments 14 calendar days’ notice before an inspection. The current standard for HUD’s Real Estate Assessment Center is up to 120 days. The new standard will be effective 30 days after publication.
The Mississippi Home Corporation will commit 12.5 percent of the state’s low-income housing tax credit (LIHTC) authority for 2018, 2019, 2020 and 2021 to applicants in an opportunity zones (OZ) special allocation cycle. Applicants in the special cycle must propose a development in an OZ. The maximum LIHTC award is $10 million. Applications will be accepted in June and awards will be announced Oct. 9.
The California Tax Credit Allocation Committee (TCAC) today posted a resyndication questionnaire and memorandum for developments requesting a new reservation of low-income housing tax credits (LIHTCs). The questionnaire must be submitted for those who have existing LIHTC properties and are applying for a new allocation.
A U.S. District Court today issued a summary judgement to dismiss a lawsuit by Inclusive Communities Project Inc. (ICP) against the U.S. Department of Treasury and the Office of the Comptroller of the Currency that alleged that the Low-Income Housing Tax Credit program perpetuates racial segregation in Dallas. The U.S.
Novogradac & Company LLP lowered its estimate of the increase in the national median income for 2019, based on the Congressional Budget Office’s (CBO) 10-Year budget and economic outlook released Monday. Novogradac now estimates the national median will increase 5.01 percent, compared to the earlier estimate of 5.15 percent based on the August 2018 CBO report. The estimated change in national median income for 2020 remains 4.37 percent.
President Donald Trump today announced a short-term funding agreement to end the partial federal government shutdown after 35 days. The agreement will allow the U.S. Department of Housing and Urban Development to fund expired and expiring housing contracts and will allow the Community Development Financial Institutions (CDFI) Fund to resume movement toward the announcement of new markets tax credit allocations. The legislative measure will fund the government through Feb. 15 and Trump said border security negotiations will continue during the interim.
A coalition of national organizations today released a report calling for an expansion of federal assistance and affordable housing supply in response to the nation’s affordable housing crisis.
A bill was introduced in South Carolina to allow taxpayers that receive a federal low-income housing tax credit (LIHTC) to receive a matching state tax credit. Bill 3212 would go into effect this year and would require the state credit be taken in the same year that the federal credit is claimed. Unused credits could be carried forward five years after the federal credit was claimed. The legislation was introduced by state Rep.
A bill introduced in the Oklahoma Legislature would modify the state low-income housing tax credit, eliminating a requirement that qualifying developments be in counties with a population of less than 150,000 and shortening the credit period from 10 to five years for properties placed in service after the effective date of the bill. Oklahoma’s state LIHTC has a $4 million statewide cap. If enacted, the bill would be effective Nov. 1.
Legislation was introduced in Missouri to limit the state low-income housing tax credit (LIHTC) annual allocation to no more than 50 percent of the federal LIHTC amount allocated to the state. The state LIHTC currently has a maximum of the federal amount on 9 percent credits and a $6 million cap for 4 percent credits, although no state LIHTCs have been issued the past two years, due to a dispute over the program.
Sens. John Hoeven, R-N.D., and Ron Wyden, D-Ore., today introduced the Move America Act of 2019, legislation that would expand tax-exempt private activity bonds and create a federal infrastructure tax credit to fund infrastructure projects through public-private partnerships. The legislation would allow states to issue tax-exempt bonds in partnership with private entities, with each state receiving a bond allocation based on population size.
California Gov. Gavin Newsom last week published his proposed 2019-2020 budget summary, which includes expanding the state low-income housing tax credit (LIHTC) to $500 million beginning in 2019, with $300 million of authority allocated to the existing state LIHTC program and the remaining $200 million earmarked for a new program to house households earning between 60-80 percent of the area median income.
The California Tax Credit Allocation Committee (CTCAC) has scheduled application-training workshops for those interested in submitting applications for 2019 low-income housing tax credits. The workshops are Jan. 17 in Sacramento, Jan. 18 in Oakland, Jan. 22 in San Diego, Jan. 23 in Los Angeles and Jan. 24 in Pasadena. Participants can ask questions and discuss issues with CTCAC staff.
The Internal Revenue Service Friday issued Revenue Procedure 2019-08, providing an optional depreciation table for residential rental property that is depreciated under the alternative depreciation system (ADS) under Internal Revenue Code (IRC) Section 168. Tax reform legislation passed late last year changed the recovery period under the ADS from 40 years to 30 years for residential rental property placed in service after 2017. Rev. Proc.
President Donald Trump today named Comptroller of the Currency (OCC) Joseph M. Otting as acting director of the Federal Housing Finance Agency (FHFA) when current FHFA Director Mel Watt’s term ends Jan. 6. Otting would serve as acting FHFA director until a permanent director is confirmed and would concurrently carry out his duties as Comptroller of the Currency.
The Federal Housing Finance Agency today published updated Duty to Serve plans for Fannie Mae and Freddie Mac as required by the Housing and Economic Recovery Act (HERA) of 2008.
The Internal Revenue Service (IRS) yesterday released proposed regulations on the base erosion and anti-abuse tax (BEAT). The BEAT is an alternative tax applicable to large corporations with significant multinational operations, and in some cases could limit the ability of tax credit investors to utilize their tax credits to reduce their BEAT liability.
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.