Recent News
The Federal Housing Finance Agency (FHFA) today released its 2021 Report to Congress. The report provides information on FHFA’s examinations of Fannie Mae, Freddie Mac, the 11 Federal Home Loan Banks and those banks’ Joint Office of Finance. FHFA, which acts as a conservator on Fannie and Freddie, reported on increasing both enterprise’s low-income housing tax credit (LIHTC) annual cap as well as how Fannie and Freddie made investments in targeted areas. The reports show that Fannie and Freddie both exceeded duty-to-serve loan purchase performance plan targets for all 12 areas of affordable housing preservation except for Fannie Mae falling short in Section 515 loans.
The proposed global minimum tax and its potential effect on community development tax credit equity investments is the subject of this week’s Novogradac Tax Credit Tuesday podcast episode. Michael Novogradac, CPA, and Novogradac partner Brad Elphick, CPA, discuss the proposal and potential approaches to mitigate the damage to tax credit equity investment. They also examine next steps in the proposal and for community development tax credit stakeholders. Novogradac has also published a white paper on the subject called Pillar Two and Tax Credit Equity Investments and is seeking public comment on the paper. Comments may be sent to [email protected]
The weekly Tax Credit Tuesday podcast offers an in-depth discussion of various tax incentive topics with expert guests.
A change in how the U.S. Department of Housing and Urban Development (HUD) calculates income limits for 9% low-income housing tax credit (LIHTC) properties in rural areas means that property owners who used the HUD website or the Novogradac Rent & Income Limit Calculator© may need to re-run their limits to ensure compliance with the updated calculation. The change applies to properties in rural areas as defined by the U.S. Department of Agriculture, which are able to use the greater of the applicable income limit for their county or the national non-metro median income limit.
The National Low Income Housing Coalition (NLIHC) released Thursday its annual affordable housing report, “The Gap: A Shortage of Affordable Homes,” which strives to examine the factors contributing to challenges in affordable housing as well as the geographic areas of greatest impact.
The U.S. Department of Housing and Urban Development (HUD) today 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 (FY) 2022. The FY 2022 national median income is $90,000, a 12.5% increase over 2021. The limits took effect April 18. 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.
