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Thursday, April 15, 2021

A bipartisan group of legislators introduced the Affordable Housing Credit Improvement Act of 2021 (AHCIA) today in both chambers of Congress. Novogradac estimates the primary unit financing provisions of the bill could finance as much as 2 million additional affordable rental homes over 10 years. The legislation would lower the financed-by threshold for private activity bonds (50% test) from 50% to 25% starting in 2022; increase 9% LIHTC authority by 25% in 2021 and 2022; extend the discretionary 30% basis boost for 9% LIHTC properties to PAB-financed properties; provide a 30% basis boost for properties in rural and Native American areas; and more.

Thursday, April 15, 2021

The U.S. Department of Housing and Urban Development (HUD) last week released guidance to public housing authorities (PHAs) and their partners concerning the new Faircloth-to-Rental Assistance Demonstration (RAD) process and how to make submissions to HUD. A factsheet released by HUD says the Faircloth-to-RAD pathway could result in 220,000 units of new deeply affordable housing units. The “Faircloth” limits are based on a cap in the number of public housing units the federal government will create. Many PHAs operate fewer deeply rental-assisted units than their limit. In a Faircloth-to-RAD transaction, PHAs can develop public housing units using HUD’s public housing mixed-finance program and convert the property to a long-term Section 8 contract after construction. HUD has streamlined and merged the mixed-finance development and RAD conversion process.

Friday, April 9, 2021

President Joe Biden released a $1.5 trillion federal spending outline for fiscal year 2022 today, a discretionary funding request that includes $68.7 billion for the U.S. Department of Housing and Urban Development (HUD), an increase of 15% over 2021 levels. The outline also requests $330 million for the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund, a 21% increase from 2021 levels.

Friday, April 9, 2021

The Urban Institute released a brief report about the nation’s housing supply shortage, calling for “policymakers … [to] expand the Low-Income Housing Tax Credit [LIHTC], Section 142 tax-exempt bonds for the development of rental housing, and the New Market Tax Credit [NMTC], each of which has proven effective in promoting development in underserved communities.”

Tuesday, April 6, 2021

The U.S. Department of Housing and Urban Development (HUD) today announced the allocation of $689.6 million through the national Housing Trust Fund (HTF). The HTF is capitalized through contributions by Fannie Mae and Freddie Mac. This year’s allocation more than doubles last year’s $322.6 million contribution. State allocations range from $126.6 million to California to the small-state minimum of $3.1 million to 10 states plus the District of Columbia.

Thursday, April 1, 2021

The U.S. Department of Housing and Urban Development (HUD) will publish a notice in Friday’s Federal Register that it is withdrawing a previous proposed rule to prohibit financial assistance for public housing and other assisted housing programs to most non-citizen residents. HUD identified the proposed rule as inconsistent with two executive orders and will formally withdraw the rule.

Thursday, April 1, 2021

The U.S. Department of Housing and Urban Development (HUD) has 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 2021. The limits are effective today. 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

Wednesday, March 31, 2021

The Office of Management and Budget issued a memorandum that includes a six-month extension for single-audit submissions to the Federal Audit Clearinghouse for recipients of federal financial assistance who are subject to single audit requirements. The extension allows such entities to delay submission of the single audit reporting package up to six months beyond the normal due date, typically nine months after the fiscal year-end.  Entities affected include certain nonprofit owners of properties receiving assistance from the U.S. Department of Housing and Urban Development (HUD) and public housing authorities. 

Tuesday, March 30, 2021

The U.S. Department of Housing and Urban Development (HUD) today granted an extension of the deadline for certain financial reports for owners of multifamily housing projects and residential care facilities due to the COVID-19 pandemic. Year-end reports that were due from Oct. 1, 2020, to June 30, 2021, are now due June 30.

Monday, March 29, 2021

The Center for Disease Control and Prevention (CDC) today announced an extension of the federal COVID-19 eviction moratorium through June 30. After the CARES Act provided an eviction moratorium that expired July 24, 2020, the CDC issued an order that prohibited evictions of renters who meet certain requirements through Dec. 31, 2020, an order that was extended to Jan. 31 and then March 31 before today’s extension.

The extended moratorium comes as communities and landlords navigate emergency rental assistance. Novogradac’s Emergency Rental Assistance practice can help grantees and grant recipients navigate the program, which provides $25 billion to assist renters in paying unpaid rent and utilities.

Friday, March 26, 2021

The Internal Revenue Service (IRS) answered five frequently asked questions this week concerning the Emergency Rental Assistance (ERA) program. The questions relate to whether ERA payments are includable in gross income for various stakeholders in different situations. The answers highlight that renters do not include ERA payments in their gross income, while landlords and utility companies do.

Novogradac offers consulting services for both grantees and grant recipients in the ERA program.

Monday, March 15, 2021

A report issued today by the United States Government Accountability Office (GAO) studies the impact of COVID-19 eviction moratoriums and recommends that the Centers for Disease Control and Prevention (CDC) implement an outreach plan to help renters better understand its eviction moratorium. COVID-19 Housing Protections: Moratoriums Have Helped Limit Evictions, but Further Outreach is Needed evaluated 63 jurisdictions and found that eviction rates were 74 percent lower in the final week of July 2020 than the previous July. The CDC eviction moratorium has been in place since September 2020 and is scheduled to expire March 31.

Wednesday, March 10, 2021

The U.S. Senate today confirmed Rep. Marcia Fudge, D-Ohio, as the 18th secretary of the U.S. Department of Housing and Urban Development (HUD). Fudge, who was in her seventh term in the House of Representatives, becomes the first Black woman to hold the position since Patricia Harris was HUD secretary in 1980 and 1981. The vote to confirm Fudge was 66-34.

Saturday, March 6, 2021

The United States Senate Saturday approved the American Rescue Plan Act, a $1.9 trillion COVID-19 relief bill that includes $27.4 billion for rental housing assistance. The legislation passed by a 50-49 vote and now goes to the House of Representatives for approval on Tuesday before advancing to President Joe Biden’s desk. The rental housing assistance includes $21.55 billion for emergency rental assistance, $5 billion in emergency housing vouchers, $750 million for tribal housing needs and $100 million for rural housing.

Thursday, March 4, 2021

The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac will offer COVID-19 forbearance to qualifying multifamily property owners through June 30. The forbearance was scheduled to end March 31 and is subject to the continued tenant protections FHFA imposed during the pandemic. Property owners with Fannie- or Freddie-backed multifamily mortgages can enter a new or modified forbearance if they experience a financial hardship due to the COVID-19 emergency.

Tuesday, March 2, 2021

Nearly 60% of residents in low-income housing tax credit (LIHTC) properties earn at or below 30% of the area median income (AMI), according to data released today by the U.S. Department of Housing and Urban Development (HUD). HUD released tenant-level data on people who live in LIHTC properties, including race, ethnicity, family composition, age and other factors. Starting this year, HUD released a document with background on the data and a brief explanation of the tables, along with Excel files with summary tables, replacing the annual “Understanding Whom the LIHTC Serves: Data on Tenants in LIHTC Units” reports.

Monday, March 1, 2021

The U.S. Department of Housing and Urban Development (HUD) will publish a notice in Tuesday’s Federal Register seeking comment on a new collection of information concerning the Rental Assistance Demonstration (RAD) program’s choice mobility and long-term affordability. HUD proposes the collection of information to continue evaluation of RAD.

Monday, March 1, 2021

The Federal Housing Finance Agency (FHFA) today announced the authorization of more than $1 billion in affordable housing allocations to Fannie Mae and Freddie Mac, the largest disbursement in history. Of the provided funds to Fannie and Freddie, the U.S. Department of Housing and Urban Development’s (HUD’s) Housing Trust Fund (HTF) will receive $711 million and the Department of the Treasury’s Capital Magnet Fund (CMF) will receive $383 million.

Friday, February 26, 2021

The U.S. Department of Housing and Urban Development (HUD) today announced more than $652 million in Indian Housing Block Grant (IHBG) formula funding for eligible Native American Tribes and Tribally Designated Housing Entities for affordable housing activities in tribal communities.

Monday, February 22, 2021

The U.S. Department of the Treasury today provided a revised frequently asked questions (FAQs) document to act as guidance for Emergency Rental Assistance (ERA) program requirements. Among the revisions in the FAQs, Treasury is allowing self-attestation to document most eligibility requirements for applicants.