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October 2, 2018
Podcast
Continuing Resolution; Tax Reform 2.0; Housing, OZ Legislation; HTC Conference; New Markets Tax Credit Extension Act of 2017; Affordable Housing Credit Improvement Act of 2017; Update on Missouri State LIHTCs
Reports and Software
The 2018 Novogradac Tax Reform Resource Guide provides an in-depth look at the general and specific impacts of the federal tax reform legislation passed at the end of 2017, so that investors, developers and others involved in various tax credit transactions can know what to expect. The 2018 Novogradac Tax Reform Resource Guide includes a general section on changes made in the legislation (P.L. 115-97), including business tax changes, corporate tax changes and noncorporate tax updates in such areas as cost recovery changes, business interest expense limitation, new tax rates and more. The guide also includes individual chapters on how the changes affect the low-income housing tax credit (LIHTC), historic rehabilitation tax credit (HTC), new markets tax credit (NMTC), renewable energy investment tax credit (ITC) and production tax credit (PTC), plus a section on the new opportunity zones incentive created by the tax reform legislation. The guide also includes an index and appendices, with links to important documents. The report contains guidance informed by Novogradac’s nearly 30 years of experience with the tax code and the tax credit programs associated with it.
December 1, 2017
Periodical News Brief
LIHTC Industry The Internal Revenue Service (IRS) published Oct. 19 the 2018 caps for low-income housing tax credits (LIHTCs) and bonds. Revenue Procedure 2017-58 provides the 2018 inflation-adjusted amounts for the LIHTC and private activity bond (PAB) caps. The state LIHTC ceiling in 2018 will be the greater of $2.40 multiplied by the state population or $2,765,000, which is an increase of $55,000 over this year’s cap. The multiplier had been $2.35 in 2017. The state ceiling for the PAB volume cap will be the greater of $105 times the state population or $311,375,000. That is an increase of $6.06 million over the 2017 figure. 
November 1, 2018
Periodical News Brief
Reps. Jeb Hensarling, R-Texas, and John Delaney, D-Md., released draft legislation Sept. 6 that would wind down Fannie Mae and Freddie Mac over a five-year period and create a mortgage insurance program run through Ginnie Mae. Under the legislation, Ginnie Mae would leave the U.S. Department of Housing and Urban Development and become a stand-alone agency. Hensarling and Delaney released the text of the legislation, as well as a section-by-section summary and an overview and summary, which are all available at www.taxcredithousing.com.
April 3, 2017
Periodical News Brief
Sen. Maria Cantwell, D-Wash., Orrin Hatch, R-Utah, and 11 other U.S. senators introduced March 7 the Affordable Housing Credit Improvement Act of 2017. The legislation would include a 50 percent increase in the annual LIHTC allocation, establish a minimum 4 percent credit rate, allow income-averaging, allow states to grant a 30 percent basis boost if needed for bond-financed developments and several other provisions, including renaming the LIHTC as the “Affordable Housing Tax Credit.” The legislation was expected to be introduced in the House of Representatives. Cantwell’s office also released a report, “Meeting the Challenges of the Growing Affordable Housing Crisis,” which highlighted the impact on affordable housing of the record increase of 9 million renters in the past decade, the relatively low rate of rental housing construction, the removal of 13 percent of affordable housing homes since 2001 and stagnant wages.
November 6, 2017
Periodical News Brief
The Advisory Council on Historic Preservation (ACHP) announced Sept. 20 that it was working with the Federal Emergency Management Agency (FEMA) and with state and tribal historic preservation offices to coordinate disaster recovery efforts for historic properties affected by Hurricanes Harvey and Irma. ACHP also reported that it is working with preservation partners to spur congressional action on supplemental funding and historic tax credits (HTCs) to rehabilitate damaged historic properties. The National Trust for Historic Preservation, in collaboration with the National Conference of State Historic Preservation Officers and the National Association of Tribal Historic Preservation Officers, developed a legislative proposal that includes a proposed two-year preservation grant program that would be funded with at least $150 million from the Historic Preservation Fund. The proposal would also increase the existing HTC for commercial properties for three years from 20 percent to 26 percent for historic properties and from 10 percent to 13 percent for buildings built before 1936. 
November 1, 2017
Periodical News Brief
The Office of the Comptroller of the Currency (OCC) released Oct. 4 Community Reinvestment Act (CRA) evaluations for 31 national banks and federal savings associations. The evaluations were for September. Of the 31 evaluations released, four rated as outstanding, 26 rated as satisfactory and one rated as need to improve. A complete list of the evaluations is available at www.occ.gov.
January 2, 2018
Periodical News Brief
The Office of the Comptroller of the Currency (OCC) released Nov. 8, 2017, a Policies and Procedures Manual issuance describing its framework for evaluating certain types of licensing applications when an applicant bank has an overall less than satisfactory rating (needs to improve or substantial noncompliance) under the Community Reinvestment Act (CRA) or a less than satisfactory CRA rating in one or more geographic areas. The guidance applies to all OCC-supervised banks subject to the CRA, including community banks and is available at www.novoco.com/cra.
May 2, 2017
Periodical News Brief
On March 14, the Haas Institute released the study, “Opportunity, Race, and Low-Income Housing Tax Credit Projects: An Analysis of LIHTC Developments in the San Francisco Bay Area,” which comprehensively analyzes the administration of the Low-Income Housing Tax Credit (LIHTC) program. The Haas Institute examined LIHTC properties in the San Francisco Bay Area, and results showed that developments financed by the LIHTC in the Bay Area were relatively well distributed across boundaries of opportunity. According to the report, nearly two-thirds of LIHTC developments (64.9 percent) in the nine-county area were sited in moderate, low-, and very-low-opportunity neighborhoods during the years for which data was available (1987-2014). In addition, the Haas Institute stated that 9 percent credits were more frequently used to create housing in high-opportunity neighborhoods than 4 percent credits. However, more than 45 percent of large family developments were sited in low- and very-low-opportunity areas, with these types of properties disproportionately placed in low-opportunity areas where resources for families with children are inadequate to support healthy development and upward mobility. In addition, results indicate that 9 percent LIHTC developments are sited in neighborhoods that are not racially integrated; on a ratio of 3.78-to-1 basis, and 9 percent developments were sited in neighborhoods where 50 percent or more of the population were people of color. The report is available at www.taxcredithousing.com.
February 1, 2019
Periodical News Brief
Diane Yentel, CEO of National Low-Income Housing Coalition, testified Dec. 21, 2018, at the Housing Finance Reform Hearing in front of the House of Representatives Financial Services Committee. Yentel spoke on behalf of the National Housing Trust Fund (HTF), calling for its expansion. She advocated for any housing finance reform legislation to provide a minimum of $3.5 billion annually to the HTF. She also informed the committee that there are just 35 homes affordable and available for every 100 of the lowest-income households in America–seniors, people with disabilities and families with children, and that the HTF was created precisely to meet the housing needs of these households, and the private sector on its own cannot address these needs without federal assistance. Rep. Warren Davidson, R-Ohio, asked if it is “rational” to increase federal housing assistance, to which Yentel responded that “it is irrational not to” because affordable homes are central to positive outcomes in health, education, economic well-being and other essential areas.
August 4, 2017
Periodical News Brief
Rep. Maxine Waters, D-Calif., and seven other members of the House Financial Services Committee reintroduced June 27 comprehensive legislation to preserve and revitalize the nation’s public housing stock. The Public Housing Tenant Protection and Reinvestment Act of 2017 would preserve public housing and transform extremely impoverished neighborhoods by authorizing full funding for the program plus additional funding to address the backlog of capital needs. The bill would also provide a loan guarantee for public housing agencies to attract outside investment into public housing units, as well as authorize a grant program that focuses on revitalizing the most distressed public housing units. In addition, the legislation would require one-for-one replacement in cases where public housing units are demolished or sold and increase tenant protections to help ensure that residents have the option to stay in the communities that they call home. The bill and accompanying documents are available at www.hudresourcecenter.com.
February 1, 2017
Periodical News Brief
Julián Castro, the U.S. Department of Housing and Urban Development (HUD) secretary, issued an exit memo Dec. 30, 2016, as he prepared to vacate his post. In his memo, Castro highlighted the importance of housing as a platform for opportunity. He stated that the program is needed now more than ever as potential tax reform changes could reduce the value of the tax credits through the lowering of corporate tax rates. Castro also stated that tax reform needs to be done in such a way that it’s thoughtful about the impact it will have on the LIHTC program and the housing market in general. In addition, he said it’s important for states to be smart about their qualified application plans. Castro also said there is a lot of work that can be done at the state level to get more out of the LIHTC program. In an interview, Castro also highlighted some of the work done with the program. He noted the more nuanced work that has been done to the application of difficult development areas (DDAs) and the use of ZIP codes or census tracts instead of larger areas. He said this gives a boost to the areas where it is more difficult to get an affordable housing development completed.
June 2, 2016
Periodical News Brief
The U.S. Department of Agriculture (USDA) published a Federal Register notice April 26 announcing a series of teleconferences concerning the Section 538 Guaranteed Rural Rental Housing (GRRH) program. Under the Section 538 program, the USDA guarantees private loans for the development of affordable rental housing in rural areas for low- and moderate-income households. One of the topics on the agenda is how low-income housing tax credit (LIHTC) program changes affect Section 538 GRRH program financing. Dates and times for the teleconferences will be announced to registrants through email.