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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.
December 1, 2016
Periodical News Brief
On Oct. 11, the Housing Trust Fund Project of the Center for Community Change (CCC) released, “Opening Doors to Homes for All: The 2016 Housing Trust Fund Survey Report.” CCC stated that the benefit of housing trust funds can be document in 49 states and the District of Columbia. The report provided case studies demonstrating the benefit of housing trust funds. The report showed that there are now more than 770 city, county and state housing trust funds that provided more than $1 billion to support affordable housing in 2015. The report highlights six trends that housing trust funds advance: providing homes for extremely low income (ELI) households, keeping homes affordable, addressing homelessness, fending off gentrification and displacement, attending to rural housing needs, and striving to meet environmental goals. The report is available at www.housingtrustfundproject.org.
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. 
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.
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.
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.
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.
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.
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