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July 10, 2018
Periodical News Brief
The Community Development Financial Institutions (CDFI) Fund opened the calendar year 2018 new markets tax credit (NMTC) allocation round May 9. A notice of allocation availability made $3.5 billion available for the current round. Applications for allocation authority were due June 28 and June 26 was the last day that the CDFI Fund answered questions about the application. Prior allocatees must record their qualified equity investments in CDFI Fund systems by Sept. 24 and allocation awards will be announced during winter 2019. The CDFI Fund released an introduction to the NMTC program, 2018 NMTC application frequently asked questions and a roadmap presentation on important information and resources for the 2018 NMTC application round.
November 1, 2012
Periodical News Brief
The CDFI Fund announced an information collection on July 23 regarding the NMTC Community Development Entity (CDE) Certification Application.
June 1, 2011
Periodical News Brief
The Community Development Financial Institutions (CDFI) Fund announced that the new markets tax credit (NMTC) program was selected as one of 25 programs that will advance to the final stages of competition for the Innovations in American Government Award.
August 1, 2015
Periodical News Brief
The Joint Center for Housing Studies of Harvard University (JCHS) released the report, “The State of the Nation’s Housing 2015” June 24. JCHS provides an assessment of the state of the rental and homeownership markets in its annual report. ...
June 1, 2011
Periodical News Brief
Fannie Mae released two white papers that outline the company's multifamily rental activities and the outlook for affordable rental housing and the small multifamily loan market.
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.
April 1, 2016
Periodical News Brief
The Internal Revenue Service (IRS) March 4 released Notice 2016-23. The IRS is requesting comments on the new partnership audit regime enacted in the Bipartisan Budget Act of 2015...
October 1, 2015
Periodical News Brief
The U.S. Department of Housing and Urban Development (HUD) released the fiscal year 2016 (FY 2016) proposed fair market rents (FMRs) Sept. 3. FMRs are used to determine payment standards for the Housing Choice Voucher (HCV) program. ...
December 1, 2015
Periodical News Brief
The Internal Revenue Service (IRS) released Revenue Procedure (Rev. Proc.) 2015-49 Oct. 13. Rev. Proc. 2015-49 provides the amounts of unused 2015 Low-Income Housing Tax Credit (LIHTC) carryovers allocated to qualified states under Section 42 of the Internal Revenue Code (IRC). ...
December 3, 2018
Periodical News Brief
The U.S. Department of Housing and Urban Development released Oct. 19 the list of difficult development areas (DDAs) and qualified census tracts (QCTs) for 2019 for the low-income housing tax credit (LIHTC). DDAs and QCTs are eligible for as much as a 30 percent basis boost while receiving the LIHTC. The DDAs and QCTs are effective for allocations of LIHTCs beginning Jan. 1, 2019, and for bond-financed properties where the bonds are issued and the building is placed in service after Jan. 1, 2019. The list is 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.
April 1, 2019
Periodical News Brief
Legislation was introduced in Ohio Feb. 20 to create a nonrefundable 1 percent tax credit for investments of $250,000 or more in Ohio qualified opportunity funds, which must hold 100 percent of their assets in Ohio opportunity zones (OZs). This proposal is scaled back from legislation introduced last year that would have provided a 10 percent tax credit. S.B. 8 includes an additional credit equal to 2 percent of the investment if there are sufficient estimated increased tax collections for projects funded by the opportunity fund. Unused credit could be carried forward five years. The bill is available at www.opportunityzonesresourcecenter.com.
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.
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.
July 1, 2011
Periodical News Brief
The Internal Revenue Service (IRS) is soliciting comments concerning the low-income housing tax credit (LIHTC) regulations for federally assisted buildings.
July 1, 2014
Periodical News Brief
On June 10, former U.S. Senate Majority Leader George Mitchell and former U.S. Senator Christopher Bond issued a statement supporting H.R. 4717. The bill would amend the Internal Revenue Code of 1986 to make permanent the 9 percent credit rate floor for new construction, and create...
August 5, 2016
Periodical News Brief
The Internal Revenue Service (IRS) released a notice June 21 announcing that all empowerment zone designations will remain in effect through Dec. 31. This new end date applies to all empowerment zone designations that were in effect Dec. 31, 2014.
February 1, 2018
Periodical News Brief
The number of cost-burdened and severely cost-burdened renters has slightly decreased, but the rental housing affordability gap in the United States remains high, according to the Joint Center for Housing Studies (JCHS) at Harvard University’s America’s Rental Housing 2017 report released in December 2017. The study found median monthly rental costs increased 15 percent from 2000 to 2016, while median household income fell slightly. JCHS also reports that the low-income housing tax credit (LIHTC) continues to be a significant force in providing construction and rehabilitation of affordable housing–supporting 70,000 affordable rental apartments per year–but that nearly 500,000 LIHTC units and 650,000 other subsidized rentals will come to the end of their required affordability periods in the next decade. The report says that federal, state and local policy must support the efficient provision of affordable rental homes to address the nation’s affordability challenges.
April 1, 2019
Periodical News Brief
Ben Carson, secretary of the U.S. Department of Housing and Urban Development (HUD), announced Feb. 21 his pledge to work with homebuilders to tackle the nation’s affordability crisis. During his address to the National Association of Home Builders board of directors during its annual meeting in Las Vegas Feb. 19-21, Carson announced that HUD’s Office of Multifamily Housing programs is expanding the Low Income Housing Tax Credit pilot program into the agency’s New Construction and Substantial Rehabilitation loan products. This is expected to make it easier for builders to use FHA-insured loans to finance low-income housing tax credit developments. As chairman of the White House Opportunity and Revitalization Council, Carson spoke about opportunities for builders and other private sector participants to invest in opportunity zones (OZs). Developers may use a qualified opportunity fund to help finance developments that could help increase residential housing within OZs.