Two congressional leaders have sent a letter to the U.S. Treasury Department asking it to promptly issue a revenue procedure to implement the new authority for state housing credit agencies to exchange low-income housing tax credit authority for cash grants, as authorized by the American Recovery and Reinvestment Act of 2009. The letter, dated March 25, was sent by House Ways and Means Committee Chairman Charles Rangel (D-NY) and Financial Services Committee Chairman Barney Frank (D-MA) to Treasury Secretary Timothy Geithner. In the letter, the chairmen stress the need for speedy implementation of the initiative given the current “dislocations” in the LIHTC market. “The argument that there are important issues that need to be resolved regarding implementation of what is a new discretionary authority, including issues such as the process for states to make elections to exchange credits and compliance and asset management requirements, is no reason for a delay in implementation,” the letter says. “Time is of the essence.” Under the new initiative, states will be able to exchange to Treasury for cash up to 40% of their 2009 credit authority and 100% of 2008 credits and credits returned in 2009, and use the proceeds to provide funding to stalled low-income rental housing projects.