NH&RA is urging Congress to take action to make a critical technical change to the New Markets Tax Credit Program, making it easier to use the subsidy on projects involving multiple buildings. In a letter to Senate Finance Committee Chair Senator Max Baucus (D-Mont.) and Ranking Member Senator Charles Grassley (R-Iowa) is urging Congress to provide clarification that the “˜integrated unit test’ can be utilized on projects involving multiple buildings.
By statute, qualified businesses utilizing the New Markets Tax Credit must derive less than 80 percent of their income from residential rental properties. NH&RA is urging Congress to clarify that in projects involving multiple buildings this income test can be applied across the project in aggregate as opposed to on a building-by-building basis. This clarification will help facilitate the development of critical mixed-use projects and services in low-income communities at a time when traditional real estate finance is especially hard to come by.
Formed in 1971, NH&RA is a professional association of individuals who are involved in affordable housing, historic rehabilitation and New Markets Tax Credit development. NH&RA’s New Markets Tax Credit Council brings together active participants in New Markets Tax Credit transactions including CDE executives, investors, developers, lenders, government officials, consultants and legal and accounting professionals to discuss the most pressing legislative, regulatory, financial and transactional issues facing the industry and build consensus on solutions. The council is an active advocate for the extension of the of the New Markets Tax Credit program on Capital Hill and meets regularly with key Department of Treasury staff. read the letter…
