LIHTC

The following groups have submitted legislative and/or regulatory asks. Please email Kaitlyn Snyder to add information. 

The ACTION Campaign, of which NH&RA is a member, sent this letter to Congress with housing related requests to include in the COVID-19 pandemic response legislation. The statutory requests include:

Immediate one-year extension for three key deadlines:
10 percent test deadlines
Placed in service deadlines
Rehabilitation expenditure deadlines
Enact a minimum four percent LIHTC rate

The majority of the House of Representatives has cosponsored the Affordable Housing Credit Improvement Act, H.R.3077, with a total of 221 members signed on to the bipartisan legislation.

The Community Economic Development Assistance Corporation released a report, which explores the risk that LIHTC-financed properties in Massachusetts will convert to market-rate housing at Year 30. Roughly 86 percent of the 15,679 LIHTC units approaching year-30 are subject to some form of longer-term affordability restriction and will not be at risk for market conversion before December 31, 2030.

Former Vice President and Democratic presidential candidate Joe Biden released his housing plan, which calls for the expansion of LIHTC authority by $10 billion and the permanent authorization and expansion of the New Markets Tax Credit.

HUD published Fiscal Year (FY) 2019 average income minimum set asides for LIHTC properties, in ten percent increments from 20 to 80 percent of the area median income in each state and metropolitan fair market rent/income limits area, based on the fiscal year 2019 Multifamily Tax Subsidy Project income limits.

An Alabama circuit court ruled against the state Department of Revenue (DoR) concerning its policy of disregarding LIHTC extended-use restrictions when determining assessment of value for property taxes. The Circuit Court of Jefferson County ruled in favor of the Alabama Affordable Housing Association in its lawsuit against the DoR. The court found that DoR’s approach […]

Last week House Democrats released a $760 billion infrastructure framework, which calls for strengthening existing infrastructure financing tools, like LIHTC, the New Markets Tax Credit (NMTC) and the Historic Tax Credit (HTC). Specifically, the Moving America and the Environment Framework calls for expanding the three tax credits, as well as expanding the national volume cap for private activity bonds (PAB). The framework also includes $86 billion over five years to pay for the deployment of high-speed broadband in unserved and underserved communities, low-interest financing for broadband deployment and digital equity activities.

The Internal Revenue Service (IRS) released Revenue Ruling 2020-04, which clarifies the manner to properly compute the 70 and 80 percent income limits applicable to the LIHTC under Section 42 of the Internal Revenue Code. The 70 percent limit is 140 percent or less of the income limit for a very low-income family of the same size and the 80 percent limited is 160 percent or less of the income limit for a very low-income family of the same size.

On January 7, 2020, Judge Deborah A. Chimes of the New York Supreme Court—Erie County ruled from the bench that a general partner’s election to redeem the limited partners’ interests in a LIHTC partnership did not trigger liquidation provisions under the partnership agreement because the partnership still owned all, or substantially all, of the assets of the partnership.

A hard copy Letter of Intent to Submit an application to the New Mexico Mortgage Finance Authority (MFA) is due by 5:00 pm MT on January 24. MFA will begin accepting applications for the nine percent allocation round on February 3, and will continue to do so until 5 pm MT, on February 14. Applications […]

2020 Deviation Requests Due January 13, 2020 by 5:00 pm CST; 2020 Application Log entries Due February 10, 2020 by 5:00 pm CST; 2020 Competitive Applications Due February 12, 2020 by 5:00 pm CST; and 2020 Award Announcements in June 2020.