LIHTC

The National Council of State Housing Agencies sent a letter to the Department of the Treasury and IRS urging them to expedite guidance to HUD on how it should establish income limits for the 20, 30, 40, 70, and 80 percent of area median income (AMI) levels necessary for Housing Credit projects that elect to use the average income test for their minimum set-asides.

HUD released the income limits for FY 2019 used to determined eligibility for public housing, Section 8, Section 202 and Section 811. HUD also released the Multifamily Tax Subsidy Program income limits for FY 2019, which are used for low-income housing tax credit and tax-exempt bond properties.

The Tennessee Housing Development Agency (THDA) released draft Income Averaging (IA) Guidance. Comments are due by 9 am CDT on April 22 to TNAllocation@thda.org.

A new article from Glen Graff, Attorney at Applegate & Thorne-Thomsen, published in Novogradac and Company’s Journal of Tax Credits April 2019 issue covers the issues and opportunities when combining Opportunity Zones and LIHTC.

The Internal Revenue Service (IRS) released Revenue Procedure 2019-17 which clarifies that preferences for veterans or other specific populations do not violate the general public use requirement for tax-exempt bonds and the Low Income Housing Tax Credit. This guidance comes two weeks after several Senators sent a letter to the IRS requesting clarification.

Herb Collins passed away peacefully on March 30. Herb co-founded Boston Capital, Inc. in 1974 building it into one of the nation’s top real estate investment firms. Herb pioneered and ultimately helped sustain a new industry in low-income affordable housing. Championing this cause became Herb’s enduring professional legacy.

The West Virginia Housing Development Fund released the 2019 LIHTC set-aside categories and amounts. Fifteen percent of the per capita portion of the State Housing Credit Ceiling for 2019 is $746,895. Please refer to the Limitations on Amount of Property Allocation subsection (pages 35 and 36) of the LIHTC Manual.

Six Senators sent a letter to Internal Revenue Service (IRS) Commissioner Charles Rettig requesting he issue a notice clarifying that affordable housing projects for veterans that comply with the LIHTC General Public Use criteria are also eligible for Private Activity Bonds (PABs). Sens. John Cornyn (R-TX), Catherine Cortez Masto (D-NV), Diane Feinstein (D-CA), Kamala Harris (D-CA) Mazie Hirono (D-HI) and Jacky Rosen (D-NV) argue that, “given that LIHTCs and PABs are designed to be used in tandem, the General Public Use criteria explicitly laid out in the LIHTC statue should apply to PABs as well.”

The Internal Revenue Service published Notice 2019-19, which provides population figures to use in calculating 2019 volume limits for the low-income housing tax credit (LIHTC) and private activity bonds (PABs). The LIHTC cap is the greater of the population multiplied by $2.75625 or $3,166,875 and the PAB cap is the greater of the population multiplied […]

While many tax credit fund managers are looking to expand into opportunity zone funds, there may be important differences in how they are treated for regulatory purposes. In this article, Daniel McAvoy, Forrest David Milder, John H. Cornell, III and David F. Schon with Nixon Peabody discuss certain additional considerations that O-zone fund managers may […]

The Department of the Treasury and the Internal Revenue Service published final regulations that amend the compliance monitoring regulations concerning the low-income housing tax credit under section 42 of the Internal Revenue Code. These final regulations revise and clarify the requirement to conduct physical inspections and review low-income certifications and other documentation. The regulations are […]

The Texas Department of Housing and Community Affairs’ (TDHCA) Multifamily Finance Division has been made aware that Tab 12 of the 2019 Multifamily Uniform Application, related to Support Documentation for the Site Information Form Part III, does not list Site Control documents as documents that should be included in the Application. Per 10 TAC Section 11.204(10), documentation of Site Control is required at the time of Application submission. Applicants should refer directly to the rules when determining which documents to include in the Application.