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Housing Plus

Guidance and legal insight for all aspects of housing and community development

By the Housing Group at Ballard Spahr

Category Archives: Tax-Exempt Bonds

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Tax Reform – Proposed Legislation Protecting Affordable Housing

Posted in Historic Tax Credits, Housing Bonds, Legislative Initiatives, Low Income Housing Tax Credits, New Markets Tax Credits, Policy, Tax Credits, Tax Reform, Tax-Exempt Bonds
After legislation to repeal the Affordable Care Act was pulled from the House floor last Friday, news headlines across the country began reporting that tax reform is next on the Trump Administration’s agenda. As noted in our prior blog post, tax reform that changes the corporate tax rate, the tax-exempt bonds program and the tax-credit… Continue Reading

El Paso RAD transaction converting 1,590 units at 13 sites closes

Posted in Housing Bonds, RAD, Supportive Services, Tax-Exempt Bonds
On April 9, 2015, the Housing Authority of the City of El Paso (HACEP) and its development, private equity and lending partners closed Phase I of the largest Rental Assistance Demonstration (RAD) project in the country. Hunt Development Group has joined HACEP in undertaking the development, preservation and rehabilitation of all of the 1,590 existing… Continue Reading

President Obama’s 2016 budget poised to address infrastructure needs

Posted in Budget, Housing Bonds, Tax Reform, Tax-Exempt Bonds
Released in February, the 2016 budget set forth by the Obama administration takes a focused stance towards the country’s growing infrastructure requirements. The 2016 budget features tax-exempt bond proposals seen in the administration’s 2014 and 2015 budgets, and introduces four new bond proposals: 1) A New Category of Qualified Private Activity Bonds for Infrastructure Projects… Continue Reading

Prepayment of tax-exempt bonds in connection with the sale of a multifamily housing project

Posted in Housing Bonds, Low Income Housing Tax Credits, Multifamily, Tax-Exempt Bonds
In the last few years, we have seen an increase in the number of multifamily housing projects being sold at the completion of the 15-year low-income housing tax credit compliance period. Strong rental demand in many areas of the country and low financing rates have created a favorable market for selling these types of projects.… Continue Reading

Please join us for the fifth annual Western Housing Conference

Posted in Budget, Community Development, Enforcement, Fair Housing, FHA and GSE Financing, FHA-Insured Financing, Government-Assisted Housing, GSE Financing, Housing Bonds, Legislative Initiatives, Multifamily, Policy, Public Housing, RAD, Section 8, Single-Family, Tax Credits, Tax Reform, Tax-Exempt Bonds
Several exciting developments have recently brought changes to the affordable housing industry and we are inviting you to explore them with us at our fifth annual Western Housing Conference. Ballard Spahr and CSG Advisors are pleased to announce this year’s Best of the West in Affordable Housing Development and Financing conference on March 13, in… Continue Reading

LIHTC discrimination suit filed against federal government

Posted in Enforcement, Fair Housing, Low Income Housing Tax Credits, Policy, Public Housing, Section 8, Tax Credits, Tax-Exempt Bonds
A lawsuit was recently filed alleging that the U.S. Department of Treasury (Treasury) and Office of Comptroller of the Currency (OCC) perpetuated racial segregation in the City of Dallas in their administration of the Low Income Housing Tax Credit (LIHTC) program. The plaintiff alleges that the agencies’ conduct violated their duty to affirmatively further fair housing… Continue Reading

Draw down bonds and date of issuance: questions remain with IRS guidance

Posted in Housing Bonds, Multifamily, Tax-Exempt Bonds
For many years multifamily housing apartment projects could be financed with tax-exempt drawn-down bonds and loans with all of the bonds issued pursuant to a draw-down loan being treated as part of a single issue.  The date of issuance for the bonds would be the first date on which the aggregate draws exceeded the lesser… Continue Reading

How the MCDC Initiative affects bond issuers and borrowers

Posted in Enforcement, Housing Bonds, Multifamily, Policy, Single-Family, Tax-Exempt Bonds
If you have ever issued (or borrowed the proceeds of) bonds then you should know about the Municipalities Continuing Disclosure Compliance Initiative (the “Initiative”) and take the appropriate steps to determine your compliance with Rule 15c2-12 under the Securities Exchange Act of 1934 (the “Rule”). The Rule generally prohibits underwriters from purchasing or selling municipal… Continue Reading

Housing options for veterans

Posted in Housing Bonds, Multifamily, Tax-Exempt Bonds
With Independence Day right around the corner and with several bond financings benefitting homeless veterans recently in the news (see Proposition 41 Bond Measure and Apartments for Homeless Veterans), it seemed fitting to highlight certain types of bonds which can be used to assist veterans.  The first of these are qualified veterans’ mortgage bonds which are private activity bonds that… Continue Reading

Tax-Exempt Bond Financing for Manufactured Home Communities

Posted in Housing Bonds, Multifamily, Senior Housing, Single-Family, Tax-Exempt Bonds
Did you know that an estimated 20 million people in the United States live in mobile home or manufactured home communities?  These communities make up a significant component of the nation’s affordable housing stock.  Manufactured homes can be an intermediate step for some individuals and families between apartments and owner occupied housing such as condominiums… Continue Reading

Renewed interest in Mortgage Credit Certificate programs

Posted in Housing Bonds, Tax Credits, Tax-Exempt Bonds
Section 25 of the Internal Revenue Code (IRC) permits issuers of tax-exempt qualified mortgage revenue bonds to elect to issue mortgage credit certificates (MCCs) to eligible homebuyers in lieu of offering mortgages financed with the proceeds of tax-exempt qualified mortgage bonds. An MCC “converts” a portion of an eligible homebuyer’s mortgage interest deduction into a… Continue Reading

CRA investment in affordable housing

Posted in Housing Bonds, Low Income Housing Tax Credits, Multifamily, Policy, Single-Family, Tax Credits, Tax-Exempt Bonds
One session at the recent Ballard Spahr and CSG Advisors Western Housing Conference included an interesting discussion about the effects of Community Reinvestment Act (CRA) investment on affordable housing in the nation.  Panel members shared some insight into how banks fulfill some of their CRA requirements by investing in affordable housing for low or moderate… Continue Reading

Why are tax-exempt bonds for affordable housing under attack?

Posted in Housing Bonds, Tax-Exempt Bonds
Background At a time in the United States when there is a shortage of affordable rental housing one would think that good tax policy would favor the construction and preservation of more affordable housing not less. Tax-exempt bonds have been successfully used for decades to reduce the costs of building and renovating affordable housing. Because… Continue Reading