Housing Plus

Housing Plus

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

By the Housing Group at Ballard Spahr

Tag Archives: Low-income Housing Tax Credits

Request for IRS Guidance on LIHTC Issues

Posted in Low Income Housing Tax Credits, Policy
Last week at the annual meeting of the American Bar Association Forum on Affordable Housing and Community Development (Forum), Michael Novey, Associate Tax Legislative Counsel, Office of Tax Policy, U.S. Department of the Treasury, encouraged the Tax Credit Equity and Financing Committee of the Forum to consider submitting a request to the IRS for priority… Continue Reading

Regulatory comments due in March & other housing news updates

Posted in Fair Housing, Government-Assisted Housing, Legislative Initiatives, Policy, Public Housing, Section 8, Tax Credits, Tax Reform
Comments on the following HUD and housing related guidance are due this month. HOTMA implementation for Section 8 Voucher Programs – Due March 20, 2017 On January 18, 2017, HUD issued a proposed rule to implement certain sections of the Housing Opportunities through Modernization Act of 2016 (HOTMA) that affect the tenant-based Housing Choice Voucher… Continue Reading

HUD Publishes Further Revisions to RAD Notice

Posted in Community Development, Fair Housing, Government-Assisted Housing, Low Income Housing Tax Credits, Public Housing, RAD, Section 8, Tax Credits
In an announcement on January 12th, the U.S. Department of Housing and Urban Development (HUD) published a significant third revision to the Rental Assistance Demonstration (RAD) Notice (PIH 2012-32/ H 2017-03 Rev-3). According to HUD, the RAD notice was revised in order to maintain the increased pace of RAD transactions in a manner that is… Continue Reading

District Court Dismisses Disparate Impact Claims in Texas

Posted in Community Development, Enforcement, Fair Housing, Government-Assisted Housing, Low Income Housing Tax Credits, Tax Credits
After several years of litigation, the U.S. District Court for the Northern District of Texas recently dismissed disparate impact claims filed against the Texas Department of Housing and Community Affairs (TDHCA) in the fair housing case, The Inclusive Communities Project, Inc. v. The Texas Department of Housing and Community Affairs. The Inclusive Communities Project (ICP)… Continue Reading

Bill introduced in Senate to create permanent LIHTC rate floors

Posted in Legislative Initiatives, Low Income Housing Tax Credits, Tax Credits, Tax Reform
On May 5, 2015, Senators Maria Cantwell (D-WA) and Pat Roberts (R-KS) introduced the “Improving the Low-Income Housing Tax Credit Rate Act” (S. 1193), which would create a permanent 9% minimum low-income housing tax credit rate for non-tax-exempt bond-financed new buildings or substantially rehabilitated buildings, and a permanent 4% minimum rate for acquisition credits. The… Continue Reading

Obama Administration’s FY 2016 budget would modify LIHTCs, permanently extend NMTC and energy tax credits

Posted in Budget, Energy Tax Incentives, Legislative Initiatives, Low Income Housing Tax Credits, New Markets Tax Credits, Policy, Tax Credits
As in prior years, the Obama administration’s FY 2016 budget includes a number of impactful, and generally positive, tax credit proposals. With respect to the Low-Income Housing Tax Credit (LIHTC), the budget retains many of last year’s proposed modifications, and adds a new proposal to remove the population cap for Qualified Census Tract designations. Specifically, the… Continue Reading

Senate passes Tax Extender Package at 11th hour

Posted in Energy Tax Incentives, Historic Tax Credits, Low Income Housing Tax Credits, New Markets Tax Credits, Policy, Tax Credits, Tax Reform, Uncategorized
The Senate passed the “Tax Increase Prevention Act of 2014” (H.R. 5771) on Tuesday night just before Congress adjourned for 2014. As Molly Bryson described in her December 5, 2014 post following the House’s passage of the bill, the tax extenders package provides a one-year retroactive extension of certain tax provisions that expired at the… Continue Reading

House tax extender package bolsters Low-Income Housing Tax Credit and New Markets Tax Credit programs

Posted in Low Income Housing Tax Credits, Tax Credits
On Wednesday, December 3, 2014, the House of Representatives passed a one-year tax extender bill that will shore up two key housing and community development programs. The Tax Increase Prevention Act of 2014 (H.R. 5771) (the “Act”), passed 378 to 46, extends a favorable provision in the Low-Income Housing Tax Credit (“LIHTC”) program, by providing… Continue Reading

HUD releases list of 2015 QCTs and DDAs

Posted in Low Income Housing Tax Credits, Tax Credits
On Friday, October 3, 2014, HUD released a notice announcing new “Qualified Census Tract” (“QCT”) and “Difficult Development Area” (“DDA”) designations for purposes of the low-income housing tax credit under Section 42 of the Internal Revenue Code. Section 42(d)(5)(B) of the Code provides an eligible basis increase of 30% for buildings located in a QCT… Continue Reading

IRS releases final LIHTC Audit Technique Guide

Posted in Low Income Housing Tax Credits, Tax Credits
Last week, the IRS released a long-anticipated update to its Audit Technique Guide for the low-income housing tax credit (“LIHTC”) program. The guide is intended to assist IRS examiners charged with auditing owners of LIHTC properties, and is the first official update published since 1999. A draft of the updated guide was made available for public… Continue Reading

IRS allocates “National Pool” credits to thirty-five states and Puerto Rico

Posted in Low Income Housing Tax Credits, Tax Credits
Yesterday, the IRS issued Revenue Procedure 2014-52 which provides for the reallocation of $2.59 million of unused national pool low-income housing tax credits (LIHTCs).  The national pool credits were divided among thirty-five states and Puerto Rico, with California receiving the largest allocation of $364,756. Each year the Internal Revenue Service allocates a certain amount of LIHTCs… Continue Reading

Proposed House bill would create appeals process for Qualified Census Tract and Difficult Development Areas

Posted in Legislative Initiatives, Low Income Housing Tax Credits, Policy
On July 24, 2014, Rep. Pete Gallego (D-Texas) introduced legislation in the House of Representatives that would amend Section 42 of the Internal Revenue Code to provide for an appeals process for HUD Qualified Census Tract (“QCT”) and Difficult Development Area (“DDA”) designations. The text of the bill, H.R. 5198, can be found here. H.R.… Continue Reading

Preservation of affordable housing using conventional equity

Posted in Low Income Housing Tax Credits, Tax Credits
Since the introduction of the Low Income Housing Tax Credit program in 1986, the majority of commercial equity investors in affordable housing projects have been those seeking tax credits in return for their equity contributions.  We have recently seen a new trend emerging among traditional tax credit investors – equity investments in affordable housing projects… Continue Reading

Legislative Update from NCSHA Conference

Posted in Low Income Housing Tax Credits, Tax Credits, Tax Reform
In previous Housing Plus blog posts we’ve discussed various tax credit proposals that have been released since the beginning of the year, which include the comprehensive tax reform proposal from House Ways and Means Committee Chairman Dave Camp (R-MI), the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, which would temporarily extend more than 50… Continue Reading

Changes to the local approval and contribution requirements under the Maryland QAP

Posted in Government-Assisted Housing, Legislative Initiatives, Low Income Housing Tax Credits, Policy, Tax Credits
Proposed changes under the Maryland Qualified Allocation Plan (QAP) would eliminate the “local approval” requirement and replace it with an opportunity for the political subdivision in which the project is located to comment on a proposed project.  In addition, a local financial contribution to a project would make the project eligible for points in the… Continue Reading

Proposed Section 752 Regulations and LIHTC Transactions: Part II

Posted in Low Income Housing Tax Credits, Policy, Tax Credits, Tax Reform
In a previous post earlier this week, I described the proposed regulations under Section 752 of the Internal Revenue Code (the “Proposed Regulations”), and in particular, the proposed changes to the rules regarding the characterization of recourse and nonrecourse debt. If enacted, the Proposed Regulations would have a significant impact on Low-Income Housing Tax Credit (“LIHTC”) transactions.… Continue Reading

Proposed Section 752 Regulations and LIHTC Transactions: Part I

Posted in Low Income Housing Tax Credits, Policy, Tax Reform
One of the hot topics at the recent ABA Taxation Section meetings in Washington, D.C. was the IRS’s proposed regulations regarding the allocation of partnership recourse and nonrecourse liabilities under section 752 of the Internal Revenue Code (the “Proposed Regulations”). The Proposed Regulations have been the subject of heavy criticism since they were released in January, in… Continue Reading

Housing Authorities, is on-site solar power right for you?

Posted in Government-Assisted Housing, Low Income Housing Tax Credits, Tax Credits
In a recent magazine article, I listed several criteria for evaluating whether the time is right for installing on-site solar power projects on commercial real estate properties.  A number of housing authorities, including the Philadelphia Housing Authority and the Denver Housing Authority, have benefitted indirectly from the incentives provided to owners of solar power projects.  The lists… Continue Reading

Evolving trends in Maryland affordable housing

Posted in Budget, Fair Housing, FHA and GSE Financing, Government-Assisted Housing, Legislative Initiatives, Low Income Housing Tax Credits, Policy, Public Housing, RAD, Section 8, Senior Housing, Tax Reform
On April 30th Ballard Spahr was proud to host representatives from the Maryland Department of Housing and Community Development (DHCD), the Maryland Attorney General’s office, Pennrose Properties and AGM Financial to discuss evolving trends in affordable housing development in Maryland.  The briefing, held in Ballard Spahr’s Baltimore office, included: A discussion by Pat Sylvester, the… Continue Reading

Obama administration FY 2015 budget would extend NMTCs, tweak LIHTCs

Posted in Policy, Tax Credits, Tax Reform
The Obama administration recently revealed its proposed $3.9 trillion federal budget for fiscal year 2015. Like Chairman Camp’s tax reform proposal and the proposed EXPIRE Act tax extenders package discussed in previous blog posts, the Obama administration’s budget includes a number of interesting tax credit-related proposals. Highlights include: Permanently extending the New Markets Tax Credit… Continue Reading

Senate Finance Committee to mark-up tax extender package today

Posted in Low Income Housing Tax Credits, New Markets Tax Credits, Tax Credits
The Senate Finance Committee is meeting today to mark-up the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, which is designed to extend certain tax provisions that either expired in 2013 or are set to expire at the end of 2014. Of particular interest to readers are the proposals that would extend the temporary minimum 9% LIHTC credit rate… Continue Reading