As we know, the President has signed what was originally titled Tax Cuts and Jobs Act, the most significant overhaul to the U.S. Tax Code since 1986. The President signed the Act into law after the first of the year in order to avoid some automatic spending cuts. In its final form, this Tax Code overhaul… Continue Reading
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
In a previous Housing Plus blog post on January 7, 2015, I described the various updates to the CDFI Fund’s Frequently Asked Questions document for the New Markets Tax Credit (“NMTC”) program. The most significant update may be the guidance relating to dissolving or decertifying subsidiary Community Development Entities (“CDEs”) at the end of the… Continue Reading
On Friday January 2, the CDFI Fund released an updated Frequently Asked Questions document for New Markets Tax Credit (“NMTC”) questions relating to certification, compliance monitoring, and evaluation. The updated FAQ supersedes a prior document released in September 2011. The updated guidance addresses the following issues: Dissolution of subsidiary – Community Development Entities (“CDEs”); Termination… Continue Reading
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
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
On November 5, 2014, the Philadelphia office of Ballard Spahr LLP hosted a lively and informative discussion of Tax Credit Hot Topics. The panel, moderated by Ballard Spahr partner Monique DeLapenha, included representatives of all aspects of a tax credit transaction, providing each unique perspective on a variety of important areas in the tax credit… Continue Reading
The NMTC is a great tool to finance temporary housing shelters and related facilities to combat chronic homelessness around the county. Blanchet House of Hospitality – Portland, Oregon In 2011, USBCDC, one of the largest New Markets Tax Credit investors, used the credit to finance a facility for Blanchet House of Hospitality, a social services… Continue Reading
The Office of the Comptroller of the Currency, Treasury, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation are the federal agencies that implement the Community Reinvestment Act (CRA). These agencies also provide guidance to agency personnel, financial institutions and the public in the form of written guidance called… Continue Reading
Welcome back to the latest installment of “Get to Know a NMTC Housing Deal,” where we find ourselves in Baltimore, Maryland featuring the efforts of a local and national cast of participants to rehabilitate nearly 90 acres in east Baltimore. Over the last several years, the east Baltimore development project has used the New Markets… Continue Reading
This is a new feature of the Ballard Spahr Housing Plus blog. We’d like to feature housing projects around the country that use the NMTC for a piece of the finance strategy. This installment finds us in Moss Point, Mississippi. Hope Enterprise Corporation and Hope Credit Union (HOPE) – an affiliate of NeighborWorks – and Habitat for… Continue Reading
On June 5, 2014, the U.S. Department of Treasury Community Development Financial Institution Fund (CDFI) announced that 87 Community Development Entities have been selected to receive $3.5 billion in New Markets Tax Credit (NMTC) awards. A list of the Community Development Entities, the amounts and principal service area to be served can be found on… Continue Reading
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
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
