Monday’s article examines eight states’ responses to the new income averaging set aside election for LIHTC made available by Congress as part of the March 2018 omnibus spending bill. Mark Shelburne notes in the article a general consensus around four items:
- documenting equity providers’ and lenders’ consent to use IA;
- not reducing what would have been an application’s point score;
- requiring a market study showing sufficient demand at each targeting level; and
- treating multi-building developments as a single property (referred to here as making the “8(b) election” because of it being the line on the Form 8609).
We can likely expect the number of states with policies on the subject to increase dramatically over the coming weeks (Alaska, Florida, Maryland, and New Jersey all published proposals between Novogradac’s article and now and are featured on HousingOnline), especially after the National Council of Housing Finance Agencies’ Housing Credit Connect conference next week, where income averaging will be discussed at length. The Novogradac article is available here for more information.
