Glenn Petherick Author Archives

ICAST’s IRA & BIL Instant Benefit Estimate Calculator is now available on NH&RA’s website under the Resources section.

In recent testimony and comments to House tax writers, supporters of the federal low-income housing, historic rehabilitation, and new markets tax credits defended these programs and encouraged their continuation under any tax reform legislation.

Each year the National Housing & Rehabilitation Association honors the best completed real estate developments in the U.S. that have utilized federal rehabilitation tax credits, by presenting the J. Timothy Anderson (“Timmy”) Awards for Excellence in Historic Preservation.

With the talk and action about tax reform legislation heating up in Washington, it’s an opportune time to highlight the benefits of our current federal tax credit programs that produce and preserve affordable rental housing, foster the rehabilitation of historic building, and promote economic development, including in our nation’s low-income communities.

The new allocatees are based in 28 states and the District of Columbia and expect to make investments in all 50 states, the District of Columbia, and Puerto Rico.

According to CohnReznick, approximately $10 billion in total LIHTC equity was raised in 2012. Of this amount, the banking sector accounted for approximately 85%. Moreover, of the bank-supplied equity investment, CohnReznick estimates that 60% came from the top five U.S. commercial banks alone.

Once their new affordable apartment complex is completed, the seniors living at The Greens at Logan Field in Dundalk, Md. won’t have to travel far to shop.

The Internal Revenue Service and U.S. Treasury Department have begun work on developing guidance expected to outline the conditions under which a limited partner investor in an historic rehabilitation tax credit transaction will be respected as a partner for federal tax law purposes.

Competition is the lifeblood of existence, for only through competition does natural selection harness the self-interest of autonomous beings into evolutionary advance. Though the same principle is the fuel that powers the success of entrepreneurial capitalism, it was a long time coming to affordable housing, arriving serendipitously in the Low-Income Housing Tax Credit (LIHTC) program, which mandates a trifecta of ring-fenced individual-state autonomous allocations, annual award cycles, and Qualification Allocation Plans (QAPs) as modifiable DNA.

The Obama Administration’s budget request for the U.S. Department of Housing and Urban Development (HUD) for Fiscal Year 2014, which begins October 1, reflects a mix of winners and losers and contains a number of proposed program changes. The Administration’s budget also includes positive and negatives for rural housing programs along with some tax credit proposals (see p. 12).

Stakeholders have reacted favorably to recommendations made by the National Park Service for promoting greater awareness, efficiency, and use of the federal historic rehabilitation tax credit program.

LIHTC Multi-Investor Fund Activity

The low-income housing tax credit (LIHTC) equity market continues to hum along with rising yields on new multi-investor funds and softening credit prices in some areas. Current national multi-investor LIHTC funds generally have projected after-tax yields to investors ranging from 7.0% to 7.5% – with many clustered around 7.25%.