IRS Tag Archives

Ohio Posts Second Draft QAP – Comments Due August 30

The Ohio Housing Finance Agency (OHFA) posted the second draft of it’s 2020 QAP which includes the proposed fee schedule for 2020 as well as the Universal Design components for scoring (replacing the Aging in Place criteria). Comments on the second draft are due by August 30. All comments should be sent in writing to

OHFA has drafted a new fee schedule to be implemented upon approval of the 2020-2021 QAP and is seeking public comment.

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IRS Publishes Final Regulations on Section 50(d) Income

The Internal Revenue Service published the final regulations regarding Income Inclusion When Lessee Treated as Having Acquired Investment Credit Property under section 50(d)(5) of the Internal Revenue Code. The final rule clarifies that Section 50(d) income is a partner item rather than a partnership item, that Section 50(d) income goes to the partner in the lessee that used the tax credits and that partners are not entitled to increase their bases in their partnership interests as a result of Section 50(d) income inclusion.

NCSHA Urges Treasury and IRS to Provide Guidance to HUD on Income Limits for Income Averaging Developments

The National Council of State Housing Agencies sent a letter to the Department of the Treasury and IRS urging them to expedite guidance to HUD on how it should establish income limits for the 20, 30, 40, 70, and 80 percent of area median income (AMI) levels necessary for Housing Credit projects that elect to use the average income test for their minimum set-asides.

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Senators Ask IRS for Clarification on PABs Use for Affordable Housing for Veteran

Six Senators sent a letter to Internal Revenue Service (IRS) Commissioner Charles Rettig requesting he issue a notice clarifying that affordable housing projects for veterans that comply with the LIHTC General Public Use criteria are also eligible for Private Activity Bonds (PABs). Sens. John Cornyn (R-TX), Catherine Cortez Masto (D-NV), Diane Feinstein (D-CA), Kamala Harris (D-CA) Mazie Hirono (D-HI) and Jacky Rosen (D-NV) argue that, “given that LIHTCs and PABs are designed to be used in tandem, the General Public Use criteria explicitly laid out in the LIHTC statue should apply to PABs as well.”

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IRS Releases Resident Population Figures to Calculate 2019 LIHTCs, PABs

The Internal Revenue Service published Notice 2019-19, which provides population figures to use in calculating 2019 volume limits for the low-income housing tax credit (LIHTC) and private activity bonds (PABs). The LIHTC cap is the greater of the population multiplied by $2.75625 or $3,166,875 and the PAB cap is the greater of the population multiplied by $105 or $316,745,000. NH&RA estimates of 2019 LITHCs are available here.

IRS, Treasury Amend LIHTC Compliance-Monitoring Regulations

The Department of the Treasury and the Internal Revenue Service published final regulations that amend the compliance monitoring regulations concerning the low-income housing tax credit under section 42 of the Internal Revenue Code. These final regulations revise and clarify the requirement to conduct physical inspections and review low-income certifications and other documentation. The regulations are effective as of Feb. 26, 2019.