LIHTC Tag Archives

In Memoriam: Herb Collins

Herb Collins passed away peacefully on March 30. Herb co-founded Boston Capital, Inc. in 1974 building it into one of the nation’s top real estate investment firms. Herb pioneered and ultimately helped sustain a new industry in low-income affordable housing. Championing this cause became Herb’s enduring professional legacy.

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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.

Nixon Peabody Blog: Securities Law Considerations for LIHTC Fund Managers Sponsoring Qualified Opportunity Zone Funds

While many tax credit fund managers are looking to expand into opportunity zone funds, there may be important differences in how they are treated for regulatory purposes. In this article, Daniel McAvoy, Forrest David Milder, John H. Cornell, III and David F. Schon with Nixon Peabody discuss certain additional considerations that O-zone fund managers may need to take into account. These rules often are not the same as those that apply to managers of other tax-advantaged funds such as low-income housing tax credits (LIHTC), new markets tax credits (NMTC) and historic rehabilitation tax credit (HTC) funds.

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.

Texas Updates 2019 Multifamily Uniform Application

The Texas Department of Housing and Community Affairs’ (TDHCA) Multifamily Finance Division has been made aware that Tab 12 of the 2019 Multifamily Uniform Application, related to Support Documentation for the Site Information Form Part III, does not list Site Control documents as documents that should be included in the Application. Per 10 TAC Section 11.204(10), documentation of Site Control is required at the time of Application submission. Applicants should refer directly to the rules when determining which documents to include in the Application.  

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Maryland Releases Updated Application Submission Package

The Maryland Department of Housing and Community Development (DHCD) released an updated Application Submission Package to reflect the new 2019 QAP and Guide. This application package must be used for requests for financing for all competitive and noncompetitive funding sources, including Rental Housing Program Funds, Multifamily Bond Program, Federal LIHTC, Rental Housing Works, and the Partnership Rental Housing Program.

California Housing Partnership Releases Affordable Rental Homes At-Risk Assessment

The California Housing Partnership annually assesses the historical loss and conversion risk of federally- and state-subsidized affordable rental properties. Its 2019 analysis found that between 1997 and 2018, California lost 15,044 affordable rental homes, one in four of which were financed with LIHTCs, and another 34,554 affordable rental homes are at risk of conversion.

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