LIHTC Tag Archives

HUD Releases FY 2020 Income Limits

HUD released Fiscal Year (FY) 2020 Income Limits, which are effective as of April 1, 2020. Income limits are set by HUD to determine the eligibility of applicants for HUD’s assisted housing programs. The FY 2020 Multifamily Tax Subsidy Projects (MTSP) Income Limits were also announced and go into effect as of April 1, 2020.

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ACTION Legislative Asks Regarding COVID-19

The ACTION Campaign, of which NH&RA is a member, sent this letter to Congress with housing related requests to include in the COVID-19 pandemic response legislation. The statutory requests include:

Immediate one-year extension for three key deadlines:
10 percent test deadlines
Placed in service deadlines
Rehabilitation expenditure deadlines
Enact a minimum four percent LIHTC rate

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What is the risk that LIHTC Properties in Massachusetts will convert to Market?

The Community Economic Development Assistance Corporation released a report, which explores the risk that LIHTC-financed properties in Massachusetts will convert to market-rate housing at Year 30. Roughly 86 percent of the 15,679 LIHTC units approaching year-30 are subject to some form of longer-term affordability restriction and will not be at risk for market conversion before December 31, 2030.

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Alabama Court Says State Must Consider Extended-Use LIHTC Restrictions in Property Tax Assessment

An Alabama circuit court ruled against the state Department of Revenue (DoR) concerning its policy of disregarding LIHTC extended-use restrictions when determining assessment of value for property taxes. The Circuit Court of Jefferson County ruled in favor of the Alabama Affordable Housing Association in its lawsuit against the DoR. The court found that DoR’s approach “unlawfully inflates the ad valorem tax assessments made against” LIHTC properties. The ruling said counties “must take into account the legal restrictions on rents and use and operation of such properties.”

Democrats $760 Billion Infrastructure Package Calls for Increased LIHTC, HTC, NMTC, PAB and Broadband

Last week House Democrats released a $760 billion infrastructure framework, which calls for strengthening existing infrastructure financing tools, like LIHTC, the New Markets Tax Credit (NMTC) and the Historic Tax Credit (HTC). Specifically, the Moving America and the Environment Framework calls for expanding the three tax credits, as well as expanding the national volume cap for private activity bonds (PAB). The framework also includes $86 billion over five years to pay for the deployment of high-speed broadband in unserved and underserved communities, low-interest financing for broadband deployment and digital equity activities.

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Delay in Virginia’s Reach Lending Policy Effective Date

On August 26, 2019, the Virginia Housing Development Agency (VHDA) announced new policies regarding use of REACH Virginia funds, which was to become effective immediately for tax-exempt bond loans, as well as any taxable loan associated with nine percent LIHTC deals applied for in the 2020 allocation round. In response to public comments VHDA will delay implementation of any change in such policy to a date to be determined, but not earlier than June 30, 2020.

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