LIHTC

House and Senate approved legislation to establish a permanent minimum 9% Low-Income Housing Tax Credit rate for new construction and substantial rehabilitation and extend the New Markets Tax Credit through 2019.

The Low-Income Housing Tax Credit has financed more than 2.7 million rental homes, according to a report from the National Association of Home Builders.

Massachusetts Governor Charlie Baker joined WinnDevelopment and its partners to celebrate the groundbreaking of a new project to transform the Nockege Mill in downtown Fitchburg, MA, into 96 units of mixed-income housing.

An aging 200-unit property, owned by an affiliate of The Community Builders, will be demolished and replaced by modular, prefabricated homes. MassHousing provided $53 million in financing for the transaction, which includes Low-Income Housing Tax Credits and a renewed 20-year Section 8 HAP contract.

HUD designated the Difficult to Develop Areas (DDA) and Qualified Census Tracts (QCT) that will be effective July 1, 2016. This is the first year Small Area Fair Market Rents (SAFMRs) were used to designate metropolitan DDAs instead of metropolitan-area Fair Market Rents (FMRs).

The LIHTC and bond caps are the greater of $2.35 and $100, respectively, being multiplied by the state’s population, or a predetermined amount. The notice also indicates that rehabilitation expenditures will be treated as a separate new building.

The full list is available on IHDA’s website.

Affordable housing CA State Governor Brown says no to affordable housing bills. TCAC proposes changes to the LITHC program. CohnRezick examines the potential impacts for California.

Rockport Mortgage Corporation provided $17 million for the acquisition and substantial rehabilitation of a low- and moderate-income housing community in Knoxville, Tennessee. Through the HUD 221(d)(4) program, the complex debt structure includes the 4% Low Income Housing Tax Credits (LIHTCs), short-term tax-exempt bonds, and multiple tranche financing.

Massachusetts Housing Investment Corporation announced closing of a $3.6 million low-income housing tax credit investment for new construction of affordable rental housing in Cambridge, Mass.

The Community Builders is using $15.6 million in MassHousing financing to renovate a property in Lincoln, MA, that includes 72 apartments that are affordable to lower-income families through the LIHTC program.

The Internal Revenue Service updated the Audit Technique Guide (ATG) for the low-income housing tax credit program. IRS examiners use this guide to audit LIHTC property owners.