LIHTC

Novogradac announced it is providing an additional benefit for LIHTC stakeholders. In addition to Novogradac’s LIHTC equity pricing page, which provides a nationwide average of equity price per credit, a new page, available upon request, offers data for regions and some states. 

The U.S. Department of Housing and Urban Development published a notice in the Federal Register establishing 2025 difficult development areas (DDAs) and qualified census tracts (QCTs) for LIHTCs.

MO, MA and PA Make Big Changes to State Credits

New Hampshire Housing will conduct a virtual listening session to solicit input on new draft Underwriting Standards and Development Policies for Supportive Housing Development and the draft Fiscal Year 2025 Supportive Housing Notice of Funding Opportunity.

The Department of Housing and Community Development (DHCD) announced that the 2024 Consolidated Request for Proposals for Affordable Housing Projects funding is available. 

HUD recently announced a significant policy change that will impact developers involved in the LIHTC program.

The 45L credit was initially introduced as a tax deduction under the Energy Policy Act of 2005. Initially, it allowed developers of energy-efficient residential properties, including multifamily buildings, to claim a deduction of up to $2,000 per unit for eligible construction or rehabilitation projects meeting specific energy-efficiency criteria. 

Members of Congress who addressed the Affordable Housing Tax Credit Coalition’s Spring Meeting on Capitol Hill this week indicated that they still see a possibility of passing parts of the Affordable Housing Tax Credit Improvement Act before Congress adjourns for the year.

The Senate has yet to take up the Tax Relief for American Families and Workers Act (H.R. 7024), which passed the House in January and contains two critical LIHTC provisions.

During her testimony before the House Ways and Means Committee Treasury Secretary Janet Yellen said, “President Biden and I are taking additional actions to bring down the cost of key household expenses like energy, prescription drugs and housing.”

HUD published the 2024 Income Limits, which determine eligibility for assisted housing programs, including the Public Housing, Section 8 project-based, Section 8 Housing Choice Voucher, Section 202 housing for the elderly and Section 811 housing for persons with disabilities programs, as well as Multifamily Tax Subsidy Project (MTSP) income limits that determine eligibility for LIHTC and tax-exempt private activity bond (PAB)-financed properties.

In the 23rd Chelsea Associates case, the U.S. Tax Court ruled that an appropriate share of finance costs attributable to the construction period of the affordable housing part of a project can be included in tax credit basis.