Treasury Department
IRS proposed rule on reissuance of state or local bonds
The Internal Revenue Service (IRS) issued a proposed rule on reissuance of state or local bonds. The proposed rule provides steps for determining when tax-exempt bonds are treated as retired for purposes of sections 103 and 141 through 150 of title 26 of the Code of Federal Regulations. The proposed rule also amends §1.1001–3(a)(2) of the Internal Revenue Code to conform that section to the special rules in the proposed rule for retirement of qualified tender bonds.
IRS issues final rule on public approval of tax-exempt PABs
The Internal Revenue Service (IRS) issued a final rule that updates requirements for public approval of tax-exempt private activity bonds (PABs). All PABs are required to hold a hearing of public approval. The rule changes the reasonable public notice period from 14 to 7 days prior to the hearing and allows for the posting of the hearing on a website without other notice.
CDFI Fund Director Donovan Steps Down; New Director Named
Annie Donovan announced that she will step down as the director of the Community Development Financial Institutions (CDFI) Fund at the U.S. Department of the Treasury. Donovan will be replaced by Jodie Harris in January.
IRS Issues Opportunity Zone Proposed Regulations
On Friday, October 19 the Internal Revenue Service (IRS) issued several critical documents relating to the Opportunity Zone Incentive. This includes:
Treasury Makes Final Round of Opportunity Zone Designations
The final round of submissions were approved for: Florida; Nevada; Pennsylvania; and Utah. All Opportunity Zones can now be viewed on the CDFI Fund website.
Treasury Recommends Clarity, Expansion of Activities in CRA Modernization Memo
The memo points out that much has changed since CRA was enacted over forty years ago. Since that time, the rise of interstate banking, mortgage securitization advancements, and internet/mobile banking along with many other changes, have created a need for modernizing CRA.
Treasury Expands Opportunity Zone Eligibility in Revision
Data in the Opportunity Zones Information Resource has been updated from information provided in a February 8, 2018, release to include all census tracts that meet the New Markets Tax Credit Program (NMTC) Low-Income Community definition and additional contiguous census tracts eligible for designation as a QOZ.
Changes to Community Reinvestment Act Forthcoming
Treasury is expected to unveil significant changes to Community Reinvestment Act (CRA) requirements, according to several media reports. CRA, originally put in place to combat redlining practices by home lenders, today accounts for a significant portion of housing credit investment, as banks can fulfill CRA requirements by investing in the LIHTC. Treasury Secretary Steve Mnuchin […]
CDEs Going Above and Beyond in New Compliance Study of New Markets Tax Credit
A recent report commissioned by the CDFI Fund not only found full compliance amongst all Community Development Entities (CDEs) reviewed, but also found that CDEs generally exceeded minimum financing thresholds mandated by the IRS.
Nominations and Appointments at HUD and Treasury Continue
Adolfo Marzol has been appointed as a Senior Advisor at HUD, David Kautter has been nominated for the position of assistant secretary for tax policy within the Treasury Department, and Brian Montgomery has surfaced as President Trump’s likely nomination to head the Federal Housing Administration.
Treasury Secretary Nominee Steve Mnuchin Non-Committal on LIHTC and NMTC
Treasury Secretary Nominee Steve Mnuchin was tepid towards both tax credit programs.
Mnuchin Proposes Housing Market Changes With Mixed Response
President-Elect Trump’s designated Treasury Secretary Steven Mnuchin has proposed capping the Mortgage Interest Rate Deduction as well as reforming Fannie Mae and Freddie Mac in a recent CNBC interview.