Topic: In the News

The Federal Housing Finance Agency (FHFA) recently released for comment proposed changes to its existing housing goals and housing goals for 2012, 2013, and 2014 for Fannie Mae and Freddie Mac.According to the FHFA, the value of low-income housing tax credits (LIHTCs) fell in 2009, but has recovered to a point where the LIHTC market is substantially healthier. The Office of Management and Budget forecasts that total equity raised through LIHTCs is to average $7.8 billion per year from the 2013 to 2017 period.

HUD recently announced that it has designated qualified census tracts (QCTs) for 2013 for purposes of the low-income housing tax credit. HUD based the 2013 QCTs on new data from the 2010 Decennial Census and the 2006-2010 tabulations of the American Community Survey.This is the first time since 2007 that the QCTs have changed substantially. The boundaries and numbering of census tracts established for the 2010 Decennial Census may differ from those established for the 2000 Census, upon which past QCT designations were based.

Utah Governor Gary Herbert recently signed H.B. 75 to require low-income housing tax credit (LIHTC) property owners to provide certain information annually to county assessors.Under the new law, owners must provide rent rolls and a financial operating statement for the prior year, a signed statement that the property continues to meet LIHTC requirements, and financing terms and agreements for the property.

Recently, a federal judge ruled that the Texas Department of Housing and Community Affairs (TDHCA) unintentionally discriminated in its allocation of low-income housing tax credits (LIHTCs). The case was filed by The Inclusive Communities Project (ICP), a Dallas fair housing organization. In its complaint, the ICP alleged that TDHCA intentionally discriminates based on race by disproportionately approving LIHTC projects in predominantly minority neighborhoods and disproportionately denying LIHTC in predominantly Caucasian neighborhoods.

The benefits of the low-income housing tax credit (LIHTC) program extend beyond the families occupying the approximately 200 affordable housing units that are financed each year in New Hampshire, says a recent study by the New Hampshire Finance Housing Authority. According to the report, the LIHTC developments are an important and ongoing source of income, taxes, and jobs for the state.

Congressman Christopher Gibson and Tom Reed of New York recently introduced H.R. 3769, the Irene and Lee Tax Relief Storm Recovery Act. If the bill passes, states that were hit last year by Hurricane Irene or Tropical Storm Lee may receive disaster rebuilding assistance in the form of increased low-income housing tax credit (LIHTC) caps.The bill would raise the LIHTC ceiling of each state that includes any portion of the Irene-Lee disaster area for calendar years 2012 through 2014. The 10 flood-damaged states would get an additional 50 percent of their annual LIHTC allocation.

On Dec. 23, 2011, the IRS issued temporary and proposed rules regarding the tax treatment of costs incurred in acquiring, maintaining, and improving tangible property, including multifamily buildings. The 255 pages of new regulations, published in the Federal Register, are temporary, meaning the IRS can edit the rules if sufficiently persuaded by the business community. However, despite being issued in temporary and proposed form, the regulations are effective as of Jan. 1, 2012, and currently have the same force as a final regulation.