The National Fair Housing Alliance (NFHA), the NAACP Legal Defense and Educational Fund, Inc. (LDF), Fair Housing Advocates of Northern California, and BLDS, LLC filed a federal lawsuit to challenge HUD’s recent revisions to the final disparate impact rule that shifted the burden of proof from owners and financial institutions to the victims of discrimination.
The Internal Revenue Service (IRS) recently published Revenue Procedure 2020-42 announcing $3,105,001 of unused LIHTCs allocated from the national pool to 33 qualified states for calendar year 2020. The national pool in 2020 reflects an increase from the $2.7 million in unused LIHTCs in 2019. Allocations range from $7,450 for Vermont to $471,731 for California, with an average allocation of $94,091.
The Social Security Administration recently announced the Cost-of-Living Adjustment (COLA) for 2021. Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 1.3 percent in January 2021. Increased payments to more than 8 million SSI beneficiaries will begin on Dec. 31, 2020. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
Even residents who don’t file tax returns can still receive their economic impact payments. As a result of the hardships presented by the coronavirus, economic impact payments are still being issued by the Internal Revenue Service (IRS). While most people have received their payment automatically, some non-filing residents need to take action and submit their information to the IRS. These residents don’t typically have a tax return filing requirement because they have very low incomes. But many in this group are still eligible to receive an economic impact payment.
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, recently released guidance answering frequently asked questions (FAQs) regarding the forgiveness of Paycheck Protection Program loans. The Paycheck Protection Program (PPP) is a $669 billion business loan program established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help businesses keep their workforce employed during the COVID crisis.
On Aug. 8, President Trump issued an executive order to address COVID-19-related challenges for renters. The order directs a number of federal agencies, including the Treasury Department and HUD, to consider actions to prevent eviction and foreclosure. It requires the secretaries of Treasury and HUD to identify any available federal funds that could be used to provide temporary financial assistance to renters because of the pandemic.
As Congress begins work on its next coronavirus relief package, various groups are urging lawmakers to include provisions in the legislation that will provide relief to LIHTC owners and developers. The National Association of Home Builders (NAHB) recently sent a letter to House and Senate leaders urging lawmakers to expand eligibility to the Paycheck Protection Program (PPP) so that developers and multifamily property owners are eligible to participate in this loan program and to have their loans forgiven.
Within the Moving Forward Act, the recent infrastructure bill passed in the House of Representatives, is legislation that would provide a tax credit for supportive services in LIHTC buildings. The Opportunity Starts at Home Act would provide permanent, supportive services for people at risk of experiencing homelessness.
On June 1, 67 mayors representing communities across 28 states and the District of Columbia sent a letter to House and Senate leaders, urging Congress to establish a minimum 4 percent rate for bond-financed properties and lower the “50 percent test” financed-by threshold that bond-financed properties must meet to receive 4 percent Housing Credits in the next coronavirus relief legislation. The letter explains how the drop in the 4 percent minimum Housing Credit rate is threatening the viability of LIHTC sites.
