NORWALK, CONN. May 7, 2015

The Internal Revenue Service (IRS) today released a Chief Counsel Advice memorandum stating that not renewing a tenant's lease in this situation does not mean that the building is not a qualified low-income buliding under 42(c)(2). However, unless good cause exists to not renew the lease, an owner is required to continue the tenancy of a tenant in a low-income unit who upon initial occupancy satisifed the applicable income limitation elected under 42(g)(1).

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WASHINGTON April 14, 2015

Low-income housing tax credit (LIHTC) property owners and managers are reminded that on Monday, in accordance with Rev. Ruling 94-57. the 45 day grace period for implementing the U.S. Department of Housing and Urban Development (HUD) fiscal year (FY) 2015 income limits for properties funded by the LIHTC or tax-exempt bonds will expire. Multifamily tax subsidy projects (MTSPs) must use FY 2015 income limits to determine qualification levels and to set maximum rental rates by Monday to remain in compliance.

The Novogradac Rent Income Limit Calculator has been updated in beta version to include the FY 2015 rent and income limit data, which was released March 6. The Rent Income Limit Calculator will calculate IRC Section 42(i)(3)(A) LIHTC rent and income limits for every county and for every metropolitan statistical area (MSA) in the United States.

WASHINGTON April 6, 2015

Rep. Keith Ellison, D-Minn. last month reintroduced a bill to expand funding for the National Housing Trust Fund and the low-income housing tax credit (LIHTC). The Common Sense Housing Investment Act of 2015 (H.R. 1662) would increase the per-capita allocation from $2.30 to $2.70. The legislation would also provide a 50 percent eligible basis boost for rental housing targeted to extremely low-income households. The amendments would be effective for LIHTC allocations made in calendar year 2015 or later.

H.R. 1662 would also expand Section 8 rental assistance and the public housing capital fund.

WASHINGTON March 25, 2015

The U.S. Department of Housing and Urban Development (HUD) yesterday issued a new proposed rule to implement protections included in the Violence Against Women Reauthorization Act of 2013 (VAWA 2013). The rule would amend HUD s regulations to fully protect against housing discrimination all of its residents who are survivors of domestic and dating violence, stalking and sexual assault regardless of sex, gender identity, sexual orientation or age. The VAWA 2013 reauthorization expands coverage to include nearly all HUD initiatives and other programs, including the Low-Income Housing Tax Credit (LIHTC) program. Public comment can be made about the proposed rule for 60 days after it s published in the Federal Register.

Tune into the March 31 episode of the Tax Credit Tuesday podcast for more information.

WASHINGTON March 23, 2015

The Internal Revenue Service (IRS) today released Notice 2015-23, which lists its 2015 Calendar Year Resident Population Figures. These figures are used to determine states 2015 low-income housing tax credit (LIHTC) ceiling and tax-exempt private activity bond caps. Under Rev. Proc. 2014-61. each state s LIHTC ceiling in 2015 is the greater of $2.30 multiplied by the state population or $2.68 million; a state s tax-exempt bond volume cap will be the greater of $100 multiplied by the state population or $301,515,000.

WASHINGTON March 11, 2015

The Senate Finance Committee today announced that its tax reform working groups are seeking comments from the public as they work to advance tax reform efforts in the 114th Congress. The five working groups are community development and infrastructure; business income tax; individual income tax; international tax; and savings and investment. The community and infrastructure group s jurisdiction includes the low-income housing tax credit (LIHTC), the new markets tax credit (NMTC) and the historic tax credit (HTC). The business tax reform group s jurisdiction includes renewable energy tax credits (RETCs). Comments will be accepted through April 15.

Tune into the March 17 episode of the Tax Credit Tuesday podcast for more information.

WASHINGTON March 6, 2015

The U.S. Department of Housing and Urban Development (HUD) today released income limits for fiscal year (FY) 2015. These income limits are used to determine income eligibility for HUD s assisted housing programs, including public housing, Section 8, Section 202 and Section 811. Income limits that are used to determine qualification levels and to set maximum rental rates for low-income housing tax credit (LIHTC) or tax-exempt bond projects, which HUD refers to as multifamily tax subsidy projects (MTSPs), are calculated and presented separately from the Section 8 income limits.

Novogradac Company LLP is currently updating the Rent Income Limit Calculator to include the 2015 data. Subscribers to Novogradac Company s free Industry Alert service will receive an email announcement when this update has been completed.

Tune into the March 10 Tax Credit Tuesday podcast for initial information about the income limits. For in-depth analysis, register for the Novogradac 2015 HUD Rent and Income Limits and Your Tax Credit Property Webinar at 1 p.m. EDT on March 17.

WASHINGTON Feb. 26, 2015

Reps. Pat Tiberi, R-Ohio, and Richard Neal, D-Mass. today introduced a bill that would create a permanent floor for the low-income housing tax credit (LIHTC). The bill would establish a fixed 9 percent LIHTC rate for new rental construction property and a fixed 4 percent LIHTC rate for existing property. The bill would apply to buildings placed in service after Dec. 31, 2014.

Tune into the March 3 Tax Credit Tuesday podcast to learn more about the bill.

WASHINGTON Jan. 30, 2015

The U.S. Department of Housing and Urban Development (HUD) today published a Federal Register notice establishing interim regulations that will govern the Housing Trust Fund (HTF) and the formula that will determine how HTF funds are distributed among eligible grantees. Each of the states and the District of Columbia are to receive a minimum allocation of $3 million. Factors that determine allocation amounts are a state s relative shortage of rental housing available to extremely low- and very low-income families; the relative number of extremely low- and very low-income renter households living in substandard, overcrowded or unaffordable units in a particular state; and construction cost adjustment factors.

Major regulation provisions include siting and neighborhood standards; income determinations; eligible costs and activities; project requirements; tenant and homeowner qualification requirements; other federal requirements; program administration regulations; and quality control provisions.

The HTF was established under the Housing and Economic Recovery Act of 2008 (HERA) to provide grants to state governments that would increase and preserve the supply of rental housing for extremely low- and very-low-income households and to increase homeownership for extremely low- and very-low-income households. HUD said it intends to open the interim rule for public comments once funding is available and the grantees gain experience administering the HTF program.

Tune into the Feb. 3 episode of the Tax Credit Tuesday podcast for more information.