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The IRS recently released its 2015-2016 Priority Guidance Plan as well as a fourth-quarter update to the 2014-2015 guidance plan. Through this plan year, the IRS plans to address 277 projects. Compared to the prior version of the plan, the IRS has removed a few tax credit-related priorities. It removed the proposal to update Rev. Proc. 2007-54, which provides low-income housing tax credit relief in the case of a presidentially declared disaster area.
On July 21, the Senate Finance Committee held a mark-up of legislation to extend dozens of expired tax provisions, or “tax extenders.” The committee approved the Bill to Extend Certain Expired Tax Provisions, which would extend the minimum 9 percent Housing Credit rate for new construction and substantial rehabilitation, and establish a minimum 4 percent rate for the acquisition of affordable housing, for allocations made before Jan. 1, 2017.
Since the U.S. Supreme Court decided to uphold the disparate impact doctrine as a legal tool to fight discrimination in Texas Department of Housing and Community Affairs v.
Many sites receive both tax-exempt bond financing and low-income housing tax credits. These sites are, therefore, subject to at least two regulatory agreements with different requirements. Be sure to obtain a copy of all regulatory agreements that may apply to your site.
President Obama recently signed a disaster declaration for areas of Oklahoma and Texas affected in May by severe storms, tornadoes, and floods. The IRS’s Revenue Procedures 2014-49 and 2014-50 provide guidance on temporary relief from certain requirements of Internal Revenue Code (IRC) Sections 42 and 142, respectively, in the context of a major disaster.
The White House recently selected Michael Stegman, a senior official in the U.S. Department of the Treasury, to be the main housing adviser on the National Economic Council (NEC). The NEC is part of the executive office of the president and advises him on domestic and global economic policies. As the housing adviser, he will be tasked to coordinate housing policy across the Obama administration to make sure programs and policy decisions are consistent with the administration’s larger economic goals.
Recently, Missouri Treasurer Clint Zweifel urged the Missouri Housing Development Commission (MHDC) to use its LIHTC allocation to help combat affordable housing issues that are exacerbated among victims of domestic violence. In a letter, he cited a study stating that survivors of domestic violence were the third largest subpopulation of homeless individuals in Missouri.
Sens. Maria Cantwell (D-WA) and Pat Roberts (R-KS) recently introduced the “Improving the Low-Income Housing Tax Credit Rate Act” (S. 1193). This bill would create a permanent floor for the LIHTC. The bill’s text is identical to the House bill that was introduced on Feb. 26 by Reps. Pat Tiberi (R-OH) and Richard Neal (D-Mass.).
HUD recently released the full version of its Worst Case Housing Needs: 2015 Report to Congress following the release of its summary findings in early February. HUD defines “worst case housing needs” as renters with very low incomes (below 50 percent of area median income) who don’t receive government housing assistance and who either spend more than half of their income on rent, live in severely inadequate conditions, or face both of these challenges.
For owners and managers of LIHTC sites with HOME units, HUD has recently published the HOME Income and rent limits for 2015. The limits go into effect on June 1, 2015.
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