Louisiana Joint Legislative Committee Approves Compliance Fee Increase
The Louisiana Joint Legislative Committee on the Budget recently approved a compliance fee increase that will go into effect beginning with the next funding round. The Louisiana Housing Corporation (LHC) will increase its compliance fee from $5 to $33 per unit for sites that receive new LIHTC funding.
To justify the increase, the Louisiana Housing Corporation stated that it hadn’t adjusted its fee in 25 years, while most states adjust fees annually to account for increases in costs. Louisiana has charged $5 a unit since 1989. Louisiana’s fee increase will apply only to new developments not currently being funded under the LIHTC program.
Meanwhile, in the state’s legislature, a bill that would make it easier for LHC to adjust its fees in the future was approved by the full Senate. Under present law, LHC can only charge fees that were charged by its predecessor, the Louisiana Housing Finance Agency. If enacted, the bill would remove that restriction.