Bipartisan Bill Seeks to Unlock American Rescue Plan Funds for Stalled LIHTC Developments

April 28, 2022    

Reps. Alma Adams (D-N.C.) and David Rouzer (R-N.C.) recently announced the LIHTC Financing Enabling Long-Term Investment in Neighborhood Excellence Act or LIFELINE Act. This legislation would make American Rescue Plan funds more compatible for LIHTC housing developments.

Rounding Up When Calculating Rents

March 31, 2022    

Q We calculated the maximum allowable rent for our low-income units. Since we’d like all our rents to be whole numbers, can we round the rents up to the nearest whole number?

Starting to Claim Credits

March 31, 2022    

Q The tax credit building we manage was placed in service last week. Because it may be difficult to meet the minimum set-aside this year, we’re wondering whether the owner can wait until next year to begin claiming its tax credits if...

Treasury Notes One-Year Anniversary of American Rescue Plan Act

March 31, 2022    

The American Rescue Plan Act turned one this past month. The act authorized the second infusion of resources into the Emergency Rental Assistance Program (initially authorized and funded under the Consolidated Appropriations Act of 2021). In celebration of the law’s anniversary, the...

IRS Grants Permanent Authority to Conduct Telephonic Public Hearings for Housing Credit QAPs

March 31, 2022    

On March 18, IRS issued Revenue Procedure 2022-20, providing permanent authority to conduct telephonic public hearings for tax-exempt private activity bonds. IRS provided temporary authority to conduct telephonic public hearings several times during the pandemic, with the most recent authority...

HUD Seeks Comments on Collection of LIHTC Site, Tenant Data

March 31, 2022    

HUD recently published a notice seeking comments evaluating HUD’s annual collection of information of data on LIHTC sites and tenants. The notice can be found at

Report Highlights Need for Comprehensive, Well-Funded National Housing Policy

January 31, 2022    

After a cooldown early in the pandemic, rental housing demand has come back aggressively in the second year, reducing vacancy rates and driving up rents, according to Harvard’s Joint Center for Housing Studies (JCHS). Its recently released annual “America’s Rental Housing 2022...

IRS Issues Guidance on LIHTC Fixed 4% Rate

December 28, 2021    

The Consolidated Appropriations Act, enacted in late 2020, amended Internal Revenue Code (IRC) Section 42(b) and established a minimum 4 percent credit rate for qualifying LIHTC projects. To qualify for the 4 percent minimum credit rate, a building must be placed in service after Dec. 31, 2020,...

FHFA Sets Higher Affordable Housing Goals for Fannie and Freddie

December 28, 2021    

The Federal Housing Finance Agency (FHFA) recently issued a final rule for Fannie Mae and Freddie Mac that establishes the benchmark levels for the multifamily housing goals for 2022. To help meet these goals, Fannie Mae and Freddie Mac, in part, capitalize on opportunities to finance LIHTC...

House Passes $1.7T Build Back Better Act with LIHTC Provisions

November 30, 2021    

On Nov. 19, the U.S. House of Representatives passed the Build Back Better Act. The bill passed 220-213 and now goes to the Senate. This $1.7 trillion bill includes an historic expansion of the low-income housing tax credit. According to estimates, the bill could finance nearly 812,000...

Renting Units on Month-to-Month Basis

October 29, 2021    

Q A prospective household wants to rent a two-bedroom unit at our tax credit site on a month-to-month basis. We know that the tax credit program doesn’t allow short-term rentals. But the household doesn’t plan to vacate anytime...

Complying for 15 Years

October 29, 2021    

Q We’ve just started to manage our first tax credit site. The site owner told us that we need to keep the site in compliance with the tax credit program for only 10 years because that’s how many years the owner claims its tax...