Embed Size (px)
Citation preview
NIFA’s 2006 Affordable Housing Deal Maker’s Marketplace
It’s the Law: Legislative UpdateJanuary 24, 2006
Federal Legislation
NCSHA’s Housing Credit and Bond Improvements Allow states to award higher Credit
amounts Eliminate 4 percent Credit, except in Bond-
financed deals Increase states’ basis boost authority All HOME-funded properties would qualify
for basis boost
Federal Legislation
NCSHA’s Housing Credit and Bond Improvements (cont.) Exempt Credit and Bond investments
from the AMT Revise scattered site rule Change Credit program name to
“Affordable Housing Tax Credit” Eliminate Mod-Rehab prohibition Reform recapture bond requirement
Federal Legislation
NCSHA’s Housing Credit and Bond Improvements (cont.)
Rep. Jim Ramstad (R-MN)
Sen. Orrin Hatch (R-UT)
Sen. Gordon Smith (R-OR)
Federal Legislation
Gulf Opportunity Zone Act of 2005, HR 4440 Increased Housing Credit authority Increased PAB authority Increased states’ basis boost authority Housing Credits and Bonds are central to
Gulf Region’s rebuilding effort
Federal Legislation
Exit Tax Relief H.R. 3715 (Ramstad-Cardin)
Encourage preservation Allows owner to exclude gain if
Sale to buyer that agrees to 30-year affordable use restriction;
51 percent of units affordable to those at or below 60 percent AMGI; and
State housing agency approves buyer’s plan.
No Senate bill
Federal Legislation Tax Reform
President’s Advisory Panel’s 2005 Report Eliminate the Housing Credit Remove incentive for corporations to buy
tax-exempt Housing Bonds Eliminate “double taxation” of corporate
earnings
Unlikely in 2006
Federal Regulation
IRS
Guidance Projects Year 15 qualified contract exception Utility allowance calculation
RP 2005-69 (Hurricane Katrina) Waiver authority expires Sep. 2006 Template for future disaster relief
Federal Regulation
HUD’s Dec. 16, 2005 Notice Metropolitan area definitions for FY 2006
Estimates of median family income
Proposed change in “hold-harmless” policy Could impact Credit properties Comments due February 14, 2006
