Articles Archives

Preventive MedicinePreparing a Tax Credit Property for the State Agency’s Physical Inspection

6 min read

Tax Credit Advisor, August 2010: Federal low-income housing tax credit properties must ensure compliance in three major areas – affordability, eligibility, and habitability – to prevent the loss of tax credits. Rents must be properly restricted, residents

Illinois Expands New Markets Tax Credit Program, Creates New Angel Credit

1 min read

Tax Credit Advisor, August 2010: On June 24, Illinois Gov. Pat Quinn signed into law a bill (S.B. 2093) increasing the size of the state’s new market tax credit program, and establishing a new economic development credit.

CRA two point zero

5 min read

Tax Credit Advisor, August 2010: Completion of the mammoth financial-reform legislation sets the stage for a 2011 debate about restructuring the federal Community Reinvestment Act. This is long overdue – today’s financial world would have been unimaginable back in 1977, when CRA was born – and it should therefore be no surprise that CRA two point zero should be a ground-up reinvention from first principles, not a grab-bag of twiddles and tweaks.

The End at the Beginning? Think Early About the Unwind of New Markets Tax Credit Deals

5 min read

Tax Credit Advisor, August 2010: In a federal new markets tax credit (NMTC) transaction, just getting to the closing table can be exhausting enough for participants. So who wants to think about how the transaction will unwind in seven years at the end of the NMTC compliance period?

Capital Briefs

3 min read

Tax Credit Advisor, August 2010:

HUD Revises FHA Multifamily Underwriting Standards, Policies

The U.S. Department of Housing and Urban Development (HUD) has issued a new mortgagee letter (2010-21) making significant changes to underwriting standards, policies, and procedures for Federal Housing Administration multifamily mortgage insurance programs, including Sections 221(d)(4), 221(d)(3), 223(a)(7), and 223(f). For most programs, the letter, among other things, increases minimum debt service coverage ratios and reduces maximum loan value/cost ratios, both for market-rate and affordable projects.

A New Lesson Plan Historic Rehabilitation May Be Part of Solution to Vacant, Unneeded Schools in Detroit

3 min read

Tax Credit Advisor, August 2010: It’s no secret that the city of Detroit has been ravaged economically by a seemingly endless recession and declining manufacturing base. In response, many residents have reacted with their feet. As of July 1, 2006, the city had an estimated population of 871,121, a decline of 8.4% from January 2000. Once the fourth-largest city in the U.S., Detroit is now No. 11.

Low-Income Housing Tax Credit Audits Are Increasing

3 min read

Tax Credit Advisor, August 2010: Internal Revenue Service agents are conducting a greater volume of audits of tax returns for low-income housing tax credit (LIHTC) issues.

More Investors Ahead? IRS Issues Favorable New Guidance on NMTC

3 min read

The Internal Revenue Service has issued favorable new guidance for the federal new markets tax credit program, including clearing a roadblock to the entry of individuals as investors.

A New Trend? New Players Invest in Housing Deals for Tax Losses

2 min read

In what could be a new trend, some new affordable rental housing deals without low-income housing tax credits have attracted corporate investors interested in purchasing the tax losses.

How’s Your Green Improvement? Compared to What?

4 min read

Nowhere is the multifamily owner’s uncertainty greater than in green or energy conservation improvements. We’ve all been offered green roofs, electrochromic glass, and on-site wind turbines Ð all with vendor promises of future energy savings.

Free Money: Building Owners May Be Overlooking Valuable Tax Deduction

3 min read

Developers and owners may be overlooking a valuable federal tax deduction for energy-efficient systems installed in their buildings, according to officials at Engineered Tax Services, an engineering firm headquartered in West Palm Beach, Fla.

Preserving History: Historic, New Markets Tax Credits Help Create Civil Rights Museum

5 min read

Usually a tax credit project generates local economic activity and jobs. In one case in Greensboro, N.C., it has preserved a chapter in history as well.

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