Articles Archives

Audit Costs of LIHTC Properties Could Soar Under New PCAOB Rules

& 6 min read

Tax Credit Advisor March, 2006: Recently implemented federal audit guidelines for public companies could sharply increase the cost of auditing properties funded with Low Income Housing Tax Credits (LIHTCs).

Fannie Mae Plans to Sell, as Well as Buy LIHTCs in 2006; Reports Tax Credit Purchases of $1.8 Billion in 2005

& 4 min read

Tax Credit Advisor March, 2006: Fannie Mae, currently the largest single investor in Low Income Housing Tax Credits, plans to begin selling selected LIHTC investments in 2006 as well as making additional purchases, according to Ed Neill, vice president for Multifamily Affordable Housing.

CDFI Fund Sets $600 Million For Katrina NMTC Allocation, Only 4th Round Applicants Eligible

& 4 min read

Tax Credit Advisor March, 2006: The Community Development Financial Institutions Fund has added $600 million in New Markets Tax Credits (NMTCs) to its current allocation round, acting quickly after Congress passed legislation at the end of 2005 to authorize $1 billion in new NMTCs to help rebuild communities devastated by Hurricane Katrina.

Proposed Changes in FHLB’s AHP Program Would Make it a More Valuable Tax Credit Tool

& 9 min read

Tax Credit Advisor March, 2006: While the Federal Home Loan Bank System’s Affordable Housing Program (AHP) has been used with some success in combination with the Section 42 Program, it has not been a well-known or often-used adjunct to tax credit developments. However, a recent proposed rule of the Federal Housing Finance Board published in the Federal Register on December 28, 2005 would make the program more user-friendly for tax-credit developers.

Some, But Not All, Syndicators See A Peak Reached in Tax Credit Prices

& 11 min read

Tax Credit Advisor February, 2006: Investor resistance has taken the steam out of tax-credit equity price increases, according to syndicators interviewed in late January. Some syndicators said this was evidence that a peak has at last been reached in prices after more than a year of sharp increases. Others disagreed.

Senate Bill Seeks to Extend NMTCs, Requires Rural Targeting of Investments

& 4 min read

Tax Credit Advisor February, 2006: New Markets Tax Credit proponents have high hopes that when Congress passes tax reconciliation legislation, it will include a provision that would extend the NMTC program through 2008.

National Park Service Regulations: 36 CFR 67.6(B)(4)

& 1 min read

Tax Credit Advisor February, 2006: For rehabilitation projects involving more than one certified historic structure where the structures are judged by the Secretary to have been functionally related historically to serve an overall purpose, such as a mill complex or a residence and carriage house, rehabilitation certification will be issued on the merits of the overall project rather than for each structure or individual component.

NPS Allows Separate HRTCs For Lessees, Indicates Leeway with “Functionally Related” Buildings

& 4 min read

Tax Credit Advisor February, 2006: The National Park Service had recent welcome news for the Corky McMillin Companies, as the developer works to complete its part of the Liberty Station project, the redevelopment of a huge former naval boot camp in San Diego, Calif. The NPS has agreed to allow McMillin, which is leasing one part of the Liberty Station property, to separately apply for historic tax credits.

Two Common Errors That Can Cause Trouble For Tax Credit Developers

& 9 min read

Tax Credit Advisor February, 2006: As every tax credit developer and manager knows, there is no shortage of complex rules for the program, any one of which can threaten the credits of a property when incorrectly applied. But two issues have been recurring problems in 2005 and deserve special attention as we move into the New Year. They involve the incorrect inclusion of common area in eligible basis and failure to include mandatory charges to residents in gross rent.

An Underfunded Rehab Can Create Serious Rent Problems, Analysts Find

& 5 min read

Tax Credit Advisor January, 2006: Developers who skimp on spending when rehabilitating affordable housing properties may face serious problems in renting those properties post-rehab, according to a recent study from Paramount Financial Group.

HUD Identifies Increase in Worst Case Housing Needs

& 3 min read

Tax Credit Advisor January, 2006: The U.S. Department of Housing and Urban Development (HUD) has identified an increase in households with severe housing needs in its latest report on the subject, documenting a worrisome trend.

Freddie Mac’s Investment In LIHTCs Levels Off in 2005, Had Been Rising Since 1992

& 4 min read

Tax Credit Advisor January, 2006: After 13 straight years of annual increases in purchases of Low Income Housing Tax Credits (LIHTC), Freddie Mac’s investments in these credits finally leveled off in 2005.

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