Capital Briefs
By Caitlin Jones
3 min read
Extenders Tax Legislation Still Pending in Congress
At press time, Congress still had not net completed approval of the tax extenders bill (H.R. 4213). In May, leading lawmakers forged a compromise bill for votes on final passage. But cost concerns led the House to modify and trim the package before approving an amended version on May 28. Senate leaders then unveiled their own amended version, and the Senate was trying to proceed to floor passage. The latest House-passed bill and the pending Senate substitute retain provisions extending the Section 1602 exchange program for 9% low-income housing tax credits for one year; extending the new markets tax credit program through 2010, providing $5 billion for a 2010 NMTC funding round, and allowing NMTCs received for investments made between March 15, 2010 and January 1, 2012, to offset federal alternative minimum tax liability; extending through 2012 the placed-in-service deadline for projects receiving GO Zone housing credits; continuing higher rehabilitation tax credit rates for 2010 rehab expenditures to GO Zone buildings; extending the Build America Bond program; and providing $1 billion for the National Housing Trust Fund. Pending Senate amendments would also allow 1602 exchanges of disaster housing tax credits, and extend and modify the Section 1603 energy credit exchange program.
(Summary of latest House-passed bill: http://waysandmeans.house.gov/media/pdf/111/America_Jobs_Summary.pdf )
Fund Flooded With NMTC Applications
The Community Development Financial Institutions (CDFI) Fund received 250 applications requesting more than $23 billion in federal new markets tax credit allocation authority in the program’s current, eighth funding round, Fund official Rosa Martinez reported on June 10. The application deadline was in early June.
The Fund expects to announce the allocation awards in December. However, the awards depend on Congress enacting pending legislation that would extend the program through 2010 and provide $5 billion for the 2010 funding round.
HUD Issues “˜Pre-Notice’ for Choice Neighborhoods Initiative
The U.S. Department of Housing and Urban Development recently published a NOFA “pre-notice” for the $65 million FY 2010 appropriation for the Administration’s proposed Choice Neighborhoods Initiative (CNI) program. Congress approved these funds but has not yet passed legislation to establish the program. The pre-notice is designed to help potential applicants prepare for a future application process, explaining CNI and its core goals and the anticipated framework and selection criteria.
(http://www.hud.gov/offices/pih/programs/ph/cn/docs/2010-pre-notice.pdf)
Regulators Set Hearings on CRA, Seek Comments
Federal banking regulators are inviting public comments on their regulations for the Community Reinvestment Act and suggestions for updating the rules. Comments and testimony will be solicited at four public hearings (July 19, Arlington, Va.; Aug. 6, Atlanta; Aug. 12, Chicago; Aug. 17, Los Angeles), and written comments taken through August 31. Separately, the agencies issued a proposed change to their CRA rules relating to the Neighborhood Stabilization Program.
(http://www.occ.gov/10rellst.htm)
GAO Issues Report on State, Local Use of Recovery Act Funds
The Government Accountability Office has issued a new report (GAO-10-604) detailing the progress of states and localities in using federal funds received under the American Recovery and Reinvestment Act, and implementation challenges. Progress reports and issues are covered for many different programs, including the Tax Credit Assistance Program, Section 1602 credit exchange program, and weatherization program.
