Capital Briefs

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Tax Credit Advisor, November 2009:

HUD Publishes FY 2010 Final Fair Market Rents

The U.S. Department of Housing and Urban Development (HUD) has published final Fair Market Rents (FMRs) for Fiscal Year 2010, effective as of 10/1/09. FMRs are used to determine payment standard amounts for HUD’s Housing Choice Voucher program, to set initial renewal rents for some expiring project-based Section 8 contracts, to set initial rents for housing assistance payment (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy program, and as ceiling rents in the HOME program.
      (http://edocket.access.gpo.gov/2009/pdf/E9-23477.pdf)

IRS Announces 2010 Credit, Bond Caps

New IRS Revenue Procedure 2009-50 specifies the calendar 2010 inflation-adjusted volume caps for each state for low-income housing tax credits and tax-exempt private activity bonds. The credit volume cap for each state will be the greater of $2.10 multiplied by the state’s population or $2,430,000. The bond cap will be the greater of $90 times the state’s population or $273,775,000. The precise amount of each state’s credit and bond caps won’t be known until the IRS transmits updated state population estimates in early 2010.
      (http://www.irs.gov/pub/irs-drop/rp-09-50.pdf)

HUD Issues Revised Proposed Rule for Income, Rent Determinations

HUD is soliciting public comments by November 16 on a new proposed rule that would make clarifying and other changes to a final rule that will revise the Department’s public and assisted housing program regulations to implement the upfront income verification process for program participants and to require use of HUD’s Enterprise Income Verification system by public housing agencies and project owners and management agents. The final rule’s scheduled effective date of 1/31/10 isn’t changed.
      (http://edocket.access.gpo.gov/2009/pdf/E9-24809.pdf)

President Signs Rural Appropriations Bill

President Obama has signed a FY 2010 USDA appropriations bill (H.R. 2997) to fund federal rural housing programs. Funding levels are unchanged from FY 2009 for the Rural Development Section 515 rural rental direct loan program ($69.5 million) and Section 538 rural rental guaranteed loan ($129.1 million), but boosted to $980 million for Section 521 rural rent subsidies.