Capital Briefs
By Caitlin Jones
3 min read
Tax Credit Advisor, February 2010:
Census Bureau Releases Revised State Population Estimates
In late December, the U.S. Census Bureau issued revised population estimates, as of 7/1/09, for all 50 states, the District of Columbia, and Puerto Rico. These new estimates, once transmitted by the IRS, will be used to determine the official 2010 dollar volume caps for each state for per capita low-income housing tax credits and tax-exempt private activity bonds.
Each state’s per capita 2010 housing credit volume cap will be $2.10 multiplied by the state’s population estimate or $2,430,000, whichever is greater. Each state’s bond cap will be the greater of $90 times the state’s population or $273,775,000.
Federal Government Completes HFA Bond Transactions Under New Initiative
On January 13, federal officials announced the completion of all transactions under an Obama Administration initiative designed to support the housing bond programs of state and local housing finance agencies (HFAs). Under one part of the two-part initiative, the U.S. Treasury bought Fannie Mae and Freddie Mac securities backed by new housing bonds issued by HFAs, enabling the HFAs to lend the proceeds to homebuyers, homeowners, or for development of multifamily rental housing. The National Council of State Housing Agencies said $13.9 billion worth of housing bonds were from 50 of its HFA members. “These bond proceeds, combined with the $7.7 billion in retail housing bonds the initiative requires state HFAs to issue, will allow HFAs to finance more than 200,000 affordable homes, while generating jobs and tax revenues for the economy,” said NCSHA President Susan Dewey, executive director of the Virginia Housing Development Authority. “HFAs are already putting these resources to work to provide first-time home buyer mortgages and finance rental housing.” (For background on initiative, see Tax Credit Advisor, November 2009, p. 5.)
HUD Awards Additional $2 Billion in NSP Funds
The U.S. Department of Housing and Urban Development (HUD) announced the awarding of an additional $2 billion in funds under the second funding round of the Neighborhood Stabilization Program. The funds will be used by grantees, including local governments, to help stabilize neighborhoods plagued by high rates of home foreclosures and vacant and abandoned properties. Some of the grantees intend to use the dollars for multifamily housing purposes. HUD released a list identifying the grantees, the award amounts, and how they plan to use the new federal funds.
(http://portal.hud.gov/portal/page/portal/HUD/documents/nsp2grantchartandsummaries.doc)
HUD Issues Amended Final Rule on EIV System
The U.S. Department of Housing and Urban Development (HUD) republished a final rule mandating that all public housing agencies and owners and managers of assisted housing properties use the Enterprise Income Verification system for income and rent determinations, effective 1/31/10.
(http://edocket.access.gpo.gov/2009/pdf/E9-30720.pdf)
New Bill Would Extend Energy Grant Program
A new bill (S. 2899) introduced by U.S. Sens. Dianne Feinstein (D-Calif.) and Jeff Merkley (D-Ore.) would extend for another two years, until 2012, the Section 1603 energy grant program.
Under this program, owners of certain renewal energy equipment that is eligible for the federal energy investment tax credit can instead apply to the U.S. Treasury for a cash grant instead. S. 2899 also proposes other tax law incentives to promote renewable energy.
