Capital Briefs

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Tax Credit Advisor, March 2010:

HUD Launches New Office of Sustainable Housing and Communities

On February 4, Shaun Donovan, Secretary of the U.S. Department of Housing and Urban Development (HUD), announced the establishment of HUD’s new Office of Sustainable Housing and Communities (OSHC). Shelley Poticha is Director of OSHC. The Office will be responsible for administering the Sustainable Community Initiative, a new initiative funded at $150 million for FY 2010. Of this amount, $100 million is for a new Sustainable Communities Planning Grant Program, for which HUD published a notice.

(http://portal.hud.gov/portal/page/portal/HUD/program_offices/sustainable_housing_communities)

HUD Publishes New Section 8 Adjustment Factors

HUD has published its annual adjustment factors to be used for adjusting Section 8 contract rents in 2010. The new factors are to be applied at Housing Assistance Payment contract anniversaries for calendar months beginning after 2/10/10. In a separate notice, HUD published separate annual adjustment factors for renewal funding of tenant-based rental assistance.

(http://edocket.access.gpo.gov/2010/pdf/2010-2991.pdf)

DOE Issues Final Rule for Weatherization Program

The U.S. Department of Energy has issued a final rule, effective February 24, for its Weatherization Assistance Program that amends the eligibility provisions applicable to multi-unit buildings. The final rule outlines requirements and streamlined procedures that make it easier to qualify for federal weatherization program funds to pay for qualified improvements to units in multifamily properties that are public housing, HUD-assisted housing, or low-income housing tax credit developments. The final rule extends coverage as well to multi-unit buildings that participate in USDA Rural Development programs. 

(http://edocket.access.gpo.gov/2010/pdf/2010-1300.pdf)

HUD Announces Revised Multifamily Loan Limits

HUD has published revised statutory mortgage limits for its multifamily housing loan programs for calendar 2010. The limits adjust annually based on changes in an index.

(http://edocket.access.gpo.gov/2010/pdf/2010-2361.pdf)

Rural Housing Service Issues Proposed Rule

USDA’s Rural Housing Service is soliciting public comments by March 30 on a proposed rule that would establish a new option under the Section 538 Guaranteed Rural Rental Housing Program. Under this, RHS could provide a continuous single loan guarantee covering both the construction and permanent phases for

(http://edocket.access.gpo.gov/2010/pdf/2010-1792.pdf)

Rural Development Announces Planned Events

USDA’s Rural Housing has announced plans for a series of teleconferences and/or Web conference meetings in 2010 on the Section 538 Guaranteed Rural Rental Housing Program.

(Details: http://edocket.access.gpo.gov/2010/pdf/2010-1329.pdf)

IRS Issues New Private Letter Rulings on NMTCs

The IRS has issued two new private letter rulings (PLR 201004008, PLR 201004021) relating to the federal new markets tax credit program. Under the program, substantially all (85%) of the cash received by a community development entity from a qualified equity investment must be used within 12 months to make qualified low income community investments. If not, the CDE has six months to correct the failure. The rulings say this six-month cure period begins when the CDE becomes aware, or should have become aware of, the failure.