NCSHA Urges Passage of LIHTC, Housing Bond Proposals

By
2 min read

Tax Credit Advisor, November 2009: In a recent letter, the National Council of State Housing Agencies (NCSHA) has asked congressional tax-writing committee leaders to extend certain existing tax provisions relating to the low-income housing tax credit (LIHTC) and tax-exempt housing bonds, and new proposals to boost housing credit investment.      

NCSHA has urged: extension of the 10% annual increase in each state’s annual LIHTC volume cap made by the Housing and Economic Recovery Act (HEFA) for 2009 and 2010; extension of the current housing credit exchange program; expansion of the exchange program to allow exchanges of 4% housing credits, GO Zone housing credits, and Midwestern Disaster Area housing credits; and approval of five-year carryback proposal and of tax code changes to allow individual investors to take advantage of the housing credit.

NCSHA also urged an extension through 2012 of the time during which state housing finance agencies can utilize the extra $11 billion in tax-exempt housing bond authority that HERA provided for 2008-2010.      

Garth Rieman of NCSHA on 10/16/09 said the group hadn’t yet received a response to its letter. He expressed hope that Congress will pass housing credit and bond amendments as part of a tax bill considered later this year.

An LIHTC industry coalition has crafted and is pushing a separate set of proposed tax law changes to extend the exchange program and increase LIHTC equity investment while broadening the investor base. (For details, see Tax Credit Advisor, September 2009, p. 3.)

Several expected or possible pieces of legislation have been mentioned as a potential vehicle for pending LIHTC and bond proposals, including an “extenders” bill.