State Agencies Grapple With Uncertainty About Fixed 9% Credit

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Tax Credit Advisor, November 2011: State allocating agencies are taking diverse approaches to addressing the uncertainty about whether Congress will pass legislation extending the “fixed” 9% credit rate for new low-income housing tax credit projects.

Without it, new projects placed in service after 2013 will have to use the prevailing monthly variable credit percentage for the 70% present value (“9%”) housing credit, meaning less equity for developers unless offsetting steps are taken. Read More…