A. J. Johnson Author Archives

New York State Gov. David Patterson recently signed legislation (A.11226/S.7553) that authorizes a new tax abatement for the construction of “green” roofs on buildings in New York City. Under the pilot, which runs until 3/15/13, building owners who install green roofs on at least 50% of available rooftop space can apply for a one-year property tax credit from the city.

The Arizona Department of Housing (ADoH) is soliciting applications by 11/14/08 for new funds available under its State Housing Fund Program.

For Holy Cross School, the federal new markets tax credit truly has provided shelter from the storm. Hurricane Katrina, that is. When the hurricane slammed New Orleans in August 2005, the 125-year-old Catholic school – run by the same order than operates the University of Notre Dame – was one of its victims. The school campus and its buildings, located in the city’s Lower Ninth Ward, were flooded and heavily damaged, forcing the school to relocate to temporary quarters, initially in Baton Rouge, to continue operations.

Last month, I wrote about some of the common areas of confusion and errors regarding compliance requirements under the low-income housing tax credit program. This confusion among owners and property managers has, in my experience, been evidenced by misinterpretations and actions that have or potentially may lead to noncompliance findings. Part 2 of this article touches on some additional areas of confusion and mistakes.

One section of the new Housing and Economic Recovery Act of 2008 (H.R. 3221, Public Law 110-289), entitled the “Housing Assistance Tax Act of 2008,” contains numerous changes to the federal low-income housing tax credit (LIHTC) and tax-exempt housing bond programs designed to improve their efficiency.

The Internal Revenue Service and state housing agencies in September took further steps to implement certain low-income housing tax credit (LIHTC) and tax-exempt housing bond program changes made by the new Housing and Economic Recovery Act of 2008.

Developers of tax-exempt, bond-financed, mixed-income residential rental developments typically receive significant benefits and face many challenges. These benefits include a mortgage with a lower interest rate and longer term, potential incentives from local government, access to federal low-income housing tax credits, and strong cash flow that boosts the property’s value.

Communities, LLC (UHC). Half of its 80 apartments are targeted to retired low-incThe Southern California desert city of Indio has seen its first new affordable housing development in more than a decade, thanks in part to the low-income housing tax credit. The new project, called Horizons at Indio, was developed by Santa Ana, CA-based United Housingome farm workers, who spent their lives picking crops or working other agricultural jobs throughout the Coachella Valley.

After major hits in September to the U.S. financial markets, low-income housing tax credit (LIHTC) program participants are nervous about the potential impact on their industry going forward. With the industry already beset by a shortage of tax credit equity and lower credit prices that have left many developers with credit awards scrambling to find equity and close funding gaps, the latest financial tsunami portends possible further challenges ahead.

The U.S. Department of Housing and Urban Development announced 9/26/08 as the deadline for submission of applications for $1.42 billion in funding available under its Continuum of Care Homeless Assistance Program.

The USDA Rural Housing Service (RHS) published a notice in the Federal Register on 8/19/08 that solicits applications by 10/20/08 for $6.4 million in new funds available under its multifamily housing preservation revolving loan fund demonstration program for FY 2008.

The federal Office of the Comptroller of the Currency (OCC) has issued an interim final rule reinstating a prior, more liberal standard for certain permitted investments by national banks.