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Tax Credit eNews |
Welcome to CHFA Tax Credit eNews!
Welcome to the first issue of CHFA's Tax Credit eNews. This
newsletter was created as part of a continuing effort to increase our level
of communication with partners and customers in the affordble housing
industry, and ensure that we pass along valuable tax credit-related
information, resources, and articles. CHFA Tax Credit News
Last week, the CHFA Team hosted a meeting of the Tax
Credit Advisory Committee and discussed a number of key issues facing the
industry, including:
Status Report for Round One The Committee was given an update on the projects that
have applied for 9% competitive tax credits and were informed that the
targeted date for Round One reservations is in early April. The Status
Report (attached above) shows that 16 applications were submitted requesting
just over $14 million in annual credit, while the amount of available credit
in Round One is $3.1 million. Environmental Sustainability In 2008, CHFA has adopted an organizational initiative
focusing on environmental sustainability. Specificallly, CHFA has
kicked-off a multi-year effort to incorporate environmental sustainabilty
factors into is daily operations, as well as in its affordable housing and
economic development lending and tax credit programs. As part of that
effort, CHFA will be implementing threshold requirements into the 2009 and
2010 Qualified Allocation Plans (QAP) that will promote green building
for multi-family developments that utilize tax credits. Over the next
few years, CHFA will focus on partnering with other affordable housing
funders to provide training so as to ensure the new threshold requirements
are appropriate and achievable. Attached is a letter from CHFA's Executive
Director outlining the pending requirements. Proposed Utility Allowance
Changes Proposed regulations
from the IRS regarding utility allowances are expected to be formalized by
June of this year. For properties not regulated by Rural Housing
Service or HUD, the proposed regulations allow the owner several new
options: calculate the utility allowance using the HUD Utility Schedule
Model or obtain an estimate from the allocation agency. The agency
determination of allowances may also include actual usage data. Once
formalized, these regulations will become part of the 2009 QAP. Equity Pricing As developers in the multi-family affordable housing
business well know, equity pricing for tax credits is falling significantly
and the drop in pricing is causing sizeable funding gaps in several
projects.
In order to mitigate the negative impacts of the drop in
equity pricing, CHFA has agreed to consider, on a case-by-case basis, the
following remedies for multi-family develoments that received a reservation
of tax credits in 2007:
State and Federal Legislation See the Legislative section below for an update on the
state and federal legislation discussed at the meeting last week. News Articles
Legislation
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