HR 3221 Signed into Law July 30, 2008

CHFA applauds the collaboration between Congress and the Administration to pass HR, 3221 (The Housing and Economic Recovery Act of 2008), landmark legislation addressing the nation’s housing industry. The legislation provides CHFA and its industry partners some effective new tools to finance multifamily housing in Colorado. Some of the most significant provisions are:

• A two-year, twenty cent increase in the amount of housing credit available to allocate
• Adopting a fixed 9% applicable percentage rate for projects not financed with tax exempt bonds
• Allows allocating agencies the ability to designate particular buildings for a 30% basis increase if needed for financial feasibility
• Eliminating the 10-year rule for projects assisted by certain federal and state programs
• Repeal of the prohibition on the use of tax credits for Section 8 Moderate Rehabilitation projects

Below is a link to a summary of the Provisions from Nixon Peabody LLP:

http://www.nixonpeabody.com/publications_detail3.asp?ID=2368

We are reviewing and analyzing these changes and continuing discussions about the best way to incorporate them into the 2009 Qualified Allocation Plan (QAP). Additionally, we will be making a determination on what impact, if any, the changes will have on the existing 2008 QAP.

The Third Competitive Tax Credit Round will proceed as planned, including this Friday’s application deadline.

We will be meeting with the Tax Credit Advisory Committee in the near future to discuss the proposed changes, and will keep you informed of our discussions and findings promptly. If you have any questions, please feel free to contact Tasha Weaver at 303.297.7429, or me, Jaime G. Gomez, at 303.297.7440.

Please send any comments or questions to Jaime Gomez,
jgomez@chfainfo.com