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Housing Credit

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Welcome to VHC’s Housing Credit Campaign page!

Here you’ll find resources and advocacy tools on the credit and updates on the Campaign!

Jump to VHC’s Housing Credit Conference

Here are the main goals of the Campaign:

1. Overall protection of the Housing Credit Program as tax reform progresses – This is the focus of our efforts. As “blank slate” tax bills are developed in both the House and Senate, the LIHTC is at risk of being wiped out with a range of other tax based programs. We have urged House members to contact Rep. Camp (Ways & Means) and Senators to contact Senator Baucus (Senate Finance) – the message is to leave the LIHTC alone – it’s working well here in Virginia and across the nation! When Chairman Camp released his Tax Reform Act of 2014 last February, his proposal preserved the Housing Credit with some changes even as it eliminated many other major tax credits and corporate tax expenditures. Chairman Camp’s proposal represents a vote of confidence for the Housing Credit that will ensure a high profile for the Program as tax reform advances.

2. Setting a fixed floor rate for the Housing Credit – As enacted in the Tax Reform Act of 1986, the amount of LIHTCs that are awarded to development projects is based on a formula that uses the federal cost of borrowing to determine the credit rate. As the cost of borrowing declines, the amount of LIHTCs also declines. These floating rates lead to financial uncertainty, increase administrative complexity, and can lead to financing gaps for these badly needed affordable units. Lower rates mean states can allocate fewer Housing Credits into any one eligible project, even while the total credits a state can award remains unchanged. In March 2015, Congressman Representatives Pat Tiberi (R-OH-12) and Richard Neal (D-MA-1) introduced legislation (H.R. 1142) to create permanent minimum Low-Income Housing Tax Credit (Housing Credit) rates. This bill would make the 9% low income housing tax credit’s (LIHTC) fixed floor rate permanent for new construction and substantial rehabilitation projects, and establish a similar fixed floor rate for the 4% credit for acquisition projects.  Companion legislation will be introduced in the Senate by Senators Pat Roberts (R-KS) and Maria Cantwell (D-WA) in the coming weeks.

Resources

Click below for VHC’s LIHTC fact sheets for each district. Economic impact information comes courtesy of the Economic Impact Calculators for Residential New Construction and Renovation developed by Housing Virginia and the Virginia Center for Housing Research using information from VHDA on Virginia’s LIHTC program between 1996 and 2014. These calculators can be found online in HV’s Sourcebook.

Senators Kaine and Warner – Statewide LIHTC Fact Sheet
Rep. Brat – LIHTC Fact Sheet- District 7
Rep. Connolly – LIHTC Fact Sheet- District 11
Rep. Forbes – LIHTC Fact Sheet- District 4
Rep. Goodlatte – LIHTC Fact Sheet- District 6
Rep. Griffith – LIHTC Fact Sheet- District 9
Rep. Hurt – LIHTC Fact Sheet- District 5
Rep. Beyer – LIHTC Fact Sheet- District 8
Rep. Rigell – LIHTC Fact Sheet- District 2
Rep. Scott – LIHTC Fact Sheet- District 3
Rep. Wittman – LIHTC Fact Sheet- District 1
Rep. Comstock – LIHTC Fact Sheet- District 10

The Affordable Rental Housing A.C.T.I.O.N. page is a great resource. Please visit their page and consider signing your organization on to their national campaign to protect the Housing Credit if you are not already signed up (you can check if you’ve already signed on here).

Affordable Rental Housing A.C.T.I.O.N. has also created State and District Fact Sheets on the impact of the Housing Credit. Click here for a Virginia State Fact Sheet.

Advocacy

Tell Congress to pass a LIHTC minimum rate tax extender now in 2014

Congress is back – meeting in its “lameduck” session after the midterms earlier this month. It will soon be making a critical decision that will have big impact on the LIHTC program.

  • Congress needs to restore the minimum 9% credit for the 2015 allocation year.
  • This issue is caught up in a package of 55 expiring tax provisions and there is a serious risk that the minimum tax credit will not be addressed.
  • This will be the case if Congress does not extend the expiring provisions, or if they extend them only retroactively for 2014.
  • It is very important that Virginia’s members of Congress hear from the affordable housing industry how important it is to extend the minimum credit at least through 2015.
  • The ability of the program to continue to serve those most in need will be at risk if this action isn’t taken.

Now is the time to urge your Representatives to pass a tax extender that will reestablish minimum credit rates for the Low Income Housing Tax Credit (9% for new construction and substantial rehab and 4% for existing building acquisition) before the end of the year.

Co-sponsor HR 4717 to Set a Minimum Housing Credit Rate

Congressman Patrick Tiberi (R-OH) has introduced legislation that would make the 9% low income housing tax credit’s (LIHTC) fixed floor rate permanent for new construction and substantial rehabilitation projects, and establish a similar fixed floor rate for the 4% credit for acquisition projects. The bill, HR4714, was introduced on May 22, 2014.

As enacted in the Tax Reform Act of 1986, the amount of LIHTCs that are awarded to development projects is based on a formula that uses the federal cost of borrowing to determine the credit rate. As the cost of borrowing declines, the amount of LIHTCs also declines. These floating rates lead to financial uncertainty, increase administrative complexity, and can lead to financing gaps for these badly needed affordable units. These lower rates mean states can allocate fewer Housing Credits into any one eligible project, even while the total credits a state can award remains unchanged. This bill establishes a minimum credit amount that LIHTC developments would receive, protecting them from reductions in investor equity used to build affordable housing.

Tell your Senators and Congressman to Contact their Colleagues about the LIHTC

House Ways and Means Chairman Camp is currently crafting a tax reform bill that will reduce the corporate tax rate to 25%.  In order to do this, it will require eliminating or reducing the vast majority of tax expenditures and cuts could include the housing credit and bond programs. And Senate Finance Chairman Baucus (along with Senator Orrin Hatch) have spearheaded similar efforts for tax reform in the Senate. It is critical that these members of Congress include the Low-Income Housing Tax Credit and Private Activity Bond (Housing Bonds) Programs in the tax reform bills they introduce this Fall.

Tell Senators Kaine and Warner to Sign on to SB1442

Senator Maria Cantwell (D-WA) introduced legislation that would make the 9% low income housing tax credit’s (LIHTC) fixed floor rate permanent for new construction and substantial rehabilitation projects, and establish a similar fixed floor rate for the 4% credit for acquisition projects. The bill, S. 1442, was introduced on August 1, 2013.

As enacted in the Tax Reform Act of 1986, the amount of LIHTCs that are awarded to development projects is based on a formula that uses the federal cost of borrowing to determine the credit rate. As the cost of borrowing declines, the amount of LIHTCs also declines. This bill establishes a minimum credit amount that LIHTC developments would receive, protecting them from reductions in investor equity used to build affordable housing.

Virginia Housing Credit Conference

Save the Date: The 2015 Conference will be held on October 8-9 at the Westin Hotel in Richmond. We are now soliciting sponsorships for the 2015 conference, Click here for more information.

Click here for the 2014 Housing Credit Resource Directory

Click here for the presentations from the 2014 Conference Sessions!

 

VHC thanks its 2014 Conference sponsors:

Virginia Community Development Corporation—Lead Sponsor
AGM Financial
Applegate & Thorne-Thomsen
Bank of America Merrill Lynch
BB&T
Boston Capital
Cohn-Reznick LLP
CAHEC
Community Housing Partners
Dixon Hughes-Goodman LLP
Dominion Due Diligence Group (D3G)
Dooley and Vicars
Enterprise
HDAdvisors
Hudson Capital
Innovative Dehumidifier Systems
Kanady & Quinn, P.C.
Kaufman & Canoles P.C.
Klein Hornig
Novogradac & Company LLP
Raymond James
Red Stone Equity
S.L. Nusbaum Realty Co.
Stratford Capital Group
TM Associates Management, Inc.
Union First Market Bank
Virginia Housing Development Authority
Virginia Association of Housing and Community Development Officials
Virginia Capital Advisors
Virginia Community Capital
Virginia Department of Housing and Community Development
Virginia LISC/NEF
Wells Fargo
Williams Mullen

One Response

  1. Your link to contact your Congressman lists VA-07 as vacant. This seat is now filled by Congressman Dave Brat, who was elected in a special election held in Nov. to fill Eric Cantor’s vacated position. In a separate vote he was also elected to the next Congress. See Brat@house.gov.

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