Archive for the ‘Low Income Housing Tax Credit’ Category

October 2016 News & Legislative Update

Congress’ anticipated Continuing Resolution will fund federal housing and homeless programs at FY 2016 levels until December 9. At the state level, housing advocates are sharing the alarming data released in the annual Residential Rental Cost Survey indicating a severe shortage in the supply of affordable rental homes, generating workforce challenges and undermining economic recovery for New Hampshire families. Click here to read the October Update.

Summer 2016 News & Legislative Update Posted

A successful state legislative session closed with the signing of SB 533, appropriating $2 million to the Affordable Housing Fund for those with substance use disorders. Housing advocates were also pleased to see signs of progress at the federal level with the introduction of the Housing Opportunities Through Modernization Act in the US Senate as well as a LIHTC expansion proposal. For details on these and other topics, as well as reports and events of interest to NH housing advocates, click here.

May 2016 News & Legislative Update

Advocacy for inclusion of recovery housing in the state’s response to the substance use disorder crisis remains a priority of Housing Action NH’s work at the state level. At the federal level, members of NH’s congressional delegation have been leading the way on necessary reforms to rural housing programs to protect affordable units and tenants.

Click here for an update on these and other housing and homelessness topics.

 

FY16 Federal Budget & Tax Extenders Update

Congress has released the text of the omnibus spending bill and the tax extenders package. The omnibus funds all 12 appropriations bills, including the T-HUD and USDA bills, for FY16. The House and Senate are expected to vote on the omnibus and the tax extenders package by the end of this week.

Included in the omnibus and tax extenders bills are several potential victories for housing advocates:

HOME: The HOME program, cut by almost 93% in a prior version coming from the Senate Appropriations Committee, was restored to a level of $950 million. This will likely keep New Hampshire’s HOME program running at the small state minimum level of $3 million. Both Senator Shaheen and Governor Hassan assisted with HOME advocacy. Senator Shaheen had cosponsored an amendment to restore HOME funds and Governor Hassan signed a letter with five other New England Governors calling for strong support for HOME.

Homeless Assistance Grants: The omnibus increases Homeless Assistance Grants from FY15’s $2.135B to $2.250B.

Housing Tax Credit: The tax extenders package would permanently extend the minimum 9 percent credit rate (and make it retroactive to January 1, 2015) for new construction and substantial rehabilitation using the Low Income Housing Tax Credit program (LIHTC). The permanent minimum 9 percent rate is considered a major victory, as it is expected to strengthen the Housing Credit by simplifying program administration and allowing states to allocate more Housing Credit equity into individual developments. The bill does not, however, establish a minimum 4 percent credit rate for acquisition that housing advocates had requested.

Public Housing Operating and Capital Funds: The package includes small increases for public housing authorities.

National Housing Trust Fund (NHTF): No NHTF funds are raided in the omnibus. A prior House proposal would have raided 100% of the NHTF’s funds in 2016 and used them to fund the HOME program. If the omnibus is passed, the National Housing Trust Fund will be on track to deliver its first resources to states in 2016 for the production, preservation, and operation of predominantly affordable rental housing for extremely low income households.

USDA Rural Development: Within USDA’s Rural Development appropriations, the omnibus would provide $1.38 billion for Section 521 Rental Assistance, a significant increase compared to FY15’s $1.167 billion, which proved significantly insufficient to meet FY15’s renewal needs. The omnibus bill would also increase funds for the rural housing voucher program.

New VASH Vouchers: The spending package includes new rental assistance vouchers for veterans, a key tool needed to end veterans’ homelessness.

Housing Action NH calls on the NH Congressional delegation to support passage of the omnibus and tax extenders bills. 

We will update you on any further developments.

Shaheen co-sponsors Natural Disaster Tax Relief

The National Disaster Tax Relief Act of 2014, S.2233, was recently introduced in the Senate. In addition to providing tax relief for the communities impacted by Hurricane Sandy, this bill would also provide relief to all of the communities impacted by federally declared disasters in 2012 and 2013, as well as Hurricane Irene from 2011. New Hampshire is one of 22 states included in the bill, and would qualify for a one-time additional LIHTC allocation for Carroll and Grafton Counties of $1.45 million. Senator Shaheen has co-sponsored the legislation.

Housing Credit

House Ways & Means Committee Chair Dave Camp (R-MI) released a discussion draft of a tax reform package that retains just three business tax expenditures – one of which is the Low Income Housing Tax Credit — while eliminating all others in Federal Code. While the broad tax reform proposal is considered a non-starter this session, the fact that the Housing Credit survived in this proposal is cause for optimism, and may serve to inform the broader policy discussion about the importance of these credits and public-private partnerships to the development of affordable housing.