WASHINGTON December 15th, 2022 – 124 bipartisan US lawmakers have pledged support for the Neighborhood Homes Investment Act (NHIA), which would offer a tax incentive to developers to minimize their risk when building or rehabilitating existing housing. If passed, the legislation could lead to the development of 500,000 starter homes in struggling communities over the next decade in addition to $29.3 billion in federal, state and local tax revenues and fees, $42.9 billion in wages and salaries, and over 780,000 jobs in construction and construction-related industries.

WASHINGTON, May 16 2022 – The United States Government announced a Housing Supply Action Plan to ease the burden of housing costs over time by boosting the supply of quality housing in every community. The plan includes both legislative and administrative actions to help close the nation’s housing supply shortfall in five years. Among other provisions, the plan includes: test

  • Financing over 800,000 affordable rental units by expanding and strengthening LIHTC through enactment of provisions included in the House-passed reconciliation bill. The bill would increase tax credit allocations, provide additional capacity for private activity bonds to finance affordable housing, target tax credits for housing that serves extremely low-income Americans, and make it easier to produce and preserve affordable housing with tax credits in Indian Country.
  • Providing an additional subsidy through the LIHTC to developments that add net new supply and that would otherwise not be financially feasible. This proposal was included in the FY 2023 budget.
  • Strengthening Government-Sponsored Enterprise (GSE) financing for multifamily development and rehabilitation.
  • Leveraging American Recue Plan funds for investments in affordable housing.
  • Finalizing the LIHTC Income Averaging proposed guidance by the end of September 2022.
  • Advancing HOME as a key tool for the production and preservation of affordable rental and homeownership housing.
  • Providing tax credits to build and rehabilitate homes for low- and moderate-income homebuyers. This proposed legislation, the Neighborhood Homes Investment Act (NHIA), is included in the House-passed reconciliation bill.
  • Improving the alignment of federal funds to reduce transaction costs and duplications and accelerate development.
  • Supporting the construction of more than 8,000 rural multifamily housing units.
  • Supporting new and existing affordable housing in Indian Country.
  • Providing incentives for land use and zoning reforms and reducing regulatory barriers.
  • Addressing supply chain disruptions for building materials.

Columbia, SC – 29 Jan 2022

South Carolina saw massive demand for its 4% LIHTC Credit and announced at it has limited the ability of certain developments to access the state’s 4% low-income housing tax credit (LIHTC) incentive. The stop is temporary and halts the allocation of credits until the state enacts new legislation or July 1st of this year, whichever comes first. Minutes of the meeting state the pause is because “the volume of interest in the low-income housing tax credit program and the substantial impact on the state’s general fund were both unexpected.” According to the South Carolina Revenue and Fiscal Affairs Office’s Tax Expenditure Report issued earlier this month, the state LIHTC allocated more than $25 million in fiscal year 2021-22 and was estimated for more than $84.3 million this year.

New Tax Credit Programs Introduced: MIHTC & NHTC

Aug. 19, 2021 (WASHINGTON) – Sweeping housing legislation announced today in the U.S. Senate would enhance the low-income housing tax credit (LIHTC) and introduced the middle-income housing tax credit (MIHTC) and neighborhood homes tax credit (NHTC).

The “DASH Act” aka Decent, Affordable, Safe Housing for All would provide an expansion of 9% LIHTC annual allocation, provide a 50% basis boost for properties for extremely low-income renters; reduce for four years the 50% financed-by test for tax-exempt-bond-financed properties, provide a potential 30% difficult development area basis boost for rural and Indian properties.  

The bill, introduced by Senate Finance Committee Ronald Wyden (D-Oregon) would also create a 5% and 2% MIHTC for rental properties serving tenants with incomes between 60% and 100% of the area median income (AMI), create an NHTC worth up to 35% of the qualified development cost or 80% of the national median sale price for new homes, whichever is less; create a renter’s tax credit for affordable housing operators who provide housing to tenants with monthly incomes below 30% of the AMI; and create a first-time homebuyer refundable credit for 20% of the purchase price of a home up to $15,000.   Senator Wyden said “Housing is a human right. Yet, millions of Americans pay more than half of their monthly take-home pay to keep a roof over their head. And more than half a million Americans don’t have housing at all,” Wyden said. “America is amidst a serious crisis of housing affordability, and it’s a big challenge that demands big, bold solutions. As housing prices skyrocket, a generation of young people are increasingly locked out of homeownership. It’s time America’s lawmakers get with the program and enact 21st century housing policies that adequately address 21st century challenges.”

Congress passed measures strengthening the creation of affordable housing. Highlights of the bill are as follows:

Permanent 4% Housing Credit rate: This is a big victory for housing credit advocates, who have made setting a minimum 4% rate a top priority. The 4% rate will apply to allocations of 4% credits made after December 31st 2020.

Disaster Housing Credit Allocation: This is the first time Congress has allocated disaster housing credits since the GO Zone allocation after Hurricane Katrina. Dozens of Gulf Coast counties have been subjected to disaster declarations in 2020, so they will receive additional credits. 

$25 Billion in Rental Assistance: States long the Gulf Coast are expected to receive another $1B for rental assistance. Renters and tenants will be eligible to apply for funding.

Extended Eviction Moratorium: The current eviction moratorium has been extended through January 31, 2021.

We applaud Congress for passing Housing Credit provisions that will lead to the development of hundreds of thousands of additional affordable homes and the members and advocates who have worked to communicate the need for these provisions to Congress.

South Carolina has joined seventeen other states by enacting a state based affordable housing program that mirrors the federal LIHTC. The goal is to add critically needed affordable housing to workforce and income restricted seniors.

Calling it the “Workforce and Senior Affordable Housing Act” and signed into law on May 14, 2020, the program will be administered with the intention of being as robust as other successful state based LIHTC plans.    

Until the Act was passed, Georgia stood alone as having the only state-based low income tax credit plan in the Southeast.

More news to come as the office in Columbia is staffed up.

On Friday March 27th the U.S. Congress passed the CARES (Coronavirus Aid, Relief, and Economic Security Act) the $2 trillion aid package, and sent it to President Trump.  He signed it late Friday.   

The bill provides more than $12 billion in funding to HUD for housing and homelessness programs.

Key Components include:

  • $4B for Emergency Solutions Grants (ESG) for homelessness assistance
  • $5B in CDBG
  • $1.25B for HCV Program
  • $1B for project-based Rental Assistance
  • $685MM for Public Housing
  • $300MM for tribal nations
  • $65MM for Housing for Persons with AIDS (HOPWA)
  • $50MM for Section 202 Housing for the Elderly
  • $15MM for Section 811 Housing for Persons with Disabilities\

The bill also institutes a moratorium on foreclosures for all federally backed mortgages, including those covered by HUD, USDA, FHA, VA, Fannie Mae, and Freddie Mac, for 60 days beginning on March 18, 2020. Under the bill, a borrower with a federally backed mortgage experiencing financial hardship due to coronavirus may also request a forbearance for up to 180 days, which may be extended for another 180 days at the request of the borrower.

The law allows multifamily housing owners with a federally-backed mortgage to request a forbearance for up to 30 days, which can be extended by another 60 days at the request of the borrower, on the condition that they agree not to evict tenants or charge tenants’ late fees.

The bill also institutes a moratorium on filings for evictions for renters in homes covered by a federally backed mortgage for 120 days of enactment.

The bill provides a temporary moratorium on evictions for most residents of federally subsidized apartments, including those supported by HUD, USDA or Treasury (Low Income Housing Tax Credit developments). The bill also institutes a moratorium on filings for evictions for renters in homes covered by federally backed mortgages for 120 days of enactment.

About Us

We are an underwriting surety agency specializing in P&P and other bonds for LIHTC (4% & 9% and state-based programs), Market Rate developers [HUD 221 (d) (4), etc.,] and GCs. We effortlessly guide our clients through the otherwise difficult approval maze with an innate understanding of how the surety companies think, and exactly what is needed for bond approval. Headquartered in Charleston, South Carolina, we are licensed in 50 states and represent clients nationwide. LIHTC Bonds Ltd Co is an affiliate of Carolina Indemnity Group.

 

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