Search results for ‘LIHTC

IRS Clarifies How to Calculate Income Limits for LIHTC Average Income Set Aside

The Internal Revenue Service recently released revenue ruling 2020-4 which instructs taxpayers how to calculate Low-Income Housing Tax Credit (LIHTC) income limits should they choose to use the income averaging minimum set-aside test to meet LIHTC eligibility and compliance requirements. This test was created by the Consolidated Appropriations Act of 2018 (the 2018 Act) to complement the existing tests established… Read More ›

Who Does LIHTC Housing Serve?

The Low-Income Housing Tax Credit (LIHTC) ensures a supply of affordable rental housing. Created as part of the 1986 tax reform effort, the LIHTC, also known as the affordable housing credit, has been responsible for financing the development of more than 2.6 million affordable rental homes. In a typical year, the housing credit also supports approximately 96,000 jobs. A recent… Read More ›

Multifamily Production Index Inches Up, But Still Remains in Negative Territory

Confidence in the market for new multifamily housing increased in the second quarter but still remains in negative territory, according to the National Association of Home Builders (NAHB). The Multifamily Production Index (MPI) rose 10 points to 37, but is still below its break even point of 50, which indicates that more builders and developers view conditions as weaker than… Read More ›

Affordable Housing Credit Beneficiaries: 2020 Update

The affordable housing credit (the Low-Income Housing Tax Credit or LIHTC) plays a critical role in the housing sector by ensuring a supply of attainable rental housing. Created as part of the 1986 tax reform legislation, the LIHTC has been responsible for financing the development or preservation of more than 3.2 million rental homes. Moreover, the housing credit has been… Read More ›

A Decade of Home Building: The Long Recovery of the 2010s

Home building in the 2010s was a story of the Long Recovery. After the Great Recession, the number of home builders declined significantly, and housing production was unable to meet buyer demand. This deficit of housing in the United States continues to exist because of persistent supply-side headwinds for builders, creating a critical housing affordability challenge for renters and homebuyers…. Read More ›

The Effect of Affordable Housing on the Surrounding Neighborhood

Although produced by NAHB’s Economists, Eye on Housing is intended for a fairly broad readership with an interest in housing, but not necessarily in the academic research published by technical journals.  Nevertheless, many EoH readers will want to know about a relatively recent technical paper published in Housing Policy Debate.  The paper is called The What, Where, and When of… Read More ›

Apartment Absorptions Remain Strong as Completions Rise

The rental apartment market continued to be strong during the third quarter of 2015, as multifamily production expanded. According to NAHB analysis of the most recent data from the Census Bureau and Department of Housing and Urban Development Survey of Market Absorption of Apartments (SOMA), completions of privately financed, unsubsidized, unfurnished rental apartments in buildings with five or more units totaled 298,500 residences for… Read More ›

Tax Extenders Bill: What the Housing Industry Needs to Know

As Congress looks to wrap up its work for 2015, a bipartisan agreement was reached on two key pieces of legislation: an omnibus spending bill to fund the federal government and a more than $600 billion bipartisan tax bill that extends a number of tax policies, including some related to housing, construction and real estate. Some extensions are made on a permanent basis, and… Read More ›

Apartment Absorptions for the Second Quarter

The rental apartment market continued to be strong during the second quarter of 2015, as multifamily production levels remain elevated. According to NAHB analysis of the most recent data from the Census Bureau and Department of Housing and Urban Development Survey of Market Absorption of Apartments (SOMA), completions of privately financed, unsubsidized, unfurnished rental apartments in buildings with five or more units totaled… Read More ›