Tag Archive for ‘LIHTC’

Apartment Absorptions Slightly Weaker in Fourth Quarter of 2022

Data from the Census Bureau’s latest Survey of Market Absorptions of New Multifamily Units (SOMA) indicates that multifamily market demand has softened as the percentage of apartments absorbed within the first 3 months of completion fell to 59.0% after six consecutive quarters of above 60.0% percent absorption. The absorption rate of unfurnished, unsubsidized apartments (the share rented out in the… 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 ›

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 ›

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 ›

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 ›

New Study Highlights Benefits of the Affordable Housing Credit

A new study of California affordable housing developments provides important findings concerning the role and benefits of the Low-Income Housing Tax Credit (LIHTC). The affordable housing credit ensures a supply of equity financing for the development of needed rental housing. The report was prepared for the California Department of Housing and Community Development, the California Tax Credit Allocation Committee, the… Read More ›

Tax Policy and Housing

Tax policy plays a key role in shaping housing demand, determining business conditions and deterring or fostering economic growth. Housing-related tax policy is of such significant importance that it has been selected as a primary issue for NAHB’s 2014 legislative conference, “Bringing Housing Home,” which takes place March 17-21 as home builders and other members of the residential construction industry meet federal lawmakers. As… Read More ›

Apartment Construction Continues to Improve

Completions of unfurnished apartments for rent or sale in 5+ unit properties climbed to more than 30,000 units during the third quarter of 2012, a 20% increase versus the third quarter of 2011. The Survey of Market Absorption of Apartments (SOMA) tracks completions and market absorption rates (units rented or sold after construction of the property is complete) for apartments sold or… Read More ›