Low-Income Housing Tax Credit

Stimulus-Related Programs

• Tax Credit Assistance Program: Overview and Guidance

  Provides grant funding for capital investment in Low Income Housing Tax Credit (LIHTC) projects via a formula-based allocation to State housing credit allocation agencies. (May 2009)

• Tax Credit Exchange Program: Overview and Guidance

  Designed to help stalled LIHTC programs move forward, the TCEP allows states to exchange up to 40 percent of their 2009 LIHTC allocation (plus any remaining 2008 allocations) for cash grants from the Treasury Department. (May 2009)

• IRS Guidance Documents: Changes to Tax-Exempt Bonds and LIHTC Under the 2008 Housing Stimulus Law

  IRS guidance documents providing information on a variety of changes made to tax-exempt bonds and Low-Income Housing Tax Credits (LIHTC) under the housing stimulus bill (P.L. 110-289) enacted July 30, 2008. Includes informaiton on the new 9 percent applicable percentage floor and identifies which military bases qualify for the NMHC-sought changes to the eligibility of servicemembers receiving basic housing allowances for LIHTC properties. (November 2008)

• LIHTC: Fair Housing Enforcement Initiative
  Joint HUD/Treasury Dept/Justice Department memorandum of understanding on new efforts to ensure LIHTC properties comply with the Fair Housing Act. (August 2000)

Regulations

• Final Regulations: LIHTC Utility Allowances

  NMHC-sought proposed regulations that would change the way rents are adjusted on Low-Income Housing Tax Credit (LIHTC) properties when residents pay for their own utilities. (7/28/2008, Updated 5/5/2009)

• HUD Streamlines Processing of Multifamily Program Involving Housing Tax Credits

  U.S. Department of Housing and Urban Development Mortgagee Letter enacting four changes in the FHA multifamily mortgage program to make FHA a competitive financing source for Low-Income Housing Tax Credit properties. (July 22, 2008)

• Rev. Ruling 2002-9: Impact Fees and Eligible Basis in the LIHTC

  IRS Ruling that impact fees are indirect costs that should be capitalized and added to the basis of buildings constructed, and thus can be included in the computation of the low-income housing credit. (February 15, 2002)

Third-Party Resources

• HUD's LIHTC Database
  Contains information on LIHTC properties placed in service since 1987. Updated annually by HUD.

• GAO's Report on the LIHTC
  Discusses characteristics of LIHTC residents and properties and assesses IRS oversight on cost, needs and compliance. (1997)

• Recapitalization Advisors LIHTC Report
  A presentation on the effectiveness and efficiency of the LIHTC. Prepared for the Millennial Housing Commission. (May 2001)

• HUD-Sponsored Analysis of LIHTC Properties
  Uses HUD's LIHTC database to examine property characteristics and location. (November 2000)

• Siting Affordable Housing: Location and Neighborhood Trends of Low Income Housing Tax Credit Developments in the 1990s

  Brookings Institution study that analyzes the location and neighborhood characteristics of housing developments funded by the federal Low Income Housing Tax Credit (LIHTC) in the 1990s. Finds that approximately 42 percent of all LIHTC units are located in the suburbs, compared to only 24 percent of other project-based federally assisted housing units.

• Innovative Ideas for Revitalizing the LIHTC Market

  Collection of articles by LIHTC experts commissioned by the Federal Reserve System Board of Governors and the Federal Reserve Bank of St. Louis’s Office of Community Affairs. (November 2009)

• The Disruption of the Low-Income Housing Tax Credit Program: Causes, Consequences, Responses, and Proposed Correctives

  Harvard University's Joint Center for Housing Studies examines federal efforts to bolster the LIHTC program through the Tax Credit Assistance Program (TCAP) and the Tax Credit Exchange Program (TCEP) and assesses several proposals for reform. (December 2009)