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NMHC joined other organizations on December 10 in a letter to Treasury Secretary Janet Yellen requesting that the Department “modify existing guidance on the Coronavirus State and Local Fiscal Recovery Fund to provide more flexibility in the use of these funds in developments financed with Low Income Housing Tax Credits.”
The letter recommends that Treasury: (1) clarify that “Fiscal Recovery Funds structured as grants do not result in an eligible basis reduction in Housing Credit developments;” and (2) “provide authority to use Fiscal Recovery Funds for principal amounts on loans with maturities beyond 2026—not just for the ‘cost of the loan’ as currently outlined in the Interim Rule—and to allow repayments of funds to be used for similar affordable housing purposes, even after the 2026 deadline.”
NMHC believes that, if adopted, these recommendations will help leverage Fiscal Recovery Funds and spur the production of critically necessary affordable housing.
