Comments on: ✦ Whither LIHTC, Part 5 (Short hits edition)

By: Multi-Family Guide » Whither LIHTC: H. R. 598 and LIHTC

Multi-Family Guide » Whither LIHTC: H. R. 598 and LIHTC — Thu, 29 Jan 2009 07:32:35 +0000

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By: mfguide

mfguide — Thu, 29 Jan 2009 06:54:06 +0000

Great questions, I’ll have to start looking for commentary on HR 598. I’d need to have the original legislation in front of me to make a reasonable comparison but the big items seem to be the loss carries, grants, and the safe harbor provisions.

Had an interesting lunch last week with an originator. Postulated that we may be nearing the end of the LIHTC program as currently structured. Supposing that most programs have a 20 year lifespan, this 20-year veteran believes we may need to search for another model to privately fund affordable housing.

I’m not sure I’m there yet, but major changes are needed. I’m not sure at first glance that HR 598 does more than affect existing operators. If you’re committed to promoting private development and ownership, then owners have to be able to make money. Currently, with rising expenses, stagnant wages (and rents), and the removal of cable fee incentives (thanks, FCC!) owners need additional sources of revenue.

You can keep track of the legislation at Novo:
http://www.novoco.com/low_income_housing/legislation/index.php

And at Thomas:
http://www.thomas.gov/cgi-bin/query/F?c111:1:./temp/~c111esFSxZ:e95607:

By: Mary Levine

Mary Levine — Wed, 28 Jan 2009 21:03:04 +0000

Have you seen anything sanely written about HR 598 that provides a subaward grant allocation – I am looking for a good analysis.

Also, everybody seems to be a “twitter” about LIHTC stimulus in the bills running through congress, particularly lowering the credit period by 5 years from 10.

Any thoughts.