Affordable Housing News & Views - April 2018

CohnReznick Insights 

A Q&A On Tax Reform: Part Two

In January, we outlined some of the federal income tax impacts triggered by the overall tax reform legislation passed in late December 2017.  Highlighting a number of critical tax implications for the Affordable Housing industry, we discussed key issues in depth.  Since then, we have gathered additional technical information that is critical for the industry to consider.  While there remain plenty of technical tax accounting issues that still require more IRS guidance, the following information is important for those in the industry to know. Read the updated Q&A.

Understanding Income Averaging

Beth Mullen, CohnReznick’s national affordable housing practice leader, discusses income averaging, a new minimum set-aside election for LIHTC developments. While the income averaging option is a complex one, start to learn its nuances to help understand where it can be a strategy to incorporate in your upcoming developments. Established by the Consolidated Appropriations Act of 2018, how are the states handling this new set aside? These new rules may apply to properties just completed and deals in the pipeline. Numerous issues include rent limits and income limits, Form 8609, impact on state QAPs, the next available unit rule and more. Access the discussion to begin understanding this set aside and what it means going forward for your developments.

In Case You Missed It

With a busy time of year and numerous changes occurring, make sure you are caught up with critical news from the past couple weeks:

• Bob Moss’s “Capitol Connection” on Affordable Housing in the FY 2018 Omnibus Package
• Bob Moss also co-authored an article in “Affordable Housing Finance,” detailing how Affordable Housing advocates ensured the survival of the Low-Income Housing Tax Credit (LIHTC) during a difficult Congressional budget process
• CohnReznick’s 17th annual NMTC Summit announced the agenda for the May 14-16 conference. Please register if you haven’t already.

 

Around the Community

We will be attending and/or speaking at these events. We hope to see you!

South Carolina’s Palmetto Affordable Housing Forum – April 17-18

Philadelphia Association of Community Development Corporations Annual Gala & Awards Ceremony – April 19

AHF Live! Housing Developer’s Forum – April 25-27

Bringing It Home: Ending Homelessness in NC Annual Conference – April 30-May 1

National Association of Local Housing Finance Agencies Annual Conference – May 9-12

Affordable Housing Conference of Montgomery County (MD)– May 11

CohnReznick’s 17th Annual New Markets Tax Credit Summit – May 14-16

New York State Association for Affordable Housing Annual Conference – May 15-16

PCRG's Eighth Annual Community Development Summit- May 15-16

 

In Case You Missed It

What’s In and What’s Out in the $1.3t Omnibus Spending Bill (Politico)

Homeless Housing Bill Spreads Dollars in Response to Trump Cuts (Fairfield Daily Republic)

Black Homeownership Rates Haven’t Changed Much in the 50 Years Since the Fair Housing Act (Curbed)

For Low-Income Renters, the Affordable Housing Gap Persists (CityLab)

Report: Thousands of Affordable Units Could Go Market-Rate as Tax Credit Deals Lapse (City Limits)

Lenders Persevere Through Market Disruptions (Affordable Housing Finance)

NYC Assesses the Damage from the New Tax Law (Bond Buyer)

Changes at Woda Create Industry-First for Affordable Housing (Woda Cooper Companies Press Release)

Tuesday Editorial: Florida Has Major Problems with Affordable Housing (The Florida Times-Union)

A ‘Dead’ Home-Equity Tax Deduction Sees New Life Thanks to the IRS (Bloomberg)

Durham in an 'Affordable Housing Crisis,' Council Members Say (Durham Herald Sun)

This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.