Affordable Housing News & Views - March 2018
Capitol Connection: Will the Grain Glitch Create an Affordable Housing Fix?
Bob Moss delivers an update in his latest Capitol Connection, discussing the “grain glitch,” an unintended tax exempt status for farmers through the complication of the new ways to tax business income. As Congress works to fix that in the coming omnibus spending package, what effects will take place for the housing industry? Does the omnibus spending package give housing advocates an opportunity to increase the housing credit and fix the 4 percent rate for PABs?
2017 Housing Tax Credit Equity Market Lookback: How Did Uncertainty Over Tax Reform Affect Market Volume?
Tracking the housing tax credit equity market, CohnReznick’s Tax Credit Investment Services group looks at how the uncertainty over tax reform affected marketing volume. Beyond that, how are existing deals being affected post tax reform and what is the look ahead for the tax credit equity market? Read the full report.
Opportunity Zones: Leveraging Capital Gains to Rejuvenate Distressed Communities
Stemming from the Tax Cuts and Jobs Act of 2017, Opportunity Zones were created to help spur investment in distressed communities. There is estimated to be $2 trillion worth of unrealized capital gains “sitting on the sidelines” with the potential to unleash this for investment across America in distressed, low-income communities. Once accumulated and deployed, this capital will help rejuvenate these micro-economies, stimulate growth and help level the playing field for those living and doing business in low-income communities. Not uncommon in the U.S., tax policy is playing a central role in helping to how we administer public policy around creating economic growth. CohnReznick’s Ira Weinstein and Beth Mullen discuss this innovate policy. Hear the program background, how it works, advantages, tax implications and other useful information in this conversational 25-minute recording. Access the recording.
Momentum 2018: Commercial Real Estate Outlook
The commercial real estate industry finds itself in a stronger position than last year. Political uncertainty, at least on the economic side, has dissipated as the new administration settled into Washington and eased burdensome, unwanted regulations, forged numerous new trade alliances, and signed a highly significant tax reform package into law. The predicted slow, upward pressure on interest rates has not dampened industry fundamentals. New waves of small and midsized investors, both domestic and foreign, have substantially increased an already overly abundant supply of available capital for investment in parts of the ecosystem that were below the radar of larger funds. In CohnReznick’s Momentum 2018: Commercial Real Estate Outlook, we break the dynamics down for you in two insightful sections: Capital and Operations and Market Sectors. Members of CohnReznick’s National Commercial Real Estate practice share their perspectives on how they see various key areas of the market developing, as well as strategies and tactics to consider as you plot your course for the immediate future.
Around the Community
We will be attending and/or speaking at these events. We hope to see you!
Georgia Affordable Housing Coalition’s Annual Conference – March 19-21
National Low Income Housing Coalition’s 2018 Housing Policy Forum – March 19-21
Pennsylvania Association of Housing & Redevelopment Agencies’ Pennsylvania CD&H Practitioner’s Annual Conference – March 26-27
National Housing & Rehabilitation Association’s Summit on Affordable Housing Market Trends & Innovations – March 26-27
Southeast Mortgage Advisory Council Annual Conference – April 10-12
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
In Case You Missed It
News stories and headlines from the previous monthA Recommended Resource to Learn More About Opportunity Zones (eig.org)
Tucked Into the Tax Bill, a Plan to Help Distressed America (New York Times)
Treasury, IRS Issue Guidance on Opportunity Zones to Spur Investment in Distressed Communities (Treasury.gov)
California to Designate “Opportunity Zones” To Spur Investment in Low-Income Communities (Capital Public Radio)
New Tax Law Creates “Opportunity Zones” (Quad City Times)
Opportunity Zones: Resources and Fact Sheets (US Impact Investing Alliance)
Stockton Williams Appointed NCSHA Executive Director (NCSHA)
Fannie and Freddie Return (Affordable Housing Finance)
Washington State Attorney General: Housing Discrimination Against Veterans Is Evident (NPR)
$3.5 Billion in NMTCs Awarded to Spur Economic Development (Affordable Housing Finance)
Bank of America Merrill Lynch Community Development Banking Provided Record-Setting $4.53 Billion in Lending and Investing in 2017 (Business Wire)
Tax Cut for California Renters on the Table in Legislature (The Sacramento Bee)
How Re-Allocating a Pittsburgh Parking Tax Can Combat the City's Affordable-Housing Shortage (PGH City Paper Blog)
The president of Wendover Housing Partners shares what makes a good developer (Affordable Housing Finance)