AFrom Housing Alliance of Pennsylvania (http://www.housingalliancepa.org/):
As we know, affordable housing will be more necessary than ever as we emerge from this crisis and it is critical to ensure that current projects do not experiences stoppages or delays. Please take action today ask your Members of Congress to sign on to two letters that will make sure that LIHTC affordable housing projects can move forward in this time.
Go to https://housingalliancepa.org/take-action/#/71 to take action.
Rep. Dwight Evans is circulating two letters that will help to ensure that affordable housing development continues. The first letter is to the Congressional Leadership and asks for the following regarding tax credits:
- Enact a minimum 4% credit rate used to finance acquisitions and Housing Bond-financed developments. LIHTC rates fluctuate in response to market interest movements. Tied to declining federal borrowing rates, the value of the 4% credit rate is closer to 3% – the lowest it has ever been. Fixing the credit rate of 4% and increasing the certainty of the cash flows would decrease the cost of affordable housing development.
- Enact a 50% basis boost for developments serving extremely low-income tenants. COVID-19 has stressed an already vulnerable housing situation for the lowest-income Americans and underscored the need to direct federal resources towards communities and projects with the most need. Providing a 50% basis boost in qualified costs, increasing tax credits and investment equity, for developments serving extremely low-income and homeless families, would make such projects much more financially feasible.
The second letter is to the Treasury Department to encourage extending extensions of deadlines:
- Provide a 12-month extension of the 10% test deadline for carryover allocations as required by IRC Section 42(h)(1)(E)(ii) and IRS regulation 1.42-6.
- Provide a 12-month extension of the placed in service deadline as required in IRC Section 42(h)(1)(E)(i)
- Provide a 12-month extension of the 24-month minimum rehabilitation expenditure deadline as required by IRC Section 42(e)(3) and IRC Section 42(e)(4)
Please ask your Members of Congress to sign on to both letters by sending them an email here: Click here to take action.
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