House Bill Addresses Urgent Housing Credit Realities
Date Published: 06/16/2008
Author: Buzz Roberts, LISC Senior Vice President for Policy
This is the first of a series of monthly articles by Buzz Roberts, LISC's Senior Vice President for Policy, in the June 2008 issue of Novogradac Journal of Tax Credit Housing.
The changes to the low-income housing tax credit (LIHTC) passed by the House of Representatives last month comprise a coherent response to investment market changes and the resulting challenges in making deals work.
The LIHTC changes are a relatively small part of a much larger "housing stimulus" bill, H.R. 3221, a multifaceted response to turmoil in housing finance provoked by the subprime mortgage collapse. The LIHTC changes fit this context in two ways. First, troubles in the mortgage market have contributed to the withdrawal of some major housing credit investors. Second, the proposed changes would enable many stalled housing credit developments to proceed, providing rental housing as mortgage foreclosures drive up demand for rental housing and the economy needs the jobs and state/local tax revenues that the developments will stimulate.
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This article first appeared in the June 2008 issue of the Novogradac Journal of Tax Credit Housing and is reproduced here with
the permission of Novogradac & Company LLP.
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Topics: Housing, --Affordable Housing Finance & Development, Policy, --Housing
Type: Trade Article