Current Legislative Proposals For The 112th Congress
Through the Affordable Rental Housing A.C.T.I.O.N. campaign, LIHTC industry has gained nationwide support for a legislative provision which would enact a permanent rate of not less than 9 percent for new construction and substantial rehabilitation credits(9% LIHTC Credits), and apply the same policy to acquisition credits (capped 4% LIHTC Credits) at a rate no less than 4 percent - the rates originally envisioned in the Tax Reform Act of 1986.
The Housing and Economic Recovery Act of 2008 (HERA) enacted a provision to temporarily create a fixed floor rate of 9 percent for 9% LIHTC Credits. Over the past years, this provision has promoted investment as it eliminates the financial risk and uncertainty associated with the "floating rate" system. As the HERA provision is only applicable to LIHTC properties placed-in-service through 2013, the expiration of this provision will begin to negatively impact LIHTC allocations beginning in early 2012. If the new legislative provision is not enacted in early 2012, the amount of private equity investment for proposed LIHTC properties could be reduced by 15 - 20 percent.
The proposed legislative provision would ensure that LIHTC properties can receive the private equity needed to make the projects financially feasible. This efficiency measure would come at little or no cost to the federal government.
Read more about this topic: Low-Income Housing Tax Credit
Famous quotes containing the words current, legislative, proposals and/or congress:
““I” is a militant social tendency, working to hold and enlarge its place in the general current of tendencies. So far as it can it waxes, as all life does. To think of it as apart from society is a palpable absurdity of which no one could be guilty who really saw it as a fact of life.”
—Charles Horton Cooley (1864–1929)
“The legislative powers of government reach actions only, and not opinions, ... thus building a wall of separation between Church and State.”
—Thomas Jefferson (1743–1826)
“One theme links together these new proposals for family policy—the idea that the family is exceedingly durable. Changes in structure and function and individual roles are not to be confused with the collapse of the family. Families remain more important in the lives of children than other institutions. Family ties are stronger and more vital than many of us imagine in the perennial atmosphere of crisis surrounding the subject.”
—Joseph Featherstone (20th century)
“I have been up to see the Congress and they do not seem to be able to do anything except to eat peanuts and chew tobacco, while my army is starving.”
—Robert E. Lee (1807–1870)