Mayors Press Congress to Enact 4 Percent Minimum Rate, Lower 50 Percent Test in the Next Coronavirus Relief Legislation
On June 1, 67 mayors representing communities across 28 states and the District of Columbia sent a letter to House and Senate leaders urging Congress to establish a minimum 4 percent rate for bond-financed properties and lower the “50 percent test” financed-by threshold that bond-financed Credit properties must meet to receive 4 percent Housing Credits in the next coronavirus relief legislation. Mayors from both parties signed the letter. The letter was coordinated by the ACTION Campaign, a coalition of more than 2,300 organizations and businesses across the nation co-chaired by NCSHA and Enterprise Community Partners.
On May 28, the U.S. Department of the Treasury's Community Development Financial Institutions Fund began accepting applications for the FY 2020 funding round of the Capital Magnet Fund.
The Office of the Comptroller of the Currency (OCC) on May 20 approved a final rule substantially amending its Community Reinvestment Act regulations. The final rule is generally consistent with the proposed rule OCC released late last year but includes some changes in response to public comments.
NCSHA and Novogradac Release Analysis Showing Effect of Lowering 50 Percent Test for Bond-Financed Housing Credit Developments
This week, NCSHA published a report showing how lowering the “financed-by” threshold — commonly referred to as the 50 percent test — for bond-financed Housing Credit projects would impact available Private Activity Bond cap and could increase multifamily affordable housing production. Under current law, multifamily developments financed with tax-exempt housing bonds are eligible to receive the so-called 4 percent Housing Credit if the bonds finance at least 50 percent of total project costs, including land. The credits for such developments do not decrease the state in question’s Housing Credit volume cap. The report considers the outcomes that lowering the financed-by threshold would have if set at 40 percent, 33 percent, and 25 percent. Novogradac conducted the analysis, which NCSHA commissioned.
House Democrats Unveil $3 Trillion-Plus Coronavirus Package with Rent, Mortgage, Liquidity Assistance
On May 12, House Democrats released the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, which would provide more than $3 trillion for coronavirus relief in programs across government agencies, including significant funding for affordable housing. Republicans rejected the proposal immediately, which they view as more of a Democratic wish list than the opening bid in negotiations for a fifth coronavirus relief package.
The Senate Banking Committee convened Tuesday to consider the nomination of Dana Wade for Federal Housing Administration Commissioner and Assistant Secretary for Housing at HUD.
On May 6, Senator Jack Reed (D-RI) introduced legislation, S. 3620, to authorize and fund a $75 billion Housing Assistance Fund that would provide flexible resources directly to state housing finance agencies (HFAs) so they can help households — both homeowners and renters — struggling due to the economic impacts of the COVID-19 pandemic to remain in their homes. NCSHA has been working with Senator Reed’s office to raise support for the proposal, which is one of our topmost priorities.
While the CARES Act stimulus bill recently signed into law provided short-term, temporary relief from monthly mortgage and rent payments for millions of Americans, the law still requires those...
FHFA announced today that it would limit to four months the time period Fannie Mae and Freddie Mac (the GSEs) mortgage servicers must make monthly payments on home loans despite reduced or missed payments from borrowers. Under the policy, once a servicer has advanced four months of missed payments on a single-family loan, it will have no further obligation to advance scheduled monthly principal and interest payments for that loan. This applies to all GSE servicers.
IRS Provides Short-Term Extensions to Certain Housing Credit, Housing Bond Deadlines Due to COVID-19
On April 10, the Internal Revenue Service published Notice 2020-23 providing additional relief for taxpayers affected by the coronavirus pandemic. The notice provides that taxpayers have until July 15, 2020, to perform specified time-sensitive actions due to be performed on or after April 1, 2020, and before July 15, 2020. While the notice does not specifically reference any Housing Credit or Housing Bond deadlines, it applies the July 15 deadline to all time-sensitive actions included in IRS Revenue Procedure 2018-58, which includes numerous deadlines related to these programs.