NCSHA Blogs
Volume Caps for the Housing Credit and Private Activity Bonds Increase in 2018
This week, IRS published Revenue Procedure 2017-58, which sets out 2018 inflation adjustments for various tax provisions, including the Low Income Housing Tax Credit (Housing Credit) volume cap and the private-activity tax-exempt bond volume cap. In 2018, each state’s Housing Credit authority will be $2.40 per capita or $2,765,000 for the small state minimum. This is an increase over 2017, during which each state received $2.35 per capita or the small state minimum of $2,710,000.
Administration Proposes Reforms and Debt Relief for Flood Insurance Program
The Trump Administration yesterday called on Congress to forgive a portion of the National Flood Insurance Program’s (NFIP) debt. The Administration also proposed that Congress enact several reforms to NFIP to improve its solvency and encourage private participation in the flood insurance market.
House Passes Legislation to Classify Muni Bonds as High-Quality Liquid Assets
The U.S. House of Representatives yesterday passed via voice vote legislation (H.R. 1624) that would allow large banks to count some of their municipal bond investments as high-quality liquid assets (HQLAs) under federal bank liquidity standards. The legislation, which NCSHA supports, was introduced by Representatives Luke Messer (R-IN) and Carolyn Maloney (D-NY).
Financial Services Committee Questions Watt on GSE Activities
Members of the House Financial Services Committee questioned Federal Housing Finance Agency (FHFA) Director Mel Watt on a variety issues related to oversight of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac during a hearing held yesterday. Committee members also asked for Watt’s thoughts on how a future housing finance system should be structured.
IRS Proposes Changes to PAB Public Notice Requirements; Special Standards for MRBs
The Internal Revenue Service (IRS) earlier today published in the Federal Register a proposed rule that would simplify the public approval requirements that apply to tax-exempt Housing Bonds and other private activity bonds (PABs). The proposal also includes an NCSHA-supported special exemption from certain public approval requirements for single-family mortgage revenue bonds (MRBs).
FHFA Proposed Strategic Plan for 2018-2022 Would Direct GSEs to Work with HFAs
The Federal Housing Finance Agency (FHFA) earlier today released its proposed Strategic Plan for Fiscal Years 2018-2022. The plan outlines FHFA's goals and priorities for overseeing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (FHLBs).
Joint Administration-Congress Tax Reform Framework Preserves Housing Credit
This morning the Administration and Republican leaders in both the House and Senate together released their Unified Framework for Fixing Our Broken Tax Code, a broad tax reform outline intended to serve as a template for the tax-writing committees to develop tax reform legislation. We are excited to report that the Administration and congressional leaders propose to retain the Low Income Housing Tax Credit, saying that "the framework explicitly preserves business credits in two areas where tax incentives have proven to be effective in promoting policy goals important in the American economy: research and development (R&D) and low-income housing."
House Passes FY 2018 Omnibus Spending Bill
Late last week, the House voted largely on party lines (211-198) to pass a $1.23 trillion Fiscal Year (FY) 2018 omnibus spending bill that includes funding for HUD and USDA housing programs. The Make America Secure and Prosperous Appropriations Act for FY 2018, HR 3354, is now headed to the Senate but is not expected to be brought up for a vote there. Instead, the measure may be used as the House’s starting position for negotiations over full-year FY 2018 appropriations legislation that could take place later this year.
Report: Housing Bond Issuance Soared in 2016
Private activity Housing Bond issuance increased nearly 60 percent from 2015 to 2016, according to the Council of Development Finance Agencies’ (CDFA) latest Annual Volume Cap Report for 2017. The report, which CDFA released yesterday, presents data on how states allocate and utilize their private activity bond (PAB) cap each year. All but two states submitted data for 2016, a higher participation rate than achieved for previous reports.
Senate Confirms Pam Patenaude for Deputy HUD Secretary
The U.S. Senate earlier today confirmed Pamela Patenaude’s nomination to serve as Deputy Secretary for Housing and Urban Development (HUD). The final vote approving Patenaude’s nomination was 80-17, with all Republicans and most Democrats voting in favor.
