Search Results for: Income Averaging

Average Income Test Final and Temporary Regulations

This final rule sets forth guidance on the Housing Credit Average Income Test (AIT) minimum set-aside and also includes temporary regulations related to reporting on AIT compliance.

Updated IRS FAQs on Taxability of Payments from Coronavirus State and Local Fiscal Recovery Funds

On September 28, 2022, the Internal Revenue Service updated its Frequently Asked Questions (FAQs) pertaining to the tax treatment of various benefits funded through Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The new FAQs clarify that down payment assistance for home buyers funded through SLFRF is not considered federal taxable income, meaning homeowners will not have to report the assistance as income and government entities do not have to issue 1099 forms to recipients of assistance. The updated FAQs also clarify that SLFRF assistance provided to home buyers to help pay mortgage insurance premiums also does not qualify as federal taxable income.

HOME Final Rule Implementing Changes to Commitment Requirement

This regulation finalizes without change an interim rule, published in 2016, that modified the method by which the Department of Housing and Urban Development determines participating jurisdictions’ (PJs) compliance with the statutory 24-month commitment requirement for HOME Investment Partnerships program funds. Specifically, it uses a grant-specific method for determining compliance with the requirement and revised the method for administering program income to prevent PJs from losing allocated HOME funds when they expend program income. 

NCSHA Testimony: Senate Hearing on the Role of Tax Incentives in Affordable Housing

Oregon Housing and Community Services Director Andrea Bell testified on behalf of NCSHA at a Senate Finance Committee hearing on the role of tax incentives in affordable housing. Bell told the committee the Housing Credit and tax-exempt private activity Housing Bonds are the most important production tools available to state HFAs to finance affordable rental housing and help low- and moderate-income families become home buyers.

ACTION Campaign Recommendations for IRS/Treasury 2022-23 Priority Guidance Plan

This June 3, 2022, letter provides The ACTION Campaign’s recommendations to the Internal Revenue Service and Treasury Department for their 2022–23 Priority Guidance Plan.

NCSHA Recommendations for IRS/Treasury 2022-23 Priority Guidance Plan

This June 3, 2022, letter provides NCSHA’s recommendations to the Internal Revenue Service and Treasury Department for their 2022–23 Priority Guidance Plan.

Congressional Letter to Treasury and IRS on Average Income Test

This May 26, 2022, letter from Senators Michael Bennet (D-CO), Todd Young (R-IN), Rob Portman (R-OH), Ron Wyden (D-OR), and Mike Crapo (R-ID) and Representatives Suzan DelBene (D-WA), Jackie Walorski (R-IN), Donald Beyer (D-VA), and Richard Neal (D-MA) urges the Treasury Department and Internal Revenue Service to expedite release of the final rule on the Housing Credit Average Income Test in a manner that is workable and responsive to Housing Credit industry feedback. 

Fiscal Recovery Funds Final Rule: Frequently Asked Questions

This Treasury Department document provides answers to frequently asked questions about the Coronavirus State and Local Fiscal Recovery Funds (FRF). Of particular interest to housing stakeholders are sections 1.8 (use of funds by nonprofits); 2.14 (investments in affordable housing); 2.24 (eviction prevention and housing stability); 4.2 (infrastructure costs in affordable housing); 4.9 (use of FRF for loans, including more detail on cost of the loan and revolving loan funds); 6.15 (application of Davis-Bacon Act requirements), and 13.11 (treatment of program income).

State Fiscal Recovery Funds in Action: North Carolina

The Coronavirus State and Local Fiscal Recovery Fund provides $350 billion to state, local, and tribal governments to support their response to and recovery from the COVID-19 public health emergency. This profile highlights how North Carolina is using these recovery dollars for affordable housing.  The LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence (LIFELINE) Act, H.R. [...]

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