NAA/NMHC is working with a broad coalition of organizations to seek legislation to address the severe loss of investor capital in the Low-Income Housing Tax Credit (LIHTC) program.
In an August 4 letter to Congress, NAA/NMHC and other organizations proposed the following steps to bolster the LIHTC program:
- Extend the Housing Credit Exchange Program for another year to maintain the development pipeline in 2010. It should also be modified to include the four percent housing credits that accompany tax-exempt multifamily housing bonds.
- Increase the carryback from one to five years to stimulate LIHTC investment demand.
- Broaden the investor base by allowing some S corporations, LLCs and closely held C corporations to offset revenue with housing credit tax benefits.
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