The Internal Revenue Service (IRS) and the U.S. Department of Housing and Urban Development (HUD) have released guidance on the Low Income Housing Tax Credit (Housing Credit) provisions which were included as a part of the American Recovery and Reinvestment Act of 2009. ARRA includes $2.25 billion allocating by HUD to state Housing Credit allocating agencies intended to provide gap financing for properties which have not attracted sufficient private equity. ARRA also includes a provision which allows state Housing Credit allocating agencies to elect to substitute a portion of their Housing Credit per capita allocation in 2009 for grant funding to be used to make sub-awards to finance the construction, or acquisition and rehabilitation of qualified low-income housing.
The IRS has published an application package and terms & conditions for state Housing Credit allocating agencies wishing to apply for grant funds in lieu of their 2009 per capita Housing Credit allocations. States wishing to apply for grant funds should visit http://www.treasury.gov/recovery/LIH-grants.shtml for more information and an application form.
Additionally, HUD has issued CPD Notice 09-03 which explains program requirements and provides guidance to state Housing Credit allocating agencies wishing to apply for gap financing. Submissions are due to HUD by Wednesday, June 3, 2009. HUD and the Department of Treasury will be conducting a joint webinar on Wednesday, May 6, 2009 from 2:00 p.m. – 4:30 p.m. on both these programs. The webcast can be accessed at http://www.hud.gov/webcasts/. The webcast will be archived and available for later viewing. For more information about HUD CPD Notice 09-03 visit http://www.hud.gov/recovery/tax-credit.cfm.