On Monday, February 14, 2011, President Obama announced his FY2012 budget proposals noting the proposals represented a “responsible approach that will make the tough choices to cut spending and cut the deficit.”
Of interest to AHTCC members are two Low Income Housing Tax Credit (Housing Credit) program proposals included in the Department of Treasury budget. The first proposal would allow properties to expand the incomes served through their properties while still maintaining property compliance. Specifically, units could be occupied by individuals or families earning up to 80 percent of area median income (AMI) so long as they are offset by units occupied by individuals or families earning less than 60 percent of AMI – or significantly less – resulting in an average of 60 percent of AMI. The budget also includes a proposal which would allow for a 30 percent basis boost for properties financed with tax-exempt bonds that are subject to private activity bond volume cap. The properties eligible for this boost would involve preservation, recapitalization, and rehabilitation of existing, federally funded, housing subject to long-term use agreements limiting occupancy to low-income households. This proposal would be limited to properties whose financing includes tax-exempt bonds whose aggregate issue price is not more than an amount equal to 0.4 percent of the State’s volume cap for the calendar year in which the bonds are issued.
AHTCC feels it is an excellent sign that the Housing Credit was included in the President’s budget proposals especially in light of current discussions on tax reform suggesting elimination of many tax expenditures. AHTCC encourages its members to continue reaching out to their Congressional delegations explaining the importance of the Housing Credit program.
If you have any questions concerning the FY2012 proposed budget or the Coalition’s legislative proposals please contact Coalition legislative counsel Jim Miller (202-799-4379 or James.Miller@dlapiper.com) or Coalition executive director Victoria Spielman (202-585-8162 or Victoria.spielman@taxcreditcoalition.org).