2. Tax Extenders Package
A major victory came for the affordable housing industry as the year is coming to a close. Congress approved a permanent minimum 9% rate for the LIHTC in its final extenders package on Dec. 18.
Winning a permanent 9% fixed rate is the best scenario for the industry and will provide certainty to the LIHTC community in preparing applications since they can count on the minimum 9% rate and will make many deals more financially feasible.
It also represents the bipartisan support the program has in Congress.
“The top story on the legislative side was the amount of support we kept for the program from the John Boehner to Paul Ryan speakership change,” said Bob Moss, principal and national director of governmental affairs for CohnReznick. “It could have been a whole new ballgame for us, but with the insertion of the 9% fixed rate provision in the permanent bill, we can plainly see the support we have built within leadership and the Ways and Means Committee.”
Another win for the affordable housing industry was the inclusion of the long-term extension of the New Markets Tax Credit (NMTC) in the tax extenders package. The program received a five-year extension from 2015 to 2019 at its current annual funding level of $3.5 billion.