Novogradac & Company Llp

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, discuss the state of various community development tax incentives with Peter Lawrence, Novogradac's director of public policy and government relations. Lawrence shares his work history, then examines the prospects for infrastructure legislation, as well as where the corporate tax rate and capital gains tax rate might land. Then they look at the chances of a change in the 50% private activity bond test, as well as the chance for passage of bills that include permanency for the new markets tax credit, expansion and extension of renewable energy tax incentives and the extension or phasing out of the opportunity zones incentive. They conclude with a discussion of how advocates can encourage expansion of community development incentives.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, Novogradac partner Jim Kroger, CPA, and Novogradac's Melissa Chung, CPA, discuss the increasing competition for private activity bonds (PABs) for affordable housing, which pair with 4% low-income housing tax credits to provide equity for properties. They discuss why and when the increase in use of PABs started, factors that have dramatically increased competition in California, approaches taken by states in light of the increased demand, what developers should be doing to improve their ability to compete, Novogradac services to assist developers and tips to be more effective.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Brent Parker, CPA, discuss what qualified opportunity fund managers and investors need to know about 2021 opportunity zones "invest-by" deadlines and measurement dates, COVID-19 relief and more.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by Mark Shelburne, a housing policy consultant at Novogradac, to discuss trends and insights into state low-income housing tax credit (LIHTC) qualified allocation plans (QAPs). They discuss the requirements for QAPs, how QAPs are adopted and how developers should view the documents. They also address the role of QAPs in properties financed with private-activity bonds and 4% LIHTCs, as well as what developers should know about influencing the next QAP for their state.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Michael Kressig, CPA, to explore the topic of state tax credits, which are often a critical part of the capital stack that can make affordable housing, community development and historic preservation developments financially feasible. They discuss the structural features associated with state tax credits, how tax credits vary across state programs and the critical implications those differences have on the upfront value of the tax credits and structuring options.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Jeff Nishita to discuss how maximize low-income housing tax credit (LIHTC) equity. They discuss the potential to maximize LIHTC equity, how to increase and accelerate tax credits, how to increase and accelerate tax losses, how to identify investor goals and consider how a development can help investors achieve those goals. They also discuss the importance of correctly timing the arrival of equity.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Blair Kincer and Bob Ibanez, a senior manager in Novogradac's public policy group, to discuss community outcomes and their significance in determining new markets tax credit (NMTC) awards. They examine how community outcomes have historically been viewed in the NMTC world and look at what might be coming. They also discuss how to measure community outcomes, the importance of documenting the impact of previous NMTC investments and how being able to demonstrate social impact is growing in importance to attract investors in all community development incentives.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Rich Larsen, CPA, to discuss the U.S. Department of Housing and Urban Development's (HUD's) recent guidance on Faircloth-to-Rental Assistance Demonstration (RAD) conversions. They examine how public housing authorities (PHAs) got so far below their public housing cap, what the new guidance allows, steps that PHAs and developers should consider, how a Faircloth-to-RAD conversion works and which PHAs have the most capacity.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Tom Boccia, CPA, to discuss the historic tax credit (HTC) equity market, including the impact of shifting from a one- to a five-year credit, how the COVID-19 pandemic affected pricing and the importance of geography and asset classes. They also discuss the repercussions of the drafting error on provisions concerning qualified improvement property in the 2017 tax reform legislation and the subsequent technical correction, then examine the Historic Tax Credit Growth and Opportunity (HTC-GO) Act, looking at what provisions would have the biggest impact.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partners Brad Elphick, CPA, and Rebecca Darling, CPA, to discuss steps that community development entities (CDEs) and qualified businesses should be taking now to prepare for the next new markets tax credit (NMTC) application round. They discuss the timing of the next NMTC awards and application round, where CDEs should start preparing, keys to building a successful application, how Novogradac can help CDEs with their application, when businesses should begin discussing NMTC financing with CDEs and how businesses can qualify for the financing.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by Novogradac partner Tom Boman, CPA, and Novogradac principal Reza Karim, CPA, to discuss best practices for renewable energy property owners, investors, developers and operators to maximize the benefits of state and local tax incentives and exclusions. They'll discuss various considerations, when project sponsors should begin considering state and local incentives, the magnitude of potential savings, tax and consulting services for owners and common mistakes to avoid.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, Peter Lawrence, Novogradac's director of public policy and government relations and Karen Destorel, Novogradac's tax policy research associate, discuss the Affordable Housing Credit Improvement Act (AHCIA) of 2021. They focus on the provisions in the bill, looking at the history of the legislation, as well as provisions directed at production/preservation, financial feasibility and affordable housing rental policy.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Thomas Stagg, CPA, discuss HUD income limits for fiscal year 2021. They discuss income limits basics, year-over-year income limits changes and factors that can affect future income limits, including the effects of the pandemic.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Amanda Read, CPA, discuss community development financial institutions (CDFIs) and the Capital Magnet Fund (CMF), including explanations of each. They discuss how to apply for the CMF, how the CMF interacts with tax incentives, what CMF applicants should be doing now, what makes a successful CMF application and how previous applicants should look at their experience. They also discuss the interaction between CDFIs and the Federal Home Loan Bank.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Brad Elphick, CPA, discuss equity pricing for new markets tax credits (NMTCs), what factors are involved and what businesses and community development entities (CDEs) should do to address issues that arise out of lower NMTC equity pricing. They also compare the prices to those during the Great Recession, discuss the impact of the five-year extension of the NMTC and look at the importance of knowing the "language" of NMTCs.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Craig Staswick, CPA, discuss cost segregation studies, including why they have become more popular in recent years, when and why low-income housing tax credit (LIHTC) stakeholders should start considering the studies, how cost segregation studies can accelerate depreciation deductions and what's involved in the studies. They also discuss the future of the studies, how cost segregation studies apply to non-LIHTC properties and more.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Brad Weinberg, MAI, CVA, CRE, discuss rent reasonableness determinations and rent comparability studies, including how public housing authorities (PHAs) can benefit from them, what considerations go into rent reasonableness determinations and how the COVID-19 pandemic has affected rental trends in the United States. They also discuss how a PHA should evaluate a service provider, the intersection of Section 8 and low-income housing tax credit (LIHTC) properties in rent reasonableness determinations and more.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Christina Apostolidis, CPA, discuss several legislative and regulatory tax changes that took effect over the past few years of which owners and investors in low-income housing tax credit (LIHTC) and tax-exempt bond financed properties need to be aware. They discuss the consequences of those changes, as well as strategic planning opportunities presented.

The use of 4% low-income housing tax credits and private activity bonds for the construction and rehabilitation of affordable housing has increased steadily since 2016, in spite of the adverse effects of the 2017 tax bill and other financing challenges. The recent enactment of the 4% LIHTC minimum will likely create a surge in this financing activity. Learn about which developments qualify for the 4% LIHTC minimum, how the LIHTC floor is affecting equity pricing and more in this week's Novogradac Tax Credit Tuesday podcast with Michael Novogradac, CPA, and guest Novogradac partner Dirk Wallace, CPA.

Under the Rental Assistance Demonstration (RAD) program, public housing authorities (PHAs) can purchase, resyndicate, develop and manage affordable housing properties. These opportunities are part of the reason why an increasing number of PHAs are creating low-income housing tax credit (LIHTC) entities and other affiliate entities. In this week's Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, and Novogradac partner Rich Larsen, CPA, discuss what PHAs should know about setting up affiliate entities, from structuring options to important LIHTC regulations.