Senator Jeff Bingaman introduced legislation on March 18, 2010, intended to stimulate investment in affordable housing. Bingaman introduced S. 3141 Low-Income Housing Tax Credit Recovery Act of 2010, which extends the period during which low-income housing tax credits can be carried back from one year to five years. All “carried back” proceeds must be invested in new housing developments, which ensures that this tax benefit flows only to investors who are committed to creating additional housing.

 
McKonly & Asbury Spring 2010 Affordable Housing Seminar
Friday, May 14, 2010
10:00 a.m. – 3:00p.m.
Giant Community Center, 3301 East Trindle Road, Camp Hill, PA  17011

Join us for our first seminar in our 2010 seminar series!

Speakers and Topics Include :

• Michael Hoffner, Partner, McKonly & Asbury, LLP – Financial Statement Consolidation of Affordable Housing Projects - Understanding the New Rules
•  Holly Glauser, Director of Development, PHFA – Update on PHFA News and Q&A Session
•  Tom Eastman, VP Syndication–Originator, Enterprise Community Investment, Inc. – Discussion on the Central PA Equity Market 
•  Joanne Andrews, Marketing Consultant, JLA Consulting, LLC – Understanding Market Studies
• Elizabeth Brooks, McKonly & Asbury, LLP – Low-Income Housing Tax Credit Legislative Update

  There is a registration fee of $35 which includes lunch.
   
CPE credits are available.

Register now at affordablehousing@macpas.com.

The U.S. Department of Housing and Urban Development (HUD) has issued an extension of their electronic filing deadline for December 31, 2009 year end multifamily housing project audits until April 30, 2010. The extension is due to “infrastructure performance problems” at HUD.

Today, March 17, 2010, the IRS released Notice 2010-18 which provides guidance on three issues under Section 1602, the Low-Income Housing Tax Credit Exchange Program, of the American Recovery and Reinvestment Tax Act of 2009.  The notice clarifies that exchange funds do not reduce building basis. The notice also clarifies that exchange funds, even though awarded in the form of grants, are not subject to federal taxation. Additionally, Notice 2010-18 provides guidance to state housing credit agencies as to how to reduce their annual low-income housing tax credit ceiling by the amount of credits exchanged for cash.

On March 10, 2010, the Senate passed the American Workers, State, and Business Relief Act of 2010, H.R. 4213, which had previously passed the House on December 9, 2009. This legislation will now be reviewed by a committee of senators and representatives in the hopes of resolving the differences between each version and then will go to the president for signature. If this bill is signed into law, it would extend the Section 1602 Exchange Program for one year.

On February 24, 2010, Representative Linda Sanchez of California introduced H.R. 4687 the Low-Income Housing Tax Credit Exchange Expansion and Job Creation Act of 2010. This bill would expand the Section 1602 Exchange Program to include credits generated from tax-exempt bond financing or 4% credits.

McKonly & Asbury’s Affordable Housing Seminar held on September 11, 2009 included Rockport Mortgage as a presenter. Linda Pellegrino and Joe Mueller from Rockport Mortgage spoke about using FHA funding to finance affordable housing projects. Whether or not you attended this seminar, you are invited to take advantage of this opportunity we are excited to offer you! We are offering one on one meetings in our Camp Hill office with Linda and Joe on April 22 and 23. Linda and Joe will be available to discuss customized recapitalization/financing options concerning your specific projects and whether any of the FHA financing programs for Multifamily Apartments would be a good fit. FHA programs to be discussed include those for new construction, substantial rehabilitation, acquisition, and refinancing of apartments. For apartments that have a HUD subsidy, Linda and Joe will be able to offer guidance on ways to recapitalize those projects using HUD preservation programs so that owners can maximize the rents and value in conjunction with new FHA financing. Linda and Joe will also be able to discuss FHA financing programs for Healthcare Facilities including nursing homes, assisted living facilities, and hospitals.

Thursday and Friday, April 22 and 23, 2010

McKonly & Asbury Conference Room, 415 Fallowfield Road, Camp Hill, PA  17011

There is no cost for this opportunity.

Reserve your appointment now by e-mailing affordablehousing@macpas.com.