Governor Tom Wolf yesterday announced conditional awards totaling $43.4 million in low-income housing tax credits and approximately $3.8 million in PennHOMES funding for the construction of 39 affordable multifamily housing developments in Pennsylvania. The tax credits are administered by the Pennsylvania Housing Finance Agency and were approved by its board.

"These tax credits are crucial because they fill a current void in the housing marketplace," said Governor Wolf. "Low-income housing tax credits make possible the construction of affordable rental housing that otherwise wouldn't get built. Given the ongoing demand for affordable housing, the apartments we make possible with this funding will make people's lives better and will meet a critical need in communities statewide."

When completed, the developments receiving conditional funding yesterday will preserve and create an additional 1,941 rental housing units for Pennsylvania residents.

Registration is now open for McKonly & Asbury’s next Affordable Housing Seminar to be held on Friday, May 18, 2018.

You won’t want to miss this seminar! We’ve brought in experts to discuss current hot topics in the Low-Income Housing Tax Credit industry.

Topics and speakers to include:

Cost Segregation Studies and 45L Credits - Luis Mego from KBKG. 

Legislative Update - Judy Crosby from Kutak Rock will give us a legislative updates relating to the low-income housing tax credit program. Judy has been a popular speaker at our seminars in the past and we are excited to welcome her back!

News From PHFA - Holly Glauser, Director of Development at the Pennsylvania Housing Finance Agency, will speak on recent low-income housing tax credit news from PHFA’s perspective. Holly is always a welcomed speaker and we look forward to her update from PHFA!

"Twinning" - Judy Crosby will discuss combining 9% development with a Tax Exempt Bond/3% development. 

The Pennsylvania Housing Finance Agency (PHFA) has issued a draft of their 2019 Allocation Plan for low-income housing tax credits. 

According to the draft Allocation Plan, applicants will be required to submit an Intent to Submit Fact Sheet and Development Synopsis to PHFA on or before July 13, 2018. The final applications will be due to PHFA by 3 pm on September 28, 2018.

There are a few proposed changes in the scoring criteria. 

The president signed a $1.5 trillion tax cut bill into law on December 22, 2017. The law retained the Low Income Housing Tax Credit (LIHTC) and preserved the tax exemption for private activity bonds. However, there are a number of changes that will have an indirect impact on how affordable housing properties are financed and operated. Let’s start with five.

The Pennsylvania Housing Finance Agency (PHFA) has updated their Placed-In-Service Package requirements. There are numerous changes and clarifications to the package; which PHFA believes will help developers submit complete Placed-In-Service Packages, and therefore reduce the time it takes to receive their IRS Form 8609.

The FHLBank Pittsburgh has announced its 2017 funding round for the Affordable Housing Program. The funding round will open on June 6 and there is approximately $23 million in funding available for 2017. Applicants may apply for a maximum of $650,000 per development. Applications are due on August 10 and awards will be announced on December 14.

In April 2015, the Financial Accounting Standards Board (FASB) released Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs. The purpose behind the release of this ASU was to reduce the complexity surrounding the disclosure of debt issuance costs and debt discounts and premiums and, in turn, provide the users of financial statements with more useful information.

The Pennsylvania Housing Finance Agency (PHFA) has issued a draft of their 2017/2018 Qualified Allocation Plan (QAP). 

In January 2017, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update (ASU) 2017-02, Clarifying When a Not-for-Profit Entity That Is a General Partner or a Limited Partner Should Consolidate a For-Profit Limited Partnership or Similar Entity.

ASUs released in 2015 regarding consolidations created uncertainty about when a not-for-profit entity (NFP) that is a general partner should consolidate a for-profit partnership or similar legal entity. (An example of a similar legal entity would be a limited liability company where the managing member is the functional equivalent of the general partner.) With the release of ASU 2017-02, the FASB eliminates diversity in practice and provides clear consolidation guidance to the parties involved. NFP general partners are now able to refer directly to the Not-For-Profit Entities section of the Codification (Subtopic 958-810) for consolidation guidance.