HVAC Breaking News

Mar. 19, 2002: Senate Bill Will Increase Supply Of Affordable Apartments, Says NAHB

March 19, 2002
/ Print / Reprints /
ShareMore
/ Text Size+
WASHINGTON, DC — Legislation introduced in the Senate last week by Senators Bob Graham (D-FL), Orrin Hatch (R-UT), Jim Jeffords (I-VT), Robert Torricelli (D-NJ), and John Kerry (D-MA) is important for restoring the Low-Income Housing Tax Credit (LIHTC) program as a tool for building affordable apartments nationwide, according to the National Association of Home Builders (NAHB).

"Senators Graham, Hatch, Jeffords, Torricelli, and Kerry are to be commended for their efforts," said Gary Garczynski, NAHB president. "This bill is about increasing the supply of affordable rental housing for hardworking American families."

S. 2006 clarifies specific development costs that may be included when calculating the amount of tax credits for which a multifamily project qualifies under the LIHTC program. The legislation is the companion to House bill H.R. 3324, which was introduced by Representatives Nancy Johnson (R-CT) and Charlie Rangel (D-NY) last November.

NAHB says the LIHTC program has been hampered by uncertainties since the Internal Revenue Service two years ago published five Technical Advice Memoranda (TAMs) that essentially disqualified many development costs previously eligible for inclusion under the tax credit program. As a result, the level of equity financing available for each project has been substantially reduced, making a number of affordable housing properties financially infeasible for developers.

The legislation spells out that certain development costs that have been included in tax credit eligible basis under generally accepted industry practice will continue to be included in basis for the Low Income Housing Tax Credit. To accomplish this, the bill introduces the concept of "development cost basis" and specifically identifies costs that will qualify.

“It is critical for all of the eligible basis costs to be clarified to sustain this important program," said Garczynski. "We urge the Senate to support and move this legislation, which can make all the difference in helping us meet the critical demand for affordable rental housing in this country."

Publication date: 03/18/2002

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by Greg Mazurkiewicz

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 Energy Efficiency Forum

Highlights from the 25th annual Energy Efficiency Forum in Washington, D.C.

Podcasts

NEWSMakers: Joseph Groh

Joseph Groh, an industry veteran boasting 35 years of HVAC experience, discusses the 2008 bicycle accident that cut his career tragically short, and how the Joseph S. Groh Foundation is his way of giving back to the construction trade. Posted on Aug. 22.

More Podcasts

ACHRNEWS

NEWS 08-25-14 cover

2014 August 25

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Prohibiting HFCs

EPA is proposing a rule that would prohibit some HFCs in select refrigeration applications. Do you agree with this move?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con