SAN FRANCISCO (PRWEB) January 07, 2016
As the low-income housing tax credit (LIHTC) approaches its 30th anniversary, national accounting and consulting firm Novogradac & Company LLP has released a 160-page report on the beneficial effects of America’s most important and successful affordable housing production tool.
The LIHTC serves low-, very-low and extremely low-income renters–and the Novogradac Low-Income Housing Tax Credit Showcase explains how the LIHTC works and who lives in the affordable rental homes financed by the credit. The report also describes various types of LIHTC properties and looks at the credit from the perspective of residents, state housing agencies, developers, investors and syndicators. The Novogradac Low-Income Housing Tax Credit Showcase also profiles 72 LIHTC developments in 34 states and territories.
“For 30 years, the LIHTC has helped America’s less-fortunate citizens find quality, safe, affordable housing and this report highlights why and how it works,” said Michael J. Novogradac, CPA, managing partner in Novogradac’s San Francisco office. “As one developer says, the LIHTC is the ‘sun that all the other affordable housing programs revolve around.’ This report shows how that happens–and it also highlights the benefits to the nation as a whole.”
Peter Lawrence, Novogradac’s director of public policy and government relations in Washington, D.C., said the special report comes at a crucial time. “As Congress considers significant tax reform, this showcase reminds us of how successful the LIHTC has been for decades,” he said. “People all over the nation have had their lives enriched by housing that was built only because of the LIHTC. In light of its achievements, it makes sense for Congress to consider an increase in LIHTC resources to help meet the tremendous need and demand for affordable rental housing.”
The Joint Center for Housing Studies of Harvard University reported last month that the share of U.S. households that rent is at its highest level since the mid-1960s following an unprecedented decade-long surge in rental demand, meaning the need for affordable housing is greater than ever. The Novogradac report shows how the LIHTC helps meet that need.
The LIHTC was part of the Tax Reform Act of 1986, which was signed into law Oct. 22, 1986, by President Reagan. Over the decades since, nearly 3 million affordable rental homes have been built through the credit, involving approximately $100 billion of private equity capital to finance the apartments. About 3 million jobs have been created by LIHTC developments, while $9.1 billion in local income and $3.5 billion in tax revenue is created each year because of LIHTC-financed development. Congress recently affirmed the credit’s significance by permanently extending the minimum 9 percent LIHTC rate.
Novogradac’s report demonstrates how the LIHTC is not only successful, it is flexible. While it is part of the Internal Revenue Code, the LIHTC is administered by state agencies. Developers can use the credit to build a variety of affordable housing, including units for families, seniors, veterans, residents with special needs, and myriad other groups. As illustrated by the report, LIHTC properties can be multistory buildings, garden-style apartments, single room occupancies, single-family homes and adaptive reuse of historic buildings. LIHTC housing is also located throughout the country–inner cities, suburbs, rural areas, and Native American reservations–and in all 50 states, Washington, D.C., Puerto Rico, and every congressional district.
Downloadable copies of the report are available at http://www.novoco.com/products/special_report_showcase_lihtc.php
Novogradac began operations in 1989 and has since grown to more than 500 employees and partners with offices in San Francisco, Walnut Creek and Long Beach, Calif.; Dover, Columbus and Cleveland, Ohio; St. Louis; Boston; New York; Chicago; Austin, Texas; Portland, Ore.; Naples, Fla., Raleigh, N.C.; and the greater metropolitan areas of Philadelphia; Washington, D.C.; Atlanta; Detroit; Kansas City, Mo.; and Seattle. Novogradac was recently named the INSIDE Public Accounting’s (IPA’s) list of the “Best of the Best” firms for the 13th time. It also grew to the 32nd largest accounting firm in the nation, according to IPA.
Specialty practice areas include tax, audit and consulting services for tax-credit-assisted multifamily and affordable housing, community revitalization and rehabilitation of historic properties. Other areas of expertise include business valuation, preparation and analysis of market studies and appraisals of multifamily housing investments and renewable energy tax credits.