San Francisco, Calif. (PRWEB) April 26, 2013
Members of the LIHTC Working Group, in an April 15, 2013 letter to the House Ways and Means Committee Real Estate Tax Reform Working Group, highlighted the successes of the Low-Income Housing Tax Credit (LIHTC) program and urged the committee to retain the program as a permanent part of the tax code. The LIHTC Working Group sent the letter in an effort to remind congressional leaders of LIHTC program’s key benefits, including both affordable housing production and job creation.
“Approximately 19 million renters are rent burdened and need affordable housing options. Without the low-income housing tax credit, these overburdened families would see a significant reduction in their housing options,” said Stacey Stewart, CPA, a partner in Novogradac & Company LLP’s Dover, Ohio office who leads the LIHTC Working Group’s efforts.
In its letter, the LIHTC Working Group describes the key benefits of the LIHTC program. The letter says that the program has to date helped build, renovate and/or preserve more than 2.5 million affordable housing rental units. It creates jobs for about 95,000 people each year and generates approximately $7.1 billion in economic income each year. The LIHTC program also experienced much lower foreclosure rates than other real estate classes, observed lower levels of noncompliance with program requirements and maintained affordable housing rental stock over the long term.
Additionally, the group notes that the LIHTC is an acquired tax benefit. Investors assume development and operating risk when they invest in LIHTC properties and only get to claim the tax credits if the buildings are maintained in compliance with program requirements. A repeal or reduction of the tax credit program would have a dramatic effect on low- and moderate-income families.
“The Low-Income Housing Tax Credit program has a track record of providing quality affordable housing for low- to moderate-income families. Because investors only receive tax credits for successful properties, the LIHTC program encourages private investment in only the best developments. As a result, families have access to more than 2.5 million affordable housing units throughout the country. We’d like representatives to keep these community benefits in mind as they consider changes to the tax code,” said Michael J. Novogradac, CPA, managing partner in the firm’s San Francisco office and the LIHTC Working Group’s advisor on industry and governmental affairs.
For more details and a copy of the letter, please go to http://www.lihtcworkinggroup.com. The LIHTC Working Group was established by Novogradac & Company LLP in 2008 to provide a platform for LIHTC industry participants to work together to resolve technical and administrative LIHTC program issues. Members meet monthly via conference call to provide input regarding pending action items as agreed to by the members of the group. Comments and suggestions generated during the group discussions are agreed to and submitted in writing directly to Treasury, the Department of Housing and Urban Development and/or various state agencies. For more information, visit http://www.lihtcworkinggroup.com or email lwg(at)novoco.com.
Novogradac & Company LLP was founded in 1989, and has since grown to more than 400 employees and partners in offices in San Francisco and Long Beach, Calif.; the Washington, D.C., Atlanta, Ga., Detroit, Mich., Kansas City, Mo. and Seattle, Wash. metro areas; St. Louis, Mo.; Boston, Mass.; Austin, Texas; Dover, Columbus and Cleveland, Ohio; New York, N.Y. and Portland, Ore. 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 military base redevelopment, preparation and analysis of market studies and appraisals of multifamily housing investments and renewable energy tax credits.