San Francisco, CA (PRWEB) June 13, 2013
If current corporate tax reform efforts are successful, the amount of equity that can be raised from the low-income housing tax credit (LIHTC) could decrease significantly, according to a report released by Novogradac & Company LLP. This month, tax credit expert Michael J. Novogradac, CPA, speaking at Housing Credit Connect in San Francisco will describe how this could happen and what it would mean for affordable rental housing development.
To gauge the effect of lower corporate tax rates and longer depreciation periods on the LIHTC, Novogradac & Company analyzed the possible ripple effects of these two tax reform outcomes on LIHTC investor yields, investor equity pricing and the amount of equity raised. The findings of that report, as well as related updates from the tax reform front, will be featured in Mr. Novogradac’s presentation to Housing Credit Connect attendees. Attendees include LIHTC allocating agency representatives, federal program regulators, affordable housing developers, lenders, syndicators, investors, tax advisors, asset managers, nonprofits, compliance experts, property managers, service providers and other industry leaders.
“Applying the report’s analysis to today’s LIHTC equity market suggests that lower corporate tax rates and extended depreciation periods could mean a loss of as much as $1 billion dollars, or more, in equity used to finance affordable rental housing. In light of the program’s significant benefits, including affordable housing creation and job generation, it’s important for affordable housing stakeholders to know how the LIHTC will be affected by these proposals,” said Michael J. Novogradac, CPA, managing partner in Novogradac & Company’s San Francisco office.
The annual event, presented by the National Council of State Housing Agencies (NCSHA), convenes decision makers and LIHTC experts to discuss the top issues facing this vital housing resource. NCSHA has sponsored the event since 1992, which was formerly known as NCSHA’s Housing Credit Conference & Marketplace.
This year’s Housing Credit Connect will explore the latest innovations in LIHTC development, finance, compliance and management, including emerging trends from the equity and bond markets, strategies for cost-effective development, new multifamily financing opportunities, deal structuring and underwriting tactics, Year 15 preservation and disposition strategies, best practices in asset management and proactive approaches to program compliance. The conference will also provide breaking news on legislative and regulatory program developments, plus forecasts of new issues facing the industry in the year ahead.
For more information about the Housing Credit Connect program agenda, registration, or sponsorship opportunities, please visit http://www.ncsha.org/housingcreditconnect.
For a copy of the report, “Affordable Rental Housing After Tax Reform,” please go to http://www.taxcredithousing.com or send an email to CPAs (at) novoco (dot) 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.