More analysis from Nixon Peabody

Nixon Peabody has been especially prolific these last two weeks with "action alerts" important to the affordable housing and housing tax credit syndication businesses. Their initial memo on the Katrina situation, which we summarized last Wednesday, is now available here. Their brief take on Notice 2005-69, which we excerpted here, is now online at this link.

Most recently, they've circulated a three-page analysis of the new HUD rule regarding mixed-finance 202/811 development, which we've discussed here, here, and here. Nixon Peabody's comments include this one:

With respect to the limited partnership structure, HUD is continuing to require that the general partner be a section 501(c)(3) or 501(c)(4) entity, ignoring language in the Act that appears to provide for a for-profit general partner so long as that entity is controlled by a nonprofit entity. This could have negative effects on depreciation that could lower tax credit investment in these projects.

There's much more, all densely specific and hence difficult to summarize. The whole memo should be posted publicly soon in Nixon Peabody's Affordable Housing Law Alert section. Maybe you want to recheck that page around the middle of next week.