Fannie Mae Comments on LIHTCs
Fannie Mae leaders said they will look closely at the Housing and Economic Recovery Act of 2008, which was passed by the Senate on Saturday and awaiting President Bush’s signature, to see what the legislation means for their low-income housing tax credit (LIHTC) investing business.
The bill includes several key changes to the LIHTC program, including increasing the state housing credit ceiling by 20 cents in 2008 and 2009. It also repeals alternative minimum tax limitations on tax credits ands tax-exempt housing bonds.
Many in the LIHTC industry hope that the legislation will provide incentives for Fannie Mae and other investors to return to the market. Ken Bacon, executive vice president at Fannie Mae, cited the AMT changes as an area that he wants to review.
He, however, added that Fannie Mae’s participation “will be a function of the overall earnings of the company. I really can’t make any forward-leaning commitments one way or the other.”
Fannie Mae, which has been one of the nation’s largest LIHTC investors in past years,
invested $10 million in the tax credits in the first half of 2008, a sharp drop from the $620.5 million it invested in the first half of 2007.
Bacon pointed out that the firm continues to do a lot for low-income housing through their debt products. Fannie Mae reported $617 million in financing for rent-restricted housing for households earning no more than 60 percent of the area median income in the first half of the year.
Officials also said that they remain interested in LIHTCs and will continue to evaluate possible investments.
The bill includes several key changes to the LIHTC program, including increasing the state housing credit ceiling by 20 cents in 2008 and 2009. It also repeals alternative minimum tax limitations on tax credits ands tax-exempt housing bonds.
Many in the LIHTC industry hope that the legislation will provide incentives for Fannie Mae and other investors to return to the market. Ken Bacon, executive vice president at Fannie Mae, cited the AMT changes as an area that he wants to review.
He, however, added that Fannie Mae’s participation “will be a function of the overall earnings of the company. I really can’t make any forward-leaning commitments one way or the other.”
Fannie Mae, which has been one of the nation’s largest LIHTC investors in past years,
invested $10 million in the tax credits in the first half of 2008, a sharp drop from the $620.5 million it invested in the first half of 2007.
Bacon pointed out that the firm continues to do a lot for low-income housing through their debt products. Fannie Mae reported $617 million in financing for rent-restricted housing for households earning no more than 60 percent of the area median income in the first half of the year.
Officials also said that they remain interested in LIHTCs and will continue to evaluate possible investments.
posted by Donna Kimura at 8:16 AM
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