Obama Signs Stimulus Bill
The affordable housing industry received several key enhancements in the massive $787 billion stimulus package signed by President Barack Obama today.
The new law provides $2.25 billion in gap funding to help stalled low-income housing tax credit (LIHTCs) projects. The funds will be distributed to housing tax credit allocating agencies based on the federal formula for the HOME program.
The bill also includes a provision to allow allocating agencies to use a portion of housing tax credits as grants instead of credits.
However, a proposal to allow investors to “accelerate” the housing tax credit by claiming 20 percent of the allowable credits in each of the first three years was not included in the final legislation. Many LIHTC program participants had lobbied for this provision, hoping it would be a way to encourage investors into to the stagnant market.
The nation’s public housing was also addressed in the bill. The legislation provides $4 billion for the public housing capital fund, with $3 billion being distributed by the capital fund formula and $1 billion through competitive grants.
There will be $2 billion to fund the Neighborhood Stabilization Program and another $1 billion for the Community Development Block Grant program.
The bill also included $1.5 billion for homelessness prevention and rapid re-housing.
The New Markets Tax Credit program gets $3 billion—$1.5 billion for both 2008 and 2009.
“The passage and signing into law of H.R. 1, the American Recovery and Reinvestment Act, is a critical step forward in what is certain to be a long road to recovery,” said Renee Rooker, president of the National Association of Housing and Redevelopment Officials (NAHRO). “NAHRO is particularly pleased that our nation's housing and community development needs were addressed and made a critical part of a workable strategy to revitalize our economy and strengthen our nation's infrastructure.”
The $4 billion for the public housing capital fund “will allow public housing authorities to begin to mitigate the approximately $32 billion backlog in capital needs,” said Rooker in written statement. “At the same time, we believe these funds will assist in furthering our efforts to integrate green building technologies and reduce energy consumption within our nation's public housing inventory.”
Stay tune for more details.
The new law provides $2.25 billion in gap funding to help stalled low-income housing tax credit (LIHTCs) projects. The funds will be distributed to housing tax credit allocating agencies based on the federal formula for the HOME program.
The bill also includes a provision to allow allocating agencies to use a portion of housing tax credits as grants instead of credits.
However, a proposal to allow investors to “accelerate” the housing tax credit by claiming 20 percent of the allowable credits in each of the first three years was not included in the final legislation. Many LIHTC program participants had lobbied for this provision, hoping it would be a way to encourage investors into to the stagnant market.
The nation’s public housing was also addressed in the bill. The legislation provides $4 billion for the public housing capital fund, with $3 billion being distributed by the capital fund formula and $1 billion through competitive grants.
There will be $2 billion to fund the Neighborhood Stabilization Program and another $1 billion for the Community Development Block Grant program.
The bill also included $1.5 billion for homelessness prevention and rapid re-housing.
The New Markets Tax Credit program gets $3 billion—$1.5 billion for both 2008 and 2009.
“The passage and signing into law of H.R. 1, the American Recovery and Reinvestment Act, is a critical step forward in what is certain to be a long road to recovery,” said Renee Rooker, president of the National Association of Housing and Redevelopment Officials (NAHRO). “NAHRO is particularly pleased that our nation's housing and community development needs were addressed and made a critical part of a workable strategy to revitalize our economy and strengthen our nation's infrastructure.”
The $4 billion for the public housing capital fund “will allow public housing authorities to begin to mitigate the approximately $32 billion backlog in capital needs,” said Rooker in written statement. “At the same time, we believe these funds will assist in furthering our efforts to integrate green building technologies and reduce energy consumption within our nation's public housing inventory.”
Stay tune for more details.
posted by Donna Kimura at 4:21 PM
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