Bill to Extend Exchange Program Introduced

By Donna Kimura

The Low-Income Housing Tax Credit Exchange Expansion and Job Creation Act of 2010 has been introduced by Rep. Linda Sánchez (D-Calif.).

H.R. 4687 would extend the 9 percent tax credit exchange program to 4 percent credits.

The bill also clarifies that awards may be in the form of a grant or a loan of any duration.

“The most successful affordable rental housing program in U.S. history has been badly affected by the economic crisis,” said Sánchez, a member of the House Ways and Means Committee. “This program will help spur investments in affordable housing, which means working families will have an affordable home and developers can provide more jobs.”

When it comes to the recapture of credits, the bill said “any amounts of recapture shall be proportional to the length of time of the noncompliance compared to the 15-year compliance period and the percentage of qualified basis out of compliance compared to the total qualified basis.”

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