By David Lawder : reuters – excerpt
WASHINGTON, Oct 7 (Reuters) – The U.S. Treasury moved to preserve and expand the supply of affordable housing on Friday by finalizing a new tax credit income rule that may qualify more housing projects and extending deadlines for when they must be placed in service.
The finalized income-averaging rule for the Low-Income Housing Tax Credit now allows a broader mix of income levels among residents of qualifying projects, by using an average, rather than fixed limits for all units.
The rule clarifies a 2018 law passed by Congress to allow developers more flexibility in qualifying for the credits.
Previously, projects qualifying for the tax credit, which can offset up to 70% of an affordable housing project’s costs, needed to make at least 20% of the units available to residents earning 50% of the local area’s median income (AMI) or 40% of the units at 60% of AMI.
A Treasury official said the new regulation allows for at least 40% of a project’s units to meet an average of 60% of AMI — allowing more higher-income tenants to mix with lower-income residents…(more)
Can this help build more affordable housing and make a dent in the “penciling in” argument? Why does this feel like a déjà vu moment? Haven’t we seen this script before?