NLIHC and other housing advocates submitted a public comment letter to the Internal Revenue Service (IRS) on June 3 with recommendations on ways to improve “right of first refusal” regulations for nonprofit partners of Low Income Housing Tax Credit (LIHTC) financed properties. The letter was co-signed by Enterprise Community Partners, Local Initiatives Support Corporation/National Equity Fund, National Association of State and Local Equity Funds, National Housing Trust, and Stewards of Affordable Housing for the Future. Read the letter at: https://bit.ly/3MIpuxb
This April, the U.S. Department of the Treasury (Treasury) and the IRS invited public comment on the IRS’s 2022-2023 “Priority Guidance Plan” (PGP). Treasury and IRS use the annual PGP to guide important issues for the year, including regulations related to the Low Income Housing Tax Credit (LIHTC) program. Currently, vague regulations allow investors to take control of LIHTC properties at the expense of nonprofit providers of affordable housing. These investors often use disruptive, “bad faith” tactics to deny nonprofit organizations the ability to purchase the properties at below-market prices at Year 15, undermining housing affordability in communities that have relied on it for years. Referring to these “legal ambiguities,” the public comment letter asks the IRS “to address this issue in the 2022-2023 Priority Guidance Plan” and provide clarity on specific components of the “right of first refusal” for nonprofit developers.
View the public comment letter at: https://bit.ly/3MIpuxb