Category Archives:LITHC

Joint IRS-HUD Administration for LIHTC Proposed

A report by the U.S. Government Accountability Office (GAO) says that Congress should consider designating the Department of Housing and Urban Development (HUD) as a joint administrator with the Internal Revenue Service (IRS) of the Low-Income Housing Tax Credit (LIHTC) program. The GAO suggests HUD should be given responsibility for regular monitoring of housing finance agencies and analyzing the effectiveness of the program. Joint administration with HUD could better align program responsibilities with each agency’s mission and more efficiently address existing oversight challenges.

The report, conducted at the request of Senate Judiciary Committee Chairman Charles Grassley, R-Iowa, cites “minimal” oversight by the IRS of the LIHTC and points out that the IRS already shares joint administration duties with other agencies both the New Markets Tax Credit (NMTC) program and the Historic Tax Credit (HTC) program.

What GAO Recommends

Congress should consider designating HUD as a joint administrator of the program. HUD’s role should include oversight responsibilities (such as regular monitoring of HFAs) to help address deficiencies GAO identified. Treasury agreed HUD could be responsible for analyzing the effectiveness of LIHTC, with IRS continuing to enforce tax law. HUD and IRS did not comment on the matter for congressional consideration. HUD supported consideration of a structure for enhanced interagency coordination. The association representing HFAs disagreed with the matter. GAO maintains that joint administration would strengthen program oversight.

Internal Revenue Service Publishes Unused LITHC Carryovers

The Internal Revenue Service (IRS) published the amounts of unused low-income housing tax credit (LIHTC) carryovers for calendar year 2014. Allocations were provided to 35 qualifying states and Puerto Rico. Revenue Procedure 2014-52 details how $2.59 million of unused LIHTCs were divided among the recipients. California received the largest allocation of $364,756 in LIHTCs. The unused housing credit carryover amount allocated from the National Pool by the Secretary to each qualified state for calendar year 2014 is as follows:

Alabama 45,996

Arizona 63,056

California 364,756

Delaware 8,809

Florida 186,057

Georgia 95,081

Idaho 15,340

Illinois 122,581

Kentucky 41,824

Louisiana 44,014

Maine 12,640

Maryland 56,416

Massachusetts 63,686

Michigan 94,163

Minnesota 51,578

Nebraska 17,780

Nevada 26,550

New Hampshire 12,593

New Jersey 84,682

New York 186,992

North Carolina 93,710

North Dakota 6,884

Ohio 110,103

Oklahoma 36,640

Oregon 37,397

Pennsylvania 121,550

Puerto Rico 34,400

Rhode Island 10,006

South Dakota 8,040

Tennessee 61,813

Texas 251,670

Vermont 5,963

Virginia 78,603

Washington 66,337

West Virginia 17,645

Wisconsin 54,645