Affordable Housing Articles | Tidwell Group

Affordable Housing

Articles designed to answer Affordable Housing questions

Update: 45L Tax Credit Extension

May 23, 2023

The Inflation Reduction Act (IRA) of 2022 provided taxpayers with a tax credit for new or largely reconstructed homes that meet the DOE Zero Energy Ready Home (ZERH) requirements by amending Internal Revenue Code Section 45L. This legislation included a ten-year extension of the 45L Energy Efficiency Home Credit and nearly $370 billion in provisions…

Affordable Housing is at Crisis Level in America. Here’s What You Can Do.

April 5, 2022

By Missouri State Senator Denny Hoskins, CPA Across America, cities are facing an enormous affordable housing deficit. In many states, bills are being considered that will impact future efforts to fund and build low-income housing. Here is how you can have a say in these important housing decisions when they are considered. (more…)

LIHTC News and Updates

Income Averaging

Income Averaging: IRS Proposed Guidance

January 28, 2021

By CaLandra M. James, MAcc and Jeremy Densmore, CPA Now that the December 29, 2020 deadline for comments to the IRS is behind us, we thought this would be an excellent time to revisit the proposed LIHTC Average Income Regulation that was released on October 30, 2020. The Consolidation Appropriations Act of 2018 introduced an…

qualified contracts

Qualified Contract Applications Process

February 17, 2020

Read about the Qualified Contract process and why the pricing calculation can help determine whether or not to seek early release from IRC Section 42 compliance. By: Amie Gray and Jeremy Densmore (more…)

RAD for PRAC overview

January 14, 2020

RAD for PRAC Offers Solutions for Aging Section 202 Properties By Andrew Gantzer, CPA, and Justin Heberling, CPA, HCCP A recent HUD evaluation of the federal Rental Assistance Demonstration (RAD) shows that the program is achieving its goal of preserving public housing and improving the conditions of distressed public housing. Since enacted through Congress in 2012,…

How to Support Timely Delivery of First Year Credits

November 8, 2019

By Lee Dodson, CPA, and Jeremy Densmore, CPA, HCCP Timely delivery of first-year credits benefits developers, syndicators and investors in a Low Income Housing Tax Credit (LIHTC) development. The project itself also benefits because additional equity may be contributed, which means additional funds are available to get the project off to a good start. In…

Cost Segregation Studies Offer Renewed Value Under New Tax Rules

October 9, 2019

By Ashley Northcutt and Chris Thomas New IRS rules on the 100% bonus deprecation deduction may expand the benefits of cost segregation studies. This month, the IRS issued two sets of regulations under IRS Section 168(k) – final and proposed – that clarify qualifying property. The final regulations explain the “increase of the benefit and…

HUD financing in LIHTC deals and in Opportunity Zones

August 29, 2019

By Damien Cassell, CPA and Morgan E. Mahaffey, JD The U.S. Department of Housing and Urban Development (HUD) continues to make it easier for developers and owners to use loan programs for LIHTC and Opportunity Zone projects. With announcements this year that promise easier facilitation and closing of FHA loans as well as incentives to…

General Contractors: Don’t Get Blindsided By Cost Certification Requirements

April 12, 2019

By: Kevin E. Allmandinger, CPA and Bart W. Parry, CPA With heightened accountability and state agencies increasing oversight in an effort to mitigate fraud risk, General Contractor Cost Certifications (GCCCs) for low-income housing projects are becoming increasingly important. General contractors must contend with inaccurate or incomplete accounting records, unpleasant and avoidable fire drills, and extra…

State Tax Credits: Transferable or Non-Transferable

January 17, 2019

By: Joel T. McDowell, CPA, Quinn Gormley and Morgan E. Mahaffey, JD Many states have enacted tax incentives similar to the Federal General Business Credits[1]or the Low Income Housing Tax Credit. Specifics differ between states, but generally these “State Tax Credits” can be classified either as transferable or allocated tax credits. Transferable credits bifurcate the benefits of the…

Income Averaging: Know the Elephant in The Room

December 12, 2018

By: Jeremy Densmore While a number of state agencies are starting to adopt Income Averaging (IA)[1] policies, there is still speculation on what the future IRS guidance will be. Recent industry articles have provided some speculative insight outlining common approaches for interpreting the IA amendment to the code. However, in the midst of all the…

Are You Ready for the Mandatory Changes to Not-for-Profit Financial Statement Presentation?

December 10, 2018

Not-for-profit entities (NFPs) should be aware that ASU 2016-14 is required to be implemented for the year ended December 31, 2018, and the changes in this standard will have a significant impact on the presentation of NFP entity financial statements. While Tidwell Group provided an introductory article containing timely guidance regarding ASU 2016-14, Chris Bailey…

HUD Designates QCTs and DDAs for 2019

November 13, 2018

By: Quinn Gormley On October 22nd HUD announced via Federal Register Vol. 83 No. 204, designated Qualified Census Tracts (QCTs) and Difficult to Develop Areas (DDAs) for 2019. The QCT and DDA is an important means for many of these areas in the production of affordable housing under the Housing Tax Credit Program (IRC §42), especially…

The Tax Cut and Jobs Act is one of the most significant pieces of tax reform in the last 30 years

November 5, 2018

By Morgan E. Mahaffey, JD and Joseph A Wallace, CPA The reduction in corporates rates coupled with a broadening of the tax base is a major shift in tax policy. While it may take several months to sort through the implications of the mid-term elections and policy changes from Congress, there is no doubt this piece of…

Income Averaging: Handling a Double-edged Sword

October 18, 2018

Tidwell Group has issued a follow-up to this article and can be found by clicking this link. “Income averaging (IA)” is the new kid on the Low Income Housing Tax Credit (LIHTC) block. However, while the new IA rules appear simple, they simply are not. The Consolidation Appropriations Act of 2018 ushered IA into the…

LIHTC Thought Leadership

FLEXIBLE WORK ARRANGEMENTS: Another way to ensure client value

September 14, 2018

When it comes to job satisfaction, the importance of finding a healthy balance between the rigors of full-time employment and the increasingly hectic personal schedules of career professionals . . . particularly those of professional women, cannot be overstated! In fact, a recent study showed that when companies do what it takes to help facilitate…

A New Opportunity to Defer Capital Gains Tax Is Here

June 18, 2018

BY QUINN GORMLEY AND TODD FENTRESS A new Opportunity Zone program to encourage investment in low-income community business was included in the 2017 Tax Cuts and Jobs Act. New rules in the code[1] allows taxpayers to defer capital gains on the sale of stock, business assets, or any property (whether or not the asset sold…

Running on Empty: The Affordable Housing Crisis

February 6, 2018

Being homeless was never part of John’s life plan. But in a world where 58,000 veterans are homeless and an additional 1.4 million veterans are at risk of homelessness, his experience with affordable housing is not unique. Tidwell Group wanted to better understand the situation that so many people like John find themselves in, so…

Developers: Preserve Scattered Site Housing Successfully

November 28, 2017

There is a stark upward trend in the aging of affordable housing properties and it does not appear to be tapering anytime soon. In fact, aging housing inventory is on the rise and has continued to increase year-over-year with a peak expected in the year 2024. This trend provides opportunities for affordable housing developers. Tidwell…

Elimination of private-activity bonds would lead to dire consequences for Affordable Housing

November 9, 2017

On November 2nd, the Tax Cuts and Jobs Act introduced in the House of Representatives proposes the elimination of the Bond Program and the effective elimination of the 4% Housing Credit. We cannot overstate the vital role these programs play in building and preserving affordable housing throughout the nation. While the proposed House Tax Reform Bill…

Keeping Tax Credits Afloat After Natural Disasters

November 1, 2017

Hurricanes Maria, Harvey, and Irma took lives and pummeled the economies of the affected areas. The impact of these natural disasters could extend to Low Income Housing Credit (LIHTC) projects if the proper measures are not taken within a specified time to ensure that projects meet development benchmarks or if affordable housing properties that are…

Developers – Have You Tapped Into The Hidden Treasures Of HUD-Insured Projects?

October 24, 2017

Are you aware of the potential tax refunds, accelerated tax deductions and low equity requirements that HUD-insured projects may provide developers? If not, you may be missing out on an aspect of the real estate industry that can provide significant rewards. According to Josh Northcutt, a partner with Tidwell Group, (more…)

How much can Section 45L save you?

August 4, 2017

You may be eligible for hundreds of thousands in tax credits. In addition to low-income and historic tax credits, many developers are finding out the Section 45L (energy efficiency) tax credits can save hundreds of thousands, even millions, on new residential and mixed-use projects. Case Study: A client recently completed an apartment complex renovation project…

LIHTC News and Updates

What You Need to Know – 2016 Accounting Update for the Real Estate Industry

July 28, 2017

Several Accounting Standards Updates (“ASU” or “ASU’s”) issued by the Financial Accounting Standards Board (“FASB”) became effective January 1, 2016. Many of these updates, which are now part of the Codification, will have a direct impact on the accounting and financial reporting of private real estate companies in 2016; whereas, a lot of them will…