1. NIFA’s 2006 Affordable Housing Deal Maker’s Marketplace It’s the Law: Legislative Update January 24, 2006

2. Federal Legislation  NCSHA’s Housing Credit and Bond Improvements Allow states to award higher Credit amounts  Eliminate 4 percent Credit, except in Bond- financed deals  Increase states’ basis boost authority  All HOME-funded properties would qualify for basis boost

3. Federal Legislation  NCSHA’s Housing Credit and Bond Improvements (cont.) Exempt Credit and Bond investments from the AMT Revise scattered site rule Change Credit program name to “Affordable Housing Tax Credit” Eliminate Mod-Rehab prohibition Reform recapture bond requirement

4. Federal Legislation  NCSHA’s Housing Credit and Bond Improvements (cont.) Rep. Jim Ramstad (R-MN) Sen. Orrin Hatch (R-UT) Sen. Gordon Smith (R-OR)

5. Federal Legislation  Gulf Opportunity Zone Act of 2005, HR 4440 Increased Housing Credit authority Increased PAB authority Increased states’ basis boost authority Housing Credits and Bonds are central to Gulf Region’s rebuilding effort

6. Federal Legislation  Exit Tax Relief H.R. 3715 (Ramstad-Cardin)  Encourage preservation  Allows owner to exclude gain if Sale to buyer that agrees to 30-year affordable use restriction; 51 percent of units affordable to those at or below 60 percent AMGI; and State housing agency approves buyer’s plan. No Senate bill

7. Federal Legislation  Tax Reform President’s Advisory Panel’s 2005 Report  Eliminate the Housing Credit  Remove incentive for corporations to buy tax-exempt Housing Bonds  Eliminate “double taxation” of corporate earnings Unlikely in 2006

8. Federal Regulation  IRS Guidance Projects  Year 15 qualified contract exception  Utility allowance calculation RP 2005-69 (Hurricane Katrina)  Waiver authority expires Sep. 2006  Template for future disaster relief

9. Federal Regulation  HUD’s Dec. 16, 2005 Notice Metropolitan area definitions for FY 2006 Estimates of median family income Proposed change in “hold-harmless” policy  Could impact Credit properties  Comments due February 14, 2006

10. Contact Info John Hughes NCSHA 202-624-7710 jhughes@ncsha.org