Friday, April 13, 2012

LIHTC Program on the Chopping Block via GlobeSt.com

During the recession, low-income housing project development and financing—like all commercial real estate projects—went into hibernation. The demand was certainly there for these assets, but the Treasury Department’s tax credit program that funds many of these projects was just not being used that much, in large part because firms did not have robust profits to offset with the credits.

With the recession over all of that is changing, just in time to face another, perhaps fatal challenge: Congress and its army of budget-busters.

The fear in the low-income housing community is palatable that this tax credit program will be severely scaled back or even completely eliminated, Amy Dosen, vice president and equity sales manager at Key Community Development Corp., in Cleveland, tells GlobeSt.com. “Because it’s an expenditure, everyone I have talked to feels there’s a good chance it’ll be impacted,” she says.

Read more...GlobeSt.com - LIHTC Program on the Chopping Block - Daily News Article

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