Six Month Continuing Resolution Deal Reached
The House and Senate leaders announced that they reached a deal on a continuing resolution (CR). The CR would fund all government programs at FY 2012 levels for the first half of FY 2013, unless otherwise specified. The fiscal year begins on October 1. The CR would last through the end of March 2013.
This means that all federal affordable housing programs would be funded at FY 2012 levels, including project-based Section 8. While NAHMA continues to strongly support providing fully funding project-based Section 8 at $9.8 billion as provided by the Senate's FY 2013 T-HUD Appropriations bill (S. 2322), the FY 2012 appropriations levels are still preferable to the HUD and House proposals. The FY 2013 HUD Budget Request and H.R. 5972, the House's FY 2013 T-HUD Appropriations Act, propose cutting funding for project-based Section 8 by $611 million below FY 2012 levels.
Senate Finance Committee Passes Tax Extenders Act
The Senate Finance Committee also passed the Family and Business Tax Cut Certainty Act of 2012 with strong bipartisan support. The bill would extend a number of expiring tax cuts including:
- The Alternative Minimum Tax (AMT) exemption for middle class families through 2013;
- The exclusion of the military basic housing allowance from income determinations for LIHTC properties through 2014, originally provided by the Housing and Economic Recovery Act (HERA) of 2008;
- Foreclosure and mortgage debt cancellation exemptions from taxable income through 2013;
- Mortgage insurance premium deductions for qualified residences through 2013;
- The New Markets Tax Credit through 2014; and
- The energy efficiency appliance credit through 2013.
NAHMA strongly supports extending the flat credit rate for LIHTCs through 2013. In fact, we have been working with industry colleagues to move legislation forward that would permanently extend the flat 9 percent credit rate for new construction and substantial rehabilitation LIHTCs, as well as create a flat 4 percent credit rate for property Acquisition LIHTCs. Sens. Cantwell and Snowe have introduced this legislation in the Senate as S. 1989. Rep. Pat Tiberi (R-OH) has also introduced companion legislation, H.R. 3661, in the House. However, these bills have not been moved forward in their respective Committees.
Sen. Tom Coburn (R-OK) also offered an amendment to the bill, which would prohibit any recipient of a New Markets Tax Credit from also receiving other federal tax benefits, federal grants, or federal loans for the same purpose or project. This amendment would have essentially eliminated one of the financing tools developers and affordable housing providers use to help revitalize communities. Fortunately, the Committee opposed the adoption of this amendment in a roll call vote.
For more information about the Family and Business Tax Cut Certainty Act, please visit: http://www.finance.senate.gov/newsroom/chairman/release
The bill will now go to the Senate floor for consideration.