Spring 2018 Affordable Housing Seminar
McKonly & Asbury’s 2018 Spring Affordable Housing Seminar was held on May 18, 2018 in Camp Hill, Pennsylvania. The day began with an update from PHFA’s Holly Glauser. Holly spoke about the preliminary determinations of eligibility for the 2017/2018 low-income housing tax credits as well as the PHARE funding awards. Holly also talked about the 2019 qualified allocation plan and that a revised plan is in the works for review and discussion. The proposed PHFA deadline for the 2019 low-income tax credit applications is now November 16, 2018. Holly also discussed tax exempt volume cap activity and process as well as the Community Revitalization Tax Credit.
Gina Lim, Director of Business Development at KBKG, talked about the 45L Credit. You can read KBKG’s article on our blog about this here. Sumit Sharma, Director of Cost Segregation for KBKG, spoke about cost segregations and how they can be beneficial to affordable housing properties.
Judy Crosby, Of Counsel at Kutak Rock LLP, presented a session on tax reform and its impact on low-income housing tax credit transactions. Judy covered topics such as the business interest deduction, bonus depreciation, the impact of the 21% corporate tax rate on LIHTC deals, and income averaging rules for the minimum set-aside test.
Judy Crosby presented another session on combining a 9% LIHTC Development with a Tax Exempt Bond/4% Development, also known as “Twinning”. Judy walked us through a case study and offered some pointers on what to watch out for in this type of deal.