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Housing Call: January 18, 2022

Federal updates

  • The IRS has issued guidance to extend key LIHTC program deadlines & provide other flexibilities aimed at relieving the continued impacts of COVID-19. The Affordable Housing Tax Credit Coalition has a summary of the guidance and extensions on its blog.
  • Final guidance issued by the U.S. Treasury on State Fiscal Recovery Funds (FRF) includes a requirement that all funds be expended by December 31, 2026. In North Carolina, the state has allocated $170 million in these funds to the Workforce Housing Loan Program (WHLP) to help finance LIHTC developments. The final Treasury guidance makes loans with maturities after 2026 infeasible, which creates a barrier to deploying WHLP funds. Stay tuned for an additional call later this week with details on what this means for North Carolina.
  • The future of Build Back Better is still unclear as Democrats in the Senate focus on voting rights legislation and potential changes to the filibuster Senators Joe Manchin and Kyrsten Sinema are key to both voting rights and Build Back Better negotiations. In December, Senator Manchin announced he wouldn’t support the Build Back Better Act as a comprehensive spending package. There is speculation that core provisions of the bill could still be advanced, but housing provisions would be at risk in a slimmed-down version of the bill (or multiple bills).
  • The chairs and ranking members of House and Senate Appropriations Committees met last week to discuss a spending deal for fiscal year (FY) 2022. Federal agencies are currently being funded under a continuing resolution that is set to expire on February 18.

Housing advocates are urging members of Congress to enact a final FY22 spending bill that includes increased funds for housing. The House spending bill, approved in committee in July 2021, would fund HUD programs at $56.6 billion, an increase of $6.8 billion above FY21. If enacted, the bill would provide significant funding increases to nearly all HUD programs and would expand Housing Choice Vouchers to an additional 125,000 households.


North Carolina updates




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Housing Call: January 11, 2022

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