IRS Housing Tax Credit Final Rules to Boost Investor Interest

Investors are expected to infuse money in more affordable housing projects with a wider range of renter incomes after IRS tax credit final rules addressed a key industry concern.

Banks, corporate institutions, and insurance companies in the past two years decreased investment in affordable housing projects that allowed for a wider range of tenant incomes. Investors were deterred by proposed rules which posed a high risk of the low-income housing tax credit being recaptured on the entire project if one unit went out of compliance.

The final rules released Oct. 7 give investors and developers more flexibility with properties and ...