So, it is October 5th and Congress is recessed until after the election on November 8th. This is the last dash leading up to election day and we are all curious to see in what direction the American electorate, in all its wisdom(?), choose to steer the country. While we all exercise that sacred right to vote and wait with anticipation and anxiety let’s review some of the housing issues at hand.
The White House Office of Information and Regulatory Affairs (OIRA) did release the pending AIT (average income test) regulation on September 30th but much to the chagrin of the industry, Treasury did not publish the revised regulation in the Federal Register. We have been informed it will be released in the coming week, likely after publication of this newsletter. No one in the Administration has strayed from their consistent narrative that “the industry would be pleased” with the revised regulation. We remain hopefully optimistic but as we, your DC advocates, have consistently advised, never count on an outcome until it is in writing, in final form, signed and delivered.
We have also been told Treasury and the IRS are reviewing our requests to extend Placed In Service (PIS) and Casualty Loss deadlines. We, our advocates in Congress and within the Administration have pressed for this guidance, acknowledging the urgent and timely need for the extensions.
Right on schedule, the Senate and House voted on and passed a CR (continuing resolution) funding the government until December 16th, and then proceeded to leave town for the pre-election recess. This will give the lame-duck Congress the ability to pass an omnibus budget and if all goes as planned (did I just say that?) a tax extenders package before December 31. We continue to press for the LIHTC to be included in an extenders package and get good corresponding signals from policy makers, leadership and staff. That said, much will depend on the results of the election, who will control each chamber and by how much in the next Congress. Conventional wisdom says the institutionalists, including three of the four congressional leaders, would like to pass an omnibus and tax package before the next Congress begins on January 3rd, allowing the new Congress to start with a clean slate and focus on big issues for 2023 like the next budget, the debt ceiling and everything else that will take up Congress’s time and energy. This is where I refer you back to my comment about things going as planned. Much like you do with your developments, expect the unexpected and prepared to roll with the punches. Still, I am optimistic we will get a tax package at the end of the year and LIHTC is very well situated to be included.
Assuming Ray and Jennifer allow me the opportunity to provide an update following the November 8th election, I will give you my thoughts on the lame-duck and prospects for future affordable housing legislation considering the make-up of the 118th Congress.
I thank you all for your continued advocacy and support. We will very likely need your assistance as the year-end nears to press our case for LIHTC inclusion in tax extenders. Until then, VOTE (#HousingParty) be well and keep up the good fight.
David