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The impact of low-income housing tax credits on the taxable value of real property had been a subject of controversy in Oklahoma for many years before a recent court ruling definitively stated that the credits are to be excluded from calculations of taxable value [Stillwater Housing Assoc. v. Rose, April 2011]. As a result of this decision, there may be lower tax assessments for many low-income housing properties in Oklahoma.

The IRS recently issued Notice 2011-47, which grants certain tax credit sites relief from some Section 42 requirements in the wake of devastation caused by severe storms and tornadoes in Missouri that began on April 19.

HUD released revised fiscal year (FY) 2011 income limits for certain areas on June 30. The affected areas are located in California, Colorado, Florida, Massachusetts, New York, and Puerto Rico. If your tax credit site is located in the following counties, use the revised income limits to certify and recertify your low-income households. You can find the revised figures at huduser.org.

Recently issued studies by Fannie Mae, the National Low Income Housing Coalition (NLIHC), and the Harvard Joint Center for Housing Studies (JCHS) have all highlighted the importance of preserving and expanding the supply of affordable rental housing to meet increased renter demand as more households turn to renting due to foreclosures and depressed incomes.

According to the JCHS report, the need for rental housing is expected to grow dramatically, with the number of U.S. households that rent their homes increasing to 42.6 million by 2020.

A nonprofit housing group in Dallas, Texas, recently claimed that a developer schemed to defraud the government of millions of dollars in low-income housing tax credits by forging signatures, stealing building plans, and signing fraudulent tax credit applications. According to the group's federal RICO complaint, when the developer's first group of partners was “appalled” at the scheme, and refused to do it, he found others who did.

In late March, the IRS released an updated version of its Guide for Completing Form 8823: Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition. State housing agencies use Form 8823 to notify the IRS of a site's noncompliance with tax credit requirements. Your state housing agency must also use this form to inform the IRS if you correct noncompliance by the agency's deadline.

The IRS recently released its 2011 calendar-year resident population estimates. These estimates are used to determine the size of the tax credit pie that state housing finance agencies can distribute to low-income housing projects.

Twelve people (including 11 residents and one site owner) were charged with defrauding HUD and the Miami-Dade Housing Agency (MDHA) of more than $300,000 in rental assistance funds. They have been indicted on charges that include public assistance fraud, organized scheme to defraud, grand theft, identity theft, and conspiracy.

Known as “Operation Double-Dip,” this aggressive fraud and abuse investigation was conducted by the Office of the Inspector General's special agents in cooperation with state agencies.

Each May, the U.S. Environmental Protection Agency (EPA) kicks off its efforts to promote Asthma Awareness Month. Asthma is a serious, potentially life-threatening respiratory disease that affects the quality of life for 23 million Americans, including 7 million children. EPA's goal is to reduce exposure to indoor asthma triggers and improve the quality of life for 6.5 million people by 2012.

HUD recently unveiled its fiscal year 2012 budget proposal. Titled “Creating Strong, Sustainable, Inclusive Communities and Quality Affordable Homes,” the budget aims to lead the country out of the economic crisis, in part, by helping responsible families at risk of losing their homes and meeting the need for quality affordable housing.