Multifamily Markup - 03/16/2018 (Plain Text Version)
Trump Administration Enacts Steel, Aluminum Tariffs
Copyright: Orhan Cam
President Trump recently announced new tariffs of 25 percent on steel and 10 percent on aluminum, raising concerns for many in the real estate industry about the potential impact these increases could have on construction and ultimately on multifamily development.
HVCRE Fix Included in Senate Regulation Relief Bill
Copyright: Best Backgrounds
By a vote of 67-31, the Senate approved a bipartisan regulatory relief bill, the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155), that modifies a number of regulations from the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd Frank Act).
FAIR HOUSING ACCESSIBILITY ACCOMMODATIONS AND MODIFICATIONS
An NMHC/NAA-supported coalition is calling on the Senate to take up H.R. 620 - The ADA Education and Reform Act of 2017, which recently passed through the House. NMHC/NAA strongly endorsed H.R.620 and view its passage as an important step towards upholding the objectives of the Americans with Disabilities Act (ADA) while providing commonsense reforms to deter costly and frivolous lawsuits. [return to top]
TAX REFORM and TAX DEPRECIATION RULES
NMHC/NAA sent Treasury Secretary Steven Mnuchin a letter on March 15 asking for clarifications to last year’s tax reform bill. Guidance is necessary in several areas, including those pertaining to depreciation and the new 20 percent tax deduction for pass-throughs. [return to top]
ENERGY EFFICIENCY TAX INCENTIVES
NMHC/NAA spearheaded a coalition letter to the House Ways and Means Subcommittee on Tax Policy on March 12 asking that lawmakers make the New Energy Efficient Home Credit permanent. While lawmakers recently extended the incentive through 2017, House tax writers held a March 14 hearing to evaluate the efficacy of renewing expired tax provisions known as extenders. [return to top]
As multifamily communities are increasingly being designed and built with network connectivity in mind, the evolution of broadband is a critical policy priority. Therefore, NMHC/NAA are closely paying attention to the calls by policymakers to boost broadband deployment, especially throughout underserved and rural areas of the country, that have been made frequently in recent years. However, with the possibility of a major infrastructure package being considered this year growing, both the House and Senate are working to lay the groundwork for finally bridging the nation’s digital divide. [return to top]
NMHC joined the International Council of Shopping Centers, Nareit, National Association of Realtors, Real Estate Roundtable, NAIOP (the Commercial Real Estate Development Association) and other organizations in filing an amicus brief with the U.S. Supreme Court in support of a South Dakota law requiring sales tax from online retailers with more than $100,000 in sales or at least 200 in-state transactions annually. The case, South Dakota v. Wayfair, Inc., asks the U.S. Supreme Court to revisit its 1992 decision in Quill v. North Dakota, which requires a retailer to collect sales tax only when a business has a physical presence in the state. As online retail has grown, states have pushed for greater authority to collect sales tax from out-of-state retailers, and several Justices have expressed skepticism about the legal foundation of the current case law. The Court will hear arguments on April 17 and a decision is expected by the end of June. [return to top]
CARRIED INTEREST and TAX REFORM
The Internal Revenue Service (IRS) announced on March 1 that taxpayers cannot use S corporations to get around the three-year holding period for carried interest enacted as part of last year’s tax reform bill. [return to top]
LEAD BASED PAINT
An end of year decision by the United States Court of Appeals for the Ninth Circuit gave EPA 90 days to propose updated definitions for lead hazards and a year to finalize the revisions. Changes in lead hazard levels will impact a number of regulations in pre-1978 housing from disclosure to repair and renovation protocols, including testing and worker training. [return to top]
LEAD BASED PAINT
Owners of pre-1978 residential properties or child occupied facilities are required to comply with several federal laws that are aimed at disclosing the lead status of a property to potential occupants in addition to protecting workers and occupants for the possible creation of lead hazards due to renovation and repair activities. The paint inspection process is based on an X-ray fluorescence (XRF) analysis that must be performed by a federally-certified or state-certified inspector using federally-approved protocols that include having a valid performance characteristic sheet (PCS) for the specific XRF instrument. Failure to have a valid PCS voids the testing results and testing must be re-done. [return to top]
Apartments outperform other commercial real estate property types, on both a risk-adjusted and unadjusted basis, regardless of holding period, geographic region, metro size, and growth rate according to new research from the National Multifamily Housing Council Research Foundation. [return to top]
The HUD Office of Multifamily Housing Programs issued an Administrative Guidance Memo on March 8, 2018 clarifying language found in the 2016 MAP Guide. The 2016 MAP Guide states that an equity bridge loan (EBL) may be the obligation of the investor(s), the limited or general partner(s), or of the mortgagor itself, but may be secured with a pledge of tax credits and/or of limited partners’ or investor members’ interests in the project’s ownership entity. In response to questions raised by stakeholders, the Memo confirms that HUD will allow EBLs to be secured with a pledge of the general partner’s interest as well. [return to top]
The Wall Street Journal
National Mortgage News
Trade Groups Say Us Tariffs on Aluminum, Steel Will Hurt
“Policies that increase the cost of development stand in the way of meeting urgent housing demand as well as imperil the economic and employment gains achieved through tax reform,” said Cindy Chetti, senior vice president of government affairs at the National Multifamily Housing Council, which represents 1,200 apartment housing owners, managers, developers and investors.
With final votes still being counted in this week’s special election for Pennsylvania’s 18th Congressional district, an official winner has not been declared. However, both parties are already using the outcome of the race to motivate their bases for November. [return to top]
THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will hold a hearing on the Oversight of HUD. Secretary Carson will testify.
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