Tax Provisions Affecting Low-Income Rental Housing : Scheduled for Hearings Before the Subcommittee On Select Revenue Measures of the Committee On Ways And Means On March 2-3, 1988 Jcs-2-88

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Tax Provisions Affecting Low-Income Rental Housing : Scheduled for Hearings Before the Subcommittee On Select Revenue Measures of the Committee On Ways And Means On March 2-3, 1988 Jcs-2-88
United States. Congress. Joint Committee On Taxation
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Most, if not all, of these mortgages prohibit prepay- ment. ^° Permitting selective use of the low-income housing credit on some of these housing projects could encourage their retention as subsidized rental housing. Concomitsintly, the taix credit's targeting rules would be extended to these projects, many of which currently qualify for these outlay provisions under more relaxed rules.
On the other hand, permitting waivers of the rule restricting tax credits to projects that have not been plac
...ed in service within the 10 years preceding the credit-eligible transfer may not be the most effective way to assure a stock of low-income rental housing. Much rental housing serving low-income households originally was not built as low-income housing. Rather, as the housing aged and more new housing was built, the older housing became affordable and available to low-income families. Present law gives the most tax credit for the creation of new or the rehabilitation of housing units.
One of the credit's objectives was to provide an incentive to expand and upgrade the nation's low-income housing stock by more than the private market alone would dictate.


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