DID YOU KNOW ?
YOUR AAMD MEMBERSHIP INCLUDES THE BENEFITS OF THE NATIONAL APARTMENT ASSOCIATION . VISIT WWW . NAAHQ . ORG FOR MORE INFO .
taxation of derivatives . On the House side , Speaker Paul Ryan ( R-Wis .) has signaled that he plans to release a roadmap on tax reform prior to the Republican convention . NAA / NMHC have been meeting with key members of the tax writing committees to stress the importance of retaining the deductibility of business interest , 1031 Exchanges , the 27.5-year depreciation period of multifamily properties , and carried interest to the real estate industry .
NAA / NMHC also continue to push for legislation to expand the Low-Income Housing Tax Credit Program ( LIHTC ). On May 19 , Senators Maria Cantwell ( D-Wash .) and Orrin Hatch ( R-Utah ) introduced legislation we support to expand the LIHTC ’ s allocation authority by 50 percent , enable income averaging , and set a minimum 4 percent credit for acquisitions and bondfinanced development .
Lastly , as Congress considers how the tax code could be used to facilitate national priorities in the energy sector , NAA / NMHC are pushing for permanent extensions to the Energy Efficient Commercial Buildings Tax Deduction ( Sec . 179D of the Internal Revenue Code ) and the New Energy Efficient Home Credit ( Section 45L of the Internal Revenue Code ). These incentives help to achieve improved environmental quality , reinforce our national security , create jobs in the construction and manufacturing sector , and increase housing affordability by decreasing utility expenses for millions of Americans who live in apartment homes .
EB-5 Program : Alternative Capital Source for Multifamily
NAA / NMHC continue to support the EB-5 program as an additional source of capital for apartment housing developers . Currently , the EB-5 program is operating on a one-year authorization after Congress failed to reach a longerterm deal at the end of last year .
On the House side , Judiciary Committee Chairman Bob Goodlatte ( R-Va .) has indicated that he would like to see the program reauthorized , but said that specific reforms must be made before he will sign off . On the Senate side , Judiciary
Committee Chairman and Ranking Member Chuck Grassley ( R-Iowa ) and Pat Leahy ( D-Vt .) have expressed similar concerns , with Senator Leahy flatly threatening to eliminate the program if meaningful changes are not made . Negotiations between the two camps will likely go right up to the Sept . 30 deadline , but indications are currently positive for reauthorization of the program .
NAA / NMHC are continuing to encourage lawmakers to approve a permanent extension of the program , while addressing abuses and improving the efficiency of the investment process
Energy Efficiency Bill Important to Apartment Housing Industry
Work on energy efficiency legislation has been a multi-year focus for NAA / NMHC and with the appointment of House conferees in May on an energy bill , we moved a step closer to passing an energy efficiently bill this year . The Senate planned to announce its conferees after the Memorial Day recess and then the House and Senate conferees will begin work trying to reconcile the two chambers ’ energy bills .
The Senate-passed bill improves upon previous versions by including an important transparency provision that requires the Department of Energy ( DOE ) to solicit stakeholder input through a rulemaking process before establishing any energy efficiency building targets for local and state building codes . The bill also requires the DOE to develop voluntary , cost-sensitive residential and commercial building efficiency targets ; and includes a direction for appraisers and lenders to consider the value of energy efficient design and operation when establishing property valuation . The bill includes best practices used by utilities to provide critical data to property owners for bench-marking building performance . And finally , it addresses the pending efficiency standard for residential gas-fired furnaces .
Included in the House energy efficiency bill is NAA / NMHC-supported language that requires any DOE-sponsored amendments to the current building energy code meet the test of a 10-year payback in terms of energy savings . This provision has drawn fire from environmental groups and a veto threat from the Obama Administration .
NAA / NMHC will continue to advocate for the economically practical , technologically feasible code standard that the House adopted as conferees begin their deliberations .
Reforming Section 8 , ADA and NFIP
NAA / NMHC are working to push three bills over the finish line before Congress adjourns for the year . The individual bills would : streamline the Section 8 program , including the contract term , property inspections , tenant screening and funding stream ; reform the National Flood Insurance Program ( NFIP ) and ensure that rates continue to be affordable for apartment owners ; and provide business owners with the opportunity to cure an alleged Americans with Disabilities Act ( ADA ) deficiencies prior to the initiation of a lawsuit .
Both the Section 8 and NFIP bills have navigated an important first hurdle receiving strong bipartisan votes in the House . NAA / NMHC have now turned our focus on securing consideration and passage of these bills in the Senate .
On May 19 , the House held a hearing on the bipartisan “ ADA Education and Reform Act of 2015 ,” which represents an important first step in moving the measure forward in this Congress . NAA / NMHC will continue to push for expedited enactment of this legislation prior to Congress ’ s adjournment .
House Speaker Paul Ryan ( R-Wis .) is seeking to address poverty in America through a series of working groups , and housing policy is likely to be discussed when Ryan begins rolling out his policy proposals this month . Issues such as telecommunications , cybersecurity and fair housing are additional potential topics of discussion for Congress and opportunities for oversight with federal regulators .
Other apartment-related issues likely to draw attention from Capitol Hill in the short remaining time for this session include criminal justice reform and Federal Aviation Administration reauthorization . www . aamdhq . org JULY 2016 • TRENDS | 27