A single line swap in the Senate tax bill passed at 3am Saturday ensured that low-income artist housing will cease to exist.
The change comes in the form of an amendment introduced by Senator Pat Roberts, the Republican senior senator from Kansas.…Where current law carves out a special exception for individuals “who are involved in artistic or literary activities,” the new bill would instead specify a benefit for those “who are veterans of the Armed Forces.” ~ Another Victim of the Tax Bill: Housing for Artists
The amendment not only eliminates provisions for artist housing via the Housing and Economic Recovery Act of 2008, it retroactively rescinds the benefits given to those who built artist housing under the LIHTC program, effectively putting developers on the hook for a significant clawback.
Moreover, as written, the law would also render all existing artists’ housing developments built with housing credits retroactively ineligible for the benefit—creating a sudden tax liability for the investors who have used these credits for years. ~ Another Victim of the Tax Bill: Housing for Artists
The details are found in the CITYLAB story: