Saturday, July 26, 2014

My Tweet: Elk Grove Ca (Pop 150k) Inter Governmental Agreement W Sacramento to Run MCC Program.

If it can happen in California...why not Portland? 




Originally created and posted on the Oregon Housing Blog.

Friday, July 25, 2014

Wednesday, July 23, 2014

City of Portland Mortgage Credit Certificate, DRAFT Example: $12,607 In Tax Savings in 5 Years.

In my recent post I indicated that the City of Portland could increase eligible incomes by 20% for their MCC program; in another post I reported that Oregon had only used 5% of their private activity bond capacity from 2011-2013, supporting the view that there was significant room to expand the use of MCC's.

Many, many years ago I had developed a tool that had been used by the Portland Housing Bureau to help determine what buyers might realize in tax savings by using the MCC.   The Bureau has an updated multipurpose Excel tool HERE that requires a lot of input to produce similar estimates. 

I found that tool a bit complex for my purposes so I created a draft simplified Excel tool that produces an estimate of ADDITIONAL tax savings over and above the mortgage interest deduction alone and also indicates whether the input income would qualify for a MCC. 

With the usual caveats that this is a DRAFT, and NOT tax advice but merely one person's estimate (mine) of possible tax savings, the PDF HERE and embedded below provides ONE example of a sales price affordable to a MCC income qualified household and the additional tax savings that a MCC might provide over a series of time periods. 


Originally created and posted on the Oregon Housing Blog

Portland City Council Meeting: Next Week Meet Will Consider Amended Ordinance to Dedicated Aribnb Tax to Affordable Housing.


Tuesday, July 22, 2014

Oregon Private Activity Bonds: Less than 5% of Capacity Used in Last 3 Years, $590 Million in Prior Year Cap Abandoned.

Interesting state map of recent private activity bond activity HERE. [Pic of Oregon table pasted at bottom of this post]

The map confirms what I said in prior post on City of Portland Mortgage Credit Certificates that "there is plenty of current state controlled bond cap to accommodate additional MCC allocations".

Oregon Mortgage Credit Certificate bond allocations totaled only $20 million over three years, with the last allocation occurring in 2010. NOTE: Check of Washington state map shows allocations of $440 million for MCC's over last 3 years, and $200 million in 2013 alone. 

Table shows that total Oregon PAB capacity for those 2011-2013 years was $4.02 billion, but total PAB issuance was only $191 million , or 4.8%.

$1.03 billion in unused cap was carried over from 2013, and $2.52 billion over those three years. 

In 2013, $217 million in prior year cap was abandoned and a total of $590 million in carried over cap was abandoned in the three years. 

In 2013 there was $307 million in new cap available and $1.1 billion in new cap over those three years.

SF Mortgage Revenue Bonds were allocated $20 million in cap in 2013 and $127 million over the three years.

Multifamily Housing bond allocations were $40 million over 3 years, and only $8.4 million in 2013. 

In total housing uses were $186.8 million over the three years, or 4.6% of the total capacity. The $28.4 million allocated in 2013 for housing uses was only 2% of the total capacity for that year.
Oregon Private Activity Bond Cap

Originally created and posted on the Oregon Housing Blog.