Housing Market Transparency Act
Housing Market Transparency Act would require the Department of Housing and Urban Development (HUD) to regularly collect, maintain, and publicly release data on properties that receive an allocation of credits under the low-income housing tax credit (LIHTC) program (Section 42). The bill sets out the specific types of data to be collected (costs, ownership, tax-credit ownership structures, habitability standards, disposition reasons, affordability covenant terms, inspections, etc.), the timeline for data submission by state housing agencies (within 18 months of a property being placed in service and annually thereafter), and the obligation to publish this information publicly at least annually along with periodic market reports. It also requires standards, technical assistance to states, and coordination with other housing programs to avoid duplicative reporting. For properties that exit LIHTC eligibility before year-end, HUD would capture data on the final owner or purchaser, including whether the purchaser is a nonprofit. Overall, the act aims to increase transparency and public insight into LIHTC properties and the multifamily housing market. Note: The bill references LIHTC data under Section 42 of the Internal Revenue Code, but there appears to be a drafting inconsistency (1986 vs. 1946) in the bill text that would need clarification.
Key Points
- 1Defines covered property as a building receiving an allocation of credit under Section 42 of the Internal Revenue Code (LIHTC) and designates HUD as the “Secretary.”
- 2HUD must regularly collect and maintain a wide range of data on covered properties, including development costs (including general contractor costs), ownership data, pass-through entity status, habitability standards, reasons for disposition, expiration dates of affordable use provisions, whether the owner waived the right to a qualified contract, and the most recent inspections.
- 3State agencies administering LIHTC credits must submit the required data for each covered property within 18 months after placement in service and then annually thereafter; HUD will establish data standards and provide technical assistance to states.
- 4HUD must coordinate with other federal housing programs to minimize duplicative reporting and ensure standardized data collection.
- 5HUD must publicly publish the collected data at least annually and issue public reports on the covered properties and the general multifamily housing development market.
- 6For properties that will no longer be eligible for LIHTC before the end of a given year, HUD must collect data on the final owner or purchaser, including whether the purchaser is a nonprofit.