Washington—After Senator Dianne Feinstein (D-Calif.) last month asked the IRS to allow veteran housing projects to once again receive tax-exempt private activity bonds, the agency relented and changed its policy.
The clarification was necessary after an informal IRS decision prevented the use of these bonds for projects that serve veterans, farm workers, and other people with unique needs, putting several affordable housing projects in California at risk.
Senator Feinstein released the following statement:
“I’m grateful the IRS listened to our concerns and clarified that veteran housing projects can continue to receive funding through tax-exempt private activity bonds. These bonds are critical to building affordable housing for veterans, and losing access to them would have imperiled projects around the country.
“The IRS’s earlier decision delayed veteran housing projects in California, including breaking ground on a project in Windsor, and could have also impaired future expansions and development plans for facilities in Texas, Hawaii and Nevada.
“Projects like the one in Windsor can once again move forward, and future projects will no longer be blocked from accessing these tax-exempt bonds. Supporting public-private partnerships is key to providing affordable housing for veterans, and I’m thankful the IRS agrees.”