AMP: Artists' Meeting Place and Resource Collective

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A Loft-y Law

August 18, 2008

Cities are again safe for struggling artists: Safe from the IRS.

The housing bill recently signed by President Bush makes it clear that
low-income housing tax credits can be used for artist housing. The IRS
had challenged the practice. Had the agency prevailed, a useful tool
for urban revitalization would have been jeopardized.

In an effort to add creative life and verve to downtowns, as well as
to preserve historic buildings and augment arts districts, dozens of
cities in nearly 20 states including Connecticut have built subsidized
housing for artists and writers using low-income tax credits.

But after a routine audit of the ArtSpace project in Norwich, the IRS
held that it was not eligible for the tax credits. The agency said
ArtSpace violated a rule against renting units to a "social
organization," making them unavailable to the general public.

ArtSpace appealed the ruling, asserting that artists were not a
"social organization" and the project was open to non-artists as well.
While the appeal was pending, this page and others appealed to the
state's congressional delegation to clarify the law. Sens. Christopher
Dodd and Joseph Lieberman and U.S. Rep. John Larson prevailed on their
colleagues to see the wisdom in artist housing.

In addition to artists, the housing bill authorizes the use of low-
income tax credits for housing for teachers, first responders,
homeless and disabled veterans, farmworkers, pregnant and parenting
teens, and victims of domestic abuse.

It is good public policy. We need diverse and affordable housing. We
need more dense housing in town centers, near transit and other
services. Artists have traditionally lived in cities; this helps a
most useful tradition continue.

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