Improving the Low-Income Housing Tax Credit Program for the Production of New Affordable Housing

Resolved that NAHB urge Congress to make the following program improvements to the Low-Income Housing Tax Credit (LIHTC) statute in order to eliminate obsolete and burdensome requirements and financial risk while improving the program’s ability to meet the nation’s affordable housing needs:

1. Fix tax credit percentages at 4% and 9% instead of the current floating percentages pegged to interest rates.
2. Make the 10% carry-forward requirement incontestable once a building has been placed in service.
3. Allow separate ownership of housing credit units and market-rate units in mixed-income properties.
4. For projects financed with tax-exempt bonds, conform the next-available unit rule to the LIHTC rules instead of the tax-exempt bond rules.

Resolution originally adopted: 2004.1, Resolution No. 2

Committee with primary jurisdiction:

• Multifamily Council Board of Trustees