After months of work by NAHB’s Housing Credit Group members, legislation has been introduced in the House and Senate to improve the Low-Income Housing Tax Credit, as well as provide it with additional resources.
In the Senate, the Affordable Housing Credit Improvement Act (S. 1703) has been introduced by Sens. Maria Cantwell (D-Wash.); Ron Wyden (D-Ore.), the ranking member of the Senate Finance Committee; Johnny Isakson (R-Ga.); and Todd Young (R-Ind.)
The House bill (H.R. 3077) was introduced by Reps. Suzan DelBene (D-Wash.), Kenny Marchant (R-Texas), Don Beyer (D-Va.) and Jackie Walorski (R-Ind.).
The Affordable Housing Credit Improvement Act includes key provisions NAHB strongly supports. The bill would:
- Establish a permanent minimum 4% credit floor. Currently, this credit rate floats, and the current low interest rate environment results in 15% to 20% less equity available for development. Establishing a 4% minimum floor would provide more predictability and flexibility in financing projects, making more types of properties financially feasible and significantly increasing unit production.
- Increase 9% credit allocations by 50%.
- Prohibit local approval and contribution requirements, which can be misused to block affordable housing projects.
- Rename the Low-Income Housing Tax Credit the Affordable Housing Tax Credit.
Sen. Cantwell’s leadership on this issue has been critical to garner bipartisan support for this legislation.
The Affordable Housing Credit Improvement Act will help boost the production of sorely needed affordable rental apartment units. NAHB strongly supports this legislation and will push for its consideration by the Congress.
For more information, contact J.P. Delmore
at 800-368-5242 x8412.