The House and Senate today each introduced identical bipartisan bills supported by NAHB that will improve and strengthen the Low-Income Housing Tax Credit.
The Affordable Housing Credit Improvement Act was introduced in the Senate by Sens. Maria Cantwell (D-Wash.), Todd Young (R-Ind.), Ron Wyden (D-Ore.) and Rob Portman (R-Ohio). The House bill was introduced by Reps. Suzan DelBene (D-Wash.), Jackie Walorski (R-Ind.), Don Beyer (D-Va.) and Brad Wenstrup (R-Ohio).
“NAHB commends House and Senate lawmakers for introducing the Affordable Housing Credit Improvement Act, bipartisan legislation that would improve the Low-Income Housing Tax Credit and finance more than 2 million additional multifamily units over the next decade,” said NAHB Chairman Chuck Fowke. “With nearly 11 million renter households severely cost-burdened, the Affordable Housing Credit Improvement Act would greatly enhance our ability to meet the growing demand for more affordable rental units.”
The legislation would:
- Increase 9% credit allocations, which are generally reserved for new construction, by 50%.
- Prohibit states from requiring special approvals that treat affordable rental housing differently from any other multifamily project.
- Provide a 30% basis boost for properties in rural and Native American areas.
- Lower the 50% “financed by” threshold to 25% for private activity bonds to enable more bond deals. Private activity bonds are tax-exempt bonds issued on behalf of a state or local government to provide special financing benefits for qualified projects.
The Affordable Housing Credit Improvement Act will help boost the production of sorely needed affordable rental apartment units. NAHB strongly supports this bill and will urge Congress to move quickly to pass this legislation.