House Ways and Means Committee members Pat Tiberi (R-Ohio) and Richard Neal (D-Mass.) today introduced the Affordable Housing Credit Improvement Act, legislation that contains a number of changes to enhance the effectiveness of the Low Income Housing Tax Credit (LIHTC).
Reps. Tiberi and Neal have been strong LIHTC supporters and this legislation shows their continued commitment to the program and its mission of housing low-income Americans. NAHB will continue to work with the lawmakers to move this bill forward.
Of note to the housing community, the bill would:
- Establish a permanent minimum 4% credit floor for the acquisition of existing properties.
- Allow the 60% area median income (AMI) ceiling to apply to the average of all units. Tenants with incomes up to 80% of AMI could be served as long as the whole project remains at the 60% average.
- Prohibit state Qualified Allocation Plans from requiring, or granting additional points for, local approval or financial contributions.
- Allow states to provide a 30% basis boost for bond-financed projects.
These provisions are also part of legislation recently introduced in the Senate by Sens. Maria Cantwell (D-Wash.) and Orrin Hatch (R-Utah).
More details on the House bill can be found here.
For additional information, contact J.P. Delmore at 800-368-5242 x8412.