Sen. Maria Cantwell (D-Wash.) and Senate Finance Committee Chair Orrin Hatch (R-Utah) on March 7 introduced the Affordable Housing Credit Improvement Act to strengthen and expand the Low Income Housing Tax Credit (LIHTC).
This legislation, which was also introduced during the last Congress, would increase LIHTC allocations by 50% and make a number of improvements to the program: notably, fixing the 4% credit rate.
Other proposed changes would:
- Permit broader income-mixing within housing credit developments to preserve rigorous targeting while providing more flexibility and responsiveness to local needs, and maintaining a 60% area median income average.
- Prohibit states from including local approval and contribution provisions as either a threshold requirement or part of a point system in the Qualified Allocation Plans.
- Repeal the Qualified Census Tract population cap, enabling properties in more areas to receive a basis boost.
- Increase the amount of housing credits for developments serving extremely low-income tenants to make these developments more financially feasible.
- Renames the “Low Income Housing Tax Credit” the “Affordable Housing Tax Credit.”
Joining Sens. Cantwell and Hatch as original cosponsors are Sen. Ron Wyden (D-Ore.), ranking member of the Finance Committee, Sen. Charles Schumer (D-N.Y.), the Democratic leader, and Sens. Cory Booker (D-N.J.), Dean Heller (R-Nev.), Patrick Leahy (D-Vt.), Jeff Merkley (D-Ore.), Lisa Murkowski (R-Alaska), Brian Schatz (D-Hawaii), and Todd Young (R-Ind.).
NAHB will work with its coalition partners to build support for this bill.
Sen. Cantwell also released a report from her office on the growing affordable housing crisis which highlights the need for increased resources to meet the exploding demand.
For additional information, contact J.P. Delmore at 800-368-5242 x8412