Senate Tax Reform Bill Boosts Affordable Housing

Filed in Capitol Hill, Multifamily by on November 16, 2017 0 Comments

housesSenate Finance Committee Chairman Orrin Hatch (R-Utah) has released an updated version of the Senate tax reform bill that includes a number of changes that are favorable for the Low-Income Housing Tax Credit (LIHTC).

The revised Senate tax package still fully retains the LIHTC and private activity bonds. In addition, it includes several provisions from the Affordable Housing Credit Improvement Act, legislation introduced in the Senate by Sens. Maria Cantwell (D-Wash.) and Hatch designed to make the LIHTC more effective. These provisions would:

  • Permit state housing finance agencies to set up to a 25-month grace period after a LIHTC property’s casualty loss (fire, hurricane or flood) to allow the owner to get the unit restored before the credits would have to be recaptured from the property.
  • Modify rights relating to a building purchase by replacing the right-of-first refusal with a purchase option. This will allow project sponsors to ensure that properties remain affordable over the long term.
  • Allow states to determine the definition of a community revitalization plan to give them flexibility to determine local criteria.
  • Help combat local opposition to affordable housing projects by prohibiting local approval and contribution requirements.
  • Require that state-qualified allocation plans include selection criteria that serve the affordable housing needs of Native Americans.
  • Rename the Low-Income Housing Tax Credit the “Affordable Housing Tax Credit.”

For additional information, contact J.P. Delmore at 202-266-8412.

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