Legislation introduced to provide rent relief through refundable tax credit
Last week, Senator Kamala Harris (D-CA) introduced a bill aimed at relieving rent burdens through a tax credit for renter households.Tthe “Rent Relief Act” is a companion bill to an earlier bill introduced by Congressman Joseph Crowley (D-NY); the bill proposes a refundable tax credit earned by renters who pay more than 30% of their gross income on rent and utilities for a primary residence at fair market value. Under the legislation, households earning $25,000 or less would receive a dollar for dollar tax credit. For households earning up to $100,000 (or $125,000 in high cost areas), the credit would operate on a tiered system based on income level. In addition, tenants whose rent is made more affordable through government housing subsidies would qualify for an annual tax credit equal to one month of the tenant rent contribution. Senators Dianne Feinstein (D-CA), Richard Blumenthal (D-CT), Kirsten Gillibrand (D-NY), and Maggie Hassan (D-NH) cosponsored the Senate legislation, which was referred to the Senate Finance Committee for consideration. According to Senator Harris’s press release, more than 1.5 million Americans are rent-burdened in that they pay more than 30% of their income for housing; in addition, rent-burdened individuals can face difficulties affording necessities such as commuter transportation cost, health and child care, and groceries. HUD’s 2017 Worst Case Housing Needs Report estimates that rent burdens rose significantly in recent years. “America’s affordable housing crisis has left too many families behind who struggle each month to keep a roof over their head,” said Senator Harris. “This bill will ensure no family is priced out of the basic security of a place to live. Bolstering the economic security of working families would strengthen our country and increase opportunity.”Restoring Tax Credits for Affordable Housing Act Introduced
This week, Rep. James Clyburn, D-S.C., introduced the “Restoring Tax Credits for Affordable Housing Act” to increase the low-income housing tax credit (LIHTC) annual allocation and increase the credit percentage formula. According to Rep. Clyburn’s press release, the legislation aims to replenish 235,000 affordable housing units projected to be lost over the next decade due to tax reform. Starting in 2019, the legislation would increase the per-capita LIHTC allocation from $2.40 to $2.90; the small-state minimum LIHTC allocation from $2.765 million to $3.365 million; change the discount rate formula; and provide a one-time increase of 16 percent to the applicable percentage for the LIHTC. NAHMA plans to review bills from Sen. Harris and Rep. Clyburn with our Tax Credit and Federal Affairs Committees for positions.FY19 HUD and USDA funding bills move through Senate
This week, the U.S. Senate began final voting on a small-package of appropriations bills, also called a “Minibus.” This package includes funding bills for HUD and USDA, which would fund all rental assistance and affordable housing programs through fiscal year 2019. The process was slowed due to the number of amendments the Senate must clear before final passage. Senate Appropriations Chairman Richard Shelby (R-AL) is hoping to keep the funding bills clean from controversial policy-riders or political “hot-topic” amendments. “We’re trying to be clean,” Shelby said. “I’m trying to keep things out.” The Senate hopes to complete their work when they return next week.UP NEXT: What NAHMA is watching for next week
- 7/31: Disparate Impact comments due to NAHMA
- FY19 Appropriations debate continues in Senate
- AHMA Advocacy Challenge in its first full week
- Members of the House head into August Recess
- NAHMAnalysis on FY19 Appropriations (Comparison of House, Senate, and Administration’s proposed levels)