Affordable Housing Credit Improvement Act Introduced in House and Senate
This week, U.S. Representatives Darin LaHood (R-IL) and Suzan DelBene (D-WA), and Senators Maria Cantwell (D-WA) and Todd Young (R-IN) introduced H.R. 3238 and S.1557, the Affordable Housing Credit Improvement Act (AHCIA) to modernize the Low-Income Housing Tax Credit (Housing Credit) and help expand the housing supply. “Too many families are paying too much just to keep a roof over their heads. Securing more affordable housing is key to our economic growth and individual families’ success. This legislation would increase the federal resources allocated to each state, cut the red tape that hinders financing for workforce housing, better serve people most in need, and ultimately add more than 64,000 affordable units to Washington’s housing stock over the next decade.” said Sen. Cantwell in a recent press release. “In Indiana and across the nation, affordable housing is needed now more than ever. The AHCIA will leverage private sector investment to increase the stock of affordable housing for families in both urban and rural communities. Our bipartisan bill tackles the housing affordability crisis head on to help Hoosier families and strengthen our communities,” added Sen. Young.
The bill, if passed into law, would support the financing of nearly 2 million new additional affordable homes over the next 10 years and would provide nearly 3 million jobs, $115 billion in additional tax revenue, and $333 billion in wages and business income. Specifically, the bill would:
- Increase the number of credits allocated to each state. The legislation would increase the number of credits available to states by 50 percent for the next two years and make the temporary 12.5 percent increase secured in 2018 permanent—which has already helped build more than 59,000 additional affordable housing units nationwide.
- Increase the number of affordable housing projects that can be built using private activity bonds. This provision would stabilize financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity bonds needed to secure Housing Credit funding. As a result, projects would have to carry less debt, and more projects would be eligible to receive funding.
- Improve the Housing Credit program to better serve at-risk and underserved communities. The legislation would also make improvements to the program to better serve veterans, victims of domestic violence, formerly homeless students, Native American communities, and rural Americans.
The AHCIA has been referred to the Senate Committee on Finance for further consideration. NAHMA supports the AHCIA and will continue to educate members of Congress on the need to expand the housing supply.
To view the full bill text, click here. To view a fact sheet provided by the ACTOIN Campaign, click here.
Senator Casey Introduces Bill to Produce More Accessible, Affordable Housing
Seeking to address the housing affordability crisis affecting many older adults and people with disabilities, Senator Bob Casey (D-PA), Chairman of the U.S. Senate Special Committee on Aging, recently introduced the Visitable Inclusive Tax Credits for Accessible Living (VITAL) Act (S.1377). The VITAL Act would increase investment in the Low-Income Housing Tax Credit (LIHTC) Program and ensure that developers are building more accessible housing units that are designed for older adults and people with disabilities, and located within communities where residents can walk or move around easily in wheelchairs. “Far too many older adults and people with disabilities cannot afford accessible housing, live in unsafe housing, or live in institutions even though they’d prefer to stay in their communities. This is unacceptable,” said Sen. Casey in his press statement. “We need to ensure that families have a real choice when it comes to the place they call home. My legislation would ensure that we are ramping up accessible housing development to meet the widespread needs of these communities.”
Sen. Casey also cited a 2011 HUD study showing that fewer than 6 percent of housing units are designed to be accessible—or homes that offer specific features and technologies, such as lowered kitchen counters and sinks, widened doorways, grab bars, and no step showers. The VITAL Act would seek to address the housing needs of older adults and people with disabilities by increasing funding for LIHTC, among other provisions.
Specifically, the bill would:
- Increase the overall funding for LIHTC for both 4 and 9 percent credits.
- Increase the funding available to developers who build units that are:
- designed for people with disabilities, and
- located in places that are walkable and rollable, with access to transit, so that people are connected to their communities and not isolated.
- Require that at least 40 percent of the units constructed under LIHTC are adaptable/accessible for people with disabilities:
- States may lower this amount to 20% if the units are also located in walkable/rollable areas.
- Allocate each state housing finance authority with $150,000 annually to establish LITHC resource centers to support new and nonprofit developers.
- Create a cross-divisional housing national advisory council to provide general recommendations on national LIHTC trends and best practices.
The VITAL Act was most recently referred to the Senate Committee on Finance for further consideration, and NAHMA will continue to monitor its progress closely.
To view Sen. Casey’s press statement, click here.
House Bill Would Create Interagency Council on Affordable Housing
Reps. Adam Schiff (D-CA) and Yvette Clarke (D-NY) recently introduced H.R. 2974, the Interagency Council on Affordable Housing Act. This bill, if passed into law, would create an Interagency Council on Affordable Housing and Preservation – similar to the structure of the existing U.S. Interagency Council on Homelessness – that would advise on preserving and strengthening existing affordable housing, public housing, and federal housing voucher assistance programs. “With housing prices through the roof, millions of Americans struggle to find a home they can afford, or to stay in the one they have now. We must find new and innovative ways to bring down the cost of housing and make it more affordable for people. That’s why I’m introducing the Interagency Council on Affordable Housing Act to find solutions and expand the availability of affordable housing. I am grateful to Rep. Clark for joining me in leading this important effort, and urge my colleagues to support this bill to address a crisis that impacts all of our communities,” said Rep. Schiff in a press statement.
The Interagency Council on Affordable Housing and Preservation would conduct research, analyze, and provide recommendations that target affordable housing preservation, rent gouging, eviction defense, and other fair housing issues— protecting low-income renters, families, and individuals housed through federal housing programs. The bill has been referred to the House Committee on Financial Services for further consideration.
To view the full bill text, click here. To view Rep. Schiff’s press release, click here.