Senators Cantwell and Roberts Reintroduces LIHTC Legislation
On Tuesday, May 5, Senator Maria Cantwell (D-WA) and Senator Pat Roberts (R-KS) reintroduced legislation to permanently establish a minimum 9 percent and 4 percent credit rate in the Low-Income Housing Tax Credit (LIHTC) program. This would eliminate the financial risk of the current floating rate system, simplify state administration, and create stability for owners and investors of Housing Credit developments.
S.1193, Improving the Low-Income Housing Tax Credit Rate Act, was first introduced by Senator Cantwell in the 113th Congress as S.1442. Yet this bill was not passed despite strong bipartisan and industry support. The 9 percent floor expired at the end of 2013, and it was only temporary extended through the Tax Increase Prevention Act (H.R. 5771). An establishment of the 4 percent minimum credit rate was not included in H.R. 5771, and the extension of the 9 percent credit lasted only through the end of 2014.
There is again strong bipartisan support for permanently establishing a minimum 9 percent and 4 percent credit rate. Earlier this year, Representative Pat Tiberi (R-OH) and Richard Neal (D-MA) introduced the same legislation in the House as H.R. 1142. However, lawmakers may still opt for comprehensive tax reform rather than piecemeal legislation such as S.1193 and H.R.1142. The Senate Finance Committee is still in the process of drafting tax reform legislation which will overhaul the U.S. tax code, including changes to the LIHTC. NAHMA will continue to advocate for the passage of S.1193 and H.R.1142, and we will maintain that any tax reform agreement must contain a permanent establishment of the minimum 9 percent and 4 percent credit rates.
To read a press release from Senator Cantwell after introducing this bill, please click here
Legislation to Block Fair Housing Enforcement Rule
On April 23, 2015, Representative Paul Gosar (R-AZ) introduced H.R.1995, the Local Zoning and Property Rights Protection Act of 2015. This bill would prohibit HUD from implementing its proposed rule entitled “Affirmatively Furthering Fair Housing”, published in the Federal Register on July 19, 2013 (78 Fed. Reg. 43710; Docket No. FR-5173-P-01).
Under H.R.1995, the Secretary of HUD would be required to consult with State officials, local governments, and public housing agencies (PHAs) to develop recommendations which further the purposes and policies of the Fair Housing Act. In essence, Gosar wants to see local governments act on their community’s fair housing issues rather than the federal government. In a press release, he stated: “Similar to other big government policies from this administration, the flawed AFFH regulation will result in more harm than good by way of increased taxes, depressed property values and further harm to impoverished communities…the Obama Administration should not be mandating that millions of dollars in grant money for local communities be dependent on turning over local zoning decisions to the federal government.”
Representative Gosar has introduced this legislation in the past. In the 113th Congress, he introduced it as an amendment to the Transportation, Housing and Urban Development Appropriations bill for FY 2015. The amendment was passed, but the bill was ultimately not enacted.
The Affirmatively Furthering Fair Housing proposed rule has not been implemented yet, and according to HUD staff at NAHMA’s most recent meeting in March, 2015, the rule is still under review by HUD personnel. NAHMA will continue to monitor the progress of this proposed rule, and H.R.1995.
To read a press release from Representative Gosar’s office regarding this bill, please click here