Washington, D.C. – U.S. Representatives Darin LaHood (R-IL), Suzan DelBene (D-WA), Brad Wenstrup (R-OH), Don Beyer (D-VA), Claudia Tenney (R-NY), and Jimmy Panetta (D-CA), all members of the House Ways and Means Committee, urged House Leadership in a letter for consideration of their bipartisan Affordable Housing Credit Improvement (AHCIA) Act in any potential tax legislation brought to the floor. The AHCIA would help build nearly 2 million new affordable homes over the next decade and has reached 200 cosponsors, with 100 Republicans and 100 Democrats in support.
In the letter, the lawmakers write:
"Throughout its 37-year history of bipartisan support, the Low-Income Housing Tax Credit (Housing Credit) has financed the production of over 3.7 million homes nationwide. It is responsible for virtually all affordable housing produced since its inception. This finances homes for people in need like veterans, seniors, and working families. Unfortunately, our nation remains in a deepening affordable housing crisis and the time to expand and improve the Housing Credit is now.
"We must address this crisis directly and immediately by increasing Housing Credit resources. Therefore, we must enact provisions from the AHCIA that will do just that by:
- Reversing a 12.5 percent cut to the Housing Credit. Though the Housing Credit allocation was increased by this amount with bipartisan support in 2018, the increase expired at the end of 2021, meaning we now produce less affordable housing at a time when it is needed more than ever.
- Lowering the “50 percent test” bond financing threshold to access Housing Credit equity. This arbitrary threshold creates a barrier to affordable housing production, especially for the growing number of states that fully utilize their private activity bond cap."
The nationwide housing crisis continues to worsen. Currently, nearly one-in-four renters or, over 10 million families, spend more than half of their household income on rent, cutting into other essential expenses like child care, medication, groceries, and transportation. At the same time, nearly 600,000 Americans are experiencing homelessness on any given day, an increase over pre-COVID levels.
The Affordable Housing Credit Improvement (AHCIA) Act would support the financing of nearly 2 million new affordable homes by:
- Increasing the amount 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.
- Increasing 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.
- Improving 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.
Learn more about the legislation HERE. A summary of the legislation provided by the ACTION campaign can be found HERE. The text of the legislation can be found HERE.
The full text of the letter can be read HERE and below.
December 15, 2023
Dear Speaker Johnson and Leader Jeffries,
Throughout its 37-year history of bipartisan support, the Low-Income Housing Tax Credit (Housing Credit) has financed the production of over 3.7 million homes nationwide. It is responsible for virtually all affordable housing produced since its inception. This finances homes for people in need like veterans, seniors, and working families. Unfortunately, our nation remains in a deepening affordable housing crisis and the time to expand and improve the Housing Credit is now.
That is why we must act now to advance provisions from our bill, the Affordable Housing Tax Credit Improvement Act (H.R. 3238/ AHCIA). If two key provisions from the AHCIA are enacted, we can finance 1.5 million more affordable homes in communities coast to coast suffering from a chronic lack of affordable housing. Inclusion of these proposals in any emerging tax vehicle is essential to address America’s housing crisis head-on. There is not a single community in the U.S, that is unaffected by this urgent need, and the significant support for our bill shows that – 200 cosponsors in the House, equally divided between Republicans and Democrats.
Our nation had an affordable housing supply crisis before the overwhelming pressure of inflation, rising interest rates, and supply chain issues exacerbated it even more. Nationwide, we are over 3.8 million homes short of meeting the general housing needs of Americans, and 7 million homes short of housing for extremely low-income renters. The Housing Credit is an indispensable part of the solution because it is our nation’s primary tool to finance affordable housing production in rural, suburban, and urban areas. Skyrocketing rents and persistent underdevelopment of affordable housing are a major issue for economic growth and job creation. Local economies are facing a vicious cycle in which workers cannot find housing and employers struggle to find workers. More Housing Credit resources means more housing for the working people who are essential to a thriving community and growing economy—including in the education, healthcare, hospitality, and retail sectors.
We must address this crisis directly and immediately by increasing Housing Credit resources. Therefore, we must enact provisions from the AHCIA that will do just that by:
- Reversing a 12.5 percent cut to the Housing Credit. Though the Housing Credit allocation was increased by this amount with bipartisan support in 2018, the increase expired at the end of 2021, meaning we now produce less affordable housing at a time when it is needed more than ever.
- Lowering the “50 percent test” bond financing threshold to access Housing Credit equity. This arbitrary threshold creates a barrier to affordable housing production, especially for the growing number of states that fully utilize their private activity bond cap.
Because the Housing Credit is vastly oversubscribed and the need has never been greater, getting these critical provisions signed into law would have an immediate positive impact. Thousands of projects currently on the sidelines could begin development.
At a time of heightening division and negativity in our politics, this crisis transcends party because it affects everyone. With such a packed agenda for Congress in the remainder of this year and into early 2024, we must act now before America’s affordable housing crisis gets any worse.
We urge inclusion of these essential provisions of the AHCIA in any tax vehicle that emerges. Thank you in advance for your support.
Sincerely,
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