Washington, D.C. – U.S. Representatives Darin LaHood (IL-16) and Dan Kildee (MI-08) and U.S. Senators Jerry Moran (R-KS), Mark Warner (D-VA), and Todd Young (R-IN) introduced the Preserving Rural Housing Investments Act, legislation to amend the Internal Revenue Code to clarify that Government Sponsored Enterprises (GSEs), such as Fannie Mae and Freddie Mac, are able to participate in partnerships that are crucial for low-income housing investments.
Currently, the Internal Revenue Code states that investors partnering with Tax-Exempt Controlled Entities (TECEs) are not entitled to certain benefits, including accelerated depreciation, bonus depreciation, historic rehabilitation tax credits, and certain energy credits that support companies offering affordable housing tax credits. This legislation would clarify that Fannie Mae and Freddie Mac are not subject to this rule, therefore protecting their participation in partnerships that are vital for low-income housing development.
LaHood has led efforts in the House to strengthen the Low Income Housing Tax Credit as the primary sponsor of the Affordable Housing Credit Improvement Act. The Affordable Housing Credit Improvement Act would help build nearly two million affordable housing units across the country and has over 200 cosponsors in the House, equally divided between Democrats and Republicans.
“Affordable housing is vital for families in rural communities throughout Illinois,” said Rep. LaHood. “To address the affordable housing crisis, we must strengthen tools to drive investment into low-income housing and expand options. I am proud to introduce the bipartisan, bicameral Preserving Rural Housing Investments Act, which will help reduce housing costs for families and strengthen affordable housing in Illinois.”
“Our bipartisan bill, supported by Democrats and Republicans, will help expand rural affordable housing opportunities across Michigan,” said Rep. Kildee. “By clarifying outdated rules in the tax code, we can protect investments in rural affordable housing in the small-town communities that need it the most.”
“Housing affordability issues have a significant impact on rural Americans across the country,” said Sen. Moran. “By making this technical change, rural housing investors that partner with TECEs can confidently invest in the affordable housing tax credits that many rural communities rely upon. I encourage my colleagues to support this bill so that we can continue to improve rural communities in Kansas by reducing housing costs.”
“Far too many folks across Virginia – including those in rural communities – are suffering because of the affordable housing crisis,” said Sen. Warner. “We need an all-hands-on-deck approach to getting investments into rural communities and expanding housing options for low-income Americans. I’ve been continuously raising the alarm about the commonsense fix in the Preserving Rural Housing Investments Act. We must pass this bipartisan legislation so we can unlock investments in our rural communities and cut housing costs for hardworking Virginians.”
“We can’t address our housing affordability crisis without building more units,” said Sen. Young. “By making one simple clarification, this bill will unlock new partnerships that are crucial for rural low-income housing investments, bringing much-needed projects to our rural communities.”
You can read the bill text here.
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