Senator Cantwell and Chairman Hatch are looking for ways to advance the legislation they introduced last week to expand the Low-Income Housing Tax Credit Program. The legislation may be part of a year-end tax package or, perhaps more likely, part of broader tax legislation in the next Congress.
May 23, 2016 — Senators Maria Cantwell (D-WA) and Orrin Hatch (R-UT) introduced Thursday the Affordable Housing Credit Improvement Act. Ron Wyden (D-OR) and Charles Schumer (D-NY) have already signed on as co-sponsors for the legislation.
If passed, the Act would increase Low-Income Housing Tax Credit authority by 50% and spur the development of 400,000 more units than the current program levels would over the next ten years, according to Cantwell. The bill proposes a permanent 4% credit rate floor for acquisition and bond-financed projects, as well as an income averaging option. Income averaging would allow LIHTC housing to serve a greater range of income levels, as long as the overall average median income does not exceed 60% of AMI.
When Cantwell first announced her efforts to expand the LIHTC program, she proposed a 50 percent basis boost for units serving extremely low-income households. The legislation she introduced on Thursday does not include this provision.
Many believe the bill will fail to see movement this year, but may show promise in 2017 when Congress looks to address tax reform.
March 30, 2016 — Senator Maria Cantwell (D-WA) announced a plan to introduce legislation calling for a 50 percent increase in Housing Credit authority and other changes to strengthen the Credit program. She has also released an accompanying report on the Housing Credit’s impact around the U.S. and in her home state of Washington.
Cantwell’s proposal would finance approximately 400,000 additional units of affordable housing nationwide over the next decade, with approximately 35,000 units in Washington state (roughly 4,200 more units than is possible under current levels of LIHTC financing).
According to the ACTION Campaign, more than 1,300 organizations, with representatives from every state, have come together to sign a letter calling on Congress to raise the cap on Low-Income Housing Tax Credit (Housing Credit) allocation authority by at least 50 percent. When Congress last raised the Housing Credit cap in 2000, huge bipartisan majorities of the Senate and House cosponsored the legislation proposing the increase.
If you have any questions, please contact Jennifer Schwartz, Assistant Director for Tax Policy and Advocacy, National Council of State Housing Agencies, at (202) 624-7710, or Emily Cadik, Director of Public Policy, Enterprise Community Partners, at (202) 403-8015
