Senators Maria Cantwell (D-WA), Rob Portman (D-OH), Ron Wyden (D-OR) and Todd Young (R-IN) along with Representatives Don Beyer (D-VA), Suzan DelBene (D-WA), Jackie Walorski (R-IN) and Brad Wenstrup (R-OH) introduced the Affordable Housing Credit Improvement Act of 2021 (AHCIA). The bill retains most of the provisions from the version that was introduced in the 116th Congress, with two notable exceptions in the bond arena. The minimum four percent rate floor has been removed since it was passed into law in the 2020 year-end bill. The new version of the bill lowers the 50 percent bond-financing threshold to 25 percent. The previous bill implemented the 50 percent increase to nine percent allocation over five years, while the new version speeds up implementation to two years. A full list of changes in the new bill can be found here.
NCSHA released a report conducted by Novogradac that found lowering the bond financing threshold for LIHTC properties to 25 percent could result in the production of nearly 1.5 million more units than would otherwise be produced between 2022 to 2031.
The ACTION Campaign, of which NH&RA is a steering committee member, created talking points, a detailed summary and a one-page summary of the bill and also updated the national, state and congressional district factsheets. Please contact your members to become co-sponsors, if they have not already done so. The LIHTC has been included, albeit vaguely, in President Joe Biden’s (D) American Jobs Plan. NH&RA will work with our partners and Congressional allies to pass this bill as a standalone bill or part of a larger package like the infrastructure bill.