Senate Finance Committee Chairman Ron Wyden (D-OR) has released the text of his soon to be introduced Decent, Affordable, Safe Housing for All (DASH) Act (full text, overall summary, section by section summary). The details provided herein will most likely change before enactment. The wide-ranging bill includes tax and spending provisions for both rental housing and homeownership, with the goal of ending homelessness. NH&RA thanks Chairman Wyden for his leadership, as well as the many parties involved in drafting and providing feedback on this important legislation. We look forward to working with our Congressional allies to advance this legislation.
Affordable housing tax provisions in the measure include:
- for bonds obligated in calendar years 2021-2024;
- Increase the nine percent credit (both per capita and small state minimum) for 2021 and 2022 and fix it to inflation thereafter;
- 2021: $3.88 per capita or $4,462,734
- 2022: $4.92 per capita or $5,670,462
- Create a federal ten percent set-aside of nine percent allocations to projects in which 20 percent of the units are for extremely low-income (ELI) households for both nine and four percent credits;
- Create basis boosts for four percent properties (at the HFA’s discretion) and properties receiving the ELI set-aside (based on the number of ELI units), as well as properties in rural and Indigenous areas;
- Repeal the qualified contract (QC) provision for properties receiving allocations in 2021 or later; and amend the QC formula price for existing properties to fair market value as restricted;
- Change the right of first refusal for nonprofit general partners to a purchase option for all future properties and clarify that the right of first refusal for existing properties includes the partnership interest and assets related to the property, and that nonprofit general partners may exercise their right of first refusal with or without the approval of the limited partner and in response to any offer, including one by a related party to the general partner;
- Further extend COVID-19-related deadline extensions;
- Create a “middle-income” tax credit for households earning between 60 to 100 percent of area median income and well as a refundable renters’ tax credit for owners who rent to tenants at or below 30 percent of AMI. Both credits would be administered through Treasury via state agencies.
- Credit Calculation: 50 percent of the present value of construction costs, or five percent per year on an undiscounted basis.
- Allocation: $1 per capita formula with a $1.14 million small state minimum
- Credit Calculation: Up to 110 percent of the difference between market rent and utilities and 30 percent of the tenant’s income
- Allocation: $36.75 per capita formula with a $42 million small state minimum
The bill also has several provisions of note that are not specifically multifamily and/or affordable rental housing oriented, including creating a first-time homebuyer tax credit and a Neighborhood Homes Investment Credit, which would incentivize rehabilitation of deteriorated, owner-occupied homes in distressed neighborhoods.
On the spending side, the bill would:
- Expand Housing Voucher availability for households experiencing or at risk of homelessness;
- Authorize $10 billion for the National Housing Trust Fund;
- Establish a $65 million annual capacity building grant program;
- Create a new $2 billion pilot program to support the construction of affordable modular homes; and
- Invest in rural multifamily housing through Sections 514, 515, 516 and 521.