The House Committees on Financial Services and Ways and Means each marked-up their portions of the partisan, reconciliation infrastructure package, housing-related appropriations and taxes, respectively.
The House Financial Services Committee completed their work on Tuesday and sent their portion of the bill to the House floor with a 30-24 party-line vote. The committee voted down all of the amendments offered by Republicans.
Yesterday, the House Ways and Means Committee voted down four amendments offered by Republicans and is expected to finish its work today, September 15 with a mark-up beginning at 9 a.m. ET.
Below are the housing-related provisions in the bill. Thank you to the many, many advocates who worked hard to get our priorities included in the bills! The ACTION Campaign, of which NH&RA is a steering committee member, sent a letter to Ways and Means Committee Chairman Richard Neal thanking him for the inclusion of housing provisions included in the bill and urging final adoption.
From here, the outlook remains murky. Progressive Democrats are adamant that the bill does not drop below the current $3.5 trillion, while moderates are angling for a smaller $1.5 trillion. The smaller the final number, the less likely that there will be room for all the housing provisions listed below. The House set and internal deadline of September 25 for passage, which it will likely miss. Both chambers of Congress must also act to address federal appropriations, which are set to expire on September 30, as well as the debt limit. Congress is reportedly considering a short-term continuing resolution to extend federal appropriations through December 10.
- Increase the nine percent allocation by 50 percent over a five-year phase-in;
- Lower the 50 percent financed-by bond test to 25 percent for seven years;
- Allow states to apply a four percent boost;
- 50 percent Extremely Low-Income basis boost;
- 30 percent Rural basis boost;
- 30 percent Native American basis boost;
- Repeals the Qualified Contract (QC option for buildings receiving allocations after Jan. 1, 2022, and modifies QC for properties that received an allocation before Jan. 1, 2022 to fair market value;
- Right of First Refusal modifications; and
- Increase Historic Rehabilitation Tax Credit from 20 to 30 percent for 2020-2025 with a phase down in 2026 (26 percent) and 2027 (23 percent).
- $90 billion for rental assistance;
- $80 billion for public housing capital needs;
- $37 billion for the National Housing Trust Fund;
- $35 billion for the HOME program;
- $10 Billion for the Capital Magnet Fund;
- $8.5 billion for the Community Development Block Grant;
- $10 billion for first-time, first-generation homebuyer down payment assistance; and
- $2 billion for the Indian Housing Block Grant Program.
The House Ways and Means Committee is also responsible for “pay-fors” for the spending listed above. (Bill Text, Section-by-Section). Of note for our members, the bill would increase the corporate tax rate to 26.5 percent for businesses making more than $5 million; allow all business tax credits to offset Base Erosion and Anti-abuse Tax (BEAT) liability; and increase the Global Intangible Low-Taxed Income (GLITI) rate to 16.5 percent.