Housing Credit Bills Introduced in Senate, House

Legislation | April 15, 2021 | by Linda Couch

Legislation to expand and improve the Low Income Housing Tax Credit (Housing Credit) was introduced today in the Senate and House. The identical bills represent close iterations of Housing Credit legislation introduced, and widely-supported, in previous sessions of Congress.

Legislation to expand and improve the Low Income Housing Tax Credit (Housing Credit) was introduced today in the Senate and House. The identical bills represent close iterations of Housing Credit legislation introduced, and widely-supported, in previous sessions of Congress.

The Affordable Housing Credit Improvement Act (AHCIA) of 2021 was introduced by Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Rob Portman (R-OH) and Representatives Suzan DelBene (D-WA), Jackie Walorski (R-IN), Don Beyer (D-VA), and Brad Wenstrup (R-OH).

The bill would increase Housing Credit allocation by 50% over current levels phased in over two years and make a long list of improvements to the Housing Credit.

The AHCIA also would allow states and their partners to produce and preserve more bond-financed developments by lowering the bond financing threshold from 50% to 25% and includes basis-boosts for harder-to-reach communities. Research released today by the National Council of State Housing Agencies finds lowering the bond financing threshold for Housing Credit properties to 25% could result in the production of nearly 1.5 million more 4% Housing Credit units than would otherwise be produced between 2022 to 2031.

The three major unit financing provisions would provide for over 2 million additional affordable homes over the next ten years. The bill also includes a number of other modifications to make the Housing Credit an even better tool for meeting the needs of rural communities, veterans, older adults, Native Americans, and extremely low income families.

A fact sheet on the Housing Credit and older adults shows that, according to data available, 32% of Housing Credit homes include someone 62 or older.

LeadingAge is proud to be a steering committee member of the Rental Housing ACTION Campaign, coordinated by NCSHA and Enterprise Community Partners. The ACTION Campaign works to support the Housing Credit program and see these new bills to enactment.