LeadingAge joined 120 organizations in a February 7 letter to all Senators urging action on the House-passed, bipartisan Tax Relief for American Families and Workers Act. The far-reaching bill includes two provisions that could expand the supply of affordable homes by 200,000 units.
The first provision would increase the 9% Low Income Housing Credit (LIHTC) ceiling by 12.5%, allowing states to allocate more credits for affordable housing projects, for 2023–2025. The second provision would lower the bond-financing threshold from 50% to 30% for projects financed by bonds with an issue with an issue date in 2024 or 2025.
This change will be particularly helpful in the 20 states whose private activity bond cap is oversubscribed. About 30% of the nation’s almost three million LIHTC units serve older adults, which are a key part of financing for the preservation and expansion of affordable housing.