would be supported
Affordable Housing Credit Improvement Act (AHCIA)
Legislation to expand and strengthen the Housing Credit
3 million jobs
in wages and business income would be provided
in tax revenue would be generated
Broadly-Supported, Bipartisan Legislation
The Senate AHCIA (S.1136) is led by Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Rob Portman (R-OH), and cosponsored by over one-third of the Senate.
The House AHCIA (H.R.2573) is led by Representatives Suzan DelBene (D-WA), Jackie Walorski (R-IN), Don Beyer (D-VA), and Brad Wenstrup (R-OH), and cosponsored by over one-third of the House.
In the 116th Congress, the AHCIA was co-sponsored by over half the House of Representatives and over 40 Senators. Since it was first introduced in 2016, three key provisions of the AHCIA were enacted: a minimum 4 percent Housing Credit rate in 2020, and a 12.5 percent allocation increase (for 2018 to 2021) and “income averaging,” which allows properties to serve tenants with a broader range of incomes, in 2018.
Legislation to Strengthen What’s Working
Through successful public-private partnerships, the Housing Credit offers a proven track record of financing nearly 3.5 million safe, decent, affordable homes in rural, suburban, and urban areas, serving 8 million households since 1986. Residents are essential workers, veterans, seniors, people with disabilities, and low-wage workers with a national median income less than $18,000. If forced to pay market-rate rents, many would be just one unforeseen event away from being unable to pay rent and potentially losing housing.
The AHCIA Would:
Increase affordable housing production and preservation
- Increase the annual Housing Credit allocation by 50 percent over the current level, phased in over 2 years, which is especially urgent as the Housing Credit is now facing its lowest allocation in four years.
- Expand access to Housing Credits by more efficiently using Private Activity Bond financing
Better serve hard-to-reach areas and populations
- Make more developments serving extremely low-income and formerly homeless tenants financially feasible
- Support Housing Credit developments for veterans
- Encourage developments in rural and Native American communities
- Facilitate the revitalization of higher-poverty communities and the development of more properties in high-opportunity areas
Remove barriers to affordable housing preservation
- Facilitate safe tenant relocation during the rehabilitation of Housing Credit properties
- Ensure properties are given enough time to rebuild after disasters or significant damages
- Allow flexibility for existing tenants when refinancing properties
Streamline program rules and promote efficiency
- Encourage states to consider cost reasonableness in their decision-making process
- Make the Housing Credit more compatible with energy tax incentives
- Ensure that rules designed to prevent college students from living in Housing Credit properties do not unfairly penalize residents seeking to further their education
- Prohibit local approval and contribution requirements that can prevent developments from moving forward due to Not in My Backyard (NIMBY) opposition