would have been supported
Affordable Housing Credit Improvement Act (AHCIA)
Legislation to expand and strengthen the Housing Credit
3 million jobs
$345 billion
in wages and business income would have been provided
$119 billion
in tax revenue would have been generated
The AHCIA is expected to be reintroduced in the 118th Congress.
In the 117th Congress, the AHCIA was co-sponsored by nearly half of the House of Representatives and Senate. Since it was first introduced in 2016, three key provisions of the AHCIA were enacted: a minimum 4 percent Housing Credit rate in 2020, a 12.5 percent allocation increase in 2018 (which expired in 2021) and “income averaging,” which allows properties to serve tenants with a broader range of incomes, in 2018.
Lead Sponsors in 117th Congress
The Senate AHCIA of 2021 (S.1136) was led by Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and former Senator Rob Portman (R-OH), and cosponsored by nearly half of the Senate.
The House AHCIA of 2021 (H.R.2573) was led by Representatives Suzan DelBene (D-WA), Brad Wenstrup (R-OH), Don Beyer (D-VA) and the late Jackie Walorski (R-IN), and was cosponsored by over 200 members of the House.
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 included provisions to:
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
The AHCIA included additional provisions that would further strengthen the Housing Credit. For more information, read the details of the AHCIA of 2021. Additional resources are located in the sidebar.