The Affordable Housing Tax Credit Coalition joined a letter signed by 120 national and state affordable housing and community development organizations to Senate leadership, urging the Senate to enact the Low-Income Housing Tax Credit (Housing Credit) provisions included in the bipartisan Tax Relief for American Families and Workers Act of 2024. The letter calls on Senate Majority Leader Chuck Schumer (D-NY) and Minority Leader Mitch McConnell (R-KY) to advance the tax package as soon as possible to enact the Housing Credit provisions included in the bill and meaningfully address our nation’s affordable housing crisis. Together, the Housing Credit provisions in the tax package are estimated to finance the production or preservation of over 200,000 additional affordable homes, according to Novogradac.
Housing Credit Provisions
If enacted, this legislation would:
- Restore the 12.5 percent Housing Credit allocation increase for 2023 – 2025. This allocation increase was initially enacted in 2018 but expired in 2021.
- Lower the 50 percent bond financing threshold required to access 4 percent credits from 50 to 30 percent for Private Activity Bond (PAB) allocations made in 2024 – 2025.
These two provisions were adopted from the Affordable Housing Credit Improvement Act (AHCIA) of 2023 (H.R. 3238 / S. 1557), and the approved legislative text related to our Housing Credit priorities that passed the House can be found here.
Inclusion of these Housing Credit provisions reflects the widespread bipartisan support for the AHCIA, which has earned the co-sponsorship of nearly half of the House of Representatives as well as 30 co-sponsors in the Senate, equally balanced between Republicans and Democrats. In the 118th Congress, the AHCIA is led in the Senate by Sens. Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Marsha Blackburn (R-TN), and in the House by Reps. Darin LaHood (R-IL), Suzan DelBene (D-WA), Brad Wenstrup (R-OH), Don Beyer (D-VA), Claudia Tenney (R-NY), and Jimmy Panetta (D-CA).
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