Provisions in current tax package would finance more than 200,000 affordable homes by strengthening the Low-Income Housing Tax Credit
The Affordable Housing Tax Credit Coalition (AHTCC) today applauded an agreement by Senate Finance Committee Chairman Ron Wyden (D-OR) and House Ways and Means Committee Chairman Jason Smith (R-MO) to include provisions that expand and strengthen the Low-Income Housing Tax Credit (Housing Credit)—the nation’s primary tool for financing the development and preservation of affordable rental housing—in the proposed Tax Relief for American Families and Workers Act of 2024.
The Wyden-Smith agreement includes two vital measures adopted from the Affordable Housing Credit Improvement Act (AHCIA) of 2023 (H.R.3238/S.1557). The provisions – intended to address the nation’s housing crisis by boosting the production affordable rental homes – would restore a 12.5 percent allocation increase to the Housing Credit that expired at the end of 2021, and reduce from 50 percent to 30 percent the amount of private activity bond financing required to access the four percent Housing Credit.
“Congress is taking important steps to address our nation’s affordable housing crisis by building on what we know works,” said AHTCC CEO Emily Cadik. “The Low-Income Housing Tax Credit provisions included in the bipartisan tax agreement would finance over 200,000 more affordable homes at a time of skyrocketing need, using a bipartisan tool with a nearly 40-year track record of success.”
Inclusion of Housing Credit provisions reflects widespread bipartisan support behind the AHCIA, which recently earned over 200 supporters in the House and 30 in the Senate, equally balanced between Republicans and Democrats. In the 118th Congress, the legislation 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-CA), Claudia Tenney (R-NY), and Jimmy Panetta (D-CA).
“The current tax agreement reflects widespread agreement among Republicans and Democrats that common-sense, public-private partnership solutions are needed to address the nation’s housing crisis,” said Ryan Sfreddo, President of the AHTCC Board of Directors and CEO of Red Stone Equity Partners. “We are thrilled that momentum is building behind measures to strengthen the nation’s most successful and effective tool for addressing the crisis head-on reducing the rental burden being experienced by families and seniors across the country.”
Since 1986, the Housing Credit has financed more than 3.85 million affordable homes for low-income households, including veterans, seniors, people with disabilities, essential workers, and families with children. Through public-private partnerships, the credit offers a proven track record of financing safe, decent affordable homes in urban, suburban and rural communities.