Yesterday the Biden-Harris Administration released an overview of its plan to combat inflation on combating inflation, which included a call to Congress to invest in building more than 1 million affordable homes, “including through a set of tax credits that have received bipartisan support.” The factsheet further outlines short-, medium-, and long-term proposals from the Administration to reduce costs for families and lower inflation. The AHTCC thanks the Biden-Harris Administration for highlighting the need for more affordable housing and recognizing the critical role tax credits play in producing safe, decent, and affordable homes, and for continuing to support efforts to produce and preserve affordable housing across America.
For more information, see our resource outlining how expanding the Housing Credit—specifically by extending the 12.5 percent allocation increase, which expired at the end of 2021—can both address the affordable housing shortage and reduce inflation. In addition, lowering the 50 percent bond financing test to 25 percent could finance more than 800,000 affordable homes, nearly meeting the Administration’s housing production goals on its own. With inflation up 8.3 percent in the past 12 months and shelter costs accounting for one-third of inflation calculations, robust policy initiatives that will build more affordable housing and lower the cost of living, such as the initiative mentioned in the above factsheet, are critical to tackling inflation.