The AHCIA of 2019 includes 27 provisions that would expand and strengthen the Housing Credit.
To increase the production and preservation by more than 550,000 additional affordable homes over 10 years, the AHCIA would:
- Increase the 9% Housing Credit allocation by 50% over current law, phased in over 5 years,
- Set a minimum 4% Housing Credit rate, and
- Allow easier recycling of Multifamily Housing Bonds used in conjunction with the 4% Housing Credit.
To expand the preservation of affordable housing, the AHCIA would:
- Strengthen protections against planned foreclosures,
- Allow tenant relocation costs to be capitalized by the Housing Credit, and
- Provide flexibility around existing tenant income.
To better serve hard-to-reach areas, the AHCIA would:
- Provide a 30% basis boost in rural areas,
- Provide a 30% basis boost in Native American communities,
- Remove the Qualified Census Tract (QCT) population cap, and
- Increase the population cap for Difficult Development Areas (DDA) to 30%.
To better serve special populations, the AHCIA would:
- Clarify that veterans are exempt from the general public use rule for Multifamily Housing Bond properties,
- Provide a 50% basis boost for homes serving extremely low-income and formerly homeless tenants, and
- Better align the Housing Credit with the Violence Against Women Act.
To streamline and simplify the Housing Credit, the AHCIA would:
- Simplify and better align the Housing Credit’s student rule with HUD’s rule,
- Add income averaging as a third minimum set-aside option for Multifamily Housing Bond properties,
- Make the Housing Credit compatible with energy tax incentives.
To fight NIMBYism (Not In My Backyard) and promote good governance, the AHCIA would:
- Prohibit local approval and contributions requirements, and
- Establish a selection criteria for cost reasonableness.
The AHCIA includes additional provisions that would further strengthen the Housing Credit. For more information, see the: