Menendez Co-Sponsors S.1989 Bill Pascrell Jr Co-Sponsors H.R. 3661
Legislation to permanently establish fixed 9% and 4% low-income housing tax credit (LIHTC) rates has been introduced in both the Senate and the House.
Sen. Maria Cantwell (D-Wash.) and Rep. Pat Tiberi (R-Ohio) introduced their bills Dec. 14.
Establishing a credit floor has been a key goal for many in the industry. The Housing and Economic Recovery Act of 2008 created a temporary 9% credit floor for projects placed in service through 2013. This has allowed developers to receive additional credits during the economic downturn.
The new bills would make permanent the HERA provision for a 9% credit and would establish a 4% rate for acquisition credit calculations (but not 4% LIHTCs generated by bonds).
“Without the provisions, affordable housing developments could experience a reduction of 15 to 20% in essential private equity,” said Ron Terwilliger, chairman of Enterprise Community Partners, Inc. “This would likely have a negative impact on the number and types of families served, as many of the proposed affordable housing projects will no longer be financially feasible.”
S. 1989 was referred to the Senate Committee on Finance. Upon introduction, it had 10 sponsors: Jeff Bingaman ( D-N.M.), Scott Brown (R-Mass.), Benjamin Cardin (D-Md.), Susan Collins (R – Maine), Mike Crapo (R Idaho), John Kerry (D-Mass.), Robert Menendez (D -NJ), Bill Nelson (D-Fla.), Bernard Sanders (I-Vt.), and Olympia Snowe (R-Maine).
H.R. 3661 was referred to the House Committee on Ways and Means. Co-sponsors included Vern Buchanan (R-Fla.), Emanuel Cleaver (D-Mo.), Joseph Crowley (D-N.Y.), Jim Gerlach (R-Pa.), Richard Neal (D-Mass.), Bill Pascrell Jr. (D-N.J.), Charles Rangel (D-N.Y.), and Lee Terry (R- Neb.).