The National Council of State Housing Agencies (NCSHA) released a statement to the House Ways and Means Committee in response to the call for comments on tax code provisions. In the letter, NCSHA discussed the importance of low-income housing tax credits (LIHTCs) and tax-exempt housing bond programs.
They also highlighted the Keys to Their Success of the LIHTC:
We believe the Housing Credit and Housing Bonds have vastly outperformed and outlived most other federal housing programs because Congress wisely and with great foresight designed them to:
Fulfill a limited but important and appropriate set of federally established, public-purpose goals and imperatives, such as income limits and affordability requirements, while leaving to the states how to utilize these resources within these broad parameters to respond most effectively to their unique affordable housing needs and priorities;
Induce private sector investment and, thus, benefit from private sector ingenuity, expertise, oversight, and vigilance; and
Prevent the misuse of resources through oversight and compliance regimes that severely penalize noncompliance.
The state role in administering the Housing Credit and Housing Bonds has been further enhanced by the decision of virtually all states to commend their administration to their state HFAs. HFAs bring statewide perspective and focus, along with a deep understanding of the needs of their local markets.
They possess sophisticated finance, underwriting, and asset management capacity and a multi-decade record of responsibility, effectiveness, transparency, public accountability, and success in administering tens of billions of dollars in federal housing assistance. They combine sharp business acumen with a mission-driven public purpose to harness private capital to provide affordable housing. They are financially sound, investment-grade rated institutions.