Included in these provisions is an extension of the minimum 9% Housing Credit rate for allocations made before January 1, 2016. The bill would also enact a minimum 4% Housing Credit rate for the acquisition of affordable housing for allocations made before January 1, 2016.
The inclusion of both of these minimum credit rates represents a major victory for the ACTION Campaign, of which Monarch Housing is a member, to protect the low-income housing tax credit. Congress is considering tax reform that would reduce or eliminate corporate tax expenditures, which may include the Housing Credit. The minimum 9% Housing Credit rate expired at the end of 2013, which is already making affordable housing production less financially feasible.
Though there was overwhelming bipartisan support for approving the extenders package, its fate is unclear. House Ways and Means Chairman Dave Camp (R-MI-4th) will be soon taking up tax extenders well, but is opposed to considering a package of temporary extenders, he plans to hold hearings over several months to determine which extenders should be made permanent in the tax code and which should be allowed to expire indefinitely. Because there is no vehicle to pass tax extenders in the Senate without the House acting first, it is unclear if or when it will go to the full Senate for a vote.
Click here to learn more about the ACTION Campaign.