Hill Update: Congressman Pascrell Leads Effort
Representatives Pat Tiberi (R-Ohio-12th) and Richard Neal (D-Mass.-1st) recently introduced legislation (H.R. 1142) to create permanent minimum Low-Income Housing Tax Credit (Housing Credit) rates. Congressman Pascrell is a co-sponsor.
This change would allow states to allocate credits more effectively and make affordable housing development more financially feasible.
Congress has previously enacted a minimum 9% credit rate for new construction and substantial rehabilitation that has been extended numerous times, most recently at the end of 2014.
However, the minimum credit rate has expired. All Housing Credit developments are now underwritten using a floating rate, meaning there is 15 to 20% less Housing Credit equity available for any given property.
H.R. 1142 currently has 19 additional co-sponsors, including 11 Republicans and 8 Democrats. Congressman Bill Pascrell is the only member from NJ sponsoring this crucial legislation.
Click here for more about H.R. 1142.