On July 21, 2015, the Senate Finance Committee held a mark-up of legislation to extend dozens of expired tax provisions, or “tax extenders,” including the minimum 9% Housing Credit rate for new construction and substantial rehabilitation. The bill also establishes a minimum 4% rate for the acquisition of affordable housing.
Both the 9% minimum rate and the 4% minimum rate for acquisitions would be available for allocations made before January 1, 2017.
On behalf of over 1,000 affordable housing stakeholders, including Monarch Housing, the ACTION Campaign commends the Senate Finance Committee for advancing legislation that would strengthen the Low-Income Housing Tax Credit (LIHTC) through an extension of minimum credit rates.
The ACTION Campaign also thanks Senators Maria Cantwell and Pat Roberts for their leadership in supporting this important provision, which will make the development of affordable housing more predictable and financially feasible.
The timeline for consideration in the House is uncertain. House Ways and Means Chairman Paul Ryan (R-WI) has focused his efforts on advancing several pieces of legislation making select provisions permanent, while the Senate’s package is for the most part a clean two-year extension for dozens of existing temporary provisions.
The question over whether and which extenders to make permanent is what ultimately derailed the extenders negotiations at the end of 2014, resulting in legislation that only provided one year of retroactive extensions. However, the Senate’s strong bipartisan support for the extenders package approved today is an important first step in reaching agreement on this legislation.
Click here for more details about the Senate’s legislation.