Affordable Housing Credit Improvement Act Would Address Affordable Housing Need
U.S. Senator Maria Cantwell (D-WA) and Senate Finance Committee Chairman Orrin Hatch (R-UT) will soon be reintroducing the Affordable Housing Credit Improvement Act, which would increase the housing credit by 50%.
The Act is bipartisan legislation to expand and strengthen LIHTC.
The new legislation will be very similar to the comprehensive version of the legislation introduced in the last Congress, S.3237, with several minor modifications.
The legislation would:
- Increase Credit authority by 50 percent, taking a meaningful step towards addressing our nation’s vast and growing affordable housing needs,
- Strengthen the Credit by providing states with additional flexibility,
- Make the financing of affordable housing more predictable and streamlined,
- Facilitate Housing Credit development in challenging markets like rural and Native American communities,
- Increase the Housing Credit’s ability to serve extremely low-income tenants, and
- Support the preservation of existing affordable housing.
The legislation also contains important provisions that would support development of rental homes using the Housing Credit coupled with multifamily Housing Bonds.
Housing bonds provide critical financing to roughly 40 percent of Housing Credit apartments.
Affordable housing promotes financial stability and economic mobility. It leads to better health, improves children’s school performance, and helps low-income individuals and families gain employment.
The ACTION Campaign is a coalition of roughly 1,800 national, state and local organizations and businesses, including Monarch Housing, working to address our nation’s severe shortage of affordable rental housing by protecting, expanding and strengthening the Low-Income Housing Tax Credit.