Expanding LIHTC and Making Sure Every American has a Safe and Affordable Home is a Moral Imperative
- The legislation would increase the allocation of Low Income Housing Tax Credits (LIHTCs) by 50%.
- The increase in LIHTC could increase the number of affordable housing units by 400,000 over the next ten years.
- The bill does not, however, include improvements to the program to better serve extremely low income households.
- The “Affordable Housing Credit Improvement Act” (HR 1661) introduced earlier this year by U.S. Representatives Pat Tiberi (R-OH) and Richard Neal (D-MA) and co-sponsored by Congressman Bill Pascrell does include improvements that would reform the LIHTC program.
“Making sure that every American has a safe and affordable place to call home is a moral imperative that we must address,” Ms. DelBene stated when introducing the bill. “To help lift families out of poverty and expand access to affordable housing, we need to increase the Low Income Housing Tax Credit. Washington has seen it firsthand. Housing options are not keeping pace with demand and my legislation would help ensure more families can find stable, affordable housing.”
The ACTION Campaign provides background on the Housing Credit.
- Low-income families whose income are at or below 60 percent of the area median income (AMI) can rent Housing Credit properties, and rent payments are capped at 30 percent of the income limit for each apartment.
- The roughly 3 million apartments financed by the Housing Credit have provided affordable homes to more than 6.7 million low-income families over the past 30 years, making it easier for them to afford other necessities like health care, transportation and nutritious food.
In New Jersey, between 1986 and 2015, the Housing Credit built or preserved over 54,000 affordable homes. The Housing Credit provided almost 126,000 low-income households in the state with affordable housing.