Congress remains active in crafting additional COVID-19 related stimulus and relief legislation. New affordable housing measures are a part of this recent activity. In late June, the House and Senate introduced legislation that would provide necessary fixes and enhancements to the Low-Income Housing Tax Credit (LIHTC) program, as well as other affordable housing programs. Many of these provisions are ones the industry was advocating for in the Affordable Housing Credit Improvement Act (AHCIA), prior to COVID-19 and the ensuing economic crisis.
In advance of the July 4th legislative recess, the House may vote on the Moving Forward Act (H.R. 2). Here are a few of the many LIHTC and affordable housing measures in the bill:
- Establishes a permanent 4% credit rate
- Increases the annual 9% credit allocation from $2.81 per capita to $4.56 per capita.
- Increases the small state minimum from $3,217,500 to $5,214,051
- Provides up to a 30% basis boost for rural areas and Native American areas and 50% basis boost for developments serving extremely low-income tenants.
- Reduces the 50% bond financing threshold for 4% credit develops to 25%.
- Increases the annual state volume cap on Private Activity Bonds from $75 per capita to $135 capita.
- Authorizes $5 billion for the HOME program and $100 billion for CDBG.
In the Senate on June 25th, Senators Wyden (D-Oregon) and Cantwell (D-Washington) introduced the Emergency Affordable Housing Act. This bill contains the same affordable housing provisions found in the Moving Forward Act in the House. While the Moving Forward Act will likely pass in the House, it’s unclear how these two bills will fare in the Senate. It’s imperative that the affordable housing industry and its partners continue to urge members of Congress to support these much-needed measures as potential, future iterations of these bills are introduced in Congress.
HDJ, Inc. is a leading national design firm providing architectural and engineering expertise to support the affordable housing industry throughout the United States. HDJ’s diverse portfolio includes successful outcomes with adaptive reuse renovation, acquisition rehab, new construction, historic preservation and RAD. Contact HDJ to learn more about how we can support your affordable housing needs.
Author: Josh Hahn
