House and Senate lawmakers on April 15 introduced the Affordable Housing Credit Improvement Act of 2021, which would expand and enhance the Low-Income Housing Tax Credit (LIHTC).
The bill would make permanent and augment by an additional 50 percent the increased credit authority enacted in March 2018 to enable the production of new units. The measure would also reduce amount of project costs that must be financed with tax-exempt multifamily bonds to receive the full amount of 4 percent LITHCs from 50 percent to 25 percent. This provision is designed to free-up tax credits to produce and preserve additional units. According to analysis by Novogradac, the bill is forecast to increase the supply of affordable multifamily units by over 2 million in the next 10 years.
The new legislation has bipartisan support, and we are hopeful it can be included in any infrastructure package that could move through Congress in the coming months. The bill is sponsored by Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Rob Portman (R-OH) in the Senate and by Reps. Suzan DelBene (D-WA), Jackie Walorski (R-IN), Don Beyer (D-VA), and Brad Wenstrup (R-OH) in the House of Representatives.
- Real Estate Coalition Letter Opposing Eviction Moratorium in H.R. 5196
- Trade Group Coalition Letter to House Ways and Means Committee Opposing Proposed Tax Increases
- Family Business Estate Tax Coalition Letter Expressing Support for Stepped-Up Basis
- Real Estate Coalition Letter Regarding Like-kind Exchanges of Real Estate Under Section 1031
- Real Estate Coalition Letter to House Ways and Means Oversight Subcommittee Regarding Proposed Tax Proposals