The House introduced a bill (H.R. 4146) recently that provides technical changes to the “Low Income Housing Preservation and Resident Homeownership Act of 1990” or LIHPRHA, which was first enacted to provide multifamily property owners with incentives to maintain affordability for low- and moderate-income renters. Currently, as part of LIHPRHA, there is a limit placed on an owners’ ability to access a portion of surplus cash in reserves. The bill would remove this limitation, encouraging owners to, in part, invest in and extend the useful life of affordable properties.
additional incentive would also encourage future investors to recapitalize
these multifamily properties, ensuring they remain affordable. For the past 15
years, HUD has administratively removed limitations on distributions under its
authority, but has concluded that it lacks the necessary authority when it
comes to the LIHPRHA portfolio.
NMHC/NAA joined with a broad coalition on July 10 in urging the full House to support the legislation. We are hopeful that the House will address this issue prior to the August recess. The Senate has yet to introduce legislation, but action in the House could lead to related movement.