Affordable Housing Credit Improvement Act Introduced in House, Senate; Novogradac Estimates Provisions Could Finance 2 Million Additional Homes over 10 Years
A bipartisan group of legislators introduced the Affordable Housing Credit Improvement Act of 2021 (AHCIA) today in both chambers of Congress. Novogradac estimates the primary unit financing provisions of the bill could finance as much as 2 million additional affordable rental homes over 10 years. The legislation would lower the financed-by threshold for private activity bonds (50% test) from 50% to 25% starting in 2022; increase 9% LIHTC authority by 25% in 2021 and 2022; extend the discretionary 30% basis boost for 9% LIHTC properties to PAB-financed properties; provide a 30% basis boost for properties in rural and Native American areas; and more. Sens. Maria Cantwell, D-Washington, Todd Young, R-Indiana, Ron Wyden, D-Oregon, and Rob Portman, R-Ohio, introduced the bill in the Senate. Reps. Suzan DelBene, D-Washington, Jackie Walorski, R-Indiana, Don Beyer, D-Virginia, and Brad Wenstrup, R-Ohio, introduced the legislation in the House of Representatives. This is the fourth consecutive session of Congress in which the AHCIA has been introduced. AHCIA provisions are expected to be considered as a key part of $213 billion in housing resources of the Biden administration’s American Jobs Plan, a $2.25 trillion infrastructure plan.
A Notes from Novogradac blog post provides more insight into the legislation and the Tax Credit Tuesday podcast next week will focus on the ACHIA. The legislation will be discussed at the Novogradac 2021 Affordable Housing Virtual Conference.