Sign Up For Novogradac Industry Alert Emails

Biden Administration Announces Plan to Close Housing Supply Gap in Five Years, Including LIHTC Reforms

Monday, May 16, 2022 - 9:30AM

The Biden administration today announced its Housing Supply Action Plan to close the housing supply shortfall in five years, including the creation and preservation of hundreds of thousands of affordable homes in the next three years. The plan calls for investments in housing production and preservation, such as those outlined in the House reconciliation bill to increase the annual low-income housing tax credit (LIHTC) allocation cap and create the Neighborhood Homes Tax Credit. The White House cited Novogradac analysis that found that the reconciliation bill could finance nearly 1 million affordable homes over 2022-2031. Under the Housing Supply Action Plan, the administration will work to improve the alignment of federal funds to reduce transaction costs and duplications, finalize LIHTC average income test regulations by the end of September and strengthen Fannie Mae and Freddie Mac financing for multifamily development and rehabilitation, which will likely include further increases in their LIHTC equity investments.

Get monthly news and analysis on the LIHTC and other tax incentives with a subscription to the Novogradac Journal of Tax Credits.

Learn more about Novogradac's expertise and many services