Wyden Announces Sweeping Housing Legislation With LIHTC, MIHTC, NHTC, Renter Tax Credit and Housing Spending Provisions

Wednesday, August 18, 2021 - 12:30pm

Senate Finance Committee Chairman Ron Wyden announced sweeping housing legislation today that includes enhancements to the low-income housing tax credit (LIHTC) and the introduction of the middle-income housing tax credit (MIHTC) and neighborhood homes tax credit (NHTC). The Decent, Affordable, Safe Housing for All (DASH) Act–which will be formally introduced in September–would provide an expansion of 9% LIHTC annual allocation, provide a 50% basis boost for properties for extremely low-income renters; reduce for four years the 50% financed-by test for tax-exempt-bond-financed properties, provide a potential 30% difficult development area basis boost for rural and Native American properties and more. The legislation would also create a 5% and 2% MIHTC for rental properties serving tenants with incomes between 60% and 100% of the area median income (AMI), create an NHTC worth up to 35% of the qualified development cost or 80% of the national median sale price for new homes, whichever is less; create a renter’s tax credit for affordable housing operators who provide housing to tenants with monthly incomes below 30% of the AMI; and create a first-time homebuyer refundable credit for 20% of the purchase price of a home up to $15,000. In addition to the legislation, supporters released a section-by-section summary of the bill.

The MIHTC and the NHTC were both the topics on recent episodes of the Tax Credit Tuesday podcast. Housing issues will be further discussed at the 2021 Novogradac Affordable Housing Tax Credit and Bond Conference, Sept. 30-Oct. 1 in Nashville. Novogradac has launched a Neighborhood Homes Tax Credit Working Group. For more information, email Dirk Wallace.