Bill Provides LIHTC Preference for Projects in Indian Areas, Good Affordable Housing Policy?

Published by Michael Novogradac on Tuesday, July 30, 2013 - 12:00am

Section 404, page 13, of a bill recently introduced by Senators Cantwell and Barrasso (& co-sponsored by 9 others), S. 1352, would give significant competitive advantages to Indian tribes applying for low-income housing tax credits (LIHTCs) for affordable rental housing located in Indian areas.

Specifically, the Cantwell-Barrasso bill mandates that qualified allocation plans provide:

  1. A Section 42(m)(1)(B) “preference” for an Indian tribe, a tribally designated housing entity, or other qualifying entity that applies for LIHTCs for a project located in an Indian area,
  2. That location in an Indian area be included in the list of selection criteria that must be used
  3. That ‘‘for purposes of any numerical evaluation process employed by the agency, shall increase the cumulative points or score for such project by not less than 10 percent of the total points or credits available to any project“.

The changes would apply to housing credit dollar amounts allocated by a housing credit agency after December 31, 2013.

What do you think?  Is this good or bad affordable rental housing policy?

Blog Poll Is Housing Tax Credit Preference for Rental Housing Located in Indian Lands Good for Affordable Rental Housing Policy?
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<a href="//"">">Is a housing tax credit preference for rental housing located in Indian lands good affordable rental housing policy?</a>