Congressional tax-writers are engaged in negotiations on a potential tax package, which could move forward on a Fiscal Year 2024 spending bill. Any such tax legislation could potentially serve as a vehicle for the Affordable Housing Credit Improvement Act of 2023 (AHCIA) production priorities—restoring the 12.5 percent Housing Credit allocation increase, and lowering the 50 percent bond financing threshold.
During the period the Speakership was vacant, legislation could not move, which complicates the schedule, leaving little time for spending negotiations before the CR’s November 17 expiration. While it is possible that a second CR that funds the government through January 15 or April 15 could lead to a tax extenders package materializing early next year, conventional wisdom suggests that Congress is unlikely to act on tax policy in a substantive manner in an election year, especially the closer we get to the election, underscoring the urgency of moving a tax package as soon as possible.
As of November 9, the AHCIA has reached 180 cosponsors in the House, maintaining strong bipartisan support with 90 Republicans and 90 Democrats. The Senate companion legislation has reached 30 cosponsors, with 15 Republicans and 15 Democrats.
TAAHP began engaging with current Texas co-sponsors of the Affordable Housing Credit Improvement Act (AHCIA) and asking them to weigh in with committee and House and Senate leadership to ensure our key Housing Credit production priorities are included in any tax legislation that materializes.
To date, seven Congressional legislators from Texas have cosponsored the bill:
- Rep. Beth Van Duyne (R-TX-24)
- Rep. Monica De La Cruz (R-TX-15)
- Rep. Tony Gonzalez (R-TX-23)
- Rep. Greg Casar (D-TX-35)
- Rep. Pete Sessions (R-TX-17)
- Lance Gooden (R-TX-5), and
- Roger Williams (R-TX-25)
The AHCIA remains a top priority for TAAHP, and its Federal Legislative Advocacy Group (FLAG) continues to build co-sponsorship for the legislation. Our goal is for all our Congressional leaders to recognize the strong support for the AHCIA by passing it this year.
The bill would support the financing of nearly 2 million new affordable homes by:
- Increasing the amount of credits allocated to each state. The legislation would increase the number of credits available to states by 50 percent for the next two years and make the temporary 12.5 percent increase secured in 2018 permanent—which has already helped build more than 59,000 additional affordable housing units nationwide.
- Increasing the number of affordable housing projects that can be built using private activity bonds. This provision would stabilize financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity bonds needed to secure Housing Credit funding. As a result, projects would have to carry less debt, and more projects would be eligible to receive funding.
- Improving the Housing Credit program to better serve at-risk and underserved communities. The legislation would also make improvements to the program to better serve veterans, victims of domestic violence, formerly homeless students, Native American communities, and rural Americans.