On July 1st, House Democrats passed the Moving Forward Act (H.R. 2), a $1.5 trillion infrastructure bill. The plan includes transportation infrastructure improvements, such as bridges and roads, but also includes education, clean water, broadband initiatives, green energy, and affordable housing.
The bill includes provisions from the Affordable Housing Credit Improvement Act (AHCIA), affecting these areas:
- 4% credit rate
- Establish a permanent 4% credit rate for low income housing projects using tax exempt bonds
- Applies to building receiving allocations and placed in service after December 31, 2019.
- 9% credit allocations
- annual 9% credit allocation increased from $2.81 per capita to $4.56 per capita
- small state minimum increased from $3,217,500 to $5,214,051, phased in over 2 years
- Lowered 50% test
- 50% threshold of housing bond financing to access 4% housing credit lowered to 25%
- Applies to buildings placed in service in taxable years beginning after December 31, 2019 and ending before January 1, 2022
- Rural and Native American areas receive 30% basis boost
- Developments serving extremely low-income tenants eligible for an up to 50% basis boost
- End of qualified contract process for projects receiving allocations after January 1, 2020
- Local approval and contribution requirements prohibited