Enhance Effectiveness of LIHTC
| NAHB Now | The News Blog of the National Association of Home Builders
House Ways and Means Committee members Pat Tiberi (R-Ohio) and Richard Neal (D-Mass.) today introduced the Affordable Housing Credit Improvement Act, legislation that contains a number of changes to enhance the effectiveness of the Low Income Housing Tax Credit (LIHTC).
The measure is a companion bill to legislation recently introduced in the Senate by Sens. Maria Cantwell (D-Wash.) and Orrin Hatch (R-Utah).
Reps. Tiberi and Neal have been strong LIHTC supporters and this legislation shows their continued commitment to the program and its mission of housing low-income Americans. NAHB will continue to work with the lawmakers to move this bill forward.
Of note to the housing community, the bill would:
- Establish a permanent minimum 4% credit floor for the acquisition of existing properties.
- Allow the 60% area median income (AMI) ceiling to apply to the average of all units. Tenants with incomes up to 80% of AMI could be served as long as the whole project remains at the 60% average.
- Prohibit state Qualified Allocation Plans from requiring, or granting additional points for, local approval or financial contributions.
- Allow states to provide a 30% basis boost for bond-financed projects.
These provisions are also part of legislation recently introduced in the Senate by Sens. Maria Cantwell (D-Wash.) and Orrin Hatch (R-Utah).
More details on the House bill can be found here.
For additional information, contact J.P. Delmore at 800-368-5242 x8412.
Introduce Affordable Housing Credit Improvement Act