On August 1, the U.S. Senate voted 48-44 against advancing the Tax Relief for American Families and Workers Act (H.R. 7024), effectively halting progress on the bill. This legislation, which had passed the House with broad bipartisan support earlier this year, included crucial provisions to enhance the low-income housing tax credit (LIHTC) program.
The bill sought to:
- Restore the 12.5% increase in annual LIHTC allocation that expired in 2021.
- Reduce the private activity bond threshold requirement from 50% to 30% for accessing four percent LIHTC.
Despite significant advocacy efforts and strong support from 120 national and state affordable housing organizations, the bill faced opposition due to broader political disagreements unrelated to the Housing Credit provisions.
The failure to move forward with this legislation is a setback for addressing the ongoing affordable housing crisis. The LIHTC provisions in the bill were derived from the bipartisan Affordable Housing Credit Improvement Act (AHCIA) of 2023, which has garnered support from nearly half of Congress.
Looking ahead, there is potential for elements of the bill to be considered individually during the lame duck session of Congress after the election. In the meantime, advocacy efforts will continue to push for the inclusion of these critical Housing Credit provisions in any forthcoming legislative opportunities.