Sen. Maria Cantwell (D-Wash.) has introduced a bill to make permanent the fixed rate for 9 percent low-income housing tax credits and to establish a minimum 4 percent rate for the acquisition of existing housing.
“This bill supports a proven job-creating program that means 95,000 jobs a year across the country,” said Cantwell in a statement. “The low-income housing tax credit is a win-win for our communities: It leverages private capital to invest in new jobs and new housing in our communities. This legislation will improve the tax credit for years to come.”
S. 1442 would end the floating credit rate, which makes the cost of project development increasingly unpredictable. This uncertainty has been particularly challenging over the past few years as the federal cost of borrowing has declined, which in turn lowered the value of the credit, Cantwell said.
The bill, which was introduced with 20 co-sponsors, has been referred to the Committee on Finance.
It is a reintroduction of S. 1989, a bill from 2011.