Rep. James E. Clyburn (D-S.C.) has introduced a bill that seeks to increase the annual allocation for low-income housing tax credits (LIHTCs) to help make up for the affordable housing units projected to be lost as a result of changes in the recent tax reform legislation.
“The Restoring Tax Credits for Affordable Housing Act will restore the 235,000 affordable housing units projected to be lost over the next 10 years as a result of the GOP tax scam …,” he said in a statement.
An analysis by Novogradac & Co. found that fewer rental homes will be built or preserved because of the changes made under tax reform, including the decrease in the corporate tax from 35% to 21%, which would reduce LIHTC equity.
The new bill (H.R. 6542) would increase the per-capita LIHTC allocation from $2.70 to $2.90 and the small-state minimum LIHTC allocation from $3.1 million to $3.365 million. The legislation would also add a one-time increase of 16% to the applicable percentage for the LIHTC.
Clyburn also announced that he is supporting several other housing-related bills, including H.R. 1661, the Affordable Housing Credit Improvement Act, bringing the number of co-sponsors to 161 at the end of July. The bill seeks key changes to the LIHTC program, including establishing a 4% minimum credit rate for certain projects. However, H.R. 1661 does not include a 50% cap increase in credits sought in a companion Senate bill (S. 548).
“After hearing from hundreds of constituents at an affordable housing town hall in North Charleston last month, I am pleased to introduce the Restoring Tax Credits for Affordable Housing Act and offer my support for this package of bills,” Clyburn said. “If enacted, they will dramatically increase access to affordable housing across all income brackets, but particularly for extremely low-, low-, and middle-income families struggling to find and keep a roof over their heads.”