A majority of House Democrats is calling for the Affordable Housing Credit Improvement Act (AHCIA) to be included in the upcoming infrastructure reconciliation package.
Led by Reps. Suzan DelBene (D-Wash.) and Don Beyer (D-Va.), 109 other Democratic members of the House sent a letter to Speaker Nancy Pelosi (D-Calif.) and House Minority Leader Kevin McCarthy (R-Calif.)
“Now is the time to expand and improve the housing credit to tackle America’s affordable housing crisis in a meaningful way that leads to stronger and more productive communities, greater economic mobility and job growth, as well as better educational and health outcomes,” stated the letter. “The need has never been greater, and we urge your swift action on these priorities.”
Noting that the low-income housing tax credit (LIHTC) has been responsible for virtually all of the production and preservation of affordable housing in the country since its inception in 1986, the lawmakers say the AHCIA must be included in the Build Back Better infrastructure package to meet the growing demand for affordable housing.
The AHCIA (H.R. 2573) aims to increase the annual LIHTC allocation by 50%, lower the threshold of private-activity bond financing from 50% to 25%, and make other improvements.
“The strong, broad-based support for expanding and strengthening the LIHTC reinforces that now is the time to advance these sorely needed proposals to address our nation’s affordable housing crisis,” said Emily Cadik, executive director of the Affordable Housing Tax Credit Coalition (AHTCC). “The housing credit has been a proven tool for more than three decades, and increasing its capacity is the most efficient and effective way to significantly increase the number of affordable homes we can provide.”
Matt Josephs, AHTCC board president and senior vice president for policy at the Local Initiatives Support Corp., added: “Rebuilding our nation’s infrastructure must include investments in affordable homes, as families and communities struggle to recover from the health and economic impacts of the pandemic. This letter to House leadership conveys how critically important the housing credit is to these efforts.”
