Sen. Ron Wyden (D-Ore.) announced his Decent, Affordable, Safe Housing for All (DASH) Act l that calls for a “generational investment” in housing.

“Housing is a human right. Yet, millions of Americans pay more than half of their monthly take-home pay to keep a roof over their head. And more than half a million Americans don't have housing at all,” he said in a statement. “America is amidst a serious crisis of housing affordability, and it's a big challenge that demands big, bold solutions. As housing prices skyrocket, a generation of young people are increasingly locked out of homeownership. It’s time America’s lawmakers get with the program and enact 21st century housing policies that adequately address 21st century challenges.”

Wyden, chair of the Senate Finance Committee, is expected to introduce the sweeping bill in September. However, he shared the text of the bill as well as a summary.

Key provisions call for:

  • Expanding the 9% low-income housing tax credit (LIHTC) program by 50% to house more families; providing a 50% basis boost to projects that prioritize extremely low-income renters; expanding the 4% credit for rural areas; and reducing the tax-exempt bond financing threshold for 4% credit projects from 50% to 25% for three years;
  • Establishing a middle-income housing tax credit (MIHTC) that would provide a tax credit to developers who house tenants between 60% and 100% of the area median income (AMI). The credit would equal 50% of the present value of construction costs, or 5% per year on an undiscounted basis. States would administer the program, and the Treasury Department would annually allocate the credit to states based on a $1 per capita formula with a $1.14 million small state minimum. States could also use MIHTC dollars to augment their LIHTC program;
  • Creating a first-time home buyer tax credit, a proposed $15,000 down payment tax credit is fully refundable and is equal to 20% of the purchase price of a home, reaching its maximum at $75,000 of home price. The credit phases out above 110% of conforming loan limits and above $100,000 of income for single filers ($200,000 for joint filers);
  • Establishing a renter’s tax credit. This would be refundable tax credit to property owners who rent to eligible tenants with incomes at or below 30% of the AMI. The credit equals up to 110% of the difference between market rent and utilities and 30% of the tenant’s income. Each year, Treasury will allocate renters’ credits to states through a per capita formula. States in turn will allocate their credits to participating property owners who have signed a binding rent reduction agreement with eligible tenants; and
  • Creating a neighborhood homes tax credit to assist builders of affordable homes for homeownership in certain areas such as neighborhoods with higher poverty rates. Qualifying homeowners would earn less than 140% of the AMI. The credits would only be available to investors after the homes have been completed and sold to a homeowner. The maximum credit amount is the lesser of 35% of total development costs or 80% of the national median home sale price.