LIHTC Legislation Introduced

(from Affordable Rental Housing A.C.T.I.O.N., A Call To Invest in Our Neighborhoods) On December 14, legislation to enact the A.C.T.I.O.N. proposals (S. 1989 and H.R. 3661) was introduced by Senate Finance Committee members Maria Cantwell (D-WA) and Olympia Snowe (R-ME) and House Ways & Means Committee members Pat Tiberi (R-OH-12th) and Richard Neal (D-MA-2nd) with broad bipartisan support.

Both bills would permanently set a minimum credit rate of 9 percent for new construction and substantial rehabilitation projects, and 4 percent for acquisition projects. The enactment of these provisions will provide stability and certainty for the Housing Credit industry, helping to secure the private investment equity needed to make affordable rental housing developments financially feasible. In other news, Congress is working to address a number of issues in the final days of the 2011 work period.

In addition to fiscal year 2012 appropriations, members have been considering extensions for provisions that are set to expire in the coming weeks including, unemployment insurance benefits, the payroll tax cut, and extending a number of temporary tax provisions. On December 13, the House passed the Middle Class Tax Relief & Job Creation Act (H.R. 3630) which provides an extension for payroll tax relief and unemployment benefits, among other provisions, and is paid for through nontax offsets. Senate leaders Harry Reid (D-NV) and Mitch McConnell (R-KY) are now working together to pass a version of this legislation in the Senate.

While there was a chance that an effective extension of the 9 percent minimum credit rate could be included in this bill with other expiring tax provisions, it now appears unlikely. Both bills were referred, HR 3661 to the House Committee on Ways and Means, and S 1989 to the Senate Committee on Finance.