Senator Feinstein and Boxer Urge IRS Flexibility With Low Income Housing Tax Credits

In support of national nonprofit housing advocates, Senator Dianne Feinstein and Senator Barbara Boxer have co-signed a letter with several other Senate leaders. The letter is directed to the Senate Finance Committee regarding the IRS' very narrow interpretation of new tax credit rules. These changes have caused immense problems for nonprofit housing developers trying to access Section 42 Low Income Housing Tax Credits - credits needed to continue affordable housing developments for targeted populations including homeless and disabled veterans, farm workers, first responders. teachers, artists, pregnant and parenting teens, and victims of domestic abuse.

The Senators signing the letter are requesting that both the House and the Senate include statutory clarification of Section 42 that would permit properties to limit eligibility to members of a specified group, provided that the properties satisfy the non-discriminatory tenant selection criteria and other requirements of the Low Income Housing Credit program - as part of their continuing work on tax legislation and changes to the Low Income Housing Credit program.

For additional information, please download the letter.