The A Call To Invest in Our Neighborhoods (ACTION) Campaign has launched a sign-on letter calling on Congress to protect, strengthen and expand the Low-Income Housing Tax Credit (Housing Credit) program and preserve Tax-Exempt Multifamily Housing Bonds (Housing Bonds) as it considers tax reform and tax extenders legislation.
Sign on to the letter here.The deadline for signing on is Thursday, July 2.
A full list of ACTION Campaign members will be included in the letter, so current ACTION Campaign members do not need to sign on. However, we encourage all affordable housing stakeholders to share the letter with your networks to help show broad support for the Housing Credit and Housing Bonds.
The Housing Credit is the most successful affordable rental housing production and preservation program in our nation’s history, financing nearly 2.8 million affordable rental homes since 1986 by leveraging near $100 billion in private equity investment. Housing Bonds used in conjunction with 4 percent Housing Credits are responsible for financing more than 40 percent of annual Housing Credit production, providing affordable homes to nearly 1 million families over the past three decades.
The Housing Credit and Housing Bonds are critical to addressing our nation’s growing affordable rental housing crisis. Roughly 11 million low-income renter households—more than one in four renters in the U.S.—spend more than half of their monthly income on rent. Not a single county in the United States has enough affordable apartments for all of its extremely low-income renters, according to a recent analysis from the Urban Institute. The Housing Credit and Housing Bonds are the only significant tools to increase the supply of affordable rental housing and preserve our nation’s existing affordable housing investments.
The ACTION Campaign is urging Congress to act quickly to approve a minimum 9 percent Housing Credit rate for new construction and substantial rehabilitation, as well as a minimum 4 percent rate for the acquisition of affordable housing. The tax extenders legislation that passed at the end of 2014 only included the minimum 9 percent credit rate, but not the corresponding 4 percent minimum for acquisition. Because it passed so late in the year and only provided the extension of the 9 percent minimum retroactively for 2014, it had virtually no practical benefit for Housing Credit properties.
The Campaign also asks that Congress protect all components of the Housing Credit program, preserve Housing Bonds, increase Housing Credit resources to help meet our nation’s vast and growing affordable housing needs, provide a minimum 4 percent credit rate for Housing Bond-financed properties, and promote income mixing in Housing Credit properties in any tax reform legislation.