On Tuesday, July 21, the Senate Finance Committee will hold a mark-up of legislation to extend several dozen expired tax provisions, including the minimum 9 percent Housing Credit rate for new construction and substantial rehabilitation. The extension would apply to Housing Credit allocations made before January 1, 2017, and is estimated to cost only $2 million over 10 years. This provision previously expired on January 1, 2015, but was extended so late in 2014 that the Housing Credit has essentially been in a floating rate environment since the end of 2013.
Though a minimum 4 percent rate for the acquisition of affordable housing is not included in the current version of the Chairman’s Mark, ACTION is advocating that it be added to the package, either in a modified Chairman’s Mark or as an amendment to the bill during mark-up.
ACTION Campaign members are encouraged to reach out to members of the Senate Finance Committee and ask that they support the extension of the minimum 9 percent Housing Credit rate, as well as the inclusion of a minimum 4 percent Housing Credit rate.
The ACTION Campaign recently sent a letter to Congress, signed by over 1,000 organizations, urging it to act quickly to strengthen the Housing Credit by passing legislation to enact minimum credit rates. You can also use our Improving the Low-Income Housing Tax Credit Rate Act (S. 1193) bill summary, which describes the need for permanent minimum credit rates, to help make your case.