Join us for a call this Friday, January 29, at 2 p.m. EST, where we will discuss the legislative landscape and opportunities to support the Housing Credit in 2016.
Friday, January 29 @ 2:00 p.m. EST
Participant code: 677-49-533#
After Minimum Credit Rate Victory, ACTION to Advance Broader Agenda
In December, Congress made permanent the minimum 9 percent Housing Credit rate in the Protecting Americans from Tax Hikes Act of 2015 tax extenders legislation. This provision was a major victory for affordable housing and a testament to the strong bipartisan support for the Housing Credit that the ACTION Campaign has built. A December Washington Post article specifically mentioned ACTION and the Affordable Housing Tax Credit Coalition (AHTCC) for our roles in advancing the minimum 9 percent rate, noting that we “helped sell it in a bipartisan manner on the Hill.”
The Housing Credit’s success in the tax extenders legislation is also a reflection of the leadership of Senators Cantwell and Roberts, Representatives Tiberi and Neal, and the many other bipartisan Housing Credit supporters in Congress who have championed the Housing Credit and worked for years to advance this provision. See the ACTION Campaign statement on Congress making permanent the minimum 9 percent Housing Credit rate.
In 2016, ACTION will build on this momentum and success to pursue a broader agenda, focusing on an expansion of Housing Credit resources while also working to advance other reforms to further strengthen the Housing Credit, including a minimum 4 percent rate for acquisition and income averaging in Housing Credit properties. Stay tuned for more details.
Though House and Senate leadership remain committed to tax reform, comprehensive tax reform is unlikely to advance until 2017 at the earliest. In the meantime, Congress is seeking to move forward on more limited tax reform bills. For example, last week House Ways and Means Chairman Kevin Brady announced that he will pursue international tax reform legislation in this Congress.
New Housing Credit Resources and Research
The ACTION Campaign has released an updated set of fact sheets showing the impact of the Housing Credit in every congressional district, including the number of affordable apartments created or preserved, the jobs that Housing Credit development supports and other benefits to local economies. For the first time, the fact sheets also include data on the number of renter households in the state paying more than half of their income in rent, based on an analysis of the 2013 American Community Survey. The ACTION Campaign previously released a set of fact sheets showing the impact of the Housing Credit in every state.
ACTION and the AHTCC have updated the talking points on the case for expanding the Housing Credit, using the latest data on need and demand for the program.
Commemorating the 30th anniversary of the creation of the Housing Credit, Novogradac and Company’s Low-Income Housing Tax Credit Showcase describes the history of the credit; the impact it has on residents, developers, investors and state agencies; and profiles more than 70 properties in 34 states and territories that were financed by the Housing Credit. The report also details the ways in which the Housing Credit “provides far more than just affordable rental housing,” including “tangible economic and social benefits in neighborhoods across the country.”
CohnReznick’s report on The Low-Income Housing Tax Credit at 30: Recent Investment Performance (2013-2014) speaks to the ongoing and increasing success of the program. The report finds that basic Housing Credit performance metrics, including occupancy, debt coverage ratio and cash flow, have improved in recent years, and that there is a decrease in “underperforming” Housing Credit properties. CohnReznick also notes that the extremely high occupancy rate in every type of Housing Credit property points to the considerable demand for the program, and concludes that “the need for additional affordable housing exists in virtually every party of the country.”
The National Housing Conference’s new report in their Housing + Health series, How Investing in Housing Can Save on Health Care, finds that “having access to safe, stable and affordable housing can lead to better physical and mental health and improve overall quality of life,” and that the links between health and housing are so significant that “investment in housing and resident services can potentially result in a net public savings if spending on public health-related services is reduced.”
Join the ACTION Campaign
ACTION represents more than 1,000 organizations calling on Congress to support the Housing Credit and Housing Bonds. Join the campaign, or if you are already a campaign supporter, reach out to your partner organizations and encourage them to join the campaign as well.