Representatives James Clyburn (D-SC-6) and Suzan DelBene (D-WA-1) recently introduced the Restoring Tax Credits for Affordable Housing Act (H.R. 6542),which seeks to restore the Housing Credit’s production potential after an unintended consequence of the Tax Cuts and Jobs Act of 2017 resulted in a reduction in the value of the Housing Credit. Accounting firm Novogradac and Company has estimated that 235,000 affordable rental homes will not be produced over the next 10 years as a result of the reduced corporate tax rate.
Senator Cory Booker (D-NJ) also recently introduced the Housing, Opportunity, Mobility and Equity (HOME) Act (S. 3342), which is designed to promote inclusionary zoning policies and improve housing affordability. The bill directs all jurisdictions receiving grants under the CDBG program to create strategies that increase the supply of housing and ease zoning restrictions that impede development. The goal is to ensure that at least 20 percent of all new housing units meet affordability requirements.
It is unclear whether the House and Senate will take up either piece of legislation, but Enterprise applauds Representatives Clyburn and DelBene and Senator Booker for their attention to the critical issues of affordable housing and community development.