On October 11, Senate Finance Committee member Dean Heller (R-NV) introduced the Seniors Affordable Housing Tax Credit Act, S. 3580, which would establish a tax credit for owners of multifamily rental property who agree to rent to extremely low-income seniors. The tax credit would cover the difference between the senior household’s rent payment, at the lesser of 30 percent of the individual household’s income or the fair market rent, and the rent the owner would otherwise charge for a comparable unit in the building.
The bill would require each state to designate an agency as the Rental Reduction Credit Agency to administer the program and develop a State Rental Reduction Allocation Plan. States would receive $1.75 per capita or a minimum of $2 million in 2019, which would be adjusted annually for inflation. Any unused funds would be redistributed to other states the following calendar year. State Rental Reduction Credit Agencies would establish contract agreements of up to 15 years with owners during which time the owner would agree to rent a specified number of units to qualified households.
Eligibility would be limited to households earning no more than the greater of 30 percent of area median income or the poverty level, and at least one of the individuals residing in the household must be at least 55 years old.
With the introduction of this bill, Senator Heller joins several other Senators who have introduced major housing legislation in recent months, including Senators Kamala Harris (D-CA), Cory Booker (D-NJ), Ron Wyden (D-OR), and Elizabeth Warren (D-MA). Senator Heller is also a cosponsor of the Affordable Housing Credit Improvement Act, S. 548, and the Task Force on the Impact of the Affordable Housing Crisis Act, S. 3231.