CONGRESS PASSES AND PRESIDENT SIGNS YEAR-END APPROPRIATIONS AND CORONAVIRUS RELIEF LEGISLATION, INCLUDING CRITICAL AFFORDABLE HOUSING PROVISIONS

Congress Passes and President Signs Year-End Appropriations and Coronavirus Relief Legislation

On December 27, President Trump signed into law a $1.4 trillion spending deal for fiscal year 2021 (FY21), with $900 billion of coronavirus relief and a set of tax extenders and other tax measures. The package will provide much needed support for millions of Americans and businesses hurt by the spread of the coronavirus and the subsequent economic slowdown.

The legislation includes many top policy priorities, including:

  • $25 billion for rental assistance to be administered by the Treasury Department;
  • An extension of the current CDC eviction moratorium through January 31, 2021;
  • An extension of the deadline for states and localities to spend down Coronavirus Relief Fund dollars through December 31, 2021;
  • A permanent, minimum 4 percent Low-Income Housing Tax Credit (Housing Credit) rate, as well as disaster Housing Credits for qualified states;
  • A five-year extension of the New Markets Tax Credit (NMTC) at $5 billion for a total of $25 billion in new NMTC authority;
  • $41 million for the Section 4 Capacity Building program; and
  • Funding for other critical affordable housing programs in FY21 such as the HOME Investment Partnership Program, the Community Development Block Grant program, the Community Development Financial Institutions Fund, Tenant-Based Rental Assistance, and Project-Based Rental Assistance, as well as for critical rural housing programs through USDA.

The affordable housing community applauds the federal government for its work to provide vital affordable housing and community development relief to American families, affordable housing providers, and communities as this challenging year comes to an end. In addition to thanking the bipartisan Congressional leadership for advancing this legislation, we especially thank our Congressional champions, who spearheaded these critical affordable housing and community development measures.

The package enacts a permanent, fixed 4 percent Housing Credit rate, which has been a top priority for the ACTION Campaign for many years.

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