ACTION Monthly Newsletter – June 2021
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President Releases FY22 Budget
On May 28, the White House released President Biden’s budget request for Fiscal Year (FY) 2022, which totaled $6 trillion, a 16 percent increase from the FY21 enacted levels. The Budget proposes creating a new type of Housing Credit authority, termed “Opportunity Housing Credit Dollar Amounts” (OHCDA). OHCDAs would have a separate credit ceiling from traditional Housing Credits, set at 118 percent of the aggregate amount of traditional Housing Credit volume cap each year for five years—2022 through 2026. The Budget does not include an increase in traditional Housing Credit volume cap.
OHCDAs would be used primarily in “Census Tracts of Opportunity,” which include Census tracts that are in one or more Difficult Development Area (DDA) or have low poverty or other advantages as defined by the Treasury Secretary. The budget does not provide detail on what is meant by “primarily,” so it is unclear the extent to which OHCDAs might be used outside of Census Tracts of Opportunity.
The Budget maintains that states would receive OHCDA authority on a per capita basis, but with a different per capita amount applied to each state. The formula would be determined by the Treasury Secretary, in consultation with HUD, and would provide higher amounts to states with higher construction and operating costs, larger populations living in DDAs, or higher percentages of rent-burdened households.
The Budget also proposes to increase the DDA basis boost from 30 percent to 50 percent for 9 percent traditional Housing Credit developments and OHCDAs. The change to the DDA basis boost would be permanent.
AHCIA Continues to Gain Bipartisan Support
A number of new cosponsors signed onto the Affordable Housing Credit Improvement Act (AHCIA) of 2021 (S. 1136 & H.R. 2573) this past month. The Senate currently has 14 bipartisan cosponsors—seven Republicans and seven Democrats—including our lead sponsors. One-quarter of the Senate Finance Committee has already cosponsored. In the House, 21 Representatives—10 Republicans and 11 Democrats—have now signed on, including our lead sponsors. This includes 35 percent of Ways and Means Committee members.
Check out the updated list of current cosponsors here, and please remember to thank your members of Congress if they sign on. Check out ACTION’s Social Media Advocacy Toolkit for sample thank you text.
Final Videos in AHCIA Video Series Released
ACTION has released the remaining set of videos in its series detailing the provisions of the AHCIA of 2021. In the three-part video series, Enterprise Community Partners Senior Director of Public Policy Ayrianne Parks and National Council of State Housing Agencies Director of Tax and Housing Advocacy Jennifer Schwartz discuss how the AHCIA of 2021 would modernize the Housing Credit to better serve local communities and streamline affordable housing development criteria. The third set of videos in the series includes:
- Simplifying the Ten-Year Rule and Related Party Rule (Section 302);
- Addressing QCT and DDA Population Cap Constraints (Section 304);
- Setting Parameters for State-Defined Community Revitalization Plans (Section 305);
- Establishing a State-Determined Basis Boost for 4 Percent Deals (Section 308);
- Preventing Planned Foreclosures (Section 310);
- Adding a QAP Selection Criteria for Housing Serving Native Americans and Native Hawaiians (Section 401);
- Expanding Multifamily Bond Recycling (Section 601); and
- Applying the Average Income Test to Bond/4 Percent Credit Developments (Section 201).
Advocates are encouraged to share these videos with their networks and use them to prepare for meetings with members of Congress and urge support for the AHCIA. Check out part three of the ACTION video series here, where you can also view the remaining videos included in the series.
ACTION Advocacy Resources Reminder
In addition to the latest release of the AHCIA Video Series, the ACTION Campaign continues to provide updated resources for advocates’ meetings with members of Congress. These AHCIA advocacy resources include:
- An AHCIA One-Page Summary;
- An AHCIA Detailed Bill Summary;
- The AHCIA Legislative Differences between the 117th and 116th Congress;
- The AHCIA Full Bill Text; and
- Up to date 117th Congressional AHCIA Cosponsors.
The ACTION Campaign also updates specific National, State, and Congressional District Fact Sheets, detailing the impact of the Housing Credit across the country, as well as in each state and district.
Finally, a reminder to share this kdalessandro, with any questions.
Housing Credit Research
A May 6 blog from the Urban Institute, “The Forthcoming Senior Rental Crisis Has Implications for Federal, State, and Local Policymaking,” estimates 5.5 million additional senior renter households will need to be housed and notes the Housing Credit can be used to fund additional construction of senior-tailored units to help alleviate affordability pressures.
Housing Credit In the News
- In a May 10 op-ed published in the Hill, “Housing is critical infrastructure — federal spending must prioritize it,” Enterprise Community Partners President and CEO Priscilla Almodovar and Regional Planning Association President and CEO Tom Wright highlight the importance of including affordable housing programs such as the Housing Credit in federal infrastructure bills.