|At NCSHA’s Legislative Conference this week, Representative Alma Adams (D-NC) announced that she and Representative David Rouzer (R-NC) had just introduced the LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence (LIFELINE) Act, H.R. 7078, which would allow states and localities to use Coronavirus State and Local Fiscal Recovery Fund (SLFRF) resources to make long-term loans to Housing Credit developments. Representative Carolyn Maloney (D-NY), chair of the House Committee on Oversight and Reform which has jurisdiction over SLFRF, joined Adams and Rouzer as an original cosponsor of the legislation, which is a high priority for NCSHA.
Rising construction costs, due to pandemic-related price increases, supply chain disruptions, and workforce challenges, have left many Housing Credit projects with unexpected financing gaps, threatening their viability. Moreover, many state HFAs are looking to leverage SLFRF with the Housing Credit to further expand production and preservation of affordable rental housing. Unfortunately, current SLFRF requirements make using these two resources together very difficult and sometimes impossible.
NCSHA has been leading an effort to advocate for this statutory change. Recently, more than 80 organizations joined NCSHA on a letter to congressional leadership in support of the fix.
NCSHA expects Senator Patrick Leahy (D-VT) soon to introduce companion legislation in the Senate. Senator Leahy currently is working to secure a Republican lead to join him on the bill, with hopes of having bipartisan bills in both chambers.