On December 20, the government again faces another deadline to fund the government and avoid a shutdown. We had hoped this “must pass” spending legislation would provide an opportunity to move our affordable housing legislation, and were optimistic when negotiators agreed to include the minimum 4% LIHTC in the tax title of the spending bill. Unfortunately, after last minute objections were raised over the process and the scope of the tax title, the tax deal was reopened and substantially cut back. The minimum credit rate and other tax provisions were dropped from the final agreement. The bill does, however, include additional LIHTC disaster tax relief for California and a one-year extension of the New Markets Tax Credit at $5 billion. Here is a section-by-section review of the legislation. The tax legislation and the budget are expected to be voted on and passed by the House and Senate this week with the President hopefully signing in by midnight Friday.
While we fell short in this round, we have made strong progress in moving the needle. In that regard, we are very thankful for the leadership and support of our Senate champions: Maria Cantwell (D-WA), Ron Wyden (D-OR), Todd Young (R-IN) and Johnny Isakson (R-GA) and our House champions: Suzan DelBene (D-WA), Don Beyer (D-VA), Kenny Marchant (R-TX), and Jackie Walorski (R-IN). We also want to thank Speaker Nancy Pelosi, Senate Democratic Leader Chuck Schumer and House Ways and Means Committee Chairman Richie Neal (D-MA) for their commitment to affordable housing.
We want to thank all of you who have worked so hard this year to educate Members of Congress about the housing crisis and the need for additional resources. Your calls and visits to your elected representatives make a difference, and those efforts are what had us in the game up until the very end. We are also very appreciative of our colleagues in the industry. Our champions are already looking for the next opportunity to move our legislation, and we look forward to working with them and you to do so.
Best wishes for the holidays and for a happy, healthy and successful New Year!