Update on $1.7 trillion omnibus appropriations bill & LIHTC provisions

Update on $1.7 trillion omnibus appropriations bill & LIHTC provisions
We wanted to update you on the current status of the $1.7 trillion omnibus appropriations bill that will fund the federal government through September 30, 2023, and on our efforts to include critical LIHTC provisions in this year-end legislative vehicle.

With your help, we have been working with the Hill and the Administration to extend the 12.5 percent allocation increase that expired in December 2021 and to lower the 50 percent bond threshold in the omnibus bill. As negotiations on the omnibus bill evolved, there was a larger debate over what, if any, tax provisions could be added to the spending bill. To that end, progress on including a robust tax title was difficult. President Biden and congressional Democrats made enhancing the child tax credit (CTC) a high priority for inclusion in the omnibus bill and suggested in return that they could support some limited business incentives that Republicans have championed. The Republicans could not support a significant CTC expansion and negotiations on adding a larger tax title stalled. There was, however, bipartisan support for including a package of retirement savings tax provisions which are partially paid for by another tax provision curbing abusive conservation easement arrangements. As reflected in the 4155-page omnibus appropriations text released early on December 20th, there was no agreement on moving beyond those tax measures to include a broader menu of tax provisions.

Our LIHTC Champion, Senator Cantwell (D-WA), worked on an agreement that would have included bipartisan provisions, including the LIHTC, that could get the support of Democratic and Republican colleagues and be included in the tax title. Unfortunately, there was a lack of willingness within some in the Senate to consider any tax provisions other than those mentioned above.

We are continuing to explore every opportunity for moving our LIHTC provisions, including through discussions with congressional leadership about adding them as an amendment to the omnibus bill. While time is running out to finalize the omnibus spending bill, we are making sure that we do everything we can to make our case for inclusion.

We also wanted to let you know that the omnibus bill does include funding for a number of important housing programs administered by the Department of Housing and Urban Development and the Department of Agriculture, including:

·      $30.253 billion for Tenant-Based Rental Assistance.
·      $14.9 billion for Project-Based Rental Assistance.
·      $5.1 billion for the Public Housing Operating Fund.
·      $3.3 billion for the Community Development Block Grant program (CDGB).
·      $1.5 billion for the HOME Investment Partnerships.
·      $350 million for Choice Neighborhoods Initiative.
·      $3.63 billion for Homeless Assistance Grants.
·      $360 million for the Persons with Disabilities program.
·      $499 million for the Housing Opportunities for Persons with AIDS program.
·      $1.075 billion for Housing for the Elderly program.
·      $787 million for the Native American Housing Block Grant program.
·      $22 million for the Native Hawaiian Block Grants program.
·      $13.5 billion for the Self-Help Homeownership Opportunity program.
·      $2.0 billion for Rural Housing and Rental Assistance.
·      $225 million for the Preservation and Reinvestment Initiative for Community Enhancement to empower residents and communities to preserve and revitalize manufactured housing.
·      $410 million for the Office of Lead Hazard Control and Healthy Homes.
·      $86.4 million for the Office of Fair Housing and Equal Opportunity.

As the process continues, we will update you on any developments. We appreciate all you have done to urge your Members of Congress to make the LIHTC a priority, and we, along with our industry partners and Hill champions, remain committed to a positive outcome.