AHCIA Reintroduced

Written By Abigail Henderson

We want to share with you the great news that the Affordable Housing Credit Improvement Act (AHCIA) was reintroduced today, May 11, 2023. As was the case in the last Congress, the legislation is bipartisan and bicameral. On the Senate side, Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Marsha Blackburn (R-TN) introduced the legislation. The companion bill was introduced in the House by Representatives Darin LaHood (R-IL), Suzan DelBene (D-WA), Brad Wenstrup (R-OH), Don Beyer (D-VA), Claudia Tenney (R-NY), and Jimmy Panetta (D-CA). Over 60 members, balanced between Republicans and Democrats, joined the House leads as original cosponsors.

The legislation introduced today largely tracks the bills from the 117th Congress with a few modifications:

Modification of Basis Boost for properties serving extremely low-income (ELI) households:

Two technical modifications to the ELI were included to address ambiguities in congressional intent. The bill:

  • Clarifies that ELI units receiving the 50 percent basis must also be rent restricted such that they are affordable to households earning no more than 30 percent of area median income; and

  • Clarifies that the 20 percent of units designated ELI to qualify for the 50 percent boost must use the unit fraction calculation and not the floor space calculation.

Elimination of Basis Reduction for Low-Income Housing Properties Receiving Certain Energy Benefits — Modification to Reflect Recently Enacted Law:

  • The 118th Congress version of the AHCIA removes energy provisions that were enacted into law in 2022 as part of the Inflation Reduction Act (IRA). The IRA eliminated the LIHTC basis reduction for LIHTC developments that also claimed Internal Revenue Code (IRC) Section 45L or Section 48 energy tax credits. The IRA did not address the IRC Section 179D deduction. The 118th Congress version is modified to reflect this action and retains only the elimination of the LIHTC basis reduction associated with the IRC Section 179D Energy Efficient Commercial Buildings Deduction.

Data and Transparency — New Provision:

  • The 118th Congress version of the AHCIA includes “Sense of the Congress” language that suggests that, in addition to expanding and strengthening the LIHTC through the provisions in the AHCIA, “subsequent steps should also be taken to share data and identify other ways to increase the transparency of the program. The House and Senate will work together with federal agencies to identify data sources that can be shared.”

Zoning and Land Use — New Provision in Senate Version Only:

  • The Senate version of the AHCIA includes “Sense of the Senate” language regarding the importance of having incentives within the Housing Credit program to encourage the removal, or reform, of burdensome land use and zoning regulations to promote housing supply and affordability.

You may review a section-by-section summary of the AHCIA of 2023 here.

We are very appreciative of our Hill champions’ leadership and support. The industry has pledged to do all it can to secure cosponsors for the bills to show strong bipartisan support for including the AHCIA in an appropriate legislative vehicle. Potential vehicles might include an omnibus spending bill to fund the federal government; legislation to reauthorize the Federal Aviation Administration (FAA); or legislation to renew the Farm bill. Both the FAA bill and the Farm bill will include a tax title. Other bills that could carry AHCIA provisions include legislation that extends expiring or already expired tax provisions.

We must be a part of the conversation on potential tax legislation by growing support for the AHCIA and urging its inclusion in any appropriate legislative vehicle. We need your help in making sure your elected officials know what you are doing in their districts and states to address the need for affordable housing, and how the AHCIA will help. Please contact your Members of Congress and ask them to cosponsor the legislation.

To cosponsor, Senate offices may contact:

House offices may contact:

Abigail Henderson
Previous

Debt Limit Crisis averted; Over 100 Members of Congress Cosponsor AHCIA
Next

Bloomberg Law: Housing Nonprofits Push Congress to Ease Investor Tax Credit Fights