Congress Convenes the 118th Congress; Efforts Continue on Path Forward for AHCIA
On January 3, 2023, Members of Congress arrived in Washington D.C. for the start of the 118th Congress. The Senate quickly convened to swear in its new members and appoint a President Pro Tempore and then adjourned until January 23rd. The House of Representatives had a more challenging start when it took four days and 15 ballots to elect Representative Kevin McCarthy (R-CA) Speaker of the House. Now both chambers have filled out their Committees and begun their work.
On February 7th-9th, David Gasson and Bob Moss traveled to Washington D.C. for a series of meetings with the White House and Congress regarding the outlook for moving affordable housing credit legislation this year and for addressing select LIHTC issues through the regulatory process. We wanted to give you an overview of the visits and also to update you on the status of the Affordable Housing Credit Improvement Act (AHCIA) reintroduction.
Timing on the reintroduction of the AHCIA is unclear, but our champions are enthusiastic about moving forward. We are fortunate to have Senators Maria Cantwell (D-WA) and Todd Young (R-IN) and Representatives Suzan DelBene (D-WA) and Representatives Brad Wenstrup (R-OH) continuing their housing credit leadership roles. With the change in House control, longtime LIHTC champions Nancy Pelosi (D-CA) and Richard Neal (D-MA) relinquished their gavels but continue to be strong champions for affordable housing. Representative Jason Smith (R-MO), a cosponsor of the AHCIA in previous Congresses, is now the chair of the House Ways and Means Committee and Representative Neal is the Ranking Democrat. We are excited that the Chair and Ranking Member of the committee with jurisdiction over the LIHTC program strongly support the housing credit. On the Senate side, Senator Ron Wyden (D-OR), another key advocate for affordable housing, continues as the Chair of the Senate Finance Committee. Chairman Wyden has been very vocal about the need to address housing issues.
With the House and Senate office buildings now open and fully accessible, we were able to put together a robust schedule to talk to lawmakers and staff about the credit. On the Senate side, we met with Senator Cantwell and her Chief of Staff and with Chairman Wyden’s Finance Committee LIHTC team to discuss the AHCIA and other housing issues. We also met with staff of the Senate Appropriations Subcommittee on Transportation-HUD regarding potential opportunities for increasing housing resources through the appropriations process.
On the House side, we had excellent meetings with Chairman Smith’s tax policy advisor; Democratic Ways and Means Committee staff; key staff for Democratic Leader Hakeem Jeffries (D-NY) and Democratic Whip Katherine Clark (D-MA); Representative Suzan DelBene (D-WA) and her Legislative Director; Representative Jimmy Gomez (D-CA) and his key staff; and the Deputy Chief of Staff to Representative Brad Wenstrup (R-OH). We also had the opportunity to meet with staff of new Ways and Means Committee member Claudia Tenney (R-NY).
While we were pleased with the strong support for the housing credit expressed in all of our meetings, there was no certainty given about whether there will be an appropriate vehicle that might carry our legislation this year. Despite pent-up congressional demand to address expired and expiring tax provisions, affordable housing, childcare, and research and development, among other tax issues, divided government likely will make it very difficult to pass major tax legislation in 2023. However, we remain optimistic that perhaps a small package of bipartisan tax provisions, such as the LIHTC, might be considered and attached to legislation that can be enacted into law. These “must do” bills include reauthorizations of the farm bill and the Federal Aviation Administration, and funding the government beyond September 30, 2023. In early summer, legislation to raise the debt limit must be passed to avoid the U.S. defaulting on its financial obligations.
We also had very good meetings at the White House with staff from the Domestic Policy Council and the National Economic Council. This was a thorough and lengthy meeting discussing a myriad of issues including regulatory provisions within the AHCIA the Administration may be able to address, supply chain concerns, issues related to the GSEs and their investments and new programs initiated last year that might benefit affordable housing developments. The White House is eager to working with the affordable housing community to address these and other issues and we will be reconvening with them soon.
As our congressional champions determine how best to proceed on AHCIA provisions, we, along with our industry partners, are doing all we can to garner support for more resources to produce affordable housing. In that regard, we need your help in educating the many new Members of Congress and staff who may not be familiar with the housing credit.
If you have an opportunity to see your elected officials when they are back home, please encourage them to visit a property and to lend their support for moving the AHCIA. If you plan to be in D.C. on May 17th-18th for the Affordable Housing Symposium we are co-hosting with the Affordable Housing Tax Credit Coalition, we hope you will have time to make some Hill visits to share with Members of Congress what you are doing in their Districts and States to address the housing crisis. It will make a difference.
Thank you for all you are doing.