WHTC Legislation Introduced; AHCIA Gains Support
We wanted to update you on ongoing efforts to advance our Affordable Housing Credit Improvement Act (AHCIA) provisions and inform you that new bipartisan legislation to create a Workforce Housing Tax Credit was recently introduced in the Senate and House of Representatives.
We have been working hard to increase bipartisan congressional support for the AHCIA. We are pleased to report that House bill (H.R. 3238) is approaching 200 cosponsors, evenly divided between Republicans and Democrats. We are making promising progress in the Senate as well. Demonstrating wide bipartisan support through numbers of cosponsors helps make a strong case to House and Senate Leadership that the AHCIA should be included in any legislative vehicle that carries a tax title.
Discussions between the House and Senate tax committees on a possible tax package are ongoing, and their staffs are working hard to be ready in case an opportunity for tax provisions emerges later this month or early in 2024. To that end, we urge you to continue your good work in contacting your elected officials and other Members of Congress where you have properties. Please ask them to contact the Leadership in support of including housing credit provisions in any appropriate legislative vehicle. And if they have not cosponsored the AHCIA, urge them to sign on. Please let us know if you need assistance with email or staff information for the Members you are contacting.
In a new development, S. 3436, the Workforce Housing Tax Credit (WHTC) Act, was introduced in the Senate on December 7th by Finance Committee Chair Ron Wyden (D-OR) and Senator Dan Sullivan (R-AK). A companion bill, H.R. 6686, was introduced on the same day by Representatives Jimmy Panetta (D-CA) and Mike Carey (R-OH). The bills are similar in structure to the Low-Income Housing Tax Credit (LIHTC) but focus on the production of housing that would be affordable for moderate-income households. Highlights of S. 3436 and H.R. 6686 include:
Credits would be allocated by state housing finance agencies through a competitive process. Credits would be provided over a 15-year period, with a 15-year compliance period.
Credits are allocated to states based on population. For 2024, the allocation would be $1 per capita with a $1.5 million small-state minimum. An additional 5% of the allocation is available and reserved for middle-income housing developed in rural areas.
To qualify for the credit, at least 60% of the building’s units must be occupied by individuals with area median incomes of 100% or less, where the rents are restricted to 30% of the designated income.
The affordability restrictions would remain in place for up to 15 years after the compliance period (for a total 30-year affordability period).
This new legislation will address a vital need for housing for our workforce and those unable to afford market-rate housing. We look forward to working with the affordable housing champions to help grow support for the bills. A summary of the legislation can be found here and the legislative text can be found here.
We will keep you posted on any AHCIA or WHTC developments. Please let us know if you have any questions about the bills. Thanks for all you do, and please keep up the good work of educating your elected officials on how Congress can address the severe affordable housing crisis.