05-15-23 | News

NAHB Supports Bipartisan Legislation to Improve Housing

Association Advocating for The Affordable Housing Credit Improvement Act
by Staff

The bipartisan bills, which is backed by the NAHB, aims to improve the Low-Income Housing Tax Credit, allowing builders to increase affordable housing production.

The House and Senate have introduced identical bipartisan bills that could lead to an increase in production of much-needed affordable housing. The Affordable Housing Credit Improvement Act, introduced in the Senate by Sens. Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR.) and Marsha Blackburn (R-Tenn.), and in the House by Reps. 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), has more than 60 bipartisan original co-sponsors in the House version of the legislation.

The National Association of Home Builders (NAHB) has praised the proposed legislation for addressing the need to boost housing production to ease the nation's housing affordability crisis. NAHB Chairman Alicia Huey said: "The Affordable Housing Credit Improvement Act will finance more than 2 million additional multifamily units over the next decade. And with nearly 11 million renter households severely cost-burdened, there is now more reason than ever to enact this legislation."

The NAHB outlined several measures of The Affordable Housing Credit Improvement Act that would increase the availability of affordable housing. Firstly, it would increase 9% credit allocations, which are generally reserved for new construction, by 50%. Secondly, it would prohibit states from requiring special approvals that treat affordable rental housing differently from any other multifamily project. Thirdly, it would provide a 30% basis boost for properties in rural and Native American areas. Finally, it would lower the 50% "financed by" threshold to 25% for private activity bonds to enable more bond deals. Private activity bonds are tax-exempt bonds issued on behalf of a state or local government to provide special financing benefits for qualified projects.

NAHB strongly supports this bill and will urge Congress to pass this legislation quickly. The Act would help provide much-needed affordable housing in a nation where millions of renter households struggle with the burden of housing costs.


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