On September 11, the Department of Housing and Urban Development (HUD) published a Notice in the Federal Register designating its statutorily mandated list of qualified census tracts (QCTs) and difficult development areas (DDAs) for the purposes of the Low-Income Housing Tax Credit (LIHTC) program. Under LIHTC, projects located in QCTs and DDAs are eligible to receive up to a 30 percent basis boost while receiving Housing Credits. The 2018 QCTs and DDAs will be effective for LIHTCs allocated after December 31, 2017, and for bond-financed properties where the tax-exempt bonds are issued and the building is placed in service after December 31, 2017.
HUD publishes QCT and DDA designations annually. While this Notice provides specific details on the methodology in determining 2018 QCTs and DDAs, the full listings and other historical data can be accessed at: https://www.huduser.gov/portal/datasets/qct.html.
Yesterday, Representative Pat Tiberi (R-OH) and Ways and Means Committee Ranking Member Richard Neal (D-MA) introduced the Affordable Housing Credit Improvement Act of 2017 (H.R. 1661), a comprehensive bill that would strengthen the Low-Income Housing Tax Credit (LIHTC or Housing Credit). This bill serves as the companion legislation to S. 548, which was introduced earlier this month by Senators Maria Cantwell (D-WA) and Orrin Hatch (R-UT). Rep. Hatch is Chairman of the Senate Finance Committee.
Similar to the Senate bill, H.R. 1661 seeks to improve LIHTC through provisions that would streamline and modernize the program, as well as increase financial feasibility for projects and encourage development in underserved areas. The legislation would also support the development of rental units that use the Housing Credit in conjunction with multifamily Housing Bonds, which currently provide important financing to about 40 percent of all Housing Credit apartments.
The House bill has bipartisan support and there are 16 other original co-sponsors, 13 of which are Ways and Means Committee members. Unlike S. 548, the House bill would not phase-in a 50 percent increase to the Housing Credit cap. However, H.R. 1661 takes significant steps to strengthen LIHTC and NAHRO joins the ACTION Campaign (a coalition of over 2,000 national, state and local affordable housing stakeholders) in endorsing this critical legislation, while encouraging Congress to include a cap increase in any final tax legislation.
More information on H.R. 1661 by the ACTION Campaign can found here:
Yesterday, Senator Maria Cantwell (D-WA) and Senate Finance Committee Chairman Orrin Hatch (R-UT) introduced the Affordable Housing Credit Improvement Act of 2017 (S. 548), a comprehensive bill that would strengthen and expand the Low-Income Housing Tax Credit (Housing Credit). This legislation is very similar to the version of the Affordable Housing Credit Improvement Act (S. 3237) introduced by the same Senators last year, but with minor modifications.
Earlier this week, Senator Cantwell released a new report that chronicles the nationwide shortage of affordable housing. In her press release, Senator Cantwell said, “[w]e are facing pressures from all sides: demand for rental housing has increased by 21 percent, but we are building units at the lowest rate since the 1970s. If we do not act to increase the Low-Income Housing Tax Credit-our best way to build new affordable homes-by 2025 over 15 million Americans could be spending half of their income on rent. This is unacceptable.”
S. 548 seeks to take steps towards addressing the affordable housing deficit by increasing the overall Housing Credit authority by 50 percent. The legislation also includes other provisions that would streamline and modernize the Housing Credit, increase financial feasibility for projects, and encourage development in underserved areas. The legislation would also support the development of rental units that use the Housing Credit in conjunction with multifamily Housing Bonds, which currently provide important financing to about 40 percent of all Housing Credit apartments.
S. 548 has bipartisan support on the Hill and there are currently eleven other original co-sponsors to the bill: Senate Finance Committee Ranking Member Ron Wyden (D-OR), and Senators Susan Collins (R-ME), Dean Heller (R-NV), Lisa Murkowski (R-AK), Todd Young (R-IN), Charles Schumer (D-NY), Michael Bennet (D-CO), Cory Booker (D-NJ), Patrick Leahy (D-VT), Jeff Merkley (D-OR), and Brian Schatz (D-HI). Also recently, over 2,000 organizations across the country, including NAHRO, signed on to the ACTION Campaign’s letter to Congress in support of S. 548.
More information on the bill by the ACTION Campaign can found here: