On Thursday, August 1, the Senate is expected to vote on cloture for the Tax Relief for American Families and Workers Act, commonly known as the “Tax Bill.” This bill includes two PHADA-endorsed provisions that will expand and strengthen the Low-Income Housing Tax Credit program (LIHTC)—increasing the number of 9 percent (competitive) tax credits and lowering the bond financing threshold for 4 percent (non-competitive) tax credits to 30 percent.
PHADA encourages members to contact their Senators today to urge them to vote yes on the tax bill. We have included several talking points below, courtesy of the Affordable Housing Tax Credit Coalition (AHTCC), of which PHADA is a member.
- The House of Representatives passed the bipartisan Tax Relief for American Families and Workers Act, which includes two key Low-Income Housing Tax Credit (Housing Credit) provisions derived from the Affordable Housing Credit Improvement Act (S. 1557). It:
- Restores the 12.5% Housing Credit allocation increase that expired at the end of 2021, and
- Reduces the private activity bond threshold requirement from 50% to 30% to access 4% Housing Credits.
- More information on the Housing Credit provisions can be found here.
- These provisions are supported by 120 national and state affordable housing organizations and would finance the development or preservation of over 200,000 more affordable rental homes than otherwise possible.
- In urban, suburban, and rural communities alike, affordable housing shortages are straining working families and seniors, veterans and other low-income households. With half of all U.S. renters cost-burdened, meaning they pay more than 30% of their income on rent, the need has never been greater. We need immediate congressional action to increase the affordable housing supply now.
- With this rare opportunity to make a meaningful dent in addressing the nation’s affordable housing crisis, we ask you to vote yes on the Tax Relief for American Families and Workers Act when it comes to the floor this week.