On May 22, Representatives Pat Tiberi (R-OH) and Richard Neal (D-MA) introduced H.R. 4717, which would establish a permanent minimum 9% Low Income Housing Tax Credit (LIHTC) floor for new construction and substantial rehabilitation. The bill would also establish a minimum 4% LIHTC floor for the acquisition of existing property. The 9% minimum tax credit floor expired in December 2013. Advocates are eager to reinstate it and create a new floor for the 4% tax credit.
“Minimum Housing Credit rates make affordable housing development more efficient and effective by creating financial predictability, reducing administrative complexity, and increasing the amount of Housing Credit equity that can go into each affordable housing development, thus decreasing the amount of financing gaps that must be filled,” the Affordable Rental Housing ACTION Campaign wrote in a statement upon the bill’s introduction.
The bill was referred to the House Committee on Ways and Means.