Legislation introduced in the House and Senate would make the 9% low income housing tax credit’s fixed floor rate permanent for new construction and substantial rehabilitation projects, and establish a similar fixed floor rate for the 4% credit for acquisition projects. The House bill, H.R. 3661, was introduced by Representatives Patrick Tiberi (R-OH) and Richard Neal (D-MA). The Senate bill, S. 1989, was introduced by Senators Maria Cantwell (D-WA) and Olympia Snowe (R-ME).
A fixed floor for the 9% credit was included in the 2008 Housing and Economic Recovery Act but will expire for apartments placed in service after the end of 2013. These bills would make the 9% fixed floor permanent and also establish a fixed rate floor for the 4% credits. These bills are priorities for the Affordable Rental Housing A.C.T.I.O.N. (A Call to Invest in Neighborhoods) Campaign coordinated by Enterprise Community Partners and the National Council of State Housing Agencies. The campaign includes hundreds of national, state, and local partners, including NLIHC.
Both bills were introduced on December 14. H.R. 3661 was referred to the House Committee on Ways and Means. S. 1989 was referred to the Senate Committee on Finance.