NLIHC signed on to a letter submitted to Congress by the National Coalition for Housing Justice (NCHJ) – of which NLIHC is a member – urging leaders to ensure that any expansion of the Low-Income Housing Tax Credit (LIHTC) is paired with reforms to the program in an end-of-year tax extenders package. While LIHTC is the primary source of financing for the construction and preservation of affordable housing, the program by itself rarely supports the construction or preservation of homes affordable to households with the lowest incomes, who face the greatest and clearest needs. NLIHC also released a fact sheet summarizing the proposed reforms to LIHTC.
The reforms proposed in the letter would ensure that the tax credit (1) better addresses the housing needs of extremely low-income (ELI) households, including those experiencing homelessness; (2) preserves long-term affordability; and (3) ensures renter protections. The letter proposes that Congress:
- Expand the ELI basis boost to 50% for housing developments when at least 20% of units are set aside for households with extremely low incomes or people experiencing homelessness.
- Set aside 10% of tax credits to help offset the cost of building ELI developments, in which at least 20% of units are reserved for households with extremely low incomes or those experiencing homelessness.
- Designate tribal and rural communities as “Difficult to Develop Areas” (DDAs) to make any development in these areas automatically eligible for a 30% basis boost and make building affordable homes in these communities more financially feasible for developers.
Read the NCHJ letter at: https://bit.ly/3DJKyCK
Read NLIHC’s LIHTC reform fact sheet at: https://bit.ly/3xIEVRt