Congressional Action to Make 9% Housing Credit Rate Permanent
December 14, 2011 – On December 14, Pat Tiberi (R-OH 12th District) introduced House Resolution 3661, "To amend the Internal Revenue Code of 1986 to make permanent and expand the temporary minimum credit rate for the low-income housing tax credit program." At the same time, Senator Maria Cantwell (D-WA) introduced Senate Bill 1989. The House Bill and the Senate Bill each have 10 cosponsors.
This bill will promote the stability of the affordable housing market through improving the efficiency of the tax credit process. It will make permanent the 9% housing credit rate that was enacted by the Housing and Economic Recovery Act of 2008 (HERA). This bill will prevent major disruption in the development pipeline, permanently lower risk for private investors, and increase production of affordable housing.
The second major provision is to apply a minimum 4% rate to acquisition housing credits (4% housing credits) rather than allowing the rate to float. This measure is important because as the tax credit projects age and deteriorate, developers and investors need an easy acquisition finance tool like the 4% housing credit to preserve existing tax credit properties.
According to Senator Cantwell, "By helping to spur investment in affordable housing development, we stimulate our local economy and lessen the impact of the tough economic times on our most vulnerable populations." This bill will help protect the industry that provides much-needed homes for low-income families and creates construction jobs.
For more information, you can visit the A.C.T.I.O.N. website:
http://rentalhousingaction.org
or visit the THOMAS (Library of Congress) website, click on Bill Number and type H.R. 3661 in the search field: