A bipartisan group of legislators from the U.S. House and Senate introduced legislation last month that makes key improvements to the Low Income Housing Tax Credit (LIHTC) to increase production and preservation of affordable housing across the country. Since its inception in 1986, LIHTC has financed over 3.2 million apartments, providing approximately 7.4 million low-income families, seniors, veterans and persons experiencing a disability a home they can afford. Virtually no affordable rental housing development would occur without LIHTC.
Among this year’s top priorities in the bill are:
- 50% increase in allocation to the states.
- Provide flexibility for existing tenant’s income eligibility.
- Clarify protections for victims of domestic violence.
- Establish a minimum 4% LIHTC rate.
- Incentives to produce and preserve housing for Extremely Low-Income tenants.
- Greater flexibility for states to recycle bond proceeds back into multifamily development and homeownership.
CHAPA is circulating a letter in support of the Affordable Housing Credit Improvement Act and asking organizations to sign-on before sending to the Massachusetts federal delegation.