CARH’s BROADCAST EMAIL—Legislative Alert
February 5, 2024
On January 31, the House passed H.R. 7024, The Tax Relief for American Families and Workers Act of 2024, by a vote of 357-70. This legislation includes two key Housing Credit provisions that, if passed, would increase affordable housing supply and benefit seniors and working families throughout the country.
The two provisions are:
- Temporary restoration of the 12.5 percent cut the Housing Credit suffered in 2022 after a temporary allocation increase expired. The deal would increase 9 Percent Credit authority for calendar years 2023 through 2025. State Housing Credit Agencies would need to use the additional 2023 authority by the end of 2024, as states have two years in which to use annual authority before it is redistributed through the National Pool.
- Temporary change to the Private Activity Bond (PAB) threshold test, lowering it from 50 percent to 30 percent for 4 Percent properties financed with multifamily Housing Bonds that have an issue date before 2026. To qualify, buildings must be placed in service after December 31, 2023.
The ACTION Campaign (ACTION), a national, grassroots coalition of 2,400 national, state, and local organizations and businesses calling on Congress to protect, expand, and strengthen the Low-Income Housing Tax Credit (Housing Credit), and which CARH is a steering committee member, shared the following information on the passage of H.R. 7024:
The bill’s Housing Credit provisions would finance the construction or preservation of an estimated 200,000 additional affordable homes nationwide; generate over $34 billion in wages and business income; support over 304,000 jobs; and generate almost $12 billion in federal, state, and local tax revenue. The provisions represent what would be the largest single investment in affordable housing in decades.
During the debate, Representatives on both sides expressed their support for the Housing Credit and the [Affordable Housing Credit Improvement Act of 2023] (AHCIA) provisions included in the tax package. Some who spoke in favor of the Housing Credit provisions include AHCIA House leads Reps. Darin LaHood (R-IL), Suzan DelBene (D-WA), Don Beyer (D-VA), and Jimmy Panetta (D-CA); Ways and Means Committee Chair Jason Smith (R-MO) and Ranking Member Richie Neal (D-MA); and Reps. Dwight Evans (D-PA), Brad Schneider (D-IL), and Nicole Malliotakis (R-NY).
While this is a major step toward achieving two key ACTION priorities, the Senate presents new challenges. The path forward in that chamber remains unclear, and it is possible the Senate Finance Committee may mark up the legislation, introducing a possibility that it could be amended. Any amendment to the bill, whether in Committee or on the Senate floor – even the addition of other bipartisan provisions – could cause the bill to stall and threaten the fragile compromise to which Smith and Finance Committee Chair Ron Wyden (D-OR) agreed.
This opportunity is likely Congress’ last best chance to act on tax policy until late 2025, when most of the other Tax Cuts and Jobs Act (the 2017 tax reform bill) provisions expire. Given the current housing crisis, it is imperative that affordable housing advocates convey to their Senators that Congress cannot afford to delay action any longer.
Thank you to all ACTION members and partners who have reached out to Members of Congress to stress the need for these critical resources. We need you to again weigh in with your Senators and urge their support for H.R. 7024. Make sure they know how important the Housing Credit changes would be to their constituents.
To assist advocates, ACTION created a webpage with links to templates and other materials to help with your outreach.
We need your outreach to all Senators, regardless of party or AHCIA cosponsorship status. Ask them to avoid changes to the bill that could undermine its enactment. Urge them to express their support to Senate Majority Leader Chuck Schumer (D-NY) or Minority Leader Mitch McConnell (R-KY). We need the Senate to act as quickly as possible.
Be sure to share with your Senators the support letter signed by over 90 national and state coalitions of affordable housing and community development organizations [including CARH] and a statement issued by the National Governors Association in support of the bill, noting the importance of its affordable housing provisions.
CARH will continue to monitor this legislation as it moves through the Senate and will provide updates to members as they happen.
For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website, www.carh.org.