Widely supported bipartisan, bicameral legislation to expand and strengthen the Low-Income Housing Tax Credit (LIHTC) was reintroduced in the Senate and House earlier this week. The Affordable Housing Credit Improvement Act (AHCIA) of 2019 (S. 1701 and H.R. 3077) is estimated to incentivize the building of over 450,000 affordable homes over the next decade and generate $48.5 billion in wages and business income, $19.1 billion in additional tax revenue, and 510,000 jobs.
In the 115th Congress, AHCIA was cosponsored by more than 40 percent of all members of Congress. In 2018 two key provisions were enacted: a 12.5 percent Housing Credit allocation increase for four years (2018-2021), as well as “income averaging,” a provision that provides flexibility to serve a broader range of low, very-low, and extremely-low income families. This year’s legislation builds on last year’s bill and adds several new provisions to strengthen and improve the Housing Credit.
The ACTION Campaign, where CLPHA is a Steering Committee member, has prepared the following background materials about the AHCIA: a summary of key provisions, the full bill summary, and a description of changes between the previous and new versions.