How will this year’s election affect affordable housing? November is a long way off, but here are a few indicators.
Democratic Presidential Candidate Hillary Clinton has proposed to build more affordable rental housing near jobs and schools, maintain the current supply of Low Income Housing Tax Credits (LIHTC), and provide additional credits in communities where demand exceeds supply. Republican Presidential Candidate Donald Trump has not stated a position, but his father developed a substantial amount of unsubsidized affordable rental housing in NYC.
Senate Bill 3237 (previously 2962), the Affordable Housing Credit Improvement Act of 2016, does the following:
Increases the annual housing credit allocation by 50% over 5 years,
Allows income averaging within housing credit properties, and
Establishes a minimum 4% housing credit rate for acquisition and bond-financed projects.
New upcoming legislation could provide additional resources to give states the discretion to provide a 30% basis boost for bond-financed projects, keep state LIHTCs from being subject to federal tax, repeal the qualifying census tract population cap, and treat Native American communities as “difficult to develop” areas, a designation that allows for a tax credit boost for projects.
RSG tracks national affordable housing funding, which determines how much can be done locally. We scrutinize the legislation, enabling you to make the best decisions in your area.
Written by Nate Gunderman, an Associate at RSG