Summer lovin, happened so fast.  Summer lovin, had me a blast…

Oh if only we could sing and dance our way through what will likely be an ugly and unproductive summer in Washington, I would be willing to watch a John Travolta movie marathon.  There was a time when we could all focus on family, fun and relaxation as the Congress adjourned for the month of August to go home, campaign and recharge.  Not this year.  The Senate will remain in DC for at least a couple of August weeks for two to three days a week.  So this is good no?  We can get some of our housing agenda addressed?  Not so much Sancho as the guise of the extra time in session is confirming Trump appointees and working on the budget.

So what are we working on and what else is going on worth you paying attention to?  Cantwell/Hatch is still in play and Senator Cantwell is determined at a minimum to see if we can get the 4% fix done.  I am very cautiously optimistic as some of you heard at the Housing Advisory Group meeting in DC, there will not be a lot of viable tax vehicles to add our tax issues to before the next Congress.  Nonetheless, never doubt the tenacity of Senator Cantwell.

We are still waiting for Senator Wyden (D-OR) to introduce his Middle Income Housing Tax Credit proposal.  As of now, this legislation would create a tax credit for housing tenants up to 100% of AMI that could be used in conjunction with the 9% and 4% LIHTC.  As soon as the bill is finalized we will distribute it and begin to muster industry support.  Also in the wings is a bill in the House sponsored by Representative LaHood (R-IL) and in the Senate by Senators Collins(R-ME), Cassidy(R-LA) and Cardin(D-MD) that would eliminate the existing basis-adjustment requirement to bring the HTC in line with other tax credits claimed over multiple years, including the Low-Income Housing Tax Credit.  This will restore some of the value lost when the HTC was changed in the tax bill and hopefully result is more viable transactions.  We are raising this bill with Senator Cantwell to see if, assuming it sees no action this year, she and the bill’s sponsors might include it in The Affordable Housing Improvement Act of 2019 in the 116th Congress.

Other than that the budget, as always, will be the focus of attention.  At this point we do not expect it to pass before the end of the fiscal year.  The Senate numbers have been very favorable.  We are also keeping track of the rescissions bill that passed the House and is now being contemplated by the Senate.  Still too early to tell if they have the votes in the Senate but as Senator Collins said at our HAG meeting, as appropriators they do not like going back on what they have done and certainly do not like the administration telling them they spent too much money.

Another sincere thank you for those that came to Washington, DC for the CHC trip and those that came for the HAG, Coalition and NHC meetings the week of June 11th.  Your continued outreach and advocacy are invaluable.  Enjoy those summer nights.