While this will be news to no one reading this update, the Affordable Housing Credit Improvement Act (AHCIA) of 2021 has been introduced. While not the first housing bill out of the blocks it is the most comprehensive and if enacted as proposed, could result in the financing of an additional 2 million units of affordable housing over the next 10 years. We are currently building bipartisan support for H.R. 2573 and S. 1136 and ask that you reach out to the California delegation and ask them to cosponsor the AHCIA. All the resources you need are on the ACTION Campaign’s Advocacy Tools website. In addition to your own elected officials, don’t forget to touch base with those where you have offices, properties, or other connections.  

As we previously discussed, the new version of the AHCIA includes a 50% increase in the 9% allocation over two years and a reduction of the 50% test to 25%. There are also a number of basis boost provisions including for 4% LIHTC transactions, DDA’s and tribal lands. You may view a Section by Section summary of the bill here. With so much activity around what could be the most significant investment in infrastructure since the Eisenhower administration, it is imperative we demonstrate support for our affordable housing agenda so please put on your advocacy hats and let’s get the CA delegation signed onto HR. 2573 and S. 1136.  

In the coming days we expect Senator Wyden to introduce the Decent Affordable Safe Housing (DASH) Act. We expect this legislation to include the Middle-Income Housing Tax Credit, potentially an increase in the PAB volume cap, a tax credit and/or basis boost focused on services at LIHTC properties and much more. Over the next month or so we expect more housing legislation covering homeownership, rental housing, homelessness and more to be introduced by Members on both sides of the Hill and from both Party’s. As I previously stated this could be a landmark year for housing legislation. 

We await word from the IRS on whether they will alter their interpretation of the Average Income Test but are also working with legislative leaders on clarifying language in case the IRS either does not alter their interpretation or come out with guidance in a timely manner. This is very much on the front burner for housing advocates in DC. We also continue conversations with the Administration on more housing legislation from the Domestic Policy Council, HUD appropriations and fixes to programs at HUD. There is a lot going on. 

Thank you for all your efforts and stay tuned for much more news on the housing front.