Tax Incentives for Affordable Housing Included in Senate Democrats’ Infrastructure Proposal

Senate Minority Leader Chuck Schumer (D-NY) announced yesterday that Senate Democrats will seek to advance a $1 trillion infrastructure package in 2017, which will include proposals to increase investments in affordable housing to create “places for people to live, work, and thrive.” Citing the 11.4 million households that pay more than half of their income monthly on rent and the $26 billion backlog for repairing our nation’s public housing, the proposal is clear that investing in housing is a critical component of rebuilding the nation’s infrastructure.

The “Blueprint to Rebuild America’s Infrastructure” proposes to spend $100 billion to “Revitalize America’s Main Streets,” which would create 1.3 million new jobs over ten years by investing in cities, towns, and rural communities. Possible solutions to address the nationwide affordable housing crisis include “expanding existing tax incentives and other affordable housing federal programs,” suggesting an opportunity to expand and strengthen the Housing Credit.

President Trump has identified infrastructure as a top priority for his Administration, though housing investments are not part of the Administration’s initial infrastructure priorities list.

The ACTION Campaign will continue to make the case that the expansion of the Housing Credit should be a critical component of any infrastructure spending package, considering the tangible and significant impacts that Housing Credit developments garner for residents, communities and local economies.