December Monthly Update: Legislative State of Play & Other Housing Credit Updates

The ACTION Campaign monthly call will be held on Friday, December 3 at 2:00 PM EST. Please find the Zoom call information below, and download and import the iCalendar (.ics) files to your calendar system.

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Legislative State of Play

Congress returned today from its Thanksgiving recess and faces a busy legislative agenda for the month of December. On their plate is the December 3 deadline for the Fiscal Year 2022 Continuing Resolution (CR), raising the debt limit in the coming weeks to avoid defaulting on the national debt, consideration of the National Defense Authorization Act, and passage of the Build Back Better Act (BBB).

As you know, the House passed the BBB just before the Thanksgiving recess, which includes the largest expansion to the Housing Credit program since its inception in 1986. The Senate is expected to take up BBB for consideration on the week of December 6, as the most immediate priority is funding the government, given the looming expiration of the CR on Friday. Congress most likely will pass another CR through the end of January.

The Senate is expected to make a number of changes to the BBB package before it reaches the floor. Some of these may include further cuts to the overall size of the bill and adding Senate policy priorities. The Senate may also need to modify the bill if the parliamentarian determines any provisions violate Senate budget rules for reconciliation legislation. Specifically, since the legislative package will be considered under the reconciliation process, allowing a simple majority vote on the package, all policies must have a  revenue impact to abide by the “Byrd Rule.”

With all this in mind, it is important for ACTION members and supporters to continue their advocacy for the Housing Credit, specifically contacting members of the Senate this week to ensure that the chamber preserves the strong investment in Housing Credit production. Check out ACTION’s Housing Credit messaging options to use in your outreach and please contact Krista D’Alessandro, kdalessandro@enterprisecommunity.org, for additional support.

Other Housing Credit Updates

  • On October 18, the IRS released Revenue Procedure 2021-44, which allocates nearly $7.8 million in carryover Housing Credit allocation to 29 states for calendar year 2021. Read Revenue Procedure 2021-44 here.
  • Novogradac has updated its state Housing Credit property maps based on the latest update to HUD’s LIHTC Database, which now includes data on available projects placed in service through 2019. Check out the state Housing Credit property maps here.

ACTION Membership

The ACTION Campaign is pleased to welcome our newest members, who joined in November:

  • Kc Helping Hands, Inc., California
  • Coachella Valley Housing Coalition, California
  • BrickFront Properties, LLC, Maryland
  • Housing Next, Michigan
  • Norris George & Ostrow PLLC, Washington, DC

Help ACTION continue to grow by asking affordable housing advocates in your networks who are not yet members to join the coalition. Membership is free, and the more members that join, the better ACTION can demonstrate to Members of Congress the widespread support for the Housing Credit across the country. You can also help by following the ACTION Campaign’s LinkedIn page, sharing it with your network, and asking them to join as we work to expand and strengthen the Housing Credit!

Housing Credit Research

  • A recent Novogradac analysis of the November 3 draft of the Build Back Better reconciliation legislation estimates that the more than $12 billion of Housing Credit provisions in the bill could house nearly 1.9 million low-income people, generating more than 1.2 million jobs, $137 billion in wages and business income, and $47 billion in tax revenue. Check out ACTION’s blogpost for additional details on the Housing Credit provisions included in the House-passed BBB.
  • In November, the Council of Development Finance Agencies (CDFA) released its “CDFA Annual Volume Cap Report,” which details private activity bond and volume cap trends in 2019-2020. Across the country, the majority of private activity bonds are used for housing, with about $24.3 billion of the total $27.7 billion in issuance going to housing. The report notes that demand for volume cap is still increasing faster than the supply of volume cap, which has resulted in “some states reaching their maximum allowable [private activity bond] issuance.” ACTION will continue to advocate for lowering the 50 percent bond financing threshold to 25 percent so that states are able to use their limited private activity resources more efficiently to help build much needed affordable housing.  
  • A new report from Brookings, “States can improve housing well-being through thoughtfully designed policies,” details steps state governments should take to encourage healthy housing markets, noting that the Housing Credit program is a solution to help provide financial support to low-income households.

Housing Credit News Highlights

  • A November 29 Affordable Housing Finance article, “LIHTC Properties Maintain Strength During Pandemic” details a CohnReznick study that finds the majority of Housing Credit properties are “fully occupied with healthy financial performance and extremely low foreclosure rates.”
  • A November 16 article from My Central Jersey announces the grand opening of Truman Square, a new 172-unit affordable housing community for families and veterans in Edison, New Jersey. 
  • A November 10 article from The Columbus Dispatch details the 200-unit affordable housing project near Easton Town Center in Columbus, OH that will soon begin construction.

Krista D'Alessandro is the tax policy analyst at Enterprise Community Partners. The ACTION Campaign is co-chaired by Enterprise and the National Council of State Housing Agencies.

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