ICYMI: ACTION Submits Comments to OCC, FDIC, and Board on CRA Modernization
On Friday, August 5, ACTION Campaign Co-Chairs Enterprise Community Partners and the National Council of State Housing Finance Agencies submitted comments to the Federal Reserve System (Board), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) on their efforts to modernize Community Reinvestment Act (CRA) regulations. ACTION’s final comment letter includes recommendations to the banking regulators on ways to incentive additional affordable housing development and preservation through the Housing Credit. Check out the letter here.
Legislative Update: Senate Passes Inflation Reduction Act of 2022
On August 7, the Senate passed the Inflation Reduction Act of 2022, a budget reconciliation package including provisions related to climate and energy, healthcare, and tax. The reconciliation package – although broader than anticipated in more recent months – remained relatively narrow compared to previous iterations of the reconciliation legislation. Unfortunately, ACTION’s key Housing Credit provisions were not included, as the package did not focus housing.
However, as a part of the tax provisions proposed to raise revenue, the legislation would implement a 15 percent minimum tax rate on book income for businesses earning over $1 billion in revenue. The book income tax in the Inflation Reduction Act draws from provision in the previous Build Back Better proposal and would still allow general business credits, such as the Housing Credit, to be taken against that minimum rate. In addition, the package includes a change so that energy credits do not negatively impact Housing Credit basis. The House is expected to take up and pass the Senate-approved reconciliation legislation this week and send it to the President’s desk for signature.
What’s next for the Housing Credit?
Congressional support for the Housing Credit program remains strong on both sides of the aisle, as reported in our August newsletter on the House and Senate hearings that took place related increasing affordable housing. ACTION is continuing our work to increase cosponsorship for the Affordable Housing Credit Improvement Act (AHCIA), and we encourage members to take advantage of the congressional recess this month to connect with your legislators and ensure the AHCIA is well positioned for future legislative opportunities in the remaining months of this Congress. State and Congressional District Factsheets and the list of current AHCIA cosponsors are available on our website.
Reminder: Treasury to Host Webinar TOMORROW on Use of SLFRF to Facilitate Affordable Housing Production & Preservation
Tomorrow on August 10 at 2PM ET, the Treasury Department will host a webinar to brief stakeholders and recipients on how state, local, and tribal governments’ can use Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to support affordable housing development, including through the Housing Credit. During the session, Treasury will discuss its recently released guidance on long-term loans and expanded presumptively eligible uses for affordable housing, layering with other federal programs, and other uses of the funds.
Please register for the August 10th session and share this event with your networks.