October 2022 Monthly Newsletter: Legislative Updates & Other Housing Credit News

Congress cleared the way to head out for October recess with the passage of a continuing resolution (CR) for the start of Fiscal Year (FY) 2023, which began on October 1. The House approved the Senate-passed Continuing Appropriations and Ukraine Supplemental Appropriations Act of 2023, sending it to President Biden’s desk for his signature on Friday, September 30. The CR funds the government through December 16, averting a government shutdown before the November mid-term elections. In addition to continuing the FY22 funding levels, the law also includes $2 billion for HUD’s Community Development Block Grant Disaster Recovery program; a re-authorization of the National Flood Insurance program through the duration of the CR; and $12.4 billion in aid for Ukraine.

What’s Next–Pushing Forward AHCIA Priorities in the Lame Duck Session

This sets the stage for year-end negotiations on a final omnibus spending package, which is often the primary legislative vehicle for tax packages in Congress. The lame duck session, which occurs in the period after an election and before a new session of Congress begins, is the last opportunity this year for Congress to address the expiration of the 12.5 percent increase in authority which had been in place from 2018 until the end of 2021. In addition to pressing for the cap increase’s restoration, ACTION is working to increase bipartisan support for other priories from the Affordable Housing Credit Improvement Act (H.R. 2573 / S. 1136), including the lowering of the 50 percent bond financing test. In addition to limiting housing production in states facing bond cap constraints, the current bond financing test requirement is a danger to projects that see cost increases, as such projects could be at risk of failing the 50 percent test. 

The congressional tax committees’ leaders are now gauging their members’ priorities, with the Senate Finance Committee Republicans seeking input from their members and the Ways and Means more broadly seeking input. So now is a good time to make sure your members of Congress in these key positions are hearing from you. Urge them to make expanding the Housing Credit for increased production their top priority as they communicate with Committee leadership. 

While we do not yet know for sure whether Congress will enact tax legislation during the lame duck, there is a good chance they will at least consider tax extenders, if not a broader package. We hope to know more after the November election. Any tax bill is likely to be limited in scope, thus ACTION is focusing on the provisions that would have the most impact on increasing supply–reinstating the 12.5 percent cap increase and lowering the 50 percent test. 

Advocacy Actions for our Members

There are several ways to advocate for our Housing Credit provisions for inclusion in a year-end tax package:

• Weigh in with existing AHCIA supporters on the Ways and Means and Senate Finance Committees to ask them to include the Housing Credit as a priority in any tax package that moves forward in the remainder of this Congress, sharing local examples, state or district fact sheets, and other data points to convey the need and sense of urgency to take action. Ask them to communicate their prioritization of the Housing Credit to leadership of their respective tax committee.
• Follow up with any of your Senators and Representatives who are cosponsors, but not on either of those committees, asking them to contact their respective congressional leadership to convey support for the Housing Credit and push for legislative action before the end of this Congress.
• Help build up AHCIA cosponsorship, in particular with Republicans. We have strong bipartisan support on both bills and increasing those numbers is critical for our legislative push if there is a bipartisan year-end tax bill.