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Legislative State-of-Play
Tax Package with Housing Credit Provisions Passes House, But Outlook in the Senate Remains Murky
On January 31, the House passed the Tax Relief for American Families and Workers Act (H.R. 7024), which contains two key Housing Credit provisions, by a 357 to 70 vote. During the debate on it, Representatives from both parties expressed their support for its Housing Credit provisions. The first provision would restore the 12.5% increase to the 9% Credit from 2023-2025. The second would lower the Private Activity Bond financing threshold from 50% to 30% for 4% Credit properties placed in service after 2023 and have a bond issuance date before 2026. These provisions were inspired by the Affordable Housing Credit Improvement Act (AHCIA).
These two provisions would finance the construction or preservation of more than 200,000 additional affordable homes nationwide; generate over $34 billion in wages and business income; support over 304,000 jobs; and generate nearly $12 billion in federal, state, and local tax revenue.
The path forward for the bill’s consideration in the Senate remains unclear. Several Republican Senators on the Finance Committee have called for the bill to proceed through regular order, which would mean the committee would mark it up before its consideration by the full Senate. This creates the possibility that the carefully negotiated package could be amended, which may jeopardize its passage, since any changes would require the House to vote on it again.
What’s Next
The Senate is returning from a two-week recess on February 26, with an extremely busy agenda upon their return. They have to finalize appropriations for Fiscal Year 2024 (FY24), which started on October 1. The current stopgap funding, or Continuing Resolution (CR), expires on March 1 and March 8. Additionally, Congress has to reauthorize the Federal Aviation Administration by March 8. Adding to that packed timeline, the Senate may also have to take up the impeachment trial of Homeland Security Secretary Mayorkas, who the House impeached on February 13.
The Senate’s busy agenda means they have a few paths they could take to enact H.R. 7024. They could wait to act on the tax package until these other legislative matters have been resolved, or they could try to attach the tax package to either of the FY24 spending bills or the FAA reauthorization bill. This may be the quickest way forward, especially if the Senate amends the bill, which would necessitate the House voting on it again.
If the Senate were to take up and pass the House bill unamended as a standalone bill, it would go straight to the President’s desk. Putting aside the challenges of moving the bill as a standalone, timing on the Senate floor is constrained with the other legislative deadlines and would likely mean the bill would not be able to be put to a vote until mid- to late-March at the earliest.
What Can You Do to Support this Essential Expansion of Affordable Housing Resources?
We need advocates to weigh in again this week with your Senators, urging their support for moving H.R. 7024 and securing the Housing Credit provisions. It is particularly important to convey how the Housing Credit changes would affect their states and constituents.
We are targeting all Senators, regardless of party or AHCIA cosponsorship status. Urge them to express their support to their respective Senate leader, Majority Leader Chuck Schumer (D-NY) or Minority Leader Mitch McConnell (R-KY). We need the Senate to act as quickly as possible upon their return.
To assist advocates, ACTION created a webpage with links to templates and other materials for your outreach. Be sure also to include the support letter signed by 120 national and state coalitions of affordable housing and community development organizations – including many ACTION members. The letter was sent to the Senate on February 7, but having it recirculated by organizations with close ties to their states will be most helpful. If you have any questions or need help contacting your Senators, please don’t hesitate to email us.
AHCIA Hits New Milestone with 218 House Cosponsors
The AHCIA had four new cosponsors added in February, bringing the total number of cosponsors to 218—meaning more than half of the House has officially cosponsored the legislation. Cosponsorship remains evenly split with 109 Democrats and 109 Republicans.
- Jay Obernolte (R-CA-23), February 5
- Frank J. Mrvan (D-IN-01), February 5
- Carlos A. Gimenez (R-FL-28), February 20
- Morgan McGarvey (D-KY-3), February 20
Cosponsorship of the Senate version of AHCIA stands at 30 Senators, split evenly between both parties.
There are a number of Democrats in the queue waiting for Republican pairs to be added. We are continuing to push for new cosponsors to keep demonstrating the broad, bipartisan support for the Housing Credit in Congress.
AHCIA Advocacy Resources
The ACTION Campaign has a number of advocacy materials to help support your outreach, including updated National, State, and Congressional District Fact Sheets, our video series detailing the provisions of the AHCIA of 2023, updated statewide ACTION Campaign member lists, an in-district advocacy guide, sample emails for outreach, as well as detailed information about the legislation in our Advocacy Toolkit. We also have a complete list of cosponsors from last Congress, where you can check if your Senators or Representative have cosponsored in the past, as well as the most up-to-date list of current cosponsors.
Housing Credit Support During Senate Budget Committee Hearing
During a January 31 Senate Budget Committee hearing on housing affordability, the Housing Credit and the AHCIA received positive coverage. Most Senators and witnesses supported the Housing Credit and noted its importance for creating and preserving affordable homes. Several of them also stressed the importance of fully funding other programs that provide critical gap financing for the Housing Credit. One witness urged Congress to pass the AHCIA and the tax package, both of which would have an incredibly positive impact on the current affordable housing crisis.
Recent Changes in Congress
Despite being not even two full months into 2024, there have already been several changes to Congress’ composition. In January, AHCIA cosponsors Rep. Bill Johnson (R-OH-06) Rep. Brian Higgins (D-NY-26) resigned. Another AHCIA cosponsor, Rep. Jimmy Gomez (D-CA-34), replaced Rep. Higgins on the Ways and Means Committee. Rep. Gomez was previously on Ways and Means but lost his seat on the committee when Democrats lost the House in 2022.
On February 13, former Rep. Tom Suozzi (D-NY-03) won the special election for that district. He replaces former Rep. George Santos. Rep. Suozzi is a former three-time cosponsor of the AHCIA.
Administration Updates
FHFA Announces Multifamily Property Insurance Symposium
On February 12, FHFA announced that it will hold a symposium on multifamily property insurance on March 13. As ACTION reported several times last year, there has been a burgeoning property insurance crisis across the country, which is having an outsized impact on affordable housing properties. The crisis is jeopardizing the ability of housing providers to keep properties affordable for low-income households. If the crisis continues to get worse, countless families could lose their housing, with no immediate alternative. ACTION is pleased that the FHFA is holding this symposium to discuss potential strategies and solutions.
President’s FY25 Budget Request Coming Soon
President Biden is expected to send his FY25 Budget Request to Congress on March 11. The Budget Request represents the Administration’s spending proposals for the entire federal government for the upcoming fiscal year, and often includes proposed policy changes to accompany the funding requests. However, the request is non-binding, as Congress has the ultimate power of the purse. President Biden’s FY24 Budget Request was the first from the Administration that includes ACTION’s production priorities from the AHCIA. As usual, we look forward to working with the Administration and Congress to get essential Housing Credit investments enacted.
ACTION Membership
In February, the ACTION Campaign welcomed two new members to the coalition. Please join us in welcoming the following new members:
- N-Sights Consulting, LLC, Ohio
- Community Solutions, New York
Help ACTION continue to grow our membership and advocacy strength by encouraging your networks to support affordable housing and the Housing Credit by joining the coalition. Membership is free. Together, we can demonstrate to Members of Congress the widespread support for the Housing Credit across the country. You can also help strengthen our reach by following the ACTION Campaign’s LinkedIn page and inviting your connections to follow and join us.
Housing Credit Research
- A February 5 Notes from Novogradac analysis of Harvard University’s Joint Center for Housing Studies’ America’s Rental Housing 2024 report finds that over half of all renter households were cost-burdened in 2022, meaning they paid at least 30 percent of their income towards housing costs. It also found that the nationwide stock of low-rent housing decreased in the decade between 2012 and 2022. Further, it found that, during that decade, the Housing Credit has increasingly become the biggest rental assistance program, ahead of other affordable housing programs such as Housing Choice Vouchers and Project-Based Section 8. Novogradac’s analysis concludes by arguing that passing the AHCIA, the tax package, and including certain insurance costs in the Housing Credit’s eligible basis will help alleviate the affordable housing crisis.
Housing Credit in the News
- Recently, the National League of Cities published its 2024 National Municipal Policy and Resolutions, which – among other things – urges Congress to strengthen and protect the Housing Credit and implicitly endorses the AHCIA, especially Section 701 of the bill.
- A January 31 article in Route Fifty covers what the tax package could mean for affordable housing.
- A January 31 op-ed in City Limits urges Congress to pass the tax package because of its Housing Credit provisions.
- A January 31 article in Politico covers Congress’ recent activity regarding housing policy, including the tax package.
- A January 31 piece in the Galena Sentinel-Times by AHCIA cosponsor Sen. Roger Marshall (R-KS) endorses the tax package, especially because of its Housing Credit provisions.
- A February 1 article in Housing Wire covers the House passing the tax package.
- A February 1 article in the South Dakota Searchlight / Capital Journal covers the support of the tax package by AHCIA cosponsor Rep. Dusty Johnson (R-SD-AL), and notes the bill’s Housing Credit provisions.
- A February 1 article in The Fiscal Times covers the House’s passage of the tax package, notes its Housing Credit provisions, and explains its possible paths forward in the Senate.
- A February 1 article in DS News covers the Housing Credit provisions in the tax package.
- A February 1 blog post by ACTION member RSM US, LLP explains the details of the tax package, including its Housing Credit provisions.
- A February 1 article in Bisnow covers the Housing Credit provisions in the tax package.
- A February 2 article in Deseret News covers the House’s passage of the tax package and notes its Housing Credit provisions.
- A February 2 article in Affordable Housing Finance provides a forecast for housing policy in 2024, including the AHCIA, the tax package, and overall trends in the Housing Credit.
- A February 2 article in JD Supra covers the Housing Credit provisions in the tax package.
- A February 2 op-ed in the Orange County Register by AHCIA cosponsor Rep. Michelle Steel (R-CA-45) explains her support for the tax package, including its Housing Credit provisions.
- A February 2 article in MyChesCo covers the support of the tax package by AHCIA cosponsor Rep. Chrissy Houlahan (D-PA-06), and notes the bill’s Housing Credit provisions.
- A February 2 article in the Shore Daily News covers the support of the tax package by AHCIA cosponsor Rep. Jen Kiggans (R-VA-02), and notes the bill’s Housing Credit provisions.
- A February 2 article in Patch covers the support of the tax package by AHCIA cosponsor Rep. Brian Fitzpatrick (R-PA-01), and notes the bill’s Housing Credit provisions.
- A February 5 article in the National Law Review covers the Housing Credit provisions in the tax package.
- A February 5 op-ed in the Caroll Times Herald by AHCIA original cosponsor Rep. Randy Feenstra (R-IA-04) explains his support for the tax package, including its Housing Credit provisions.
- A February 6 article in Bloomberg covers housing policy proposals being advanced in Congress in 2024 and 2025, including the tax package and the AHCIA.
- A February 8 article in Politico covers the letter in support of the Housing Credit provisions in the tax package sent by 120 national and statewide organizations and coalitions – including many ACTION members – that was sent to Senate leadership on February 7.
- A February 12 op-ed in CNN calls on Congress to, among other things, expand the Housing Credit and pass the tax package, because of its Housing Credit provisions.
- A February 14 op-ed in the Jacksonville (IL) Journal-Courier urges Congress to pass the tax package containing key Housing Credit provisions, especially given the program’s longstanding, strong bipartisan support. It quotes data from ACTION.
- A February column in Tax Credit Advisor makes the case for affordable housing advocacy at the federal level.
- A February 14 article in KHN notes that the mayor of Spokane, WA, endorses the tax package because of its Housing Credit provisions.
- A February 15 article in Cities929 profiles AHCIA House lead sponsor Rep. Darin LaHood’s (R-IL-16) role in securing the inclusion of the Housing Credit provisions in the tax package and securing its passage in the House.
- A February 19 article in The Spokesman Review highlights the AHCIA provisions and the affect it would have in Spokane, WA. The coverage notes Sen. Cantwell’s leadership and the inclusion of key Housing Credit provisions in the tax package that passed the House.
