Legislative State-of-Play
Congress Returns from Recess, Departs Again for Recess
Congress returned from the August Recess on September 9, providing the chambers with just a few weeks to come to an agreement to fund the government for Fiscal Year (FY) 2025, which begins October 1. With neither political party wanting to face a government shutdown, but appropriators remaining far apart in their negotiations on a full-year agreement, Congress passed a measure called a Continuing Resolution (CR) through December 20. The President signed the short-term funding stopgap on September 26, averting a government shutdown and allowing legislators to head back to their districts and states until after the election.
The legislation was what is referred to as a “clean CR,” meaning it contained no controversial funding changes or policy riders that would have jeopardized its passage and largely maintained FY24 funding levels. It also included an extension of the National Flood Insurance Program through December 20.
The passage of the CR, while not directly impacting the Housing Credit, ensures critical federally appropriated resources that complement the Housing Credit will continue to flow through the CR deadline. When Congress returns from recess on November 12, it will be yet another fast and furious sprint to bridge the delta between the House and Senate FY25 appropriations bills, in addition to determining the process that Congress will take to pass all 12 funding measures.
House Speaker Mike Johnson (R-LA-04) has said that he will not approve any large spending bills like an omnibus or even smaller packages known as minibuses. This could make for a difficult path forward. A lot will depend on the election outcome for the remainder of the 118th Congress, which is typically referred to as the lame duck.
The lame duck session has often been a productive time for moving small tax packages. ACTION and our Housing Credit partners built a strong advocacy foundation during the Smith-Wyden tax package efforts earlier this year and will continue to look for opportunities to advance the Housing Credit should there be a vehicle yet this year.
Be sure to check out the ways you can keep the Housing Credit front and center with your Members of Congress during this recess in the “How You Can Help” section below.
Congress Continues Preparations for 2025 Tax Action
As we’ve previously reported, House Ways and Means Chairman Jason Smith created 10 tax teams in April to review tax provisions for the highly anticipated 2025 tax package, including one devoted to community development. The Community Development Tax Team that is charged with reviewing affordable housing is comprised of team chair Rep. Mike Kelly (R-PA-16), vice chair Rep. Claudia Tenney (R-NY-24), and Reps. Darin LaHood (R-IL-16), Blake Moore (R-UT-01), and Mike Carey (R-OH-15). All five members of the team are Housing Credit champions.
The Community Development Tax Team held a joint briefing on September 26 with the Rural America team and the Housing Credit was among the policies discussed. The tax teams plan to continue to hold site visits and briefings in the coming months as they prepare their proposal for the 2025 tax package.
Don’t Forget to Submit Your Tax Priorities by October 15! The House Ways and Means Republican Tax Teams have requested input from stakeholders to inform their work. ACTION strongly encourages its grassroots members to send recommendation letters to the Community Development Tax Team, which will oversee affordable housing ideas.
To aid you, we have created a guide, including key points to include in your letters to this Tax Team and instructions for submission. PLEASE NOTE: the Tax Teams have stressed that letters should not be templates, but rather unique and personalized with stakeholders’ priorities, rationale, and impact stories. ACTION submitted its letter, which you can read here and take inspiration from.
On the Senate side, there are working groups, but the process that chamber is undertaking is much less public. However, the Senate Finance Committee has encouraged advocates with Senators on the Committee to reach out and share data and stories on the impact in their respective states. ACTION is also sharing information and data with the Senate Finance Committee.
How You Can Help Advocate
Getting a Member of Congress to a Housing Credit property to see firsthand the impact of affordable housing on their constituents and the communities they represent is the most effective way to secure and maintain support for the Housing Credit. As mentioned above, Congress just departed again and will be home through Veterans Day. As was the case this summer, their schedules are filling up fast with campaign events.
Members of Congress have also asked us to help them to hear from everyday folks living in Housing Credit properties as they consider what tax policies to focus on in 2025. We are asking ACTION members to help capture these testimonials and share the local, people-centered impact these federal policies have in communities.
- Create a short video (up to two minutes long) telling Congress why the Low-Income Housing Tax Credit is so important for your community, business, or family.
- Whether you use your cellphone or a professional camera — it’s all about the story and message.
- Who the best speaker to connect with your Senators or Representative? It is ideal to hear from residents, but it could also be a community leader, a business owner, or a property owner.
- Be creative! Submit videos by November 11 to housingactioncampaign@gmail.com.
Check out the ACTION in-district advocacy guide for lots of great ideas to build support for the Housing Credit — from a quick post on social media to writing an op-ed or hosting an event. We have included templates and best practices that advocates can use to make their advocacy efforts a success. If you need assistance with invitations or planning tips, please reach out to actioncampaign@enterprisecommunity.org.
September AHCIA Cosponsorship Update
The AHCIA currently has over 54 percent of Congress cosponsoring. In the House, there were 18 new cosponsors this past month, bringing the total number of cosponsors there to 258.
- Michael Guest (R-MS-03), September 9
- Nikki Budzinski (D-IL-13), September 9
- Mark Green (R-TN-07), September 19
- Jonathan Jackson (D-IL-01), September 19
- Eleanor Holmes Norton (D-DC-AL), September 19
- Alma Adams (D-NC-12), September 19
- Jared Golden (D-ME-02), September 19
- Ilhan Omar (D-MN-05), September 19
- Lori Trahan (D-MA-03), September 19
- Rosa DeLauro (D-CT-03), September 19
- Chuy Garcia (D-IL-04), September 19
- Diana DeGette (D-CO-01), September 19
- John James (R-MI-10), September 23
- Sanford Bishop (D-GA-02), September 23
- Andy Ogles (R-TN-05), September 23
- Mary Gay Scanlon (D-PA-05), September 23
- Mike Garcia (R-CA-27), September 25
- Lizzie Fletcher (D-TX-07), September 25
Help us keep the momentum going! ACTION has a number of advocacy materials to help support your outreach on cosponsorship, including National, State, and Congressional District Fact Sheets, our video series detailing the provisions of the AHCIA, statewide ACTION Campaign member lists, sample emails, as well as other important information about the legislation in our Advocacy Toolkit.
Recent Changes in Congressional Tax-Writing Committees
Two key changes were made in September to Congress’ tax-writing committees. Following the passing of AHCIA cosponsor Rep. Bill Pascrell (D-NJ-09), his spot on the House Ways and Means Committee was filled by Rep. Steven Horsford (D-NV-04). Representative Horsford is an AHCIA cosponsor, cosponsored in the prior two Congresses, and previously served on Ways and Means, but lost his spot on the committee when Democrats lost the House in the 2022 election.
Second, following the resignation of Sen. Bob Menendez (D-NJ), his spot on the Senate Finance Committee was filled by his own successor, Sen. George Helmy (D). Senator Helmy was appointed by the governor in a caretaker capacity and is not running for a full term. He plans to resign in late November after the election results are certified. It is not yet known if Sen. Helmy’s eventual vacancy on the Finance Committee will be filled after the election, when the 118th Congress concludes, or which Senator might fill it, but ACTION will keep members updated of important committee changes.
Importance of Housing Credit Raised in Senate Budget Committee Hearing
On September 25, the Senate Budget Committee held a hearing exploring the economic costs of inaction towards the affordable housing crisis. Throughout the hearing, senators and witnesses mentioned the importance of the Housing Credit for creating and preserving affordable housing, with several noting that it is the number one tool for doing so. Several senators and witnesses urged Congress to strengthen and expand the Housing Credit, along with complementary federal programs that help ensure its success. Several also lamented the Senate’s recently failed vote to advance the Smith-Wyden tax package, which would have financed an additional 200,000 affordable homes nationwide. During one exchange, Sen. Mark Warner (D-VA) discussed the importance of passing his recently introduced bill, the Preserving Rural Housing Investments Act. This legislation would clarify a legal uncertainty around the tax status of the Government Sponsored Entities, Fannie Mae and Freddie Mac, potentially jeopardizing crucial Housing Credit investments, especially in rural areas. ACTION covered this legislation in the September newsletter.
Other Housing Credit Legislation Introduced in Congress
While ACTION has not taken a position on the legislation outlined below, all are proposals recently introduced related to the Housing Credit.
Recently, Rep. Pat Ryan (D-NY-18) introduced the Workforce Families Housing Tax Credit Act (H.R. 9380), which would create a middle-income housing tax credit, based on the existing Housing Credit. This proposal is slightly different than a similar workforce housing tax credit proposed last year. Learn more about this bill.
On September 18, AHCIA original cosponsor Rep. Blake Moore (R-UT-01) and Rep. Marilyn Strickland (D-WA-10) introduced the Low Income Housing for Defense Communities Act (H.R. 9659), which would enable more Housing Credit properties to be built near certain large military bases by expanding the definition of Difficult Development Areas (DDAs) to include areas within 15 miles of such large bases. The proposal would qualify Housing Credit properties located within the radius for a basis boost of up to 30 percent, if necessary to achieve financial feasibility. The bill also exempts military housing allowance payments from being considered income for the purposes of determining eligibility to live in a Housing Credit home. Lastly, the bill includes a nonbinding “Sense of Congress” provision that encourages Congress to pass the AHCIA.
On September 24, Senate Budget Committee Chairman and AHCIA cosponsor Sheldon Whitehouse (D-RI) introduced the Affordable Housing Construction Act (S. 5156), which would massively increase the Housing Credit. This bill would permanently restore the 12.5 percent increase to the 9 Percent Credit, triple annual allocations of the 9 Percent Credit, and make several other significant changes to the Housing Credit program. Learn more about this bill.
New Democrat Coalition Again Urges Passage of AHCIA
On September 16, the House New Democrat Coalition’s Workforce Development Task Force published its Jobs Action Plan, which contains proposals to strengthen America’s workforce and economy. The report calls on Congress to pass the AHCIA in order to reduce barriers to employment and enable more workers to live closer to where they work.
Administration Updates
HUD Establishes Difficult Development Areas and Qualified Census Tracts for 2025
On September 9, HUD published designations for 2025 Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs) across the country in the Federal Register. Housing Credit properties built in DDAs or QCTs can receive a basis boost of up to 30 percent. The DDAs and QCTs go into effect for Housing Credit allocations made after December 31, 2024, or for PAB-financed properties with bonds issued after December 31, 2024, and are placed in service after December 31, 2024.
Federal Agencies Issue Joint Statement on VAWA’s Housing Provisions
On September 12, five federal agencies – HUD, the DOJ, the VA, USDA, and Treasury – issued a joint statement on the housing provisions in the Violence Against Women Act (VAWA), to commemorate the law’s 30th anniversary. The statement, which was signed by the heads of these five agencies, reaffirms the agencies’ commitments to implementing and upholding VAWA’s housing protections and specifies that VAWA covers over two dozen housing programs, including the Housing Credit.
ACTION applauds the Biden-Harris Administration and these agencies for publishing this interagency statement. VAWA has covered the Housing Credit since its 2013 reauthorization, but the IRS and Treasury have yet to issue administrative guidance detailing how VAWA should be implemented for Housing Credit properties.
Earlier this year, a bipartisan group of 20 representatives, led by AHCIA co-lead Claudia Tenney (R-NY-24) and AHCIA original cosponsor Gwen Moore (D-WI-04), sent a letter to IRS Commissioner Danny Werfel and Treasury Sec. Janet Yellen urging them to take action. ACTION also included a request on VAWA guidance in a comment letter submitted to the IRS on the Treasury’s 2024-25 Priority Guidance Plan this spring. ACTION will continue encouraging the Treasury and the IRS to issue this administrative guidance promptly.
Treasury, Energy Departments Announce Ongoing Application Opportunity for Low-Income Communities Bonus Credit
Recently, the Treasury and Energy Departments announced several updates to the Low-Income Communities Bonus Credit program, which is a tax credit program that provides a 10- to 20-percent boost on top of existing clean energy tax credits for qualifying projects. The Treasury announced that the program still has available capacity for the 2024 program year, especially for energy projects such as solar and wind power located at affordable housing properties, including Housing Credit properties, and urged providers to submit applications. The deadline to apply is Thursday, October 10, at 11:59pm ET. The Treasury also released an analysis of the program’s first year.
Census Bureau Releases 2023 American Community Survey Data
On September 12, the Census Bureau released the first batch of data from the 2023 American Community Survey (ACS), one of the Bureau’s key annual surveys. The ACS is used by HUD to calculate income limits for affordable housing properties. The Bureau’s own analysis of its data indicates that, in 2023, more than 21 million renter households are housing-cost-burdened, meaning they spent at least 30 percent of their income on housing costs. These 21 million households represent just under half of all renter households for which the Bureau could calculate their housing cost burden (49.7 percent of 42.5 million renter households). ACTION will be using this ACS data to update its national, state, and congressional district fact sheets in the coming months. The Census Bureau will release more ACS data in several tranches from October through January.
Census Bureau Releases 2023 American Housing Survey Data
On September 25, the Census Bureau released the first batch of data from the 2023 American Housing Survey (AHS). The AHS is a biennial examination of the costs and quality of the nation’s housing. The AHS explores the changes in the number of housing units due to various causes, total vacancies, information about occupants of each type of housing, and more. This release coincides with the 50th anniversary of the AHS. Explore AHS data and related publications. The Census Bureau will release more 2023 AHS data through late 2025.
IRS Excludes Veteran Disability Benefits from Income for Housing Credit Purposes
On September 24, the IRS issued Revenue Procedure 2024-38, which excludes all military service-related disability benefits provided by the VA from counting as income for the purpose of determining veterans’ eligibility to move into or remain in Housing Credit properties. Prior to this change, the disability payments that veterans received might have resulted in them not qualifying for Housing Credit properties because their total income – including VA disability benefits – would have exceeded the income limits established by the Housing Credit program. The IRS published this Revenue Procedure, which will go into effect on October 24, to fix this problem, which was exacerbating the veteran homelessness crisis. The IRS noted that this move dovetails with a similar policy change announced in August by HUD and the VA for veterans receiving disability benefits from the HUD-VA Supportive Housing (HUD-VASH) voucher program.
ACTION Membership
In September, the ACTION Campaign welcomed three new members to the coalition. Please join us in welcoming the following new members:
- Community Housing Resource (CHR) Partners, Texas
- Lakewood Property Management, Texas
- Weigand-Omega Management, Inc., Iowa
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 recent study published in Cityscape by ACTION Steering Committee member NLIHC examines the relationship between Housing Choice Vouchers (HCVs) and the Housing Credit. While the study finds that there is a general lack of accurate enough nationwide data on HCV utilization, a wide variety of benefits of cross-pollinating HCVs and the Housing Credit can be found in existing data. The study finds that HCVs could make Housing Credit rents more affordable for renters with the lowest incomes; HCV use in Housing Credit properties could increase tenant stability; and HCV use in Housing Credit properties could create enough additional rental income at the properties that it could cross-subsidize tenants without HCVs, improve the financial health of the properties, and improve the physical health of the properties, among other positive outcomes.
Housing Credit in the News
- A September 4 article in North Carolina’s Cardinal & Pine examines the Harris-Walz Campaign’s housing proposals, including the proposed expansion of the Housing Credit.
- A September 9 article in Utah’s com explores the connections between the supply of affordable housing and homelessness. The article contains an interview where the interviewee notes the essentialness of the Housing Credit for the creation and preservation of affordable housing, because adequate affordable housing will almost never get built without incentives like the Housing Credit.
- A September 10 op-ed in Maine’s Portland Press Herald by AHCIA cosponsor Sen. Angus King (I) highlights his efforts to address his state’s affordable housing crisis, starting with his support of the AHCIA.
- A September 10 article in HousingWire reports on HUD’s publication of 2025 QCT and DDA information for the Housing Credit.
- A September 11 op-ed in the Baltimore Sun calls on all candidates for elected office to support the Housing Credit and urges policymakers to increase the Housing Credit for new construction and rehabilitation.
- A September 11 article in Time compares and contrasts the housing policy proposals of the Trump-Vance Campaign and the Harris-Walz Campaign, noting that Harris’ proposal includes expanding the Housing Credit.
- A September 11 article in Kiplinger Personal Finance analyzes tax policy proposals from the Harris-Walz Campaign, including the Housing Credit.
- A September 16 article from The Well News covers the House New Democrat Coalition’s Jobs Action Plan covered above, which urges Congress to pass the AHCIA.
- A September 17 article in HousingWire predicts that among the affordable housing policies proposed by the Harris-Walz Campaign, those with broad bipartisan support, like the Housing Credit expansion, will have the best likelihood of passing Congress.
- On September 25, the Harris-Walz Campaign released a policy blueprint that builds on the Campaign’s August 16 newsletter that announced their housing proposals. The Harris-Walz Campaign promises “a historic expansion” of the Housing Credit, enough to finance the creation or preservation of more than 1.2 million additional affordable homes. Though this document does not explicitly endorse the AHCIA, it notes that the Housing Credit is “the most significant federal policy lever to address the affordable housing crisis.”
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