Legislative State-of-Play
Election and Outlook on FY25 Spending
Congress will return from its recess on November 12, after Election Day and Veterans’ Day. As ACTION covered in the October newsletter, before Congress’ departure in late September, they reached a short-term spending agreement, known as a Continuing Resolution (CR), to allow the government to continue operating after the October 1 start of federal fiscal year 2025 (FY25). The CR funds the government largely at FY24 levels until December 20. Congress’ primary task between when it returns on November 12 and when it is scheduled to depart for the winter holidays on December 20 will be bridging the delta between the chambers’ proposed funding levels to reach a full-year funding agreement or pass another CR that would likely push final decisions on FY25 spending into the next Congress.
Congress also may consider during the lame duck some form of emergency relief for communities impacted by Hurricanes Helene and Milton. House Speaker Mike Johnson (R-LA-04) has suggested that such an aid package could reach up to $100 billion. With the impending election, it is key that the general concept of an aid package has received support from both President Biden and former President Trump.
Specifics of what a disaster supplemental aid bill might contain are unclear at this time. Based on past disaster legislation, it is expected that the bill would contain funding for FEMA and other recovery programs, but there is also a possibility that it could contain tax relief provisions. Disaster tax provisions unrelated to housing were part of the Tax Relief for American Families and Workers Act (TRAFWA) negotiated by House Ways and Means Chair Jason Smith (R-MO-08) and Senate Finance Chair Ron Wyden (D-OR), which failed in the Senate in July. It is possible that Congress would seek to move those disaster tax changes, which could provide an opportunity to advance disaster Housing Credits, which Congress has authorized several times in the past to help rebuild after natural disasters.
Should there be a tax component, ACTION will also be advocating for the inclusion of the two Housing Credit provisions included in TRAFWA. Those Housing Credit provisions, inspired by the AHCIA, were among the unifying elements of the tax package and would have a significant impact in helping rebuild communities impacted by disaster, as well as the significant affordable housing shortage across the nation.
ACTION, along with the AHCIA bill leads and their staff, is preparing for any opportunity to advance our Housing Credit priorities. As always, ACTION will send out information about advocacy opportunities as they arise, so stay tuned after the election.
Congressional Republicans Proceed with Preparations for 2025 Tax Action
October 15 was the deadline for the public to submit letters to the House Ways and Means Committee’s 10 tax teams on tax policy priorities. The tax teams, created in April by Chairman Jason Smith, are reviewing various tax provisions for the highly anticipated 2025 tax package. Among those teams, the Community Development Tax Team is charged with reviewing affordable housing. All five members of that team are Housing Credit champions, including its 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).
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. ACTION thanks everyone who submitted comment letters to the tax teams in support of the AHCIA and the Housing Credit. Read the letter submitted by the ACTION Campaign.
How You Can Help Advocate
While the letter deadline for the House Ways and Means submissions has passed, there is a lot more advocacy to be done! We are encouraging advocates to push hard in the remainder of this Congress to educate both their Representatives and Senators on the critical importance of expanding and strengthening the Housing Credit. These efforts will put us in a good position for any potential vehicles in the coming weeks, and help us build an even stronger foundation of support for next Congress.
- 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.
- Congress wants 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 is 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.
October AHCIA Cosponsorship Update: AHCIA Clears 300 Total Cosponsors!
The AHCIA currently has 57 percent of Congress cosponsoring. In the House, there were 14 new cosponsors this past month, bringing the total number of cosponsors there to 272. With these new cosponsors, the AHCIA has exceeded 300 cosponsors across all of Congress.
- Nikema Williams (D-GA-05), October 4
- Chris Deluzio (D-PA-17), October 4
- Shri Thanedar (D-MI-13), October 4
- Matt Cartwright (D-PA-08), October 4
- Darren Soto (D-FL-09), October 4
- Jamie Raskin (D-MD-08), October 4
- Adam Smith (D-WA-09), October 4
- Abigail Spanberger (D-VA-07), October 4
- Eric Sorensen (D-IL-17), October 4
- Andy Kim (D-NJ-03), October 4
- Shontel Brown (D-OH-11), October 4
- Tom Suozzi (D-NY-03), October 4
- Teresa Leger Fernandez (D-NM-03), October 11
- Lauren Underwood (D-IL-14), October 25
Help us keep the momentum going! Check out the ACTION National, State, and Congressional District Fact Sheets, our video series detailing individual AHCIA provisions, and more! You can find best practices for using those materials and advocacy ideas in our Advocacy Toolkit.
Bill Introduced in House to Protect Veteran Access to Housing Credit Homes
Recently, Rep. Linda Sánchez (D-CA-38) introduced the Fair Housing for Disabled Veterans Act (H.R. 9788), a bill that would protect and expand the rights of veterans to access affordable housing financed by the Housing Credit. Under current law, service-related disability benefits provided by the Department of Veterans Affairs are considered income, leading many veterans to not be eligible for affordable housing financed by the Housing Credit, because their disability benefits push them over the income thresholds. This bill would codify a recent rule change made by the IRS that aims to fix this problem unilaterally, which ACTION covered in the October newsletter. Congresswoman Sánchez and the bill’s six other current cosponsors are also AHCIA cosponsors.
Administration Updates
IRS Publishes Housing Credit Multipliers for 2025
On October 22, the IRS published Revenue Procedure 2024-40, which, among other things, outlines Housing Credit allocations for 2025. The 9 Percent Credit multiplier will be $3.00 per capita (a 10¢ increase from 2024); the 9 Percent Credit small-state minimum will be $3,455,000; the private activity bond (PAB) multiplier will be $130 per capita (a $5 increase from 2024); and the PAB small-state minimum will be $388,780,000 (an increase of over $10.5 million from 2024). The per-unit rehabilitation minimum will be $8,500 (a $200 increase from 2024).
An analysis by ACTION member Novogradac & Co. reveals that this is the first time ever that the 9 Percent Credit per-capita multiplier has reached $3.00. The analysis also indicates that both the 9 Percent Credit and PAB per-capita multipliers will be record highs next year, as will the 9 Percent Credit and PAB small-state minimums.
FHLBanks’ 2023 Targeted Mission Activities Report Published
On October 17, the Federal Housing Finance Agency (FHFA) published the 2023 edition of the Targeted Mission Activities of the Federal Home Loan Banks report. The report details the affordable housing and community development activities of the Federal Home Loan Banks (FHLBanks). One of the key programs the FHLBanks administer is the Affordable Housing Program (AHP), which is a source of gap financing for the Housing Credit. The report notes that, in 2023, 189 Housing Credit properties received AHP funding, which represents 43 percent of all AHP-assisted properties in 2023.
Democratic Lawmakers Urge Biden to Cement His Affordable Housing Legacy
On October 16, 33 Democratic Members of Congress sent a letter to President Biden, urging him to take a string of executive actions to secure his legacy related to affordable housing. Notably, they called on the president to direct several federal agencies to swiftly finalize proposed reforms to certain regulations guiding the implementation of the McKinney-Vento Homeless Assistance Act. The current regulations make it nearly impossible for affordable housing developers to utilize the Housing Credit to finance the conversion of unused federal property into affordable housing. Streamlining them will enable this particular program to reach its full potential and provide much-needed affordable housing.
ACTION Membership
In October, the ACTION Campaign welcomed four new members to the coalition. Please join us in welcoming the following new members:
- CCH, California
- Evergreen Action, Washington
- Detroit Catholic Pastoral Alliance, Michigan
- Rewiring America, District of Columbia
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 September 28 study in the Journal of Family Violence explores the relationship between the number of Housing Credit units by state and rates of intimate-partner violence (IPV) suffered by women. The study found that in states with more than 28 Housing Credit units per 100,000 residents, the number of ER visits by women seeking treatment for non-fatal injuries caused by intimate partner violence is four to 10 percent lower than in states with up to 28 Housing Credit units per 100,000 residents. The authors argue that expanding the Housing Credit should reduce rates of intimate partner violence, and – secondarily – will generate savings in healthcare costs and reduce the negative impact of such violence on the economy.
Housing Credit in the News
- An October 8 blog post by brand-new ACTION member Evergreen Action endorses the AHCIA, among many other bills and programs, as a key way that Congress can expand the supply of affordable housing and achieve other positive outcomes for the nation.
- On October 21, the Urban-Brookings Tax Policy Center hosted a webinar on the tax policy proposals made by both presidential campaigns and the outlook for the 2025 tax package negotiations. Panelists noted that the Housing Credit is a proven tool to address the affordable housing crisis, but noted that its success is also partially dependent on adequate funding for the IRS.
- An October 23 blog post by the U.S. Conference of Mayors calls on Congress to expand the Housing Credit, among other things, to address the affordable housing crisis.
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