1. Latest on the Low-Income Housing Tax Credit NALFHA Legislative Conference Emily Cadik AHTCC Executive Director September 17, 2019

2. The Affordable Housing Credit Improvement Act
History
2015
9 percent Housing Credit rate made permanent
2016
AHCIA first introduced by Sens. Maria Cantwell (D-WA) and Orrin Hatch (R-UT)
2017
AHCIA reintroduced by Sens. Maria Cantwell and Orrin Hatch, first introduced in House by Reps. Pat Tiberi (R-OH) and Richard Neal (D-MA)
2018
12.5 percent Housing Credit allocation increase for four years (2018 – 2021) and income averaging enacted in Consolidated Appropriations Act of 2018

3. The Affordable Housing Credit Improvement Act
AHCIA Reintroduction
Sponsors
S. 1703: Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Johnny Isakson (R-GA)
H.R. 3077: Representatives Suzan DelBene (D-WA), Kenny Marchant (R-TX), Don Beyer (D-VA), and Jackie Walorski (R-IN)

4. The Affordable Housing Credit Improvement Act
AHCIA Reintroduction
S and H.R introduced June 2019
Total Provisions: 27
5 new provisions
4 updated provisions
2 provisions added to H.R only

5. Key Affordable Housing Credit Improvement Act Provisions
Returning Provisions
New Provisions
Housing Credit expansion
Bond recycling
Minimum 4% rate
Rural basis boost
Preservation provisions
Cost reasonableness
Provisions to support housing for hard-to-reach areas (e.g. rural and Native) and populations (e.g. extremely low income)
Veterans fix
Provisions to combat NIMBYism (including name change)
Protections for victims of domestic violence

6. Key Provisions: Increasing Production
The Affordable Housing Credit Improvement Act
Key Provisions: Increasing Production
50 percent allocation increase phased in over five years (updated provision in S and new in H.R. 3077)
Estimated 384,455 additional homes financed
4 percent minimum Housing Credit rate
At least 66,000 additional homes financed
Expand Multifamily Housing Bond recycling (new provision)
At least 100,000 additional homes financed
*Source: Novogradac & Company

7. Talking Point: Potential AHCIA Impact
The Affordable Housing Credit Improvement Act
Talking Point: Potential AHCIA Impact
Source: Novogradac & Company

8. Key Provisions: Serving Hard-to-Reach Areas + Populations
The Affordable Housing Credit Improvement Act
Key Provisions: Serving Hard-to-Reach Areas + Populations
Rural areas
Basis boost for developments in rural areas (new provision)
Standardize income eligibility for rural areas
Native American communities:
Basis boost for developments in Native American areas
Native American selection criteria
Veterans of the Armed Forces:
Clarify that veterans are exempt from the general public use rule for Multifamily Housing Bond properties (new provision)
Extremely low-income (ELI) households:
50 percent basis boost for apartments for ELI tenants

9. The Affordable Housing Credit Improvement Act
Key Provisions: Preserving Affordable Housing
Right of First Refusal (ROFR) (updated provision):
For new properties, replace the existing ROFR with a purchase option
Clarify options for acquiring properties and definition of property
Strengthen protections against planned foreclosures
Capitalize tenant relocation costs
Flexibility around existing tenant income

10. The Affordable Housing Credit Improvement Act
Key Provisions: Streamlining and Simplification
Simplify and better align the Housing Credit’s student housing rule with HUD’s rule (updated provision)
Better align the Housing Credit with the Violence Against Women Act (new provision)
Add income averaging option as a third minimum set-aside option for Multifamily Housing Bond properties (new provision)

11. The Affordable Housing Credit Improvement Act
Summary of Key New Provisions
Provide a 30 percent basis boost for properties in rural areas if needed for financial feasibility
Clarify that veterans are exempt from the general public use rule for Multifamily Housing Bond properties
Better align the Housing Credit with the Violence Against Women Act
Expand Multifamily Housing Bond recycling
Require states to consider cost reasonableness in their Qualified Allocation Plans

12. The Affordable Housing Credit Improvement Act
Potential Legislative Vehicles
Temporary tax provisions
Technical corrections to the Tax Cuts and Jobs Act of 2017
Spending bill

13. Resources ACTION Resources: www.rentalhousingaction.org
Advocacy & Engagement
Resources
ACTION Resources:
AHCIA one-page overview, summary of all provisions, and explanation of differences between the 115th and 116th Congress versions
National, state, and district fact sheets
Cosponsor lists for S and H.R. 3077
AHTCC Resources:
Help with groundbreakings and grand openings
Sample letters