1. North Carolina Affordable Housing Conference Industry Update Emily Cadik AHTCC Executive Director October 8, 2019

2. Major Policy Trends Political landscape in uncharted territory
Year-end legislative agenda unclear
Bright spot for bipartisanship: Affordable Housing Credit Improvement Act to expand and strengthen Housing Credit
Policy initiatives from the Administration – CRA Reform, Housing Finance reform, and repositioning HUD’s housing stock
Looking ahead to the 2020 elections – and making housing part of the national conversation

3. 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)
2017
Housing Credit and Private Activity Bonds preserved in tax reform
2018
12.5 percent Housing Credit allocation increase for four years (2018 – 2021) and income averaging enacted in Consolidated Appropriations Act of 2018

4. 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)

5. 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

6. 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

7. 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

8. Potential AHCIA Impact
The Affordable Housing Credit Improvement Act
Potential AHCIA Impact
Source: Novogradac & Company

9. The Affordable Housing Credit Improvement Act
Key Provisions
Serving Hard-to-Reach Areas and Populations
Rural areas
Native American communities
Veterans
Extremely low-income households
Better Facilitating Preservation of Existing Affordable Housing
Streamlining and Simplification
Encouraging Cost Reasonableness

10. AHCIA Support in North Carolina
Current Co-sponsors
Previous Co-sponsors
Rep. George Holding (R-NC-2)
Rep. David Rouzer (R-NC-7)
Rep. Ted Budd (R-NC-13)
Rep. Patrick McHenry (R-NC-10)
Rep. Mark Meadows (R-NC-11)
Rep. Richard Hudson (R-NC-8)
Rep. Mark Walker (R-NC-6)
Rep. G. K. Butterfield (D-NC-1)
Rep. David Price (D-NC-4)
Rep. Alma Adams (D-NC-12)

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

12. 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

13. CRA Reform
OCC released Advance Notice of Proposed Rulemaking in September 2018
Notice of Proposed Rulemaking expected this fall
Impact on affordable housing
Investment appetite and pricing
Investment footprint

14. Housing Finance Reform
Treasury and HUD plans released September 2019
Moving towards ending GSE conservatorship through recap and release
No change to Fannie and Freddie Housing Credit investments at this time
No changes to Housing Trust Fund and Capital Magnet Fund resources at this time
But Treasury plan suggests replacing affordable housing goals with a fee to be appropriated to HUD affordable housing programs
No major housing finance reform legislation expected this year

15. Trends at HUD Robust funding for HUD programs Repositioning and RAD
A growing portion of HUD’s portfolio shifting to public- private partnership model
Underscores need for more Housing Credit resources
Reducing regulations
White House Task Force

16. Looking Ahead 2020 elections Housing as a campaign issue
Expanding Housing Trust Fund
Renter credits
Reducing local regulations

17. Why We Advocate