December 15, 2011
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On December 14, House and Senate tax and housing leaders introduced legislation advocated by NCSHA to make permanent the temporary 9 percent floor for volume cap Housing Credits and create a new 4 percent floor for volume cap Housing Credits used for acquisition. The legislation is part of NCSHA’s 2011 and 2012 legislative priorities. Further details on the legislation are included in NCSHA's one-pager.

The current 9 percent floor, established in the Housing and Economic Recovery Act of 2008 (HERA), expires for developments placed in service after December 30, 2013. If Congress does not extend the deadline, developments receiving Housing Credit allocations as soon as early next year could be negatively impacted by lower Credit rates, making it more difficult to create much-needed affordable rental housing.

In addition to restoring the value of the Credit, this legislation will eliminate the financial risk of the current floating rate system, simplify state administration, and create stability and predictability for owners and investors of Housing Credit developments.

H.R. 3661 is sponsored by Pat Tiberi (R-OH) and Richard Neal (D-MA), Chairman and Ranking Member of the House Ways and Means Committee’s Select Revenue Measures Subcommittee, respectively. The bill’s original cosponsors are Vern Buchanan (R-FL), Jim Gerlach (R-PA), Lee Terry (R-NE), Charles Rangel (D-NY), Joe Crowley (D-NY), Bill Pascrell (D-NJ), and Emmanuel Cleaver (D-MO).

S.1989 is sponsored by senior Senate Finance Committee members Maria Cantwell (D-WA) and Olympia Snowe (R-ME). The bill’s original cosponsors are Jeff Bingaman (D-NM), John Kerry (D-MA), Bill Nelson (D-FL), Robert Menendez (D-NJ), Benjamin Cardin (D-MD), Bernie Sanders (I-VT), Mike Crapo (R-ID), Scott Brown (R-MA), and Susan Collins (R-ME).

Congress is not likely to pass this legislation as a free-standing bill. NCSHA is pursuing options to include it in a bill extending a number of expiring tax provisions or another suitable vehicle. We expect Congress to consider such an extenders bill early next year.