The Housing Credit is a federal tax credit created by President Reagan and Congress in the Tax Reform Act of 1986. The legislative history for the Housing Credit states Congress created the Housing Credit because, “it was concerned that the tax preferences for low‐income rental housing available under prior law were not effective in providing affordable housing for low‐income individuals. Congress believed a more efficient mechanism for encouraging the production of low‐income rental housing could be provided through the low‐income rental housing tax credit.” Over its 29‐year life, the Housing Credit has become the most successful affordable rental housing production program in history.
The Housing Credit offers a dollar-for-dollar reduction in a taxpayer’s income tax liability in return for making a long-term investment in affordable rental housing. State agencies award Housing Credits to developers, who then sell the Credits to private investors in exchange for funding for the construction and rehabilitation of affordable housing. These funds allow developers to borrow less money and pass through the savings in lower rents for low‐income tenants. Investors, in turn, receive a 10‐year tax credit based on the cost of constructing or rehabilitating apartments that cannot be rented to anyone whose income exceeds 60 percent of area median income (AMI).
The program allows states to allocate Housing Credits to developments they select pursuant to qualified allocation plans (QAPs) they develop that identify the type, location, and other characteristics of affordable housing needed throughout the state. The plans must describe the criteria agencies will apply in allocating the Credit and are subject to review on an annual basis after a public hearing and comment process. In this way, the Housing Credit empowers states to respond to the housing needs, priorities, and challenges that states consider most important.
Housing Credit Legislative and Advocacy Information
- 2016 NCSHA Housing Credit Q&A
- Talking Points for Meeting with Congress
- 2016 Message to Tax Committee Members
- NCSHA's Analysis of the Administration's FY 2017 budget
- NCSHA Buisness Legislative and Regulatory Priorities
|2016 NCSHA Housing Credit Q&A|
|Housing Credit Reccomended Practices in Compliance Monitoring|
|Housing Credit Reference Guide
||Key Congressional Commitees|
NCSHA Blog Posts
- March 22, 2017
Late yesterday, senior Ways and Means Committee member Pat Tiberi (R-OH) and Committee Ranking Member Richard Neal (D-MA) introduced the Affordable Housing Credit Improvement Act of 2017, H.R. 1661. The bill is companion legislation to the bill Senator Maria Cantwell (D-WA) and Senate Finance Committee Chairman Orrin Hatch (R-UT) introduced earlier this month.
- March 9, 2017
On March 7, Senate Finance Committee member Maria Cantwell (D-WA) and Committee Chairman Orrin Hatch (R-UT) introduced the Affordable Housing Credit Improvement Act of 2017, S. 548.
- Affordable Housing Finance
- AFFORDABLE HOUSING FINANCE
- The Hill
- Affordable Housing Finance (housingfinance.com)
- October 30, 2014
The Nevada Housing Division (NHD) has awarded approximately $6.4 million in low income housing tax credits (LIHTC) in 2014. Ten developments located throughout the state received awards. The developments include a mix of affordable family, senior, special needs and mixed income housing.
- Maryland DHCD: A Darn Good Deal: Homebuyers Already Are Taking Advantage of the New Maryland HomeCredit ProgramJune 12, 2014
The word is spreading about Maryland HomeCredit, the new program that allows eligible homebuyers to take a federal tax credit of up to $2,000 per year for the life of their mortgage.
Housing Credits - Resources
- Rep. Tiberi & Rep. Neal: Affordable Housing Credit Improvement Act of 2017 Section by Section AnalysisMarch 22, 2017
Section 101 - Average income test - Under current law, Housing Credit apartments serve renters with incomes up to 60 percent of area median income (AMI) and rents are comparably restricted. This section creates a new test that would allow the 60 percent of AMI ceiling to apply to the average of all apartments within a property rather than to every individual Housing Credit apartment. The maximum income to qualify for any Housing Credit apartment would be limited to 80 percent of AMI.
- March 20, 2017
Key Congressional Committee Rosters for NCSHA in the 115th Congress.