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Mayors Press Congress to Enact 4 Percent Minimum Rate, Lower 50 Percent Test in the Next Coronavirus Relief Legislation

Published on June 4, 2020 by John McMullen
Mayors Press Congress to Enact 4 Percent Minimum Rate, Lower 50 Percent Test in the Next Coronavirus Relief Legislation

On June 1, 67 mayors representing communities across 28 states and the District of Columbia sent a letter to House and Senate leaders, urging Congress to establish a minimum 4 percent rate for bond-financed properties and lower the “50 percent test” financed-by threshold that bond-financed Credit properties must meet to receive 4 percent Housing Credits in the next coronavirus relief legislation. Mayors from both parties signed the letter. The letter was coordinated by the ACTION Campaign, a coalition of more than 2,300 organizations and businesses across the nation co-chaired by NCSHA and Enterprise Community Partners.

The mayors described their cities’ needs for affordable housing production and drew the connection between safe, stable, affordable housing and public health during the pandemic. They also explained how the precipitous drop in the 4 percent minimum Housing Credit rate is threatening the viability of properties.

Establishing a 4 percent minimum Housing Credit rate and lowering the 50 percent test are two of the top priorities for NCSHA, and we encourage state agencies and their partners, including local elected officials, to advocate for them. NCSHA’s Housing Credit advocacy talking points are available here.