NCSHA Writes to Congressional Leadership, Tax and Housing Authorizing Committees on Reconciliation Bill Priorities

Today, NCSHA sent a letter to Senate Majority Leader Charles Schumer (D-NY), House Speaker Nancy Pelosi (D-CA), Senate Minority Leader Mitch McConnell (R-KY), and House Minority Leader Kevin McCarthy (R-CA) laying out NCSHA’s affordable housing priorities, which we urge Congress to include in the reconciliation legislation Democrats will work to pass this Fall. NCSHA sent similar letters to the leadership of the Senate Banking Committee and House Financial Services Committee on our housing spending priorities and to the leadership of the Senate Finance Committee and House Ways and Means Committee on our housing tax priorities. While NCSHA’s priorities also include modifications to existing law that would not impact the deficit, these letters focus on those that have a budgetary impact and thus would not run afoul of congressional rules for a reconciliation bill.

NCSHA’s tax priorities articulated in the letter are to expand and improve the Housing Credit program by increasing the Housing Credit volume cap; reducing the bond financing threshold for the 4 percent Housing Credit from 50 percent to 25 percent; closing the qualified contract loophole; allowing for basis boosts for properties that provide homes for extremely low-income households and those in rural and Native American areas; and creating a state-determined basis boost for bond-financed Housing Credit properties. NCSHA’s other primary tax priority is to create a new Neighborhood Homes Credit to spur new construction or substantial rehabilitation of affordable, owner-occupied housing.

NCSHA’s spending priorities articulated in the letter are to expand the HOME Investment Partnerships program with a one-time $35 billion investment, invest in targeted down payment assistance, and increase Housing Trust Fund resources by a one-time appropriation of $45 billion.

All of NCSHA’s priorities noted in the letter are included in one or more of the following pieces of legislation introduced by housing champions in both chambers: the soon-to-be introduced Decent, Safe, Affordable Housing for All (DASH) Act; the Affordable Housing Credit Improvement Act (S. 1136/H.R. 2573); the Neighborhood Homes Investment Act (S. 98/H.R. 2143); the Housing Is Infrastructure Act (H.R. 4497); and the Down Payment Towards Equity Act (H.R. 4495).