Summary

  • I would like to raise awareness of a critically important program that, although not within the jurisdiction of the Committee on Financial Services, is very often used to complement and strengthen a number of the affordable rental housing programs over which this Committee and Subcommittee does have jurisdiction. That program is the Low -Income Housing Tax Credit (“Housing Credit”), which is contained in Section 42 of the Internal Revenue Code of 1986 and, as you know, is under the jurisdiction of the Committee on Ways and Means, on which I am honored to serve.  The Housing Credit embodies the concept that this Subcommittee is exploring today — it serves to increase private sector participation in affordable housing. Indeed, since its enactment as part of the Tax Reform Act of 1986, the Housing Credit has been the key financial tool utilized in virtually all affordable rental housing development and preservation.  It is very often used in conjunction with the programs that I understand the Subcommittee is focused on today — properties which have Section 8 assistance and public housing, particularly public housing being developed under the new Rental Assistance Demonstration program.  The Housing Credit has been tremendously successful precisely because of the private participation and the public/private partnerships that are at its heart.