Provides Financing for More Than 200,000 Additional Affordable Rental Homes
On February 1, 2024, the House of Representatives passed H.R. 7024, The Tax Relief for American Families and Workers Act of 2024. H.R. 7024 passed in the House by an overwhelming bipartisan vote of 357-70. The bicameral bill includes the following two provisions related to the Low-Income Housing Tax Credit (LIHTC):
- Restore the 12.5 percent allocation increase for 2023 – 2025. This allocation increase was initially enacted in 2018 but expired in 2021. The provision in this agreement would not extend the 12.5 percent retroactively for 2022, but would restore it retroactively for 2023 and keep the provision in place for the next two years.
- Lower the 50 percent bond financing threshold to 30 percent for Private Activity Bond (PAB) allocations made in 2024 – 2025.
CLPHA has advocated for expansion of LIHTC for the past several Congresses. These two provisions were originally included in the Affordable Housing Credit Improvement Act (H.R. 3238, S. 1557). According to Novogradac estimates, these provisions would allow public housing authorities and other affordable housing developers to finance more than 200,000 additional affordable homes.
The bill also includes a $33 billion expansion of the Child Tax Credit (CTC) for the next three years. While the CTC in this tax bill is not as generous as the 2021 provision included in American Rescue Plan, this expansion and continuation of the program acknowledges that the benefits provided by the CTC must be continued. The child tax credit provision would broaden access, increase the refundable credit, and add future inflation adjustments.
In his statement following the passage of H.R. 7024, Ways and Means Committee Ranking Member Richard E. Neal (D-MA) shared that “against all odds, we are advancing priorities to put money back in families’ pockets, spur affordable housing, and more. 400,000 children will be lifted out of poverty in the first year alone, with 16 million children receiving more assistance than they would have. We also fought for the largest investment in affordable rental housing resources since 2000, providing more than 200,000 affordable rental homes.”
The bill would still need to be considered by the Senate in addition to its busy legislative agenda for February. CLPHA will continue to inform members about the status of the bill.