A minimum 4% rate is among the key low-income housing tax credit (LIHTC) changes included in The Moving Forward Act in the House of Representatives.
The 4% rate fix would be for LIHTC and tax-exempt bond financed developments placed in service after Dec. 31, 2019. In addition, the infrastructure package would lower “the 50% test” to 25% for tax-exempt bond developments to qualify for the 4% credit.
H.R. 2 also seeks to increase the annual state LIHTC allocations from $2.81 per capita to $4.56 per capita and increase the small state minimum from $3.22 million to $5.21 million phased in over two years.
In addition, the $1.5 trillion infrastructure plan would provide more than $100 billion in affordable housing funding, including $70 billion for the public housing capital fund, $10 billion for Community Development Block Grants, and $5 billion each for the HOME program and the National Housing Trust Fund.
Here are different summaries from the ACTION Campaign, Affordable Housing Tax Credit Coalition, and the Housing Advisory Group.