Affordable Housing Credit Improvement Act

WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY PARTICIPANTS

• Joaquín Altoro, WHEDA CEO
• Kim Plache, WHEDA Deputy Executive Director
• Sherry Gerondale, WHEDA CFO

PRIORITY 1:

Support current and future efforts to expand and improve housing tax credit programs.

CONGRESSIONAL ASK:

• Cosponsor or support the Affordable Housing Credit Improvement Act.

BACKGROUND:

Since 1986, the federal housing tax credit has financed nearly 3.5 million apartments, leveraging private and public sector resources to provide some 8 million low-income families, seniors, veterans and people with disabilities with safe, affordable housing. Virtually no affordable rental housing development would occur without the housing credit.i

In Wisconsin, WHEDA fully deployed its 2020 allocation of $31.9 million in federal and paired state credits as well as some credits returned from prior allocations to advance a total 2,058 affordable housing units.ii WHEDA has been the sole administrator for federal housing tax credits in Wisconsin since the federal program was established, awarding more than $445 million for the development and rehabilitation of more than 53,000 units of rental housing. These units are critical in addressing the housing shortage in Wisconsin.

The National Council of State Housing Agencies and WHEDA anticipate reintroduction of the Affordable Housing Credit Improvement Act in the 117th Congress. Building on bipartisan momentum gained in both houses last session, the bill is expected to include provisions that:

• Increase the amount of credits allocated to each state.
• Increase by 50% the amount of credits reserved for extremely low-income households.
• Expand multifamily housing bond recycling authority.
• Make the credit a more effective tool for preservation and rehabilitation projects.
• Enable the credit to better serve underrepresented communities through basis boosts for rural, Native American, high-poverty and high-cost communities.

Establishment of a permanent floor of 4% for low-income housing tax credits was part of the version of the bill developed during the 116th Congress. This provision passed as part of the COVID relief omnibus measure approved in December 2020. Establishing the minimum 4% rate is expected to support creation of some 500 additional affordable rental units when WHEDA announces its tax credit awards this spring.

Congressional Visits: 03/23-26/21

ⁱ National Council of State Housing Agencies. Affordable Housing Credit Improvement Act web page. https://www.ncsha.org/resource/affordable-housing-credit-improvement-act-ahcia-center/

ⁱⁱ Wisconsin Housing and Economic Development. HTC Allocating web page. https://www.wheda.com/developers-and-property-managers/tax-credits/htc/allocating