Affordable Housing Credit Improvement Act of 2023

Affordable Housing Credit Improvement Act of 2023

This bill revises provisions of the low-income housing tax credit and renames it as the affordable housing tax credit.

The bill increases the per capita dollar amount of the credit and its minimum ceiling amount beginning in 2023 and extends the inflation adjustment for such amounts.

The bill modifies tenant income eligibility requirements and the average income formula for determining such income. It also revises rules for student occupancy of rental units and tenant voucher payments, and prohibits any refusal to rent to victims of domestic abuse.

The bill further modifies the credit to

• increase state allocations of the credit;
• repeal the qualified census tract population cap;
• prohibit consideration of local approval and local government contribution requirements for housing projects;
• increase the credit for certain projects designated to serve extremely low-income households;
• increase the credit for certain bond-financed projects designated by state agencies;
• eliminate the basis reduction for properties that receive certain energy-related tax benefits; and
• increase the population cap for difficult development areas (i.e., areas with high construction, land, and utility costs relative to area median gross income).

The bill also includes Indian and rural areas as difficult development areas and modifies other requirements relating to casualty losses, tax-exempt bond financing, and foreclosures.

The Affordable Housing Credit Improvement Act of 2023, also known as Bill 118 s 1557, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to improve and expand the Low-Income Housing Tax Credit (LIHTC) program, which provides tax incentives to developers who build affordable housing for low-income individuals and families.

Some key provisions of the Affordable Housing Credit Improvement Act of 2023 include increasing the annual allocation of LIHTC credits, making it easier for developers to access these credits, and targeting resources to areas with the greatest need for affordable housing. The bill also aims to streamline the application process for LIHTC credits and provide additional support for developments that serve extremely low-income households.

Overall, the Affordable Housing Credit Improvement Act of 2023 seeks to address the growing affordable housing crisis in the United States by incentivizing the construction of more affordable housing units for low-income individuals and families. This legislation has the potential to make a significant impact on the availability of affordable housing across the country and improve the quality of life for millions of Americans.