Bill Introduced to Encourage Mixed-Income Housing Development
Rep. Hakeem Jeffries, D-N.Y., recently introduced a bill, entitled the Low and Moderate Income Housing Act of 2014, to encourage the development of mixed-income housing. The bill would institute a 50-50-120 minimum set-aside test in lieu of the 40-60 minimum set-aside test.
Under the 40-60 minimum set-aside test, an owner must set aside a minimum of 40 percent of the units at a site for households earning no more than 60 percent of the area median gross income (AMGI). Rep. Jeffries proposes instead that 50 percent or more of a site’s residential units be set aside for occupancy by households whose income is at least 50 percent of AMGI and 120 percent of AMGI.
Under the proposed bill, the maximum rent would apparently be 30 percent of 120 percent of AMGI, which is a maximum gross rent of double that currently available under the 40-60 test. The purpose of the bill is to enable a broader range of household incomes, especially moderate-income households, to qualify for low-income housing tax credit units. The low-income housing tax credit program is currently limited to families earning up to 60 percent of AMI. The bill was referred to the House Committee on Ways and Means.