Congressman’s Report Calls for Increased LIHTC Allocation
Representative Earl Blumenauer, D-Ore., recently released a report entitled, “Locked Out: Reversing Federal Housing Failures and Unlocking Opportunity.” The report identifies the LIHTC program as the largest form of federal assistance to state and local governments in the form of a tax credit and not a direct expenditure.
The report says the LIHTC program has been the single, most effective method of constructing affordable housing since the federal government shifted from construction to rental assistance. According to the report, as of 2018, more 3.13 million homes have been financed using LIHTCs. And the LIHTC program is capped at $7 billion annually, limiting the number of affordable homes. The report calls on Congress to double the national credit cap, stabilize the value of the 4 percent new construction credit, and expand the value of credits available to projects serving extremely low-income populations.
The report also calls for making the HUD Section 8 program an entitlement that covers anyone eligible and the creation of a renter’s tax credit. It also calls for $10 billion in annual public housing capital funding and the elimination of HUD’s Rental Assistance Demonstration program once public housing capital needs are met.