House Infrastructure Bill Includes LIHTC Expansion
House Democrats recently unveiled the “Moving Forward Act,” a $1.5 trillion infrastructure package. In addition to investing substantially in repairing the nation’s roads and bridges and improving broadband access, the bill proposes to invest over $100 billion in affordable housing to create or preserve 1.8 million affordable homes, helping to reduce housing inequality, create jobs, and stimulate the broader economy; increase community and household resiliency in the face of natural disasters; improve hazardous living conditions; and increase the environmental sustainability of our housing stock.
In addition to the proposed $100 billion for affordable housing, the bill would expand the LIHTC by creating targeted housing incentives to build homes in rural and tribal communities and for people at risk of homelessness. According to a statement by Rep. Richard Neal, Chairman of the House Ways and Means Committee, “There is a desperate need for modernizing low-income housing and the Committee proposed a massive expansion of the Low Income Housing Tax Credit to get us there.”
The bill would also establish a Neighborhood Investment Tax Credit to subsidize certain development costs for the construction of new homes or rehabilitation of vacant homes. Other provisions focus on maintaining affordability requirements, like requiring homes be owner-occupied.