Senate Bill Introduced to Establish Minimum LIHTC Rates
Sens. Maria Cantwell (D-WA) and Pat Roberts (R-KS) recently introduced the “Improving the Low-Income Housing Tax Credit Rate Act” (S. 1193). This bill would create a permanent floor for the LIHTC. The bill’s text is identical to the House bill that was introduced on Feb. 26 by Reps. Pat Tiberi (R-OH) and Richard Neal (D-Mass.).
Like the House Bill, the Senate bill proposes to set the minimum LITHC rate for new construction at 9 percent and set it at 4 percent for existing properties. These rates would apply to buildings placed in service after Dec. 31, 2014.
In a press release, Sen. Cantwell highlighted the effectiveness of the LIHTC program. According to the release, the LIHTC program supports more than 90,000 jobs nationwide and the LIHTC has helped leverage nearly $100 billion in private investment in critically needed affordable housing units. For these reasons, Sen. Cantwell said in the release that this provision must permanently be extended without delay. The bill has been referred to the Senate Finance Committee.