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Budget Deal Signed: NALHFA Claims Victory in New Spending Bill

Posted By Administration, Monday, March 26, 2018

[Washington, DC - 3/23/2018] President Trump signed a $1.3 trillion spending deal today that includes improvements to the Low-Income Housing Tax Credit (LIHTC) program and big raises to important HUD programs, including $1.3 billion in funding for the HOME Investment Partnerships program and $3.3 billion for the Community Development Block Grant program. The budget deal is a substantial victory for NALHFA and communities across the country. These improvements to housing resources will be instrumental in combatting the nation’s affordable housing crisis.

 

Included in the deal are important improvements to LIHTC, including an income averaging option that would allow the upper income limit on LIHTC projects to raise from 60% to 80% AMI across all units. This technical adjustment will help create greater diversity in incomes for LITHC housing and will allow for a wider range of affordability levels. Additionally, LIHTC will receive a 12.5% increase in allocation in years 2018 through 2021, which will produce approximately 30,000 more affordable homes over that time span. The deal did fail, however, to include many important provisions of the Affordable Housing Credit Improvement Act that are needed to make up for the loss of 235,000 homes over the next 10 years due to the loss of value in the credit following the passage of the Tax Cuts and Jobs Act of 2017.

 

NALHFA Executive Director Jonathan Paine said of the improvements, “LIHTC is one of the most effective resources our industry has for creating affordable housing. These improvements will help local housing finance agencies build more homes and serve more families. NALHFA commends Congress for taking these important steps to improve the LIHTC program, and will continue to encourage our partners on Capitol Hill to pass the full Affordable Housing Credit Improvement Act over the next few months.”

 

HUD funding also received a much needed boost, providing increased allocations for programs like the Public Housing Capital Funds, CDBG, HOME, Homeless Assistance Grants, Section 8, and more. These increased funds will help alleviate the need for affordable housing resources for the homeless, low-income families, and underserved populations.

 

NALHFA President Ron Williams said, “These boosts to affordable housing resources are a huge win for the industry. As our nation combats the affordable housing crisis affecting every state, county, and city, we need to continue to build up these important tools. NALHFA thanks Congress for their work and attention to the massive affordable housing needs of our country, and we look forward to collaborating with Congress on strengthening and expanding these resources to fully address the housing needs in the United States.”

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