The Affordable Housing Credit Improvement Act of 2019, proposed by a bipartisan group of legislators, seeks to increase access to affordable rental units.
Curbed reports that the bill would expand the Affordable Housing Tax Credit, and create an expected 1.9 million additional affordable units over the next decade. This would work to address the national shortage of seven million affordable and available rental homes.
The Affordable Housing Credit Improvement Act would stimulate construction by increasing the amount of credit used to build affordable units by 50 percent, which is estimated to create of 384,000 more homes in the next decade. The Act would also stabilize the value of the tax credit at four percent, eliminating uncertainty for developers juggling additional acquisition costs and other subsidies. It would also allow “recycling” of multifamily housing bonds, a financing mechanism that allows for the reuse of tax-exempt bonds, which would create 100,000 additional units.