Congressman Darin LaHood (IL-16) recently announced significant progress on his bipartisan legislation, the Affordable Housing Credit Improvement Act of 2023, which aims to address the ongoing affordable housing crisis in the United States. The bill, co-sponsored by over one-third of the U.S. House of Representatives, has garnered broad support with 80 Republicans and 81 Democrats in the House.
In addition to House support, the Senate companion legislation has also gained traction, with 27 cosponsors, including 14 Republicans and 13 Democrats.
The proposed legislation seeks to bolster affordable housing by enhancing the Low-Income Housing Tax Credit (Housing Credit), a vital tool in financing affordable housing projects. Notably, the bill would increase credits available to states by 50 percent for the next two years, making the temporary 12.5 percent increase from 2018 permanent. This increase has already contributed to the construction of more than 59,000 additional affordable housing units nationwide.
The legislation aims to reduce the debt burden on affordable housing projects by lowering the private activity bonds required for Housing Credit funding, enabling more projects to receive financial support. The bill also seeks to improve the Housing Credit program to better serve vulnerable communities, including veterans, domestic violence survivors, formerly homeless students, Native American populations, and rural Americans.
The nationwide housing crisis continues to intensify, with nearly 10 million families spending over half of their income on rent, and nearly 600,000 Americans experiencing homelessness. The Affordable Housing Credit Improvement Act of 2023 represents a critical step towards addressing these pressing issues and providing affordable housing options to those in need.
The Steering Committee of the ACTION Campaign, a coalition of over 2,400 national, state, and local organizations and businesses, emphasized the urgent need for congressional leaders to pass this legislation, highlighting the broad bipartisan support it has garnered.