Spending Bill Spotlight: Low-Income Housing Tax Credits
April 3, 2018
The $1.3 trillion spending bill that was signed by the President contained the first expansion of the Low Income Housing Tax Credit (LIHTC) program in more than a decade. Included is an increased allocation and the ability of the tax credit to reach tribal communities located near higher-income areas.
- A 12.5 percent increase in Housing Credit allocation for four years (2018-2021) - Sec. 102. Increase in State Housing Credit Ceiling.
- Permanent authorization for income averaging, enabling 60 percent of the area median income ceiling to apply to the average of all apartments in development - Sec. 103 Average Income Test for Low-Income Housing Credit.
“Housing conditions in Native American communities remain some of the most challenging in the nation. Expanding the Low Income Housing Tax Credit is critically important to help ensure tribes and their members continue to have the tools necessary to access affordable housing.” said Senator Maria Cantwell (D-WA).
Senator Cantwell championed the LIHTC boost in the spending bill. Since its creation 30 years ago, the LIHTC has financed nearly 3 million homes across the United States, leveraging more than $100 billion in private investment. Between 1986 and 2013, more than 13.3 million people have lived in homes financed by the LIHTC.