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Learn about major policy trends in affordable housing from Emily Cadik, AHTCC Executive Director, including legislative updates and the Affordable Housing Credit Improvement Act. Find out how housing initiatives impact North Carolina.
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North Carolina Affordable Housing ConferenceIndustry UpdateEmily CadikAHTCC Executive DirectorOctober 8, 2019@EmilyCadik @AHTCCoalition
Major Policy Trends • Political landscape in uncharted territory • Year-end legislative agenda unclear • Bright spot for bipartisanship: Affordable Housing Credit Improvement Act to expand and strengthen Housing Credit • Policy initiatives from the Administration – CRA Reform, Housing Finance reform, and repositioning HUD’s housing stock • Looking ahead to the 2020 elections – and making housing part of the national conversation
The Affordable Housing Credit Improvement Act History 2015 9 percent Housing Credit rate made permanent 2016 AHCIA first introduced by Sens. Maria Cantwell (D-WA) and Orrin Hatch (R-UT) 2017 AHCIA reintroduced by Sens. Maria Cantwell and Orrin Hatch, first introduced in House by Reps. Pat Tiberi (R-OH) and Richard Neal (D-MA) 2017 Housing Credit and Private Activity Bonds preserved in tax reform 2018 12.5 percent Housing Credit allocation increase for four years (2018 – 2021) and income averaging enacted in Consolidated Appropriations Act of 2018
The Affordable Housing Credit Improvement Act AHCIA Reintroduction • Sponsors • S. 1703: Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Johnny Isakson (R-GA) • H.R. 3077: Representatives Suzan DelBene (D-WA), Kenny Marchant (R-TX), Don Beyer (D-VA), and Jackie Walorski (R-IN)
The Affordable Housing Credit Improvement Act AHCIA Reintroduction • S. 1703 and H.R. 3077 introduced June 2019 • Total Provisions: 27 • 5 new provisions • 4 updated provisions • 2 provisions added to H.R. 3077 only
The Affordable Housing Credit Improvement Act Key Provisions: Increasing Production • 50 percent allocation increase phased in over five years (updated provision in S. 1703 and new in H.R. 3077) • Estimated 384,455 additional homes financed • 4 percent minimum Housing Credit rate • At least 66,000 additional homes financed • Expand Multifamily Housing Bond recycling (new provision) • At least 100,000 additional homes financed *Source: Novogradac & Company
The Affordable Housing Credit Improvement Act Potential AHCIA Impact Source: Novogradac & Company
The Affordable Housing Credit Improvement Act Key Provisions • Serving Hard-to-Reach Areas and Populations • Rural areas • Native American communities • Veterans • Extremely low-income households • Better Facilitating Preservation of Existing Affordable Housing • Streamlining and Simplification • Encouraging Cost Reasonableness
The Affordable Housing Credit Improvement Act Potential Legislative Vehicles for AHCIA • Temporary tax provisions • Technical corrections to the Tax Cuts and Jobs Act of 2017 • Spending bill
Advocacy & Engagement Resources • ACTION Resources: www.rentalhousingaction.org • AHCIA one-page overview, summary of all provisions, and explanation of differences between the 115th and 116th Congress versions • National, state, and district fact sheets • Cosponsor lists for S. 1703 and H.R. 3077 • AHTCC Resources: www.taxcreditcoalition.org • Help with groundbreakings and grand openings • Sample letters
CRA Reform • OCC released Advance Notice of Proposed Rulemaking in September 2018 • Notice of Proposed Rulemaking expected this fall • Impact on affordable housing • Investment appetite and pricing • Investment footprint
Housing Finance Reform • Treasury and HUD plans released September 2019 • Moving towards ending GSE conservatorship through recap and release • No change to Fannie and Freddie Housing Credit investments at this time • No changes to Housing Trust Fund and Capital Magnet Fund resources at this time • But Treasury plan suggests replacing affordable housing goals with a fee to be appropriated to HUD affordable housing programs • No major housing finance reform legislation expected this year
Trends at HUD • Robust funding for HUD programs • Repositioning and RAD • A growing portion of HUD’s portfolio shifting to public-private partnership model • Underscores need for more Housing Credit resources • Reducing regulations • White House Task Force
Looking Ahead • 2020 elections • Housing as a campaign issue • Expanding Housing Trust Fund • Renter credits • Reducing local regulations