Almost every member of Minnesota’s congressional delegation, a bipartisan group of lawmakers, has co-sponsored important legislation that would expand the low income housing tax credit. The Affordable Housing Tax Credit Improvement Act (S.1703, H.R. 3077) will significantly enhance affordable housing by increasing allocations to the tax credit by 50 percent and strengthening the credit, including reforms to increase the utility of the tax credit in rural areas.
Already, Reps. Ilhan Omar, Angie Craig, Dean Phillips, and Betty McCollum in the House, and Sens. Tina Smith and Amy Klobuchar in the Senate have signed on as co-sponsors of the bill. On Nov. 5, Rep. Tom Emmer announced co-sponsorship while at Carver Crossing, a multifamily housing development, built by Ron Clark Construction, made possible with low income housing tax credits and affordable to those earning 60% of the area median income. This came after Rep. Pete Stauber added his name to the bill in mid-October. As of early November, Reps. Jim Hagedorn and Collin Peterson are the only members that have not yet co-sponsored the bill.
Since 1986, the Low-Income Housing Tax Credit (LIHTC) has financed more than three million homes for low-income households across the United States, including veterans, senior citizens, individuals with disabilities, and families with children. LIHTC is an important component of the financing for most affordable housing developments. With a 50 increase in tax credit allocations, 5,971 additional affordable homes can be built in Minnesota over the next 10 years.
“It is terrific to see this level of support from Minnesota’s congressional delegation on AHCIA,” said MHP Executive Director Anne Mavity. “Minnesota urgently needs more affordable housing, and this is one of our most important tools to get it done. MHP urges Reps. Hagedorn and Peterson to publicly back this bill, and we call on Congress to get the AHCIA passed as quickly as possible.”