Topic: In the News

Representative Yvette Clarke (D-NY) recently introduced the “Affordable Housing and Area Median Income Fairness Act of 2019” (H.R.4984). The bill attempts to change how HUD calculates the area median income (AMI). For Clarke’s constituency, the AMI calculation incorporates not just mean earnings in Manhattan, Brooklyn, Staten Island, Queens, and the Bronx, but also those of the affluent counties of Westchester and Rockland counties. Her bill would subtract those suburbs from the equation, resulting in a much lower AMI figure.

Recently, congressional Democrats have been increasing oversight efforts over the Opportunity Zone (OZ) program. This program is a community investment incentive established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. Treasury and the IRS have yet to finalize the regulations governing OZ investment.

Freddie Mac recently released a white paper highlighting the role that the LIHTC program serves in the rural Lower Mississippi Delta. The report shows that the LIHTC program supports a substantial percentage (39.2 percent) of multifamily rental housing in the region, more than three times the national average. The white paper, titled “LITHC in Rural Lower Mississippi Delta,” is part of Freddie Mac’s three-year Duty to Serve plan to increase rental and homeownership opportunities in historically underserved markets throughout the nation.

The New Democrat Coalition (NDC) is a Congressional Member Organization within the U.S. Congress made up of centrist Democrats who support an agenda that the organization describes as “moderate” and “pro-growth” and who support a balanced budget. Entering the 116th Congress, the NDC has 101 members, making it the largest caucus in the Democratic Party and the second largest in Congress.

An Indiana Tax Court recently reversed an Indiana Board of Tax Review’s final determination that concluded a low-income apartment complex owner failed to prove it qualified for a charitable purposes exemption. In 2007, the owner purchased a HUD site for low-income renters in the county. The owner didn’t receive tax credits when it bought the property but operated it as an LIHTC apartment complex.

Congressman Earl Blumenauer (D-Ore.) recently released a housing report entitled, “Locked Out: Reversing Federal Housing Failures and Unlocking Opportunity.” It calls on the federal government to “reassert its partnership to become a constructive force for equity, accessibility, and opportunity in solving the housing crisis.”

During the August recess, the Affordable Housing Credit Improvement Act garnered more support and co-sponsorships from Congressional members. The Affordable Housing Credit Improvement Act of 2019 was reintroduced in June by U.S. Senators Maria Cantwell (D-Wash.), Johnny Isakson (R-Ga.), Ron Wyden (D-Ore.), and Todd Young (R-Ind.), and U.S. Representatives Suzan DelBene (D-Wash.), Kenny Marchant (R-Texas), Don Beyer (D-Va.), and Jackie Walorski (R-Ind.).

The Federal Housing Finance Agency (FHFA) recently announced that it will increase caps on the amount of multifamily loans Fannie Mae and Freddie Mac can purchase next year while also closing some loopholes. The regulatory agency will now limit the two firms to purchasing $100 billion in multifamily-housing residential loans, respectively, between the fourth quarters of 2019 and 2020. The caps are substantially larger than in previous years.

The Harvard Joint Center for Housing Studies recently published a report called “A Home Builder Perspective on Housing Affordability and Construction Innovation.” It found that both single-family and multifamily home builders identify labor and building-material costs and availability to be the largest obstacles to building low-income housing. Seventy percent of builders find housing affordability issues to be a serious concern across the nation, and 75 percent find they are a serious concern in their market area.

The California Tax Credit Allocation Committee recently released a memorandum that lists proposed changes for the state’s low-income housing tax credit program. For 2020, the $500 million in state credits will be available through the noncompetitive application process. The committee also seeks to add authority to utilize the 130 percent basis increase with state credits allocated from the new $500 million. The boost in state LIHTCs is intended to help developers build more affordable housing around the state.