Congress Helps Affordable Housing Developers
The new federal budget just passed by Congress includes a few changes that will strengthen the LIHTC program.
Affordable housing developers got a nice surprise when Congress passed its federal budget for 2019, which became law in March 2018.
“The recently enacted omnibus contains some welcome increases that will help affordable housing production,” says Scott Hoekman, senior vice president and chief credit officer for Enterprise Community Investment, a non-profit based in Washington, D.C. that helps finance and build affordable housing.
The affordable housing industry has been troubled by uncertainty recently. The Tax Cuts and Jobs Act of 2017 kept the low income housing tax credits (LIHTC) program, but its new, lower corporate tax rate has made the LIHTC program less effective.
The new federal budget just passed by Congress will make up for some of those losses. Plus, the budget includes a few changes that will strengthen the program.
“The industry can now once again focus on building and preserving affordable housing,” says Hoekman.