NAA/NMHC strongly support the Cantwell-Roberts proposal, as well as companion legislation in the House introduced by
Reps. Pat Tiberi (R-Ohio) and Richard Neal (D-Mass.). The
program has enjoyed broad bipartisan support over the years, and
we believe it should be protected as Congress considers comprehensive tax reform.
Last December Congress enacted legislation to extend the flat
9 percent credit through 2014 while declining to take action to establish a flat 4 percent rate. Due to low-interest rates and the expiration of last year’s legislation, the current 9 percent LIHTC is actually set at a 7.44 percent rate, reducing its value by over 17 percent.
Meanwhile, the 4 percent LIHTC is set at 3.19 percent, diminishing its value by 20 percent.
Both the House and Senate are most likely to address so-called
tax extenders, including LIHTC rates, in the second half of 2015.
House Ways and Means Committee Chairman Paul Ryan (R-Wis.)
recently said that he would first try to pair tax extenders with an
overhaul of corporate taxes. If that effort failed, the expiring tax
provisions would be renewed separately. Senate Finance Committee
Chairman Orrin Hatch (R-Utah) has not yet spelled out a legislative
timetable.
While timing remains in flux, it is also unclear whether the 9
percent credit will be made permanent or extended for one or two
years. In addition, tax writers have not yet decided if they will act to
put into place a flat 4 percent credit.
BUDGET WINNERS AND LOSERS IN THE $55B
HOUSE THUD BILL
The House Appropriations Committee passed the more than
$55 billion FY 2016 Transportation, Housing and Urban Development, and Related Agencies (THUD) funding bill on May 13. The
bill falls $1.5 billion short of what HUD has said it needs to maintain current programs and is nearly $10 billion less than President
Obama’s budget request. Ultimately, with a recently agreed-to Budget Resolution between the House and Senate dictating funding
levels for all federal agencies, HUD’s multifamily programs were not
spared from certain cuts.
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