Two housing-related bills endorsed by NLIHC were introduced in the U.S. House of Representatives on January 20. The “Affordable Housing Equity Act” (H.R.418), introduced by Representative Jimmy Gomez (D-CA), would provide a 50% basis boost for Low-Income Housing Tax Credit (LIHTC) developments that designate at least 20% of units for extremely low-income (ELI) households, and a 10% set-aside of all Low-Income Housing Tax Credits for ELI units. Representative Steve Cohen (D-TN) introduced the “Keeping Evictions Off Credit Reports Act,” which would prevent credit reporting agencies from including on their reports evictions that occur during the COVID-19 public health emergency.
The provisions in Representative Gomez’s “Affordable Housing Equity Act” align with NLIHC’s recommended LIHTC reforms. While LIHTC is a vital source of financing for the construction and preservation of affordable housing, LIHTC on its own rarely builds or preserves homes affordable to households with the lowest incomes, those with the greatest and clearest needs. By expanding the ELI basis boost from 30% to 50%, Congress can allow LIHTC to better target extremely low-income tenants at rents that are affordable to them. This reform would also facilitate the development of more affordable housing for populations with special needs, such as formerly homeless individuals and people with disabilities. Additionally, setting aside a percentage of all Low-Income Housing Tax Credits for ELI households would ensure that more LIHTC developments serve extremely low-income households.
Representative Cohen’s “Keeping Evictions Off Credit Reports Act” would provide relief for renters who have been evicted during the COVID-19 pandemic by prohibiting credit reporting agencies from including such evictions on credit reports. Notably, the COVID-19 public health emergency was renewed on January 11, 2023, and is in place until April 2023. Representative Bennie Thompson (D-MS) and Representative Yvette Clarke (D-NY) are original cosponsors of the bill.
Read the press release for the “Keeping Evictions Off Credit Reports Act” at: https://bit.ly/3Rc2f2h
Read more about the “Affordable Housing Equity Act” at: https://bit.ly/3JdIpC2
Read more about the “Keeping Evictions Off Credit Reports Act” at: https://bit.ly/3kKMgfA