Apartment Industry Responds to the Introduction of Middle-Income Housing Tax Credit Legislation

WASHINGTON, DC – (RealEstateRama) — The National Multifamily Housing Council (NMHC) and National Apartment Association (NAA) issued the following statement in response to Senate Finance Committee Ranking Member Ron Wyden’s (D-OR) proposal to create a Middle-Income Housing Tax Credit (MIHTC), which would work in conjunction with the Low-Income Housing Tax Credit (LIHTC) for the development of affordable rental homes:

“We commend Senator Wyden for the introduction of MIHTC legislation today that will help ensure affordable housing for the nation’s working families. In addition, it is our belief that it will only serve to complement the Low-Income Housing Tax Credit, as well as the Affordable Housing Credit Improvement Act of 2016 that Wyden and Senators Maria Cantwell (R-WA) and Orrin Hatch (R-UT) introduced earlier this year. Ultimately both pieces of legislation are vital due to the significant housing affordability challenges facing many Americans today who are seeking to rent an apartment home.

“The number of families renting their homes currently stands at an all-time high, which places significant pressure on the apartment industry to meet demand. This makes it challenging for millions of families nationwide to find quality rental housing that is affordable and also impacts their ability to pay for basic necessities and their future financial success.

“Importantly, in order to further serve the housing needs of these families we believe that the Community Reinvestment Act (CRA) should be coordinated with the MIHTC so that investments using the proposed tax credit would qualify for CRA credit – a critical change that would enable the new credit to reach its full potential in all housing markets.

“We look forward to working closely with Senator Wyden and other key congressional leaders to help ensure the future success of this important legislation.”