In Support of the Affordable Housing Provisions in the Tax Relief for American Families and Workers Act of 2024
Adopted at the 92nd Annual Meeting in 2024
WHEREAS, the National Low Income Housing Coalition (NLIHC) estimates that the country has a shortage of 7.3 million affordable homes for renters with low incomes and there are only 34 homes for every 100 extremely low income households; and
WHEREAS, the Low-Income Housing Tax Credit (LIHTC) is the largest and most successful federal incentive for affordable housing acquisition, construction, and rehabilitation; and
WHEREAS, the tool has played a critical role in addressing the supply gap by providing financing to support the development of affordable housing projects for nearly 40 years, funding thousands of new housing units for tenants with low and moderate incomes through public-private partnerships; and
WHEREAS, the U.S. House of Representatives passed the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) with substantial bipartisan support earlier this year, and that package included provisions of the Affordable Housing Credit Improvement Act (AHCIA) to enhance the LIHTC program; and
WHEREAS, the Senate AHCIA was led by Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Marsha Blackburn (R-TN); and
WHEREAS, the House AHCIA was led by Representatives Darin LaHood (R-IL), Suzan DelBene (D-WA), Brad Wenstrup (R-OH), Don Beyer (D-VA), Claudia Tenney (R-NY), Jimmy Panetta (D-CA) and 60 other original co-sponsors; and
WHEREAS, the Tax Relief for American Families and Workers Act of 2024 included provisions that would restore the increase of the 9 percent LIHTC ceiling by 12.5 percent, allowing states to allocate more credits for affordable housing projects for calendar years 2023 through 2025; and
WHEREAS, the comprehensive tax package also included provisions that would lower the bond-financing threshold to 30 percent for projects financed by bonds with an issue date before 2026 for buildings placed in service after December 31, 2023; and
WHEREAS, the Bipartisan Policy Center and national housing organizations estimate that these provisions to enhance LIHTC would support financing for the construction and rehabilitation of over 200,000 new affordable homes and support more than 300,000 jobs; and
WHEREAS, the legislation aligns with the goals of the Biden-Harris Administration to increase housing supply and actions taken by the U.S. Department of Housing and Urban Development (HUD) to enhance access to affordable housing; and
WHEREAS, the LIHTC provisions included in the Tax Relief for American Families and Workers Act would build on those efforts by the Administration and supplement local strategies to increase the affordable housing stock in cities nationwide.
NOW, THEREFORE, BE IT RESOLVED, that The United States Conference of Mayors recognizes the need for federal, state, and local collaboration and private-public partnerships to respond to the nation's affordable housing crisis and bring more relief to our communities; and
BE IT FURTHER RESOLVED, the nation's mayors thank bipartisan lawmakers for their leadership incorporating legislative provisions to enhance the LIHTC program in the Tax Relief for American Families and Workers Act and supporting the introduction and successful passage of that bill in the House of Representatives; and
BE IT FURTHER RESOLVED, that The United States Conference of Mayors urges the U.S. Senate to swiftly consider and pass the Tax Relief for American Families and Workers Act and for President Joseph Biden to swiftly sign that legislation into law.