<div>         <table><tr><td colspan="2">FOR IMMEDIATE RELEASE</td><td><div class="indented"><div class="indented">Contact: Ashley Schapitl (202) 224-4515</div></div></td></tr><tr><td>June 25, 2020</td><td> </td><td> </td></tr></table> Wyden, Cantwell Introduce Affordable Housing Legislation Bill would provide emergency relief in response to pandemic, economic crisis  Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and Senator Maria Cantwell, D-Wash., today introduced legislation to preserve and expand affordable housing amidst the COVID-19 pandemic and economic crisis. The Emergency Affordable Housing Act, which is cosponsored by Senators Michael F. Bennet, D-Colo., and Benjamin L. Cardin, D-Md., includes a number of provisions to increase the value of the Low-Income Housing Tax Credit (LIHTC) and ensure projects are not abandoned. Similar provisions are included in the infrastructure legislation being considered by the House of Representatives this week. “The lack of affordable housing was a national crisis before the pandemic, and this crisis has made even clearer that millions of Americans are only a missed paycheck away from not being able to pay their rent or mortgage. This country needs more affordable housing, not less. Congress can’t allow this crisis to increase homelessness and further reduce the supply of affordable housing,” Senator Wyden said. “Our bill includes common sense policies that would help preserve existing affordable housing and create new affordable housing by ensuring the continuation of projects in the pipeline.” “We have an affordable housing crisis across the United States. Demand continues to grow, and our supply hasn’t kept up,” said Senator Cantwell. “The Low-Income Housing Tax Credit is a proven, successful, bipartisan tool that builds 90 percent of new affordable housing nationwide. The proposals in this bill will help build 500,000 units of affordable housing and give communities the resources they need to fight back against this crisis.” A summary of the legislation priorities follows: 1. Expand LIHTC production: As the economy reopens and homebuilding resumes, the bill would expand the 9% credit for new construction by 50%, ramped up over two years. The bill would set a minimum value under the 4% credit for purchase or rehabilitation of existing buildings, as low interest rates have eroded the credit’s value. The bill would temporarily allow more 4% credits to be paired with bond-financed affordable housing projects. The bill would allow 4% credit projects in difficult or costly development areas to benefit from a “30% basis boost.” The 30% basis boost would also be extended to 4% and 9% housing credit projects in rural and Indian areas, to compensate for higher costs and lack of affordable housing.  2. Increase LIHTC credits for projects housing families most in need: The bill would provide a 50% larger credit for projects housing low-income families with incomes below 30% of the median area income. The bill would create a separate credit within LIHTC to fund the supportive services needed to keep families housed, including health and mental health services, benefits coordination, job training, and financial counseling. 3. Keep LIHTC developers and operators afloat: Due to the pandemic and resulting economic crisis, construction has been halted, lease-up of finished buildings has been delayed, and LIHTC deals are now on shaky financial ground. To keep developers afloat and prevent LIHTC investors from walking away, the bill extends key compliance deadlines, front -loads the LIHTC credit into the first year, and expands the 4% housing credit for current deals. 4. Close loopholes to preserve and promote affordable housing: The bill repeals the “qualified contract” option that allows LIHTC owners to convert properties to market rate after just 15 years. It also prohibits the consideration of local support or opposition, or local government contributions in deciding where to build affordable housing.  Text of the legislation is available <a href="https://avanan.url-protection.com/v1/url?o=https%3A//www.finance.senate.gov/imo/media/doc/Wyden-Cantwell%2520Emergency%2520Affordable%2520Housing%2520Act%2520%28OTT20361%29.pdf&amp;g=MDY2NDRlZDExMjQ1MDBhYg==&amp;h=ZWYxMWI3MjFlOTE0NzU3NmU2ZTUwNjViYmI5YzVjNTE2NmQwOWQ5MmY4MDE4ZTc3Njk3ZmE1Yzg3ZWQyODJmYw==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDpmYjNlMGI2ZmI2MWM5NjY2ZjJiNjkzNTgxYzQ1NjAwMjp2MQ==">here.</a> A one-page summary of the legislation is available <a href="https://avanan.url-protection.com/v1/url?o=https%3A//www.finance.senate.gov/download/eaha-one-pager&amp;g=ZTEzMTU0NWI5YWVlMzYwNQ==&amp;h=NTg4OGYwMmMzOTBkNmJjZTE0YWQ3YzIzYjMwNzVjNGIxOWE4MGQ2NjYxNjcxNzM3ZjZlZGE5MjYyZWU4NmQyZQ==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDpmYjNlMGI2ZmI2MWM5NjY2ZjJiNjkzNTgxYzQ1NjAwMjp2MQ==">here.</a> A detailed summary of the legislation is available <a href="https://avanan.url-protection.com/v1/url?o=https%3A//www.finance.senate.gov/download/eaha-summary&amp;g=YmZjM2ViN2VhNDM2N2VjMQ==&amp;h=Mjg0NDdkOTA3NTMwOTVmYzEzNTIwY2JiZWQ1YTZmYzk0YmYxZTcyYTY1NTdhMGU4MGZmM2ZmZDcyYjBlYTBkMQ==&amp;p=YXAzOnRheGFuYWx5c3RzMzphdmFuYW46b2ZmaWNlMzY1X2VtYWlsc19lbWFpbDpmYjNlMGI2ZmI2MWM5NjY2ZjJiNjkzNTgxYzQ1NjAwMjp2MQ==">here.</a> <div class="indented"><div class="indented">###</div></div> Emergency Affordable Housing Act of 2020 Sponsored by Senators Wyden and Cantwell Since it was created in 1986, the Low-Income Housing Tax Credit (LIHTC) has financed 3.2 million affordable apartments, providing homes to roughly 7.4 million low-income households. The Emergency Affordable Housing Act of 2020 expands LIHTC to house more families, including the most vulnerable; secures current LIHTC deals that are now on shaky ground due to the pandemic and faltering economy; and preserves tens of thousands of affordable housing units by closing a key loophole. The bill draws from proposals in the Affordable Housing Credit Improvement Act of 2019 (S. 1703) and the Save Affordable Housing Act of 2019 (S. 1956), and also includes new provisions. These proposals would produce 500,000 new affordable housing units over the next ten years. Expanding LIHTC production. As the economy reopens and homebuilding resumes, the bill would expand the 9% housing credit by 50%, ramped up over two years. The bill would set a minimum value under the 4% credit for purchase or rehabilitation of existing buildings, as low interest rates have eroded the credit’s value. The bill would temporarily allow more 4% credits to be paired with bond-financed affordable housing projects. The bill would allow 4% credit projects in difficult or costly development areas to benefit from a “30% basis boost.” The 30% basis boost would also be extended to 4% and 9% housing credit projects in rural and Indian areas, to compensate for higher costs and lack of affordable housing. Increasing LIHTC credits for projects that target deeper affordability. The bill would provide a 50% larger housing credit for projects that house extremely low income families (those with incomes below 30% of median). The larger credit would be funded from a set-aside that doesn’t count against existing spending caps. The bill would also create a separate credit within LIHTC to fund the supportive services needed to keep families housed, including health and mental health services, benefits coordination, job training, and financial counseling. Helping LIHTC developers and operators stay afloat. Due to the pandemic, construction has been halted, lease-up of finished buildings has been delayed, and LIHTC deals that were once solid, are now on shaky financial ground. To keep developers afloat and prevent LIHTC investors from walking away, the bill would extend key compliance deadlines, front-load the LIHTC credit into the first year, and expand the 4% housing credit for current deals. Closing loopholes to preserve and promote affordable housing. The bill repeals the “qualified contract” option that allows LIHTC owners to convert properties to market rate after just 15 years. The bill also prohibits the consideration of local support or opposition, or local government contributions in deciding where to build affordable housing. The coronavirus is threatening the housing security of tens of millions of lower-income Americans. The Emergency Affordable Housing Act would strengthen LIHTC to weather the current storm by preserving and protecting current LIHTC properties, dramatically expanding production, and extending housing to those at extremely low incomes. Emergency Affordable Housing Act of 2020 Sponsored by Senators Wyden and CantwellSummary of Provisions Sec. 1. Short title. The Emergency Affordable Housing Act of 2020. Sec. 2. Extend Deadline for Rehabilitation Expenditures. The provision allows up to 3 years (compared to up to 2 years under current law), following an allocation of housing credits, to make rehabilitation expenditures for a LIHTC project. Provision applies to buildings receiving an allocation of housing credits after December 31, 2016 and before January 1, 2022. This is a new provision. Sec. 3. Extend Deadline for Basis Expenditures. The provision allows up to 3 years (compared to 2 years under current law), following an allocation of housing credits, for a LIHTC building to be placed in service and remain eligible for the credits so allocated. Also allows an additional year for the taxpayer to incur costs equal to 10% of reasonably expected basis. Provision applies to buildings receiving an allocation of housing credits after December 31, 2016 and before January 1, 2022. This is a new provision. Sec. 4. Relax the “50% Test” for 2 years. Currently, tax -exempt bonds must comprise 50% of the financing for an affordable housing project, if they are used in conjunction with 4% housing credit bonds. This provision temporarily reduces the 50% requirement to 25%, to enable housing credit deals to unlock more 4% credits. The provision is effective for buildings financed by an obligation issued in calendar years before January 1, 2022 and placed in service in taxable years after December 31, 2019. This is a new provision. Sec. 5. Minimum Credit Rate for the 4% Credit: The current market-based interest rate for the 4% housing credit is just 3.07% (for June, 2020), which undermines the financing for many 4% credit projects at a time when the nation needs as much affordable housing production as possible. The 9% credit has had a minimum 9% rate since 2008. The provision, which is permanent, would set a minimum rate of 4% for affordable housing projects that received a housing credit allocation after December 31, 2019 (or were placed in service after January 20, 2020, in the case of tax-exempt bond-financed projects). This is based on a provision in the Affordable Housing Credit Improvement Act (of 2019 (AHCIA), S. 1703. Sec. 6. Expand the 9% Credit. The provision makes permanent the 12.5% expansion in the 9% housing credit passed in 2018 and increases the 9% housing credit and the small state minimum by 50 percent on top of this. The provision phases in this increase over 2021 and 2022, then indexes amounts to inflation. The provision is effective for calendar years after December 31, 2020. This is based on a provision in AHCIA. Sec. 7. Provide 50% Basis Boost for Projects Serving Extremely Low -Income Households. The provision provides a 50% larger housing credit for LIHTC buildings that designate at least 20% of their occupied units for extremely low-income households and limit rent to no more than 30% of the greater of: 30% of area median income or the federal poverty line. The provision is funded by a set-aside equal to 10% of a state’s housing credit allocation (and the set-aside is in 1 addition to this allocation). The provision is permanent and applies to LIHTC buildings receiving either the 9% or the 4% housing credit after the date of enactment. This is based on a provision in AHCIA. Sec. 8. Inclusion of Indian Areas as Difficult Development Areas. The provision modifies the definition of a Difficult Development Area (DDA) to automatically include projects located in an Indian area, making these projects eligible for the 30 percent basis boost. (The DDA inclusion is limited to buildings that were assisted or financed under the Native American Housing Assistance and Self Determination Act of 1996 or the project sponsor is a qualifying Indian tribe.) This provision would allow these developments to receive more housing credit equity than would otherwise be available to them. The provision applies to buildings placed in service after December 31, 2019. This is based on a provision in AHCIA. Sec. 9. Inclusion of Rural Areas as Difficult Development Areas. The provision gives states the ability to provide up to a 30 percent basis boost to properties in rural areas if needed for financial feasibility, by qualifying rural areas as Difficult Development Areas. Rural areas are defined as nonmetropolitan counties and rural areas designated in a state’s QAP and defined by Section 520 of the Housing Act of 1949. This would allow these developments to receive more housing credit equity than would otherwise be available to them. The provision applies to buildings placed in service after December 31, 2019. This is based on a provision in AHCIA. Sec. 10. Increase in Credit for Bond-Financed Projects Designated by Housing Credit Agency. The provision allows states to provide up to a 30 percent basis boost for 4% credit projects that are financed with tax-exempt bonds if necessary for financial feasibility, providing parity between 4% credit bond-financed developments and funded by 9% credits. The provision applies to buildings that receive housing credits after the date of enactment. This is based on a provision in AHCIA. Sec. 11. Repeal Qualified Contracts to Preserve LIHTC Affordable housing. LIHTC properties must ordinarily remain affordable for 30 years. However, the “Qualified Contracts” loophole allows LIHTC operators to sell their properties after 15 years to private developers who will rent units at market rate. This loophole results in the loss of at least 10,000 affordable housing units per year. This provision eliminates the qualified contract option for taxpayers receiving LIHTC credits after December 31, 2020. For taxpayers who received LIHTC credits before January 1, 2020 and who submit a written request for a qualified contract after the date of enactment, the provision repeals the current inflation adjustment formula – requiring instead a fair market value purchase price that must factor in current rent-restricted units. This is based on the Save Affordable Housing Act of 2019, S. 1956. Sec. 12. Prohibition of Local Approval and Contribution Requirements. This provision removes the requirement for state housing agencies to notify local or elected officials in which a proposed building would be located. The provision further bars a state’s qualified action plan from prioritizing local support (including contributions) or opposition regarding an application for a LIHTC project. The provision applies to allocations of housing credits made after December 31, 2020. This is based on a provision in AHCIA.   2 Sec. 13. Adjustment of Credit to Provide Relief During COVID-19 Outbreak. The COVID-19 outbreak has halted construction and lease-up on many LIHTC projects, delaying the receipt of housing credits, and putting the feasibility of such housing projects at risk. This provision allows the taxpayer to elect to receive a first year credit equal to 150 percent of the allowable amount, to be reduced pro rata in subsequent years. Eligible LIHTC buildings are those that have (1) a first year in the credit period ending between July 1, 2020 and July 1, 2022 and (2) pandemic-related construction or leasing delays that have occurred since January 1, 2020, (requiring certification by the taxpayer to the housing credit agency). This is a new provision. Sec. 14. Credit for Low-Income Housing Supportive Services. The provision provides a tax incentive for a one-time capitalization of a reserve fund to provide supportive services at eligible LIHTC buildings. Specifically, it creates a new Sec. 42A tax credit equal to 25% of amounts contributed by a taxpayer to a qualified supportive housing reserve fund (limited to $120,000 times the number of occupied low-incomes units per low-income building). Taxpayers claiming the credit cannot also claim any other tax deduction for the amounts contributed. A qualifying fund is a separate fund reserved exclusively for paying for supportive services provided to tenants of the building. Qualifying supportive services include health services (including mental health services), coordination of tenant benefits, job training, financial counseling, resident engagement services, or services aimed at helping tenants retain permanent housing. The fund and its provision of services must be maintained throughout the extended use period of the building and these funds must be spent down entirely during this period. The taxpayer must maintain a certification for the supportive services provided and must report annually to the housing credit agency on expenditures and outcomes. The provision applies to buildings placed in service after December 31, 2020. This is a new provision.                              3</div>

Wyden, Cantwell Announce Pandemic Housing Tax Relief Bill

Wyden, Cantwell Announce Pandemic Housing Tax Relief Bill

U.S. Senate

U.S. Senate Finance Committee

The Emergency Affordable Housing Act would ensure housing projects aren't ceased during the COVID-19 pandemic by expanding the low-income housing tax credit in various ways to help families and developers, Senate Finance Committee ranking member Ron Wyden, D-Ore., and member Maria Cantwell, D-Wash., said in a June 25 release.

The Emergency Affordable Housing Act would ensure housing projects aren't ceased during the COVID-19 pandemic by expanding the low-income housing tax credit in various ways to help families and developers, Senate Finance Committee ranking member Ron Wyden, D-Ore., and member Maria Cantwell, D-Wash., said in a June 25 release.

The <a href="/lr/resolve//2cnlb">Emergency Affordable Housing Act</a> would ensure housing projects aren't ceased during the COVID-19 pandemic by expanding the low-income housing tax credit in various ways to help families and developers, Senate Finance Committee ranking member Ron Wyden, D-Ore., and member Maria Cantwell, D-Wash., said in a June 25 release.

The Emergency Affordable Housing Act would ensure housing projects aren't ceased during the COVID-19 pandemic by expanding the low-income housing tax credit in various ways to help families and developers, Senate Finance Committee ranking member Ron Wyden, D-Ore., and member Maria Cantwell, D-Wash., said in a June 25 release.