U.S. Rep Darin LaHood, R-Peoria, and U.S. Rep. Suzan DelBene, a Democratic congresswoman from Washington, have reintroduced the Affordable Housing Credit Improvement Act to support the financing and development of affordable housing locally and nationwide.
LaHood told SBJ, "Just weeks ago we reintroduced the Affordable Housing Credit Improvement Act using the same language (as the original bill to amend the Internal Revenue Code of 1986), and we're optimistic about including it in our tax reconciliation bill – President Trump's One Big Beautiful Bill Act. Last year it died in the Senate, but we think we have a good chance to make it the law of the country (this year)."
LaHood explained that there is a severe shortage of workforce housing nationwide and that many people have to drive a long distance to get to and from work. He said some of his constituents have told him they drive 90 miles daily on their commute. LaHood said his reason for reintroducing the Affordable Housing Act is to increase workforce housing designed for middle- and moderate-income households so that people can afford to live in the same communities where they work
Workforce housing is typically defined as targeting those earning between 60% and 120% of Area Median Income (AMI). It aims to bridge the gap between affordable housing and market-rate housing, providing housing for workers who earn too much for traditional affordable housing programs but can't afford market-rate rents.
"This tax credit will be beneficial for builders," LaHood said, at a time when "it is cost prohibitive to build." LaHood said this incentive will allow builders to boost the housing supply, and he emphasized that "this is not Section 8 housing. This tax credit is for workforce housing in urban, rural and suburban areas."
When the bill died in the last Congress, LaHood said, there were "over 270 co-sponsors and great recognition that this needs to be done. Once the bill passes into law, within two years we will create 8,000 to 10,000 new housing units, and this will be replicated across the country."
Workforce housing credits originated under President Ronald Reagan as a way to incentivize the building of affordable homes. According to a written statement from LaHood's office, since 1986 the Housing Credit has built or restored more than 3.5 million affordable housing units, nearly 90% of all federally funded affordable housing during that time. Roughly 8 million American households have benefitted from the credit.
The statement from LaHood's office claimed passage of the Affordable Housing Act will support the financing of nearly 2 million new, affordable homes nationwide by increasing the number of credits allocated to each state, increasing the number of affordable housing projects that can be built using private activity bonds and improving the Housing Credit program to serve at-risk and underserved communities.
