BIPARTISAN BILL INTRODUCED TO ADDRESS LOSS OF HOUSING CREDIT PROPERTIES DUE TO QUALIFIED CONTRACTS

摘要

On June 25, Senate Finance Committee Ranking Member Ron Wyden (D-OR) and Senator Todd Young (R-IN) introduced the Save Affordable Housing Act of 2019, which would close a loophole that allows developers to exit their contracts under the Low Income Housing Tax Credit (LIHTC) program 15 years early and convert affordable units into market-rate units. LIHTC properties are required to be in service for a minimum of 30 years: a 15-year compliance period followed by a 15-year extended-use period. Under current law, owners of LIHTC properties are permitted to pursue a qualified contract in year 14 or after, where an owner who wants to exit the program is able to require the state housing authority to find a buyer who agrees to the 15-year extended-use period at a qualified contract purchase price, which is set by statute.