Increase in LIHTC Program Not Included in Budget Agreement

Today, the U.S. Senate reached agreement on a two-year budget deal that could have brought more funding to the Low Income Housing Tax Credit (LIHTC) program. However, Affordable Housing Online has confirmed with the office of Senator Maria Cantwell (D-WA) that the agreement was passed without additional funding to the LIHTC program. Senators Cantwell and Orrin Hatch (R-UT) co-sponsored SB 548, the Affordable Housing Credit Improvement Act. It contains provisions that improve, streamline and increase housing production under the LIHTC program. As negotiations proceeded on the two-year budget deal, efforts were made to include the LIHTC provisions as part of the spending plan. Although there was strong bipartisan support to bring more funding to the Low Income Housing Tax Credit (LIHTC) program, opposition from House leadership kept these improvements from being included in the Senate agreement. According to Lara Muldoon of Senator Cantwell’s staff, there was strong bipartisan support in the Senate for the LIHTC provisions. However, they were not included because of opposition expressed by House leadership Speaker Ryan and Chairman Brady. The budget deal will increase defense spending by $160 billion, non-defense spending by $128 billion and provide $80 billion in disaster relief. It needs to be approved by the House before midnight Thursday, February 8, in order to avoid a government shutdown. Muldoon did not know how they would proceed with the bill. They hope to pass it some time before the end of this congress since it has bipartisan support in the Senate and would be a legacy for the retiring Senator Hatch.