Colorado Congressmen Ed Perlmutter, congressman Joe Neguse, and senator michael bennett Co-Sponsor Affordable Housing Credit Improvement Act (H.R. 2573/ s. 1136)
Colorado Housing and Finance Authority (CHFA) recognizes and expresses its appreciation to Congressman Ed Perlmutter (CO-CD7), Congressman Joe Neguse (CO-CD2), and Senator Michael Bennet for co-sponsoring the 2021 Affordable Housing Credit Improvement Act (H.R. 2573/S.1136). With their co-sponsorship, Congressmen Perlmutter, Neguse, and Senator Bennet join a bi-partisan coalition of legislators working to advance solutions to the affordable housing crisis.
The Affordable Housing Credit Improvement Act will expand and strengthen the Low Income Housing Tax Credit (LIHTC/Housing Credit) resources available to support the development and preservation of affordable rental housing in Colorado and nationwide. If passed, CHFA estimates it could support approximately 900 to 1,100 more affordable apartments across the state annually.
Senator Bennet said, “Long before the COVID-19 pandemic, Colorado was experiencing a housing affordability crisis, and over the last year, the shortage of safe, affordable places to live has only grown more severe. This legislation provides a common-sense solution to strengthen the effective Low Income Housing Tax Credit, support our most vulnerable communities, and help American families who have been pushed to the breaking point by the high cost of rent and owning a home.”
Key provisions of H.R. 2573/ S. 1136 include:
- Increases the amount of 9 percent LIHTC available for allocation by 50% over two years;
- Enables the LIHTC program to better serve hard-to-reach communities including rural, Native American, high-poverty, and high-cost communities, as well as extremely low-income and formerly homeless tenants;
- Allows states to maximize affordable housing production and preservation by reducing the “financed by bonds threshold” requirement for 4 percent LIHTC projects from 50% to 25%; and
- Improves the LIHTC student rule provision to clarify that formerly homeless youth, victims of human trafficking, domestic violence survivors, and youth aging out of foster care are eligible for affordable housing even if they are full-time students.
Click here for a detailed bill summary.
Congressman Perlmutter said, “Housing represents so much more than four walls and a roof, it provides opportunities for hardworking families in Colorado to maintain a job and provide for their family. Affordable housing is one of the biggest challenges facing our region, and we must do everything we can to ensure every Coloradan has access to safe, stable housing and a place to call home.”
“At a time when the state’s housing needs are at a crisis point, Colorado needs as many resources as possible to be able to support as many shovel-ready projects as we can,” said CHFA executive director and CEO, Cris White. “Colorado can’t afford for strong projects to have to wait a year or longer for more resources to become available before they can break ground. The need is now and the demand is unprecedented.”
About the Low Income Housing Tax Credit Program in Colorado
The Housing Credit has helped support the development or preservation of 71,397 affordable housing units across Colorado since its inception in 1986, supporting 28,250 jobs and leveraging $7.3 billion in economic impact. Housing developed with the credit provides housing for the state’s most vulnerable residents including seniors, veterans, homeless, people with disabilities and hard-working individuals and families.