Affordable Housing Credit Improvement Act of 2023
Key claim: HR3238 proposes to rename, expand, and substantially revise the Low-Income Housing Tax Credit by increasing per-capita allocations, broadening eligibility, adding tenant protections, and enhancing credits for extremely low-income and bond-financed projects.
Abstract
(HR3238 · 118th Congress) Affordable Housing Credit Improvement Act of 2023 This bill revises provisions of the low-income housing tax credit and renames it as the affordable housing tax credit . The bill increases the per capita dollar amount of the credit and its minimum ceiling amount beginning in 2023 and extends the inflation adjustment for such amounts. The bill modifies tenant income eligibility requirements and the average income formula for determining such income. It also revises rules for student occupancy of rental units and tenant voucher payments, and prohibits any refusal to rent to victims of domestic abuse. The bill further modifies the credit to increase state allocations of the credit; repeal the qualified census tract population cap; prohibit consideration of local approval and local government contribution requirements for housing projects; increase the credit for certain projects designated to serve extremely low-income households; increase the credit for certain bond-financed projects designated by state agencies; eliminate the basis reduction for properties that receive certain energy-related tax benefits; and increase the population cap for difficult development areas (i.e., areas with high construction, land, and utility costs relative to area median gross income). The bill also includes Indian and rural areas as difficult development areas and modifies other requirements relating to casualty losses, tax-exempt bond financing, and foreclosures. Latest action (2023-05-11): Referred to the House Committee on Ways and Means.
Why this matters
The Affordable Housing Credit Improvement Act of 2023 primarily modifies a tax-credit financing mechanism (LIHTC) and sits outside the Civil Rights area’s core scope of voting, discrimination, disability access, reproductive/LGBTQ rights, and due process. While expanded affordable housing supply and new tenant protections could indirectly affect groups covered by fair housing and disability-access law, this finding is better tracked under a housing or tax-policy area; no Civil Rights page requires an update on the current record.