The U.S. House likely will consider a final version of the Tax Extender Act of 2009 (H.R. 4213), which will include significant provisions that impact affordable housing. In a hard fought victory, we understand that the bill will include the first year capitalization of $1 billion for the National Housing Trust Fund thanks to an unprecedented campaign for signatories to a letter urging the Congress to fund it. The campaign garnered more than 2200 signatures from national, state, and local housing organizations, at least one from every congressional district.
The legislation also is expected to include an extension of the housing tax credit exchange program first authorized in the American Recovery and Reinvestment Act for one more year applicable to 2010 housing credits. allows state housing agencies to elect to receive a payment in lieu of a portion of the State’s allocation of low-income housing tax credits. This proposal is estimated to cost $471 million over 10 years.
The low income housing tax credit investment picture is still dark, so the exchange program is necessary to provide incentives for building or rehabilitating affordable rental housing.