Feenstra, LaHood Introduce Legislation to Build More Affordable Housing in Rural Communities and Nationwide

WASHINGTON, D.C. – Today, U.S. Reps. Randy Feenstra (R-IA) and Darin LaHood (R-IL) – alongside more than 100 original cosponsors in the U.S. House of Representatives – introduced the Affordable Housing Credit Improvement Act, which would support the financing and development of affordable housing in rural communities and nationwide.

“In rural Iowa, access to affordable housing is critical for young families looking to plant their roots, local businesses attracting employees, and the long-term growth of our economy. However, with housing costs consistently increasing and construction projects being more difficult to finance in rural areas, we need to enact smart and cost-effective strategies to expand the housing supply and bring down prices,” said Rep. Feenstra. “I’m glad to work with my Ways and Means Committee colleague, Rep. Darin LaHood, to introduce the Affordable Housing Credit Improvement Act to expand and improve incentives in the tax code to build more housing. This commonsense policy will pay dividends for affordable housing in rural Iowa and help our families find housing options that fit their budgets.”

“As I travel throughout Illinois' 16th Congressional District, I frequently hear how the shortage of affordable housing impacts our communities throughout central and northwestern Illinois,” said Rep. LaHood. “To address this growing crisis across the country, Congress must strengthen tools to drive investment into affordable workforce housing and expand housing options for hardworking families nationwide. I am proud to reintroduce the bipartisan Affordable Housing Credit Improvement Act alongside Representatives DelBene, Tenney, Beyer, Feenstra, and Panetta to strengthen our communities and support economic development.” 

Since its creation, the Housing Credit has built or restored more than 3.5 million affordable housing units, nearly 90% of all federally funded affordable housing during that time. Roughly 8 million American households have benefited from the credit, and the economic activity that it generated has supported 5.5 million jobs and generated more than $617 billion in wages.

The Affordable Housing Credit Improvement Act will support the financing of nearly two million new affordable homes across the country by:

• Increasing the number of credits allocated to each state by 50 percent for the next two years and making the temporary 12.5 percent increase secured in 2018 permanent. These credits have already helped build more than 59,000 additional affordable housing units nationwide.
• Increasing the number of affordable housing projects that can be built using private activity bonds. This provision stabilizes financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity needed to secure Housing Credit funding. As a result, projects would have to carry less debt, and more projects would be eligible to receive funding.
• Improving the Housing Credit program to serve at-risk and underserved communities, including veterans, victims of domestic violence, and rural Americans.

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