RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

2025 Regular Session Introduced by Luke Evslin and 1 co-sponsor

Bill HB 949 extends the Low-Income Housing Tax Credit, boosting affordable housing development for low-income families by broadening eligibility for developers and investors.

Reported from ECD (Stand. Com. Rep. No. 500) as amended in HD 2, recommending referral to FIN.

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Purpose and Intent

Bill HB 949 aims to extend the provisions of the Low-Income Housing Tax Credit (LIHTC) program. This program is designed to incentivize the development and rehabilitation of affordable rental housing for low-income individuals and families. By extending the LIHTC, the bill seeks to enhance the availability of affordable housing options, thereby addressing housing shortages and improving living conditions for low-income residents.

Key Provisions

Extension of the Low-Income Housing Tax Credit: The bill proposes to extend the duration and applicability of the LIHTC, allowing more projects to qualify for tax credits.

Involvement of Limited Liability Companies (LLCs): The bill includes provisions that facilitate the participation of LLCs in the LIHTC program, potentially broadening the pool of developers eligible for tax credits.

Partnerships: The legislation may also introduce changes that affect how partnerships can utilize the LIHTC, making it easier for various stakeholders to collaborate on affordable housing projects.

Affected Parties

Developers and Investors: The bill primarily impacts developers and investors in the housing sector, particularly those involved in affordable housing projects.

Low-Income Families: The ultimate beneficiaries of the bill are low-income families and individuals who will gain access to more affordable housing options as a result of the extended tax credits.

State and Local Governments: Local governments may see an increase in affordable housing developments, which could alleviate some of the pressures on housing markets.

Legislative Timeline and Procedural Aspects

Introduced: January 21, 2025

First Reading: The bill passed its first reading on January 23, 2025.

Committee Reviews:

The bill was reviewed by the House Committee on Housing (HSG) on January 29, 2025, where it was recommended for passage with amendments.
It was subsequently reviewed by the Economic Development Committee (ECD) on February 7, 2025, and again recommended for passage with amendments.

Current Status: As of February 12, 2025, the bill has been reported from ECD as amended in HD 2 and is recommended for referral to the Finance Committee (FIN).

Conclusion

Bill HB 949 represents a significant legislative effort to enhance the Low-Income Housing Tax Credit program, thereby promoting the development of affordable housing. By extending the program and facilitating the involvement of LLCs and partnerships, the bill aims to create a more robust framework for addressing housing needs among low-income populations. The ongoing legislative process will determine the final provisions and impact of the bill.

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