RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

2025 Regular Session Introduced by Troy Hashimoto

Bill SB 826 enhances the Low-Income Housing Tax Credit, improving eligibility and tax incentives to boost affordable housing for low-income families and support community development.

Carried over to 2026 Regular Session.

#eligibility #lihtc #schoolfacilitiesauthority

Purpose and Intent

Bill SB 826 aims to enhance the Low-Income Housing Tax Credit (LIHTC) program, which is designed to incentivize the development and rehabilitation of affordable housing for low-income individuals and families. The bill seeks to improve eligibility criteria and streamline processes related to the LIHTC, thereby increasing the availability of affordable housing options in the state.

Key Provisions

Eligibility Changes: The bill proposes modifications to the eligibility requirements for the LIHTC, although specific details on these changes have not been disclosed in the current summary.

School Facilities Authority Involvement: The bill includes provisions that may involve the School Facilities Authority, potentially linking housing development with educational infrastructure needs.

Tax Credit Adjustments: While the exact adjustments to the tax credits are not specified, the bill is expected to enhance the financial incentives available to developers who participate in the LIHTC program.

Affected Parties

Developers: Real estate developers who focus on affordable housing will be directly impacted by the changes in eligibility and tax incentives.

Low-Income Families: The primary beneficiaries of the LIHTC program are low-income individuals and families who will gain access to more affordable housing options as a result of this legislation.

Educational Institutions: Schools may benefit indirectly through improved community infrastructure as a result of housing developments linked to the School Facilities Authority.

Legislative Timeline

Introduced: January 17, 2025

First Reading: January 21, 2025

Passed First Reading: January 30, 2025

Committee Reviews: The bill has undergone multiple reviews and amendments in various committees, including Housing (HOU), Ways and Means (WAM), and Finance (FIN).

Recent Actions:

On April 4, 2025, the Senate disagreed with House amendments, leading to the appointment of Senate conferees on April 16, 2025.
The bill is currently in the conference stage, where differences between the House and Senate versions will be reconciled.

Conclusion

Bill SB 826 represents a significant legislative effort to bolster the Low-Income Housing Tax Credit program, aiming to facilitate the development of affordable housing. By adjusting eligibility criteria and potentially linking housing initiatives with educational infrastructure, the bill seeks to address pressing housing needs for low-income families while promoting community development. The ongoing legislative process will determine the final provisions and impacts of the bill.

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