Specifies that low-income housing tax credits may be issued both for projects creating new housing and projects renovating and preserving existing housing

2025 Regular Session Introduced by Rachel May

Bill S 4416 expands low-income housing tax credits to include renovations, boosting affordable housing for low-income families and revitalizing communities.

REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Bill Information

Bill Number: S 4416

Title: Specifies that low-income housing tax credits may be issued both for projects creating new housing and projects renovating and preserving existing housing

Status: Referred to Housing, Construction and Community Development

Introduced: February 04, 2025

Classification: Bill

Purpose and Intent

Bill S 4416 aims to expand the scope of low-income housing tax credits (LIHTC) to include not only the construction of new housing units but also the renovation and preservation of existing housing. This legislative change is intended to address the growing need for affordable housing options by incentivizing the improvement of current housing stock, thereby enhancing living conditions for low-income residents.

Key Provisions

Expansion of Tax Credits: The bill allows for the issuance of low-income housing tax credits for:

New Housing Projects: Construction of entirely new residential units designated for low-income families.
Renovation Projects: Upgrading and preserving existing housing units to meet safety and livability standards.

Eligibility Criteria: Specific criteria for projects to qualify for tax credits will be established, ensuring that both new constructions and renovations meet the necessary standards for low-income housing.

Impact

Beneficiaries: The bill is expected to benefit:

Low-Income Families: By increasing the availability of affordable housing options through both new developments and improved existing units.
Developers and Contractors: By providing financial incentives to invest in housing projects, thereby stimulating economic activity in the construction sector.

Community Development: The renovation of existing housing can lead to revitalized neighborhoods, improved property values, and enhanced community stability.

Procedural Aspects

Current Status: As of February 4, 2025, the bill has been referred to the Housing, Construction and Community Development committee for further consideration.

Related Legislation: This bill is related to S 9097 from the prior session, which may provide context or additional provisions relevant to low-income housing tax credits.

Conclusion

Bill S 4416 represents a significant step towards addressing the affordable housing crisis by broadening the application of low-income housing tax credits. By supporting both new construction and the renovation of existing properties, the bill seeks to create a more inclusive approach to housing development, ultimately benefiting low-income families and communities at large.

Bill