STATE GOVERNMENT-TECH

104th Regular Session Introduced by Chris Welch

Bill HB 916 boosts the Low-Income Housing Tax Credit, increasing tax incentives for developers and expanding affordable housing access for low-income families.

Purpose and Intent

Bill HB 916 aims to enhance the effectiveness of the Low-Income Housing Tax Credit (LIHTC) program. The intent is to stimulate the development of affordable housing options for low-income individuals and families, thereby addressing the ongoing housing crisis in the region. By making adjustments to the LIHTC, the bill seeks to incentivize developers to invest in affordable housing projects.

Key Provisions

While the specific details of the amendments made to the bill during its progression are not fully outlined, the following key provisions are expected to be included based on the legislative actions:

Increased Tax Credits: The bill may propose an increase in the amount of tax credits available to developers who build or rehabilitate low-income housing.

Eligibility Criteria: Adjustments to the eligibility criteria for both developers and low-income tenants may be introduced to broaden access to the program.

Funding Allocations: The bill could outline specific funding allocations or mechanisms to ensure that the LIHTC is adequately supported financially.

Affected Parties

The primary beneficiaries of HB 916 would include:

Low-Income Families: Individuals and families who struggle to find affordable housing will have increased access to housing options.

Developers: Real estate developers who engage in the construction or rehabilitation of affordable housing units will benefit from enhanced tax incentives.

Local Communities: Communities may experience revitalization and economic growth as new affordable housing projects are developed.

Legislative Timeline and Procedural Aspects

Introduced: January 21, 2025

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

Committee Reviews:

The bill was referred to the House Committee on Housing (HSG) and subsequently to the Committee on Tourism, Culture, and International Affairs/Economic Development (TOU/ECD).
On January 29, 2025, the HSG committee recommended the bill be passed with amendments.
The bill passed its second reading on February 4, 2025, and was referred to TOU/ECD.

Current Status: As of February 11, 2025, the TOU/ECD committee has recommended that the measure be deferred, indicating that further discussion or amendments may be necessary before it proceeds.

Conclusion

Bill HB 916 represents a significant effort to bolster affordable housing initiatives through the Low-Income Housing Tax Credit program. While it has passed initial legislative hurdles, its future will depend on further committee discussions and potential amendments to address any concerns raised during the review process.

Bill