## Legislative bill overview

The bill HR 236, titled the "Affordable Housing Credit Improvement Act of 2023," aims to amend the Internal Revenue Code to enhance the Low-Income Housing Tax Credit (LIHTC) program. The primary objectives include increasing the number of affordable housing units, promoting the development of housing in underserved areas, and providing flexibility in the use of credits for various housing projects. Key provisions propose raising the annual LIHTC allocation, allowing for an increase in the maximum credit rate, and expanding eligibility criteria for developers.

## Why is this important

This legislation is significant as it addresses the ongoing affordable housing crisis in the United States, where millions face housing instability. By potentially increasing the supply of affordable housing, the bill could help alleviate some of the pressures on low-income families and individuals. Additionally, it aims to stimulate economic growth by encouraging construction jobs and revitalizing communities, particularly in areas that have historically seen limited investment.

## Potential points of contention

• Critics may argue that increasing tax credits could lead to reduced federal revenue, raising concerns about budget deficits.


• There may be debates regarding how effectively the credits will be utilized in truly underserved areas versus wealthier neighborhoods.


• Some stakeholders could express skepticism about the bill's ability to create long-term sustainable housing solutions versus short-term fixes.


• Potential opposition from local governments or communities concerned about increased density and changes in neighborhood character.