As COVID-19 leaves millions of Americans without a job and no way to pay for housing, NALHFA encourages Congress to include additional funding for the HOME Investment Partnership Program (HOME), the Community Development Block Grant (CDBG) Program and Emergency Solutions Grants (ESG). Additionally, NALHFA encourages Congress to include increased flexibility for these programs to allow administrators to efficiently respond to the housing crisis.
NALHFA along with the
urges Congress to provide a one-year extension for three key program deadlines for the Low Income Housing Tax Credit (Housing Credit) program:
- 10 percent test deadlines - Currently, at least 10 percent of the anticipated basis of a development must be expended within one year of the Housing Credit allocation. We propose temporarily extending this deadline to the end of the second year of allocation for properties that received Housing Credit allocations between December 31, 2016 and January 1, 2022.
- Placed in service deadlines - Buildings must currently be placed in service by the end of the second year after the calendar year of the Housing Credit allocation. We proposed temporarily extending this deadline to the end of the third year after the calendar year of allocation for properties that received Housing Credit allocations between December 31, 2016 and January 1, 2022.
- Rehabilitation expenditure deadlines - These are currently required to be placed in service within 24 months. We propose temporarily extending the rehabilitation expenditures deadline to be met at the close of 36-months.
We also recommend that Congress enact a minimum 4 percent Housing Credit rate to bolster future production and preservation of affordable housing. With federal borrowing rates effectively zeroed out in response to COVID-19’s economic impacts, the 4 percent Housing Credit rate is at an all-time low of 3.12 percent, and will likely dip even further next month.