Dear Friend,

This week, NHC’s attention is focused on two of the most important affordable housing programs in the country: One that has a nearly 30-year track record of success; and the other, which could grow into the largest community development tool in American history – if it is done right. I’m talking about the Federal Home Loan Banks Affordable Housing Program, or AHP, and the Opportunity Zone program, enacted into law in December and currently under development at the Treasury Department.

I am pleased to announce that NHC is forming an Opportunity Zone Task Force. In numerous conversations with NHC members, I have heard both high hopes and serious concerns about the Opportunity Zones and their potential to fund much-needed community development throughout the country.

Right now Treasury is working on guidance for Opportunity Zones, including the certification of Qualified Opportunity Funds and eligible investments in Qualified Opportunity Zones. If done right, this program has enormous potential to change communities for the better. But if the guidance is not properly written, the program could devolve into a controversial tax shelter with unlimited headline risk, potentially hyper-charging already strong markets and driving rents and home prices out of the range of most Americans. NHC and our members have a critical opportunity to shape this program’s development. While there are several organizations looking into various aspects of Opportunity Zones, none represent the deep and diverse base of experience that resides among NHC’s membership. If you would like to join our Opportunity Zone Task Force, please email me directly at davidmdworkin@nhc.org and I will include you in our first meeting, to be held next week.

 

My hope is that Opportunity Zones will become the kind of long-term success that we have seen with the Low Income Housing Tax Credit and the AHP. Since 1990, the AHP program has awarded more than $5.4 billion which has assisted in the purchase, construction or rehabilitation of more than 827,000 units of affordable housing. Given this significant role we want to ensure that proposed changes are carefully reviewed by all stakeholders. The proposed amendments represent the most extensive revisions to the AHP in over 20 years. At over 190 pages, the complexity and length of the proposed rule have presented analytical challenges. That’s why NHC is asking our members to join us in requesting that the Federal Housing Finance Agency extend the comment period for its proposed rule.

You can read a copy of the extension letter and sign onto it here. The deadline to sign on is COB Thursday, April 26.

While we wait to hear back about our extension request, NHC plans to submit comments by the May 14 deadline and we encourage others to do the same. We are actively engaging with our membership and partner organization as we draft our comments. If you have not already engaged with us on this issue and would like to, please contact me or Kaitlyn Snyder.