Bill > S5625

This bill, titled the Affordable Housing Construction Act, makes significant updates to the Low-Income Housing Tax Credit (LIHTC)—a federal program established by the Internal Revenue Code that gives state and local agencies the authority to issue tax credits for the acquisition, rehabilitation, or new construction of affordable rental housing for low-income households. Specifically, the legislation substantially increases the overall funding caps allocated to states for these housing credits and mandates that at least one-third of these resources be directed toward specific types of high-priority projects. Furthermore, the bill introduces financial incentives, in the form of increased credit values, for developers who incorporate specific features into their buildings, such as paying workers prevailing construction wages, utilizing renewable energy sources, building near public transportation hubs, incorporating specialized design standards to accommodate people with mental, physical, sensory, or developmental disabilities, or dedicating a specific share of units to extremely low-income families whose annual incomes do not exceed 30 percent of the area median gross income. To ensure long-term affordability, the bill extends the required period that properties must remain dedicated to low-income use from 15 years to 35 years, repeals the "qualified contract option" that previously allowed owners to prematurely exit the program under certain conditions, and adjusts financing rules and tax-exempt bond requirements to further support the development and maintenance of affordable housing.