Western Governors applaud provisions to expand the Low-Income Housing Tax Credit, lower the Private Activity Bond financial threshold for affordable housing

In correspondence with the leadership of the Senate Committee on Finance and the House Committee on Ways and Means, Western Governors expressed their bipartisan support for certain provisions in S. 1557, the Affordable Housing Credit Improvement Act (AHCIA) of 2023. The letters of November 21, 2023, signed by Wyoming Governor Mark Gordon, Chair of the Western Governors’ Association (WGA), and New Mexico Governor Michelle Lujan Grisham, WGA’s Vice Chair, specifically highlighted the need to expand and strengthen the Low-Income Housing Tax Credit (LIHTC) to address the nation’s affordable housing shortage. “As the need for affordable housing has grown, state Housing Credit allocations have not kept pace,” the letter read. “Western Governors support expansion of the 9 percent Housing Credit through the reauthorization of a 12.5 percent cap increase in state Housing Credit allocations with a further 50 percent increase moving forward.” In addition, Western Governors expressed their support for an AHCIA provision that would allow states to better leverage their bond authority for housing by lowering the Private Activity Bond financing threshold from 50 to 25 percent. Read, download the full correspondence (Senate letter, House letter) for additional details.

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