NAHB has commended Sen. Ron Wyden (D-Ore.) for introducing the Middle-Income Housing Tax Credit Act of 2016. The legislation builds on the successful Low-Income Housing Tax Credit by creating a new tax credit to spur the development of rental homes affordable to Americans with moderate incomes.
The new Middle-Income Housing Tax Credit (MIHTC) would allocate funds to states based on population. State housing authorities would then follow a competitive process to allocate the tax credits to developers for new construction or rehabilitation projects.
“Sen. Wyden’s plan would help spur the production of much-needed affordable rental housing for working American families,” said NAHB Chairman Ed Brady. “The new MIHTC would serve as a great complement to the Low-Income Housing Tax Credit, which represents the best of public-private partnerships and is the most successful tool for financing affordable housing.”
Under Wyden’s bill, rents in MIHTC properties must not exceed 30% of Area Median Gross Income (AMGI). While the Low-Income Housing Tax Credit caps the incomes of those in qualifying projects at ... Read the article at the NAHB website