WASHINGTON, May 16 2022 – The United States Government announced a Housing Supply Action Plan to ease the burden of housing costs over time by boosting the supply of quality housing in every community. The plan includes both legislative and administrative actions to help close the nation’s housing supply shortfall in five years. Among other provisions, the plan includes: test

  • Financing over 800,000 affordable rental units by expanding and strengthening LIHTC through enactment of provisions included in the House-passed reconciliation bill. The bill would increase tax credit allocations, provide additional capacity for private activity bonds to finance affordable housing, target tax credits for housing that serves extremely low-income Americans, and make it easier to produce and preserve affordable housing with tax credits in Indian Country.
  • Providing an additional subsidy through the LIHTC to developments that add net new supply and that would otherwise not be financially feasible. This proposal was included in the FY 2023 budget.
  • Strengthening Government-Sponsored Enterprise (GSE) financing for multifamily development and rehabilitation.
  • Leveraging American Recue Plan funds for investments in affordable housing.
  • Finalizing the LIHTC Income Averaging proposed guidance by the end of September 2022.
  • Advancing HOME as a key tool for the production and preservation of affordable rental and homeownership housing.
  • Providing tax credits to build and rehabilitate homes for low- and moderate-income homebuyers. This proposed legislation, the Neighborhood Homes Investment Act (NHIA), is included in the House-passed reconciliation bill.
  • Improving the alignment of federal funds to reduce transaction costs and duplications and accelerate development.
  • Supporting the construction of more than 8,000 rural multifamily housing units.
  • Supporting new and existing affordable housing in Indian Country.
  • Providing incentives for land use and zoning reforms and reducing regulatory barriers.
  • Addressing supply chain disruptions for building materials.

South Carolina has joined seventeen other states by enacting a state based affordable housing program that mirrors the federal LIHTC. The goal is to add critically needed affordable housing to workforce and income restricted seniors.

Calling it the “Workforce and Senior Affordable Housing Act” and signed into law on May 14, 2020, the program will be administered with the intention of being as robust as other successful state based LIHTC plans.    

Until the Act was passed, Georgia stood alone as having the only state-based low income tax credit plan in the Southeast.

More news to come as the office in Columbia is staffed up.

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We are an underwriting surety agency specializing in P&P and other bonds for LIHTC (4% & 9% and state-based programs), Market Rate developers [HUD 221 (d) (4), etc.,] and GCs. We effortlessly guide our clients through the otherwise difficult approval maze with an innate understanding of how the surety companies think, and exactly what is needed for bond approval. Headquartered in Charleston, South Carolina, we are licensed in 50 states and represent clients nationwide. LIHTC Bonds Ltd Co is an affiliate of Carolina Indemnity Group.

 

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