Rouzer, Adams Introduce Bipartisan Affordable Housing Legislation

Press Release

Today, Congressman David Rouzer (NC-07) and Congresswoman Alma Adams (NC-12) announced introduction of H.R. 7078, the LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence Act or LIFELINE Act in the United States House of Representatives. The LIFELINE Act would make unused COVID-19 funds available for affordable housing developments receiving low-income housing tax credits.

Companion legislation is led by Senator Patrick Leahy (D-VT) in the U. S. Senate.

Text of the legislation is available here.

"Communities in Southeastern North Carolina, like many others around the country, are facing an affordable housing crisis," said Rep. Rouzer. "I'm pleased to join my colleague, Congresswoman Alma Adams, to introduce common-sense legislation that would enable cities, counties, and states to repurpose unused COVID-19 dollars within the State and Local Fiscal Recovery Fund to support affordable housing developments. The legislation would incentivize new construction and also help existing homeowners make the necessary repairs to remain in their homes.

"The citizens of our communities need the tools necessary to have a safe, affordable place to live. This is a bi-partisan effort to address the affordability of housing and strengthen communities across the country during a very difficult time for many," concluded Rouzer.

"I'm proud to lead a bipartisan team of legislators in the House and the Senate to introduce the LIFELINE Act, legislation that will protect and preserve affordable housing developments that rely upon low-income housing tax credits (LIHTC)," said Congresswoman Adams. "Over 20 states have declared their intention to use money from the American Rescue Plan ensure that the pipeline of affordable housing units will remain robust. Our legislation removes the statutory barriers in place, so that cities, counties, and states can use their State and Local Fiscal Recovery Fund dollars to support affordable housing developments.

"The LIFELINE Act solves another piece of the housing puzzle, and brings us closer to a future where every American family can afford a decent, affordable place to live," concluded Adams. Adams is a member of the House Financial Services Committee, the committee of jurisdiction for housing.

Background:

Earlier this year, the Treasury Department issued a final rule pertaining to the State and Local Fiscal Recovery Fund (SLFRF), which was created by the American Rescue Plan Act of 2021 (ARPA). Per that rule, SLFRF dollars must be obligated by December 31, 2024 and expended by December 31, 2026.

As a result of present economic conditions, the cost of developing housing units has risen significantly. Over 20 states have declared their intention to use SLFRF dollars to offset those costs and ensure that the pipeline of affordable housing units will remain robust; however, Treasury's final rule has presented an immediate and insurmountable barrier for states and localities wishing to do so. Because funds must be expended by 2026, states cannot continue to make LIHTC payments for the duration of previously-negotiated contracts; nor can these funds be given immediately as grants without reducing the cost basis for developers and disincentivizing construction.

The LIFELINE Act, which was drafted in consultation with the Treasury Department, the authorizing committees for SLFRF, and housing stakeholders, would provide the legislative solution required by deeming SLFRF dollars put towards housing credit development as considered expended in compliance with statutory requirements.

Source