U.S. Senator Cindy Hyde-Smith has expressed her support for a legislative effort aimed at expanding the Low-Income Housing Tax Credit, which is considered a key instrument in promoting private investment in affordable housing. As the chair of the Senate Transportation, Housing and Urban Development Appropriations Subcommittee, Hyde-Smith joined 28 other original cosponsors of the Affordable Housing Credit Improvement Act (S.1515). This bipartisan bill was introduced by U.S. Senator Todd Young.
The proposed legislation seeks to modernize and expand the tax credit to facilitate the construction of nearly 1.6 million new affordable homes over ten years. “Modernizing the Low-Income Housing Tax Credit will help us better use available resources to increase access to affordable housing and work toward ensuring supply keeps up with demand,” stated Hyde-Smith. She noted that Mississippi has benefitted from these credits through community strengthening and economic development.
Since its inception in 1986, this tax credit has led to the construction or renovation of over four million affordable housing units nationwide, representing about 90% of all federally funded affordable housing during this period. It has benefited approximately nine million American households while generating significant economic activity that supported millions of jobs and billions in wages.
In Mississippi specifically, more than 57,000 homes have been developed or preserved using this credit, contributing significantly to state revenue and income generation as reported by The ACTION Campaign.
The Affordable Housing Credit Improvement Act addresses an urgent need as currently one-in-four renters spend over half their income on rent, limiting their ability to afford other essentials.
The legislation has received endorsements from both The ACTION Campaign and the Affordable Housing Tax Credit Coalition. It is now under consideration by the Senate Finance Committee.
In addition to S.1515 in the Senate, U.S. Representative Darin LaHood introduced a companion measure (HR.2725) in the House.
