U.S. Rep. Darin LaHood (R-IL) and U.S. Sens. Jerry Moran (R-KS) and Todd Young (R-IN) recently introduced a bipartisan, bicameral bill that would support more investments in low-income housing across rural America.
Specifically, the Preserving Rural Housing Investments Act, H.R. 9267/S. 4933, would clarify the tax-exempt controlled entity rules with respect to certain stock of government-sponsored enterprises (GSEs), such as Fannie Mae and Freddie Mac.
“Affordable housing is vital for families in rural communities throughout Illinois,” said Rep. LaHood. “To address the affordable housing crisis, we must strengthen tools to drive investment into low-income housing and expand options.
“I am proud to introduce the bipartisan, bicameral Preserving Rural Housing Investments Act, which will help reduce housing costs for families and strengthen affordable housing in Illinois,” added the congressman, who on Aug. 2 sponsored H.R. 9267 alongside two Democratic cosponsors.
Sen. Moran on Aug. 1 sponsored the identical S. 4933 in his chamber with seven original cosponsors, including U.S. Sens. Young, Shelley Moore Capito (R-WV), and Mark Warner (D-VA).
Currently, the Internal Revenue Code states that investors partnering with Tax-Exempt Controlled Entities (TECEs) are not entitled to certain benefits, including accelerated depreciation, bonus depreciation, historic rehabilitation tax credits, and certain energy credits that support companies offering affordable housing tax credits, according to information provided by the lawmakers.
If enacted, this legislation would clarify that Fannie Mae and Freddie Mac are not subject to this rule, therefore protecting their participation in partnerships that are vital for low-income housing development.
“Housing affordability issues have a significant impact on rural Americans across the country,” Sen. Moran said. “By making this technical change, rural housing investors that partner with TECEs can confidently invest in the affordable housing tax credits that many rural communities rely upon.”
“I encourage my colleagues to support this bill so that we can continue to improve rural communities in Kansas by reducing housing costs,” he said.
Sen. Young pointed out that the nation can’t address its housing affordability crisis without building more units.
“By making one simple clarification, this bill will unlock new partnerships that are crucial for rural low-income housing investments, bringing much-needed projects to our rural communities,” said Sen. Young.