Indy Standard

U.S. Senators Todd Young and Maria Cantwell have presented new legislation aimed at addressing the housing affordability crisis impacting many American families. The legislation, known as the Affordable Housing Credit Improvement Act, proposes to construct nearly 1.6 million new affordable homes over the next ten years by enhancing the Low-Income Housing Tax Credit program.

According to recent statistics, around one in four renters, equating to over 11 million families, allocate more than half of their income on rent, affecting their ability to manage essential expenses such as child care and groceries. Furthermore, the number of homeless individuals in the U.S. has risen to over 600,000 on any given day, surpassing levels documented before the COVID-19 pandemic.

The Low-Income Housing Tax Credit program has been responsible for the creation or renovation of over 4 million affordable housing units and remains the most successful federal program in this space. Senator Young highlighted the significance of affordable housing, stating, "Affordable housing is needed in Indiana and across the country. The Affordable Housing Credit Improvement Act will leverage private sector investment to increase the stock of affordable housing in both urban and rural communities."

Senator Cantwell emphasized the urgent need to cut housing costs, noting that "Housing inflation is up 4% over the past year nationally and 4.5% in the Pacific Northwest." The proposed changes seek to make it more economically viable to build affordable homes and reduce rental costs.

In Indiana alone, the act is forecasted to add an additional 36,500 housing units, potentially creating 55,300 jobs and generating more than $6.2 billion in wages. Senators Marsha Blackburn and Ron Wyden are also lead sponsors of the Senate's version of this bill. The House of Representatives has introduced a similar measure, supported by several Congress members.

Senator Blackburn commented, “Ensuring access to affordable housing is a critical component in helping Tennessee continue to grow and prosper.” She noted the importance of the tax credit program in driving private sector investment into affordable housing. Senator Wyden emphasized the bill's importance, stating that "It’s time for Congress to meet the housing crisis with the bold solutions it demands and that starts with increasing housing supply."

The bill has received endorsements from the ACTION Campaign and the Affordable Housing Tax Credit Coalition. The ACTION Campaign's co-chairs described the reintroduction of the act as "a vital step toward addressing our nation’s housing crisis."

The Affordable Housing Tax Credit Coalition's Chief Executive Officer, Emily Cadik, highlighted the "overwhelming bipartisan support" for the act, which underscores the urgency of increasing the supply of affordable housing. She thanked the senators involved for their leadership and the bipartisan support for this legislative effort.

Senator Young has previously introduced the Affordable Housing Credit Improvement Act in 2021 and 2023.