Up to 200,000 new affordable homes may be built in the next several years, depending upon the fate of tax credit legislation just introduced in the U.S. Senate. Oregon Democrat Ron Wyden and Missouri Republican Jason Smith have introduced what is being described as a $78 billion tax deal that will in part spur low-income housing. In a statement,. Wyden. who is also the chairman of the Senate Finance Committee, remarked: "Fifteen million kids from low-income families will be better off as a result of this plan." Wyden said the proposal will expand an existing federal low-income housing tax credit, and in so doing will put back in place a 12.5% cap on a credit device that had been in place to great effect from 2018 to 2021. What is officially called the Tax Relief for American Families and Workers Act of 2024 will also, if passed, increase the use of private activity bonds to finance affordable housing. A recent report issued by the Washington-based National Low Income Housing Coalition indicated that the U.S. has a shortage of some 7.3 million rental properties for would-be renters with low incomes. That report also said that on average only 33 affordable housing units exist for every 100 low-income rental households, with those numbers varying from 30 or less in Arizona and Colorado, to around 40 in New Mexico. The Wyden-Smith proposal will next have to be approved by the full U.S. Senate and House of Representatives. By Garry Boulard
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