New legislation introduced Wednesday will make a “generational investment” in affordable housing, including seniors housing, by targeting sweeping financing reforms to combat homelessness and expand affordable housing access, experts say.
The Decent, Affordable, Safe Housing for All (DASH) Act was introduced by Senate Finance Committee Chairman Ron Wyden (D-OR), proposes reforms to local zoning and housing development practices and includes a Middle Income Housing Tax Credit, among other features.
“America is amidst a serious crisis of housing affordability, and it’s a big challenge that demands big, bold solutions,” Wyden said in a statement.
LeadingAge said the bill represents a major show of support for affordable housing by addressing some of the organization’s key priorities, including increasing the supply of affordable housing, expanding the availability of supportive services in affordable housing and combatting homelessness.
Specifically, the legislation would reform local zoning and housing development practices, create a tax credit for affordable housing supportive services, introduce a Middle Income Tax Credit and authorize the Neighborhood Homes Investment Act.
Juliana Bilowich, LeadingAge director of housing operations and policy, said the bill incentivizes important reforms to local zoning and housing development practices by offering a housing and community development grant to jurisdictions that adopt pro-housing policies.
“Improving the housing development process to allow for more affordable housing will be generally very impactful for housing insecure households with low incomes,” Bilowich told McKnight’s Senior Living. “For older adults, specifically, the zoning improvements incentivized by the bill can be targeted to help stem the tide of rising older adult homelessness.”
The legislation also includes the Emergency Affordable Housing Act, which would expand production of affordable housing, provide a boost to projects that prioritize extremely low-income renters, and preserve tens of thousands of affordable housing units by closing a loophole, Wyden said.
The EAHA is projected to produce almost 1 million new affordable housing units over the next decade.
“Repealing the qualified contract loophole is critical for preserving affordable housing across the country, including housing serving older adults,” Bilowich said. “It’s a major fix for the Low-Income Housing Tax Credit program that will benefit everyone, including older adults.”
The legislation also would create a Middle-Income Housing Tax Credit to provide a 50% tax credit to developers on the value of construction costs. States would administer the program, and the federal government would allocate annual credit to states. States could use these dollars to augment their Low-Income Housing Tax Credit program.
Additionally, the bill would authorize the Neighborhood Homes Investment Act, a tax credit to home builders that target neighborhoods with high poverty rates, low incomes and home values below the metro or state median value. State agencies would receive annual allocations and award NHIA tax credits to project sponsors.
In addition, the bill would put $10 billion in the Housing Trust Fund for the next 10 years for states to acquire, develop or rehabilitate deeply affordable housing.
“Expanding the supply of affordable housing is LeadingAge’s top priority,” Bilowich said. “As the country’s primary production tool for new affordable housing units, the Low-Income Tax Credit program is critical to address the housing needs of older adults with low incomes.”
LeadingAge said it expects some portions of the bill to move through the reconciliation process now underway in Congress.
