President Bush Signs H.R. 3221

On Wednesday, July 30, 2008, President George W. Bush signed into law H.R. 3221. Coalition legislative counsel James F. Miller was at the White House for the signing and had an opportunity to thank President Bush for signing the legislation.  Miller also explained the enormous benefit the Low Income Housing Tax Credit program provides to low- and moderate-income renters.

As previously reported, the final legislation includes a section of provisions related to the Low Income Housing Tax Credit (Housing Credit) program many of which were included in the Coalitions list of legislative priorities for 2008.  A copy of the legislation and an explanation of the Housing Credit related provisions are attached. The Housing Credit provisions begin on page 602 in Division C – Tax Related Provisions, Title I – Housing Tax Incentives.  Specifically, the Housing Credit provisions included in the legislation would (not an exhaustive list): 

• Allow a temporary $0.20 percent per capita increase in Housing Credit Authority for 2008 and 2009 with a 10 percent increase to the small state minimum.  
• Exempt Housing Credit investments from the alternative minimum tax (AMT) 
• Eliminate the Housing Credit recapture bond requirement and replace it with a reporting requirement 
• Temporarily fix the annual Housing Credit percentage at 9 percent. 
• Allow a 30 percent increase in eligible basis for properties determined by state allocating agencies as needing additional Housing Credits to achieve financial feasibility 
• Provide clarification on the general public use requirement 

The legislation also includes provisions designed to provide relief to Fannie Mae and Freddie Mac and provisions regarding the Community Development Block Grant program.