North Carolina Affordable Housing Conference Industry Update Emily Cadik AHTCC Executive Director October 8, 2019 @EmilyCadik @AHTCCoalition

Major Policy Trends Political landscape in uncharted territory Year-end legislative agenda unclear Bright spot for bipartisanship: Affordable Housing Credit Improvement Act to expand and strengthen Housing Credit Policy initiatives from the Administration – CRA Reform, Housing Finance reform, and repositioning HUD’s housing stock Looking ahead to the 2020 elections – and making housing part of the national conversation

The Affordable Housing Credit Improvement Act History 2015 9 percent Housing Credit rate made permanent 2016 AHCIA first introduced by Sens. Maria Cantwell (D-WA) and Orrin Hatch (R-UT) 2017 AHCIA reintroduced by Sens. Maria Cantwell and Orrin Hatch, first introduced in House by Reps. Pat Tiberi (R-OH) and Richard Neal (D-MA) 2017 Housing Credit and Private Activity Bonds preserved in tax reform 2018 12.5 percent Housing Credit allocation increase for four years (2018 – 2021) and income averaging enacted in Consolidated Appropriations Act of 2018

The Affordable Housing Credit Improvement Act AHCIA Reintroduction Sponsors S. 1703: Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Johnny Isakson (R-GA) H.R. 3077: Representatives Suzan DelBene (D-WA), Kenny Marchant (R-TX), Don Beyer (D-VA), and Jackie Walorski (R-IN)

The Affordable Housing Credit Improvement Act AHCIA Reintroduction S. 1703 and H.R. 3077 introduced June 2019 Total Provisions: 27 5 new provisions 4 updated provisions 2 provisions added to H.R. 3077 only

Key Affordable Housing Credit Improvement Act Provisions Returning Provisions New Provisions Housing Credit expansion Bond recycling Minimum 4% rate Rural basis boost Preservation provisions Cost reasonableness Provisions to support housing for hard-to-reach areas (e.g. rural and Native) and populations (e.g. extremely low income) Veterans fix Provisions to combat NIMBYism (including name change) Protections for victims of domestic violence

Key Provisions: Increasing Production The Affordable Housing Credit Improvement Act Key Provisions: Increasing Production 50 percent allocation increase phased in over five years (updated provision in S. 1703 and new in H.R. 3077) Estimated 384,455 additional homes financed 4 percent minimum Housing Credit rate At least 66,000 additional homes financed Expand Multifamily Housing Bond recycling (new provision) At least 100,000 additional homes financed *Source: Novogradac & Company

Potential AHCIA Impact The Affordable Housing Credit Improvement Act Potential AHCIA Impact Source: Novogradac & Company

The Affordable Housing Credit Improvement Act Key Provisions Serving Hard-to-Reach Areas and Populations Rural areas Native American communities Veterans Extremely low-income households Better Facilitating Preservation of Existing Affordable Housing Streamlining and Simplification Encouraging Cost Reasonableness

AHCIA Support in North Carolina Current Co-sponsors Previous Co-sponsors Rep. George Holding (R-NC-2) Rep. David Rouzer (R-NC-7) Rep. Ted Budd (R-NC-13) Rep. Patrick McHenry (R-NC-10) Rep. Mark Meadows (R-NC-11) Rep. Richard Hudson (R-NC-8) Rep. Mark Walker (R-NC-6) Rep. G. K. Butterfield (D-NC-1) Rep. David Price (D-NC-4) Rep. Alma Adams (D-NC-12)

The Affordable Housing Credit Improvement Act Potential Legislative Vehicles for AHCIA Temporary tax provisions Technical corrections to the Tax Cuts and Jobs Act of 2017 Spending bill

Resources ACTION Resources: www.rentalhousingaction.org Advocacy & Engagement Resources ACTION Resources: www.rentalhousingaction.org AHCIA one-page overview, summary of all provisions, and explanation of differences between the 115th and 116th Congress versions National, state, and district fact sheets Cosponsor lists for S. 1703 and H.R. 3077 AHTCC Resources: www.taxcreditcoalition.org Help with groundbreakings and grand openings Sample letters

CRA Reform OCC released Advance Notice of Proposed Rulemaking in September 2018 Notice of Proposed Rulemaking expected this fall Impact on affordable housing Investment appetite and pricing Investment footprint

Housing Finance Reform Treasury and HUD plans released September 2019 Moving towards ending GSE conservatorship through recap and release No change to Fannie and Freddie Housing Credit investments at this time No changes to Housing Trust Fund and Capital Magnet Fund resources at this time But Treasury plan suggests replacing affordable housing goals with a fee to be appropriated to HUD affordable housing programs No major housing finance reform legislation expected this year

Trends at HUD Robust funding for HUD programs Repositioning and RAD A growing portion of HUD’s portfolio shifting to public- private partnership model Underscores need for more Housing Credit resources Reducing regulations White House Task Force

Looking Ahead 2020 elections Housing as a campaign issue Expanding Housing Trust Fund Renter credits Reducing local regulations

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