Enterprise Applauds Senator Bingaman For Introduction Of Low-Income Housing Tax Credit Recovery Act

COLUMBIA, Md. - March 19, 2010 - (RealEstateRama) — Enterprise, a national leader in the affordable housing and community development industry, commends Senator Jeff Bingaman (D-N.M.) for introducing the Low-Income Housing Tax Credit Recovery Act. The bill includes legislation critical to the affordable housing industry.

The recession and the financial crisis have drastically reduced investment in the Low-Income Housing Tax Credit (LIHTC) program during the past few years, preventing the production of much needed affordable housing and eliminating tens of thousands of jobs. According to Ernst & Young, private investment in the LIHTC has fallen from a high of about $9 billion in 2006 and 2007 to about $4.5 billion in 2009, and is expected to remain depressed in 2010. If no action is taken, this reduced investment will result in as many as 60,000 fewer affordable apartments built and 70,000 lost jobs annually in coming years.

“Since its enactment in 1986, the Low-Income Housing Tax Credit program has spurred the creation of more than 1.7 million affordable homes nationwide,” Bingaman said. “But the recession has caused private investment to dry up, just as the need for affordable housing could not be greater. My bill would bring private investment in affordable housing back, helping working families secure affordable housing while creating much-needed construction jobs.”

If passed, the legislation would increase the carryback period for LIHTCs to five years for new housing and qualifying existing housing. Ernst & Young recently determined that this would bring in $5 billion in additional private LIHTC investments. Addressing the depressed investment market is the most important issue facing the LIHTC program.

“Congress’s support and passage of a carryback extension is urgently needed for developers to attract and retain the necessary investment capital to finance, build and rehabilitate affordable apartments,” Charles R. Werhane, president and CEO, Enterprise Community Investment, Inc. “Affordable housing is the cornerstone of success for people and families with low incomes across the country and so Enterprise urges Congress to quickly pass this critical legislation.”

The carryback extension is one of three consensus LIHTC proposals supported by more than 170 national, state and local LIHTC stakeholder organizations working together as part of the Affordable Rental Housing A.C.T.I.O.N. (A Call To Invest in Our Neighborhoods) Campaign. For more information on the campaign, please see www.rentalhousingaction.org.

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Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For 25 years, Enterprise has pioneered neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested $10 billion in equity, grants and loans to help build or preserve more than 250,000 affordable rental and for-sale homes to create vital communities. Enterprise is currently investing in communities at a rate of $1 billion a year. Visit www.enterprisecommunity.org and www.enterprisecommunity.com to learn more about Enterprise’s efforts to build communities and opportunity, and to meet some of the half a million people we have helped.

 

 

 

 

 

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