By WMBD-TV
PEORIA – Two provisions in the bipartisan American Families and Workers Act intend to address the nationwide housing crisis by creating more affordable housing opportunities.
The bill will expand and strengthen low-income housing tax credits by reducing bond financing requirements and increasing the amount of credits given to states. The affordable housing provisions come from the Affordable Housing Credit Improvement Act, which is co-sponsored by Congressman Darin LaHood (R-Ill.)
“It really means there are more tax credits available and they are easier to use,” said Jane Genzell, executive director of affordable housing developer Peoria Opportunities Foundation.
Peoria Opportunities Foundation built 30 affordable housing units in the East Bluff in the past two years. In June, they will break ground on Churchville Garden Apartments, a 47-unit apartment complex in the Southside.
Genzell said there is a gap of 2,000 to 4,000 units of affordable housing in Peoria. Affordable housing means spending about 30% of your income on housing.
“Every day, I get phone calls from people looking for an affordable quality place to live. So in Peoria, in the state, in the nation there is a lack of affordable quality housing,” she said.
Low-income housing tax credits are essential for affordable housing developers, but Genzell said the application process is highly competitive. Only about 25% of applications are awarded tax credits in Illinois.
“In this country, the LIHTC is the main vehicle for developing affordable housing. About 90% of affordable housing in the United States is built with low-income housing tax credits. So yes, we are dependent on the tax credits,” she said.
LaHood advocated for the bill on the House floor before Wednesday’s vote, which passed 357 to 70.
“We are facing an affordable housing crisis in this country…Strengthening the low-income housing tax credit established by Ronald Reagan is key in this, and will be very successful to bridging the gap to more affordable housing in the country,” he said.
The bill is expected to create 300 thousand jobs nationwide, including 6,000 jobs in Illinois.
“It’s been very bipartisan. It’s been very supported on both sides of the aisle, and part of the reason is because it’s good for business by the taxes generated, the jobs created. And its also good for the people who need affordable housing, so its good for everybody,” said Genzell.
The bill is estimated to build 2 million affordable homes across the country over the next decade. It now heads to the Senate for approval.
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