Affordable housing; tax credits; extension
Under the amended provisions, tax credits will be available for projects placed in service from June 30, 2022, onward, with the potential for a total of $4 million allocated per year until 2023 and $12 million in subsequent years. This expansion is expected to provide significant incentives for developers to participate in creating affordable housing units, thus potentially alleviating some pressure on the housing market. Additionally, the legislation contains stipulations for reallocation of unused tax credits in the following year, promoting efficient use of resources.
House Bill 2318 aims to extend the affordable housing tax credits administered by the Arizona Department of Housing. This bill amends existing legislation, specifically section 41-3954 of the Arizona Revised Statutes, to allocate tax credits for projects that qualify for federal low-income housing tax credits. The proposed changes are to enhance the capacity for affordable housing development across the state, reflecting an ongoing concern regarding housing shortages and accessibility for low-income residents.
While the bill is aimed at enhancing affordable housing, there might be discussions around the long-term fiscal impact of extending these tax credits. Concerns may also arise regarding the criteria for project eligibility and the allocation process to ensure transparency and accountability. Furthermore, the bill mandates annual public hearings to gather feedback on the program's effectiveness, which could shape future iterations of affordable housing policies in the state.