District of Columbia Low-Income Housing Tax Credit Amendment Act of 2023
The bill outlines the total value of credits available for allocation by the Department of Housing and Community Development, establishing incrementally increasing amounts over the next several fiscal years. Notably, it mandates that tax credits cannot exceed 9% of the project's qualified basis and requires that these credits be awarded competitively, ensuring that only projects meeting specific criteria can receive support. These changes are aimed at enhancing the structure of the low-income housing credit program and ensuring financial feasibility of projects.
B25-0289, known as the 'District of Columbia Low-Income Housing Tax Credit Amendment Act of 2023', aims to amend existing legislation governing low-income housing tax credits in the District of Columbia. The bill introduces new definitions, particularly clarifying what constitutes an 'eligible project' and setting standards for median family income (MFI). It specifies that eligible projects must include more than five housing units, with affordability targeted at tenants earning no more than 80% of MFI. This structure is intended to bolster the availability of affordable housing in the area.
One of the more contentious aspects of the bill relates to the recapture provisions and compliance measures for tax credits awarded after October 1, 2024. The Department will hold the authority to recapture credits or impose fines on projects found non-compliant with established criteria. Critics may argue that stringent recapture provisions could dissuade developers from pursuing housing projects, while supporters may contend that such measures are essential for maintaining integrity in the awarding of tax credits and ensuring that public funds are utilized effectively.