Urging The United States Congress To Support The Workforce Housing Tax Credit Act.
The proposed Workforce Housing Tax Credit Act aims to address this issue by creating federal income tax credits specifically for housing development projects targeted at middle-income families. These families earn too much to qualify for traditional low-income housing assistance yet do not make enough to afford housing in proximity to their workplaces. The Act is designed to complement existing low-income housing tax credits, targeting tenants earning between sixty and one hundred percent of the area median income, and is expected to significantly boost the development of affordable housing projects nationwide.
It is estimated that the implementation of the Workforce Housing Tax Credit could finance the construction of approximately 344,000 rental homes over a ten-year period. By appealing to Congress to support this Act, HCR202 positions Hawaii as an advocate for innovative solutions to the housing crisis, with the potential to create lasting positive changes in affordable housing availability for middle-income families.
HCR202 is a House Concurrent Resolution from the State of Hawaii, introduced in the Thirty-Second Legislature, 2024, urging the United States Congress to support the Workforce Housing Tax Credit Act. The resolution highlights the pressing housing affordability crisis affecting communities across the United States, particularly middle-class families who are increasingly unable to purchase homes due to rising prices. As a result, many are forced to seek rental options that are still out of reach due to inadequate supply and escalating rental costs.
Key features of the Workforce Housing Tax Credit include allowing local authorities to determine which projects best suit their community needs and facilitating public-private partnerships to fund these developments. The program introduces additional flexibility for states, permitting them to convert their allocations between workforce and low-income housing tax credits as needed. There is a concern regarding the restriction that mandates at least sixty percent of units in new developments be occupied by individuals earning less than a specified income threshold, which may lead to disputes on property management and long-term affordability.