The impact of HB 402 on state laws primarily concerns the support and enhancement of affordable housing initiatives. By implementing a tax credit scheme, the bill not only aims to alleviate the financial burden on landlords participating in housing choice voucher programs but also seeks to stabilize and expand the availability of low-income housing. The Department of Housing and Community Development will oversee the administration of these tax credits, which are limited to a fiscal year allocation of $250,000. By doing so, the state encourages landlord participation while ensuring that funds are distributed in a manageable way.
Summary
House Bill 402 addresses the issue of affordable housing by introducing a tax credit for participating landlords who rent to tenants using housing choice vouchers. This bill amends the Code of Virginia and provides a 10% tax credit against certain taxes for landlords who comply with the stipulations set forth in the bill and rent qualified housing units in specified eligible housing areas. Notably, this helps incentivize landlords to participate in housing programs aimed at assisting low-income individuals, thereby promoting greater access to affordable housing options in metropolitan areas.
Sentiment
The sentiment surrounding House Bill 402 is largely positive, particularly among lawmakers and organizations advocating for housing assistance and affordable housing development. Proponents view the bill as a necessary step in addressing housing insecurity for vulnerable populations. However, there are concerns from some community advocates regarding the implementation and effectiveness of such tax incentives, raising questions about whether they will truly result in sustainable improvements in housing availability and affordability.
Contention
One notable point of contention in discussions about HB 402 seems to focus on whether tax incentives alone are sufficient to address the complex issues surrounding affordable housing. Critics argue that while tax credits can provide temporary relief, they may not tackle the root problems of housing shortages and rising costs comprehensively. Additionally, the criteria for eligible housing areas could be scrutinized for potentially excluding neighborhoods in greater need of support. The debate underscores the ongoing struggle to find effective solutions that balance the interests of landlords with the pressing need for affordable housing options for low-income families.
Income tax credit; providing credit to landlords for rental of dwellings to hard to house people; providing procedures; defining terms; prohibiting refundability of credit; authorizing carry forward of credit. Effective date.
Choice in Affordable Housing Act of 2023 This bill establishes programs and grants to incentivize landlord participation in the Housing Choice Voucher program (i.e., Section 8 tenant-based housing assistance). The bill authorizes the Department of Housing and Urban Development (HUD) to provide one-time incentive payments to landlords, security deposit payments, bonuses to public housing agencies that employ landlord liaisons, and amounts for other recruitment purposes. The bill also reauthorizes through FY2028 the Tribal Housing and Urban Development-Veterans Affairs Supportive Housing program. Additionally, the bill allows dwelling units to meet Housing Choice Voucher program inspection requirements by satisfactory inspection through participation in other housing programs. Landlords not yet participating in a low-income housing assistance program may request inspection by a public housing agency to determine whether the dwelling meets requirements prior to selection by a tenant. Finally, HUD must expand the use of an alternative method of calculating fair market rent for purposes of the Housing Choice Voucher program.