Changes to the low-income housing tax credit. (FE)
If enacted, AB182 will alter how tax credits are allocated for low-income housing by reducing reliance on tax-exempt bond financing as a prerequisite. Additionally, the modifications will enable partnerships, limited liability companies, and tax-option corporations to allocate tax credits to individual members or shareholders based on their ownership interests. The bill's changes are expected to broaden participation in the tax credit program, thereby potentially increasing investment in rural housing projects and enhancing affordable living options across the state.
Assembly Bill 182 aims to amend the existing low-income housing tax credit program administered by the Wisconsin Housing and Economic Development Authority (WHEDA). The bill introduces significant changes, including the requirement that at least 35% of allocated tax credits each year be directed toward qualified low-income housing projects in rural areas of Wisconsin. This emphasis on rural areas is intended to promote housing development outside urban centers, addressing a critical need for affordable housing in less populated regions.
There is potential for contention surrounding the implementation of the 35% allocation threshold for rural projects. Proponents argue that such a requirement is crucial for ensuring that rural areas receive adequate housing support. However, critics may raise concerns about the feasibility of meeting this threshold, especially in years when there may not be sufficient applications from rural developments. Additionally, while the modification aims to streamline the process, there is apprehension among local governments and policymakers about how these changes may affect urban housing projects and the overall balance of housing investment across the state.