Working Families Housing Tax Credit Act
Sponsored By: Representative Rep. Ryan, Patrick [D-NY-18]
Introduced
Summary
Working Families Housing Credit (WFHC) would create a new 15-year tax credit to stimulate construction and rehabilitation of housing for teachers, firefighters, police, veterans, and other working Americans. It pairs new tax rules with state allocation limits, unit income and rent tests, and a linked rural and exurban infrastructure financing program.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Credit for owner-occupied 1-4 unit homes
This bill would let owners of 1–4 unit homes qualify for the credit when the work is part of a state, local, or qualified nonprofit plan. For these homes, the applicable fraction could not exceed 80% of the unit fraction. Any unit not rented for 90 days would be treated as owner‑occupied from the first day it is not rented. These rules would apply to buildings placed in service after December 31, 2025.
New housing tax credit for builders
This bill would create a 15-year Working Families Housing Credit for qualified buildings. Each year’s credit would equal an applicable percentage times qualified basis, with Treasury setting rates so the total is worth about 50% of basis for new buildings or 60% for existing ones. Eligible basis rules would include a 10-year acquisition rule for existing buildings, a 24-month rehab test, and an exclusion for costs paid with Federal grants; first-year credits would be prorated with a catch-up in year 16. Minimum percentage floors would apply (5% if not federally subsidized; 2% for certain bond-financed LIHTC projects), but some subsidized projects could get 0%; owners would also have to meet prevailing‑wage‑like rules and reduce the building’s tax basis by the credit. Special rules would cover when a project is treated as federally subsidized, how to split credits in a sale year, estate/trust apportionment, and a waiver for buildings bought from failed banks. These changes would apply to buildings placed in service after December 31, 2025.
Rent caps and tenant protections in credit homes
This bill would set clear income and rent rules for “working families” units. Projects would need at least 20% of units for households at or below 60% of area median income and at least 40% under taxpayer‑set imputed limits; the average designated limit could not exceed 100% of area median income. Rents would be capped at 30% of each unit’s imputed income limit, and student‑only households under 24 would face limits with listed exceptions. Owners would need an extended‑use agreement with tenant enforcement rights, a recorded covenant, and no refusal of Section 8 voucher holders because of voucher status; post‑foreclosure, tenants would get three years of anti‑eviction and rent protections. For rural projects, income limits would use the higher of local AMGI or the national non‑metro median.
More rural housing credits and infrastructure
This bill would raise each State’s housing credit ceiling by 20% of its base amount, with the extra reserved for rural or exurban buildings. It would also fund $100 million in grants and below‑market loans to local governments in rural and exurban areas for electricity, water, sewers, local roads, and similar projects tied to credit properties. The Secretary would prioritize clean‑energy electricity projects. Grants and loans would depend on Congress approving the money.
Nonprofit set-aside and allocation rules
This bill would reserve at least 10% of a State’s housing credit ceiling for projects where a qualified nonprofit owns an interest and materially participates. Agencies could allocate credits only within their jurisdiction, and over‑allocations would be cut back in reverse order. At allocation, agencies would have to state the applicable percentage and the maximum qualified basis for each building. Treasury and HUD would work to align definitions and streamline rules for buildings that also get HUD funding.
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Sponsors & CoSponsors
Sponsor
Rep. Ryan, Patrick [D-NY-18]
NY • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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