Bennet Joins Colleagues In Introducing Bipartisan LIFELINE Act to Unlock American Rescue Plan Funds for Affordable Housing Development

Denver - Colorado U.S. Senator Michael Bennet and a group of his colleagues introduced the bipartisan LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence (LIFELINE) Act to improve state and local governments' ability to use Fiscal Recovery Plan Funds for the nation's largest affordable housing funding tool, the Low-Income Housing Tax Credit (LIHTC).

"Even before the COVID-19 pandemic, Colorado families faced high housing costs. Now, the pandemic has only deepened this crisis," said Bennet. "We must ensure our communities have full access to every resource to help address our affordable housing crisis. Our legislation will ensure the state of Colorado and Colorado's local governments can use the funds we secured in the American Rescue Plan, along with other critical housing resources, to boost the supply of affordable housing."

The nation is facing a dire shortage of affordable housing, and the Coronavirus Disease 2019 (COVID-19) pandemic has only worsened the problem. An estimated 46% of renters in the United States are cost-burdened. Across the country, $8 billion of State and Local Fiscal Recovery Funds have been earmarked for housing. Under current law, the use of LIHTC with State and Local Fiscal Recovery Funds is counterintuitive. Due to the structure of the tax credit, federal grants used to fill gaps in LIHTC-funded construction are almost always provided as long-term loans. But State and Local Fiscal Recovery Funds must be obligated by 2024 and spent by 2026, which prevents them from being effectively used for such loans. The LIFELINE Act would solve this problem by allowing states and localities to loan State and Local Fiscal Recovery Funds for LIHTC projects.

In addition to Bennet, this legislation is co-sponsored by U.S. Senators Patrick Leahy (D-Vt.), Susan Collins (R-Maine), Ron Wyden (D-Ore.), Catherine Cortez Masto (D-Nev.), Angus King (I-Maine), Maggie Hassan (D-N.H.), Alex Padilla (D-Calif.), Jack Reed (D-R.I), Bernie Sanders (I-Vt.), and Sheldon Whitehouse (D-R.I.).

Ninety-seven local, state, and national organizations have endorsed the LIFELINE Act: Ability Housing, Inc.; Affordable Housing Tax Credit Coalition; Alabama Affordable Housing Association; American Institute of Architects; Applegate & Thorne-Thomsen; AURA; Beacon Communities; Beacon Hill Capital; BPC Action; BRIDGE Housing; CAHEC; California Council for Affordable Housing; CCIM Institute; Centrant Community Capital; Cinnaire; CohnReznick; Community Revitalization and Development Corporation; Council for Affordable and Rural Housing; Council of Development Finance Agencies; Council of Large Public Housing Authorities; Council of State Community Development Agencies; CREA, LLC; CSH; Dauby O'Connor & Zaleski, LLC; Denton Housing Authority; DreamKey Partners; Eden Housing; Enterprise; Evernorth; First Community Housing of San Jose; Greystone Affordable Development; Hawaii Housing Finance, LLC; HDC MidAtlantic; Holland & Knight LLP; Housing Advisory Group; HPN; Illinois Housing Council; Impact Development Partners LLC; Institute of Real Estate Management; Iowa Housing Partnership; KCG Companies; Kittle Property Group, Inc.; Kutak Rock LLP; Lincoln Avenue Capital; Local Initiatives Support Corporation; Low Income Investment Fund; Marble Cliff Capital; Massachusetts Housing Investment Corporation; Merchants Capital; Merritt Community Capital Corporation; Midwest Housing Equity Group; Mills Property Development; Mountain Plains Equity Group; National Apartment Association; National Association for County Community and Economic Development; National Association of Affordable Housing Lenders; National Association of Counties; National Association of Home Builders; National Association of Housing and Redevelopment Officials; National Leased Housing Association; National Association of Local Housing Finance Agencies; National Association of Realtors; National Association of State and Local Equity Funds; National Community Renaissance; National Council of State Housing Agencies; National Council of State Legislatures; National Equity Fund; National Housing & Rehabilitation Association; National Housing Conference; National Housing Trust; National League of Cities; National Low Income Housing Coalition; National Multifamily Housing Council; National Neighborworks Association; Nevada HAND, Inc; NewWest Community Capital; Nixon Peabody; Novogradac; Ohio Capital Corporation for Housing; PENNROSE, LLC; Pennsylvania Developers Council; Public Housing Authorities Directors Association; R4 Capital; RBC Community Investments, LLC; Roof Above; St. Louis Equity Fund; Stewards of Affordable Housing for the Future; Stonehenge Capital; Texas Affiliation of Affordable Housing Providers; The Community Builders Inc.; THE MICHAELS ORGANIZATION; The NHP Foundation; U.S. Conference of Mayors; VCDC; Vermont Housing Conservation Board; Wallick Communities.