Last week, Senator Cantwell announced a national campaign to expand funding for the federal Low Income Housing Tax Credit (LIHTC) program. The proposed 50% increase would finance an estimated 35,000 affordable units in Washington State over the next decade, around 4,200 more units than would be possible under the status quo.
The LIHTC program is divided between noncompetitive “4%” tax credits and competitive “9%” tax credits. Both have the same funding mechanism, though the competitive “9%” level provides double the equity for housing projects, thus making it more feasible to serve households with incomes below 50% AMI, where Snohomish County’s greatest need is concentrated. The proposed increases would apply to the competitive program, and are sorely needed. Senator Cantwell’s office has also prepared a report on why this increase is needed, including an overview of what changes are being proposed.