ELLY GRIMM
• Leader & Times
The need for more housing in rural areas has been a hot topic for a long time, and recently, some legislation was introduced to potentially help with just that.
Last Thursday, U.S. Senators Jerry Moran, Mark Warner (D-Va.)and Todd Young (R.-Ind) and U.S. Representatives Darin LaHood (IL-16) and Dan Kildee (MI-08) introduced legislation to amend the Internal Revenue Code to clarify Government Sponsored Enterprises Fannie Mae and Freddie Mac are able to participate in partnerships that are crucial for low-income housing investments.
“In 2023, Sens. Moran and Warner led 20 of their colleagues urging Treasury Secretary Janet Yellen to provide written guidance that clarifies that the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac are not Tax-Exempt Controlled Entities (TECEs),” a release from Moran’s office noted. “Current Internal Revenue Code contains a provision stating that investors partnering with TECEs are not entitled to certain benefits, including accelerated depreciations, bonus depreciation, historic rehab tax credits or certain energy credits that support companies offering affordable housing tax credits. This legislation would clarify that Fannie Mae and Freddie Mac are not subject to this rule, therefore protecting their participation in partnerships that are crucial for low-income housing investments.”
The legislation received much praise from Moran and his colleagues.
“Housing affordability issues have a significant impact on rural Americans across the country,” Moran noted in the release. “By making this technical change, rural housing investors that partner with TECEs can confidently invest in the affordable housing tax credits that many rural communities rely upon. I encourage my colleagues to support this bill so that we can continue to improve rural communities in Kansas by reducing housing costs.”
“Far too many folks across Virginia – including those in rural communities – are suffering because of the affordable housing crisis,” Sen. Warner noted in the release. “We need an all-hands-on-deck approach to getting investments into rural communities and expanding housing options for low-income Americans. I’ve been continuously raising the alarm about the commonsense fix in the Preserving Rural Housing Investments Act. We must pass this bipartisan legislation so we can unlock investments in our rural communities and cut housing costs for hard-working Virginians.”
“We can’t address our housing affordability crisis without building more units,” Sen. Young noted in the release. “By making one simple clarification, this bill will unlock new partnerships that are crucial for rural low-income housing investments, bringing much-needed projects to our rural communities.”
“Affordable housing is vital for families in rural communities throughout Illinois,” Rep. LaHood noted in the release. “To address the affordable housing crisis, we must strengthen tools to drive investments into low-income housing and expand options. I am proud to introduce the bipartisan, bicameral Preserving Rural Housing Investments Act, which will help reduce housing costs for families and strengthen affordable housing in Illinois.”
“Our bill, supported by Democrats and Republicans, will help expand rural affordable housing opportunities across Michigan,” Rep. Kildee noted in the release. “By clarifying outdated rules in the tax code, we can protect investments in rural affordable housing in the small-town communities that need it the most.”
Other state leaders also praised the legislation, saying it has been a long time coming.
“The members of the National Association of State and Local Equity Funds are not-for-profit providers of equity capital who are on the front lines financing affordable housing, including in difficult to serve rural areas,” Michelle Foster, Executive Director, NASLEF, noted in the release from Moran’s office. “The residents we serve in small towns and rural areas are the most impacted by the uncertain interpretation of the tax-exempt controlled entity issue and we grateful to Senators Warner and Moran for their efforts to clarify this issue through this needed legislation. Senators Warner and Moran are rightfully focused on the needs of their rural constituencies and we hope this legislation can be enacted in the near future.”
"Rural communities face an unseen housing crisis that we work every day to address," Mark McDaniel, President and CEO of Cinnaire. noted in the release from Moran’s office. "This common-sense legislation will help us bring investment to create more quality housing options in rural America. We strongly endorse this bipartisan effort to make sure rural communities get the support they need to thrive."
“The Housing Credit program is essential for building and preserving rental housing in rural America, the very communities that have some of our most dire affordable housing challenges,” Stockton Willions, Executive Director of National Council of State Housing Agencies, noted in the release from Moran’s office. “This bill will ensure Fannie Mae and Freddie Mac can continue to meet their statutory requirements to meet underserved rural housing needs in an efficient manner through the program.”
“The need for safe, decent and affordable housing continues to grow,” John Wiechmann, President and CEO of MHEG, noted in the release from Moran’s office. “Midwest Housing Equity Group, Inc. (MHEG) is committed to helping the rural Midwest meet its affordable housing needs. Low-Income Housing Tax Credit (LIHTC) equity investments through multi-investor funds has proven critical to ensuring robust rental housing preservation, production and investment in small-town America. To that end, we commend Senator Moran and Senator Warner for their bipartisan and commonsense legislation to ensure critical investments in rural housing continue. Otherwise, rural affordable housing production will struggle, and the small-town affordable housing crisis will get even worse.”
