[Congressional Record Volume 151, Number 72 (Thursday, May 26, 2005)]
[Extensions of Remarks]
[Page E1117]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         AFFORDABLE HOUSING TAX CREDIT ENHANCEMENT ACT OF 2005

                                 ______
                                 

                       HON. WILLIAM J. JEFFERSON

                              of louisiana

                    in the house of representatives

                         Thursday, May 26, 2005

  Mr. JEFFERSON. Mr. Speaker, it is with great pleasure that I rise 
today with my good friend and colleague from the Committee on Ways and 
Means, Mr. English, to introduce the ``Affordable Housing Tax Credit 
Enhancement Act of 2005.'' Mr. English and I share a passion for and 
commitment to ensuring that Americans have access to affordable, 
quality housing in which to live, to prosper and to raise their 
families. I am grateful for his continuing leadership in this area, and 
I am honored that he joins me today in introducing this important piece 
of legislation. I also am very pleased that 51 of our colleagues, 
including members from both sides of the aisle and several from the 
Committee on Ways and Means, join us today in introducing this measure.
  Mr. Speaker, the Low Income Housing Tax Credit, LIHTC, program was 
created as part of the Tax Reform Act of 1986. Today, the LIHTC program 
is widely regarded as the nation's most successful housing production 
program resulting in the construction and rehabilitation of more than 
1.3 million housing units for lower income households. As a direct 
result of the LIHTC program, 130,000 new affordable housing units come 
online every year.
  In addition to producing housing, the LIHTC program is unparalleled 
in contributing to the revitalization of distressed neighborhoods and 
communities throughout the United States. LIHTC properties are 
frequently among the first investments in a concerted revitalization 
strategy. The credit drives and catalyzes public/private/community 
partnerships that replace blight with safe, affordable housing, attract 
private capital, and prime the market for other activities, including 
increased homeownership and expanded retail development.
  The redirection of capital to affordable housing through a tax 
incentive creates net economic efficiencies, because the housing credit 
more effectively marshals private sector capital than would be 
accomplished through any direct spending program. Because it sets up 
competition among developers for credit allocations and among 
corporations for access to investment opportunities, the LIHTC is 
considerably more efficient than a direct spending program.
  The success of the LIHTC program is virtually unmatched. However, as 
a Nation, we still confront a serious affordable housing deficit--a gap 
that we must bridge to ensure that our most vulnerable families have 
access to quality, affordable housing and safer neighborhoods in which 
to live and prosper.
  Accordingly, Mr. Speaker, I rise today to introduce the Affordable 
Housing Tax Credit Enhancement Act of 2005. This legislation would make 
two important changes to current law. Most significantly, the bill 
would double the current LIHTC from $1.85 per capita to $3.70 per 
capita beginning in 2006, which would yield twice the number of 
affordable housing units annually and begin to close the current gap. 
Second, the legislation would rename the LIHTC the `` Affordable 
Housing'' tax credit to remove any negative connotation and more 
accurately describe this effective program.
  If this legislation were to pass, we are assured by affordable 
housing advocates, investors, syndicators, and developers that there is 
more than enough capacity in the market to effectively use these 
additional credits. In fact, the need for affordable housing throughout 
the country virtually assures the continued success of this program.
  In addition, this legislation is a jobs creator. According to 
industry estimates, 112 jobs are created during the first year of 
construction of every 100 units of affordable housing, 46 of which 
morph into permanent positions. Based on that estimate, because 
doubling the current LIHTC would create 130,000 additional units 
annually, that translates into 145,600 new jobs nationally--59,800 of 
which would be permanent.
  America is confronting an affordable housing crunch, and many 
hardworking men and women continue to seek employment. This legislation 
would make significant strides to address both problems. Therefore, I 
call on my colleagues to support this important measure and to ensure 
its consideration and passage.

                          ____________________