Bipartisan, bicameral bill would establish a Workforce Housing Tax Credit to increase the supply of housing for middle-income Americans

WASHINGTON—U.S. Senator Dan Sullivan, (R-Alaska), Senate Finance Committee Chair Ron Wyden (D-Ore.), and U.S. Representatives Jimmy Panetta (D-Calif.) and Mike Carey (R-Ohio), last week introduced the Workforce Housing Tax Credit (WHTC) Act to increase the supply of affordable housing for middle income families who earn too much to qualify for low-income affordable housing and not enough to afford housing near where they work. 

The Workforce Housing Tax Credit Act would help to close this gap by establishing the first-ever middle-income housing tax credit, which is estimated to finance approximately 344,000 affordable rental homes. The legislation also provides flexibility so that states can maximize their resources and best meet community housing needs by allowing housing finance agencies to transfer their middle-income allocation to their Low Income Housing Tax Credit (LIHTC) allocation at any time. It also allows buildings to combine the two credits to help make more low-income housing projects financially feasible.

“Everywhere I travel in our state, I hear from Alaskans reeling from the scarcity of housing. It’s a challenge that afflicts rural and urban communities, low- and middle-income families, and stands as an obstacle to greater economic opportunity,” said Sullivan. “Solving this challenge is a top priority for me, and it will take multifaceted solutions with everyone pulling on the same oar. On the federal level, my colleagues and I are introducing theWorkforce Housing Tax Credit Act to broaden a tried-and-true federal tax incentive program—the low-income housing tax credit. This will catalyze the private sector to build more housing in urban and rural areas for working families—teachers, law enforcement, first responders, nurses—the backbone of so many communities. Expanding LIHTC will help address the core issue of homelessness and overcrowding in Alaska and empower hard-working Alaskans to stay in our communities and build a more robust workforce.”

“Right now, America’s nurses, firefighters and teachers are struggling to find affordable housing near the communities they serve. More must be done to fill the ‘missing middle’ between low-income housing and million dollar homes,” Wyden said. “Establishing a middle-income tax credit will guarantee more housing, and the flexibility our bill provides will help housing finance agencies best meet the needs of their individual communities.”

“In the 19th Congressional District, there are many working families who earn living wages but make too much to qualify for low-income housing and too little to afford to buy a home in this area,” said Panetta.  “Our bipartisan, bicameral Workforce Housing Tax Credit Act would address that gap by incentivizing investment in the development of middle-income housing for middle income families. This legislation would help ensure that middle-income working families spend time in our communities rather than spend time in their commute and that people who work here, can afford to live here, and call California’s 19th Congressional District home.”

“Too many Americans are in the difficult position of making too much money to qualify for housing tax credits, but not enough money to afford to live where they work,” said Carey. “Our legislation seeks to bridge the gap by creating a new housing tax credit for middle-class families. A strong middle class means a strong America, and that starts in the home.”

“We have a pressing demand for diverse and affordable housing options that can address the unique challenges posed by the state’s extreme climate and vast geographical expanse,” said Alaska Governor Mike Dunleavy. “A combined effort between state, federal, and local governments can bring forward innovative housing solutions for Alaskans.”

“Lack of affordable housing is a big issue facing both rural and urban communities. This bill will help working families in Alaska who don’t qualify for low income housing to be able to afford a home. These Alaskans include teachers, health professionals, public safety officers, our first responders and others who make up the backbone of our communities. I thank Senator Sullivan for reaching across the aisle to come up with creative solutions to our housing challenges,” said Bryan Butcher, CEO and executive director of the Alaska Housing Finance Corporation.

“Providing affordable housing has been one of my top priorities during my time in office. I have had numerous conversations with Senator Sullivan about Anchorage’s housing crisis—a crisis exacerbated by the pandemic and rising inflation. I also attended the roundtable in Anchorage that the Senator co-hosted with Housing and Urban Development Secretary Marcia Fudge, where I was able to talk to her directly about our housing concerns. I thank Senator Sullivan for his work on this important legislation that can incentivize additional home building, especially for hard-working families and individuals here in Anchorage. I look forward to its passage and to working with him to ensure a smooth implementation,” said Dave Bronson, mayor of Anchorage.

“As we all know, we are experiencing a housing crisis in Anchorage and across the state. I have been working closely with Senator Sullivan’s office on potential solutions, and this bipartisan legislation is a key component, along with the Anchorage Assembly’s many legislative efforts addressing housing and homelessness, to ensure Anchorage residents have safe affordable places to call home. This bill will help Alaskans who don’t make enough to afford the high cost of housing, but make too much to qualify for other programs. I thank Senator Sullivan for reaching across the aisle to come up with creative solutions to our housing crisis,” said Chris Constant, chairman of the Anchorage Assembly.

“Any effort to increase access to attainable housing in Alaska is another tool in the tool box of addressing Alaska’s severe housing crisis. We thank Senator Sullivan for his continued focus and work on this critical issue for all Alaskans,” said Meg Zaletel, Anchorage Coalition to End Homelessness.

“The lack of affordable housing is one of the biggest issues facing both rural and urban communities in Alaska. This bill will help low- and middle-income working families in Alaska to be able to afford a home. These include teachers, police officers, our first responders and so many other hard workers who make up the backbone of our communities. I thank Senator Sullivan for reaching across the aisle to come up with creative solutions to our housing crisis,” said Curtis McQueen, Alaska Native Village Corporation Association.

“The lack of affordable housing is one of the biggest issues facing both rural and urban communities in Alaska. This bill will help working families in Alaska with low- or middle- incomes to be able to afford a home. These include teachers, police offices, our first responders and so many other hard workers who make up the backbone of our communities. I thank Senator Sullivan for reaching across the aisle to come up with creative solutions to our housing crisis,” said Eric Visser, Alaska State Homebuilding Association.

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