Washington – Today, Rep. Mike Thompson (CA-05) called for improvements to low-income housing tax credits, which encourage property owners and private investors to invest in affordable housing. Tax credits are awarded to developers, who then use them for affordable housing projects that otherwise would not be profitable because of low rents. Thompson cosponsored the Affordable Housing Credit Improvement Act of 2017, which reforms these credits to increase access to affordable housing.
“A roof over your head is a basic right, and no one should have to make do without one,” said Thompson. “Low-income housing tax credits are one of the most important tools we have to encourage developers and property owners to offer affordable housing. In areas with high costs of living, it can be all too easy for landlords to keep raising rents. These credits allow them to keep rents affordable, and the improvements we’re making will help more hardworking families in our district find a place to live.”
Low-income housing tax credits have helped finance more than 7,000 units in California’s 5th District since they were first created in 1986. The bill has been referred to the Committee on Ways and Means, of which Thompson is a senior member.