Treasury moved to preserve and expand the supply of affordable housing on Friday, Oct. 7, by finalizing a new tax credit income rule that may qualify more housing projects.
The finalized income-averaging rule for the low-income housing tax credit now allows a broader mix of incomes among residents of qualifying projects by using an average rather than fixed limits for all units.
The new rule clarifies a 2018 law passed by the U.S. Congress to allow developers more flexibility in qualifying for the credits.
The changes follow the Treasury’s decision in July to give state, local and tribal governments more flexibility to use COVID-19 rescue funds on affordable housing. Read more.