Young, Colleagues Introduce Legislation to Increase Rural Housing Investment
WASHINGTON – U.S. Senators Todd Young (R-Ind.), Jerry Moran (R-Kan.), and Mark Warner (D-Va.), along with U.S. Representatives Darrin LaHood (R-IL-16) and Dan Kildee (D-MI-08), introduced legislation to amend the Internal Revenue Code to clarify that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac are able to participate in partnerships that are crucial for low-income housing investments.
In 2023, Senator Young joined Senators Moran and Warner, along with 19 of their colleagues, in urging Treasury Secretary Janet Yellen to provide written guidance that clarifies that the GSEs Fannie Mae and Freddie Mac are not Tax-Exempt Controlled Entities (TECEs).
The Internal Revenue Code currently 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.
“We can’t address our housing affordability crisis without building more units,” said Senator Young. “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.”
“Housing affordability issues have a significant impact on rural Americans across the country,” said Senator Moran. “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,” said Senator Warner. “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 hardworking Virginians.”
“Affordable housing is vital for families in rural communities throughout Illinois,” said Representative LaHood. “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 bipartisan bill, supported by Democrats and Republicans, will help expand rural affordable housing opportunities across Michigan,” said Representative Kildee. “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.”
Full text of the bill is available here.