Legislation Includes Proposal to Lift PWI Cap
Today, the Senate advanced the bipartisan 21st Century ROAD to Housing Act by a vote of 89-10. The comprehensive housing legislation includes the proposal to lift the public welfare investment (PWI) cap from 15 to 20 percent, which could unlock billions of dollars in additional investment in the Housing Credit. See the section-by-section and bill text.
Previously, Senate Banking Committee Chairman Tim Scott (R-SC) released an amendment in the nature of a substitute, which combined elements of the Senate’s ROAD to Housing Act (S.2651) and the House’s Housing for the 21st Century Act (H.R. 6644), providing the basis for the 21st Century ROAD to Housing Act.
The comprehensive legislation includes provisions to:
- Lift the public welfare investment (PWI) cap from 15 to 20 percent, which could unlock billions of dollars in additional investment in the Housing Credit. (See Sec. 204, Community Investment and Prosperity Act)
- Ban institutional investors from buying single family homes. (See Sec. 901, Homes Are For People, Not Corporations)
- Note that as written, the proposal could adversely impact some Housing Credit properties, as it does not clearly exempt the Housing Credit from the forced sale of build-to-rent properties after seven years. The AHTCC and others have weighed in with Congress to encourage changes to clearly exempt Housing Credit properties from the institutional investor ban as the legislation continues to move through the process.
- Streamline NEPA reviews for small and infill housing projects. (Sec. 208 – Unlocking Housing Supply Through Streamlined and Modernized Reviews Act)
- Lift the RAD cap. (Sec. 201 – Rental Assistance Demonstration Program)
- Reform the HOME program. (see Sec. 502 – HOME Investment Partnerships Reauthorization and Reform Act)
- Note that the bill does NOT include the House-passed language from the Housing for the 21st Century Act that would direct HUD to conduct an evaluation of Build America, Buy America (BABA) as it pertains to HOME funds and issue updated guidance. The AHTCC and our partners will continue to pursue opportunities to address overly burdensome BABA requirements.
