Peoria Standard

U.S. Representatives Darin LaHood (IL-16) and Dan Kildee (MI-08), along with U.S. Senators Jerry Moran (R-KS), Mark Warner (D-VA), and Todd Young (R-IN), have introduced the Preserving Rural Housing Investments Act. This bipartisan, bicameral legislation aims to amend the Internal Revenue Code to clarify that Government Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac can participate in partnerships crucial for low-income housing investments.

Currently, the Internal Revenue Code restricts investors partnering with Tax-Exempt Controlled Entities (TECEs) from accessing certain benefits, including accelerated depreciation, bonus depreciation, historic rehabilitation tax credits, and specific energy credits supporting affordable housing tax credits. The proposed legislation seeks to ensure that Fannie Mae and Freddie Mac are exempt from this rule, thereby protecting their role in vital low-income housing development partnerships.

Rep. LaHood has been a leading advocate in the House for strengthening the Low Income Housing Tax Credit through his primary sponsorship of the Affordable Housing Credit Improvement Act. This act aims to facilitate the construction of nearly two million affordable housing units nationwide and boasts over 200 cosponsors equally divided between Democrats and Republicans.

"Affordable housing is vital for families in rural communities throughout Illinois," stated Rep. LaHood. "To address the affordable housing crisis, we must strengthen tools to drive investment 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 Rep. 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 "By clarifying outdated rules in the tax code, we can protect investments in rural affordable housing in the small-town communities that need it the most."

"Housing affordability issues have a significant impact on rural Americans across the country," noted Sen. 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," remarked Sen. 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."

"We can't address our housing affordability crisis without building more units," added Sen. 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."

The full text of the bill is available online.

###