Congresswoman Tubbs Jones Joins Congressman William Jefferson in
Introducing Low Income Housing Tax Credit Legislation

Washington, D.C. – Yesterday, Congresswoman Stephanie Tubbs Jones joined Congressman William Jefferson (D-LA) in introducing the Affordable Housing Tax Credit Enhancement Act of 2005.  This legislation would make two important changes to current law. The bill would double the current Low Income Housing Tax Credit (LIHTC) from $1.85 per capita to $3.70 per capita beginning in 2006, which would yield twice the number of affordable housing units annually and begin to close the current gap.  Additionally, the legislation would rename the LIHTC to the “Affordable Housing Tax Credit" to remove any negative connotation and more accurately describe this effective program.
 
Should this legislation pass, affordable housing advocates, investors, syndicators, and developers believe that there is more than enough capacity in the market to effectively use the additional credits.  In fact, the need for affordable housing throughout the country virtually assures the continued success of this program.
 
In addition, this legislation is a jobs creator.  According to industry estimates, 112 jobs are created during the first year of construction of every 100 units, 46 of which morph into permanent positions.  Based on that estimate, because doubling the current LIHTC would create 130,000 additional units annually, that translates into 145,600 new jobs nationally—59,800 of which would be permanent.

"This bill would further economic development at a time in which the 11th Congressional District needs it most," said Rep. Tubbs Jones. "It seeks to combat both the affordable housing issue and growing unemployment. Since 1990, Cuyahoga County has received over $37 million of the LIHTC, which is responsible for 85 new low income housing developments and over 5,500 housing units. I am pleased to join with Rep. Jefferson in introducing this legislation."