Colorado Springs Mayor Yemi Mobolade has joined with other local government leaders nationwide in signing a letter in support of the Affordable Housing Credit Improvement Act (AHCIA), a U.S. Congressional bill that would expand and strengthen the Housing Credit. This is a key tool that encourages private investment in the production and preservation of affordable rental housing.
“We are consistently hearing from residents of the need for more affordable and attainable housing in Colorado Springs. Therefore, addressing our housing crisis has become one of the top priorities of my administration,” Mobolade said. “We continue to seek innovative ways to increase access to quality and diverse housing options needed to support opportunities for economic development and enhance our resident’s quality of life.”
The letter, led by the ACTION Campaign, in partnership with the National League of Cities, the National Association of Counties, and Mayors & CEOs for U.S. Housing Investment, was signed by 184 local government leaders representing cities, counties and other municipalities of all sizes across the country. It was sent to Congressional leadership in support of the AHCIA of 2023 (S. 1557 / H.R. 3238).
“Growing our available housing stock in support of our city’s growth means finding local, state and federal solutions, and this legislation supports that approach,” said Steve Posey, the City’s chief housing and community vitality officer. “Passing this bill would help the City in its goal to create strong, sustainable, inclusive communities and access to quality affordable and attainable homes.”
Mobolade and Posey both noted that enhancing and growing affordable housing in Colorado Springs enhances the City’s economic competitiveness and helps families, seniors, people with disabilities, and other vulnerable households. To support the City’s housing efforts, Mobolade created the Housing and Community Vitality Department in July and named Posey the City’s first Chief Housing & Community Vitality Officer.
The production provisions of the legislation are estimated to finance nearly 2 million additional affordable rental homes over 10 years. These proposals include a 50% increase in Housing Credit authority, phased in over two years, as well as reinstating the 12.5% increase that expired in 2021; lowering the 50% threshold for Housing Credit developments financed with tax-exempt bonds to 25%; and granting state agencies additional flexibility in applying “basis boosts” for rural areas, Tribal areas, and properties designated to serve extremely low-income tenants. The bill also contains about two dozen other regulatory and administrative improvements to the program, enumerated in the detailed bill summary.
The AHCIA of 2023 was introduced in May by Senators Maria Cantwell (D-WA), Todd Young (R-IN), Ron Wyden (D-OR), and Marsha Blackburn (R-TN), and Representatives Darin LaHood (R-IL-16), Suzan DelBene (D-WA-01), Brad Wenstrup (R-OH-02), Don Beyer (D-VA-08), Claudia Tenney (R-NY-24), and Jimmy Panetta (D-CA-19). The bicameral legislation has quickly garnered broad bipartisan support. Currently, the AHCIA has 170 cosponsors in the House and 28 cosponsors in the Senate, including leads.