Senator Sullivan, fellow senators introduce legislation to improve affordable housing for middle-income families

U.S. Senator Dan Sullivan, along with a handful of fellow bipartisan senators, introduced the Workforce Housing Tax Credit (WHTC) Act to increase the supply of affordable housing for middle income families who earn too much to qualify for low-income affordable housing and not enough to afford housing near where they work.

The WHTC Act would help to close this gap by establishing the first-ever middle-income housing tax credit, estimated to finance approximately 344,000 affordable rental homes.

“Everywhere I travel in our state, I hear from Alaskans reeling from the scarcity of housing. It’s a challenge that afflicts rural and urban communities, low- and middle-income families, and stands as an obstacle to greater economic opportunity,” said Senator Sullivan.

The legislation would also provide flexibility so that states can maximize their resources and best meet community housing needs by allowing housing finance agencies to transfer their middle-income allocation to their Low Income Housing Tax Credit (LIHTC) allocation at any time. It also allows buildings to combine the two credits to help make more low-income housing projects financially feasible.

Senator Sullivan introduced the bipartisan, bicameral bill with Senate Finance Committee Chair Ron Wyden (D-Ore.), and U.S. Representatives Jimmy Panetta (D-Calif.) and Mike Carey (R-Ohio).

“Solving this challenge is a top priority for me, and it will take multifaceted solutions with everyone pulling on the same oar. On the federal level, my colleagues and I are introducing the Workforce Housing Tax Credit Act to broaden a tried-and-true federal tax incentive program—the low-income housing tax credit. This will catalyze the private sector to build more housing in urban and rural areas for working families—teachers, law enforcement, first responders, nurses—the backbone of so many communities. Expanding LIHTC will help address the core issue of homelessness and overcrowding in Alaska and empower hard-working Alaskans to stay in our communities and build a more robust workforce.”

“Establishing a middle-income tax credit will guarantee more housing, and the flexibility our bill provides will help housing finance agencies best meet the needs of their individual

Alaska Governor Mike Dunleavy also expressed his support for the legislation, saying:

“We have a pressing demand for diverse and affordable housing options that can address the unique challenges posed by the state's extreme climate and vast geographical expanse. A combined effort between state, federal, and local governments can bring forward innovative housing solutions for Alaskans.”

In addition to support from the Governor, this legislation has support from the Alaska Housing Finance Corporation CEO ad Executive Director, Bryan Butcher, who said lack of affordable housing is a big issue facing both rural and urban communities.

“This bill will help working families in Alaska who don’t qualify for low income housing to be able to afford a home. These Alaskans include teachers, health professionals, public safety officers, our first responders and others who make up the backbone of our communities. I thank Senator Sullivan for reaching across the aisle to come up with creative solutions to our housing challenges.”

“This bill will help low- and middle-income working families in Alaska to be able to afford a home. These include teachers, police officers, our first responders and so many other hard workers who make up the backbone of our communities. I thank Senator Sullivan for reaching across the aisle to come up with creative solutions to our housing crisis,” said Curtis McQueen, Alaska Native Village Corporation Association.

“The lack of affordable housing is one of the biggest issues facing both rural and urban communities in Alaska. This bill will help working families in Alaska with low- or middle- incomes to be able to afford a home. These include teachers, police offices, our first responders and so many other hard workers who make up the backbone of our communities. I thank Senator Sullivan for reaching across the aisle to come up with creative solutions to our housing crisis,” said Eric Visser, Alaska State Homebuilding Association.

Closer to the Mat-Su, the introduction of the legislation is welcome news with groups like the Mat-Su Home Builders Association, whose President said that they appreciate the efforts to reduce regulatory barriers to homeownership.

“As the fastest growing community in Alaska, the Matsu recognizes that quality, healthy affordable homes are in short supply and the recent increase to costs make housing affordability and accessibility tougher. This bill will provide a small but needed step to helping working families from teachers to electricians, first responders to small business owners who are the backbone of our community. We appreciate sound efforts to help make the dream of home ownership a reality,” said David Miller, President of Matsu Homebuilders Association.

“The lack of affordable housing is one of the biggest issues facing both rural and urban communities in Alaska. This bill will help working families in Alaska who don’t qualify for low income housing and are priced out of market rents in our communities,” said Colleen Dushkin, executive director of Alaska Association of Housing Authorities, adding, “Senator Sullivan has been an advocate to increase housing across Alaska and we thank him for reaching across the aisle to expand a program and bring more housing units to our communities and families.”