For Immediate Release:
May 16, 2017
Matthew Nocella, (202) 724-8105
Grosso proposes tax credit to expand affordable housing
Washington, D.C. – Councilmember David Grosso today introduced the Community Impact Investment Tax Credit Act of 2017 to spur the creation and preservation of more affordable housing in the District of Columbia.
The legislation encourages impact investments—investments made to solve social, environmental, or infrastructural challenges while yielding a financial return—in affordable housing through community development financial institutions (CDFIs) by providing to investors an income tax credit of up to 33 percent.
“The affordable housing crisis will not be solved overnight, nor by any singular entity. Using every financing tool and partner is essential,” Grosso said. “Through this legislation, we will continue the city’s affordable housing initiatives and multiply our public resources by promoting private investment to create more homes that D.C. residents can afford.”
While the city has made historic investment into the Housing Production Trust Fund, additional dollars are harder to come by as D.C. balances investments in other priorities such as education and city services. The bill would leverage public investment of up to $1 million in tax credits to provide $3 million for affordable housing.
“It is clear investors want to support affordable housing,” Grosso said. “In just the last year, a local CDFI, Enterprise Community Partners, has been able to raise $11 million in impact capital to finance the preservation and production of local affordable homes. We can make that impact even greater by incentivizing this type of investment.”