Senator Hassan Joins in Introducing Bipartisan Bill to Enable NH to Construct New Affordable Housing

WASHINGTON -- U.S. Senator Maggie Hassan joined colleagues including Senators Patrick Leahy (D-VT), Susan Collins (R-ME), and Ron Wyden (D-OR) to introduce a bipartisan bill that would enable New Hampshire and states across the country to use COVID-19 funding that they already have for affordable housing construction projects.

“The housing crisis is a serious issue in New Hampshire, which is why we must work on creative solutions to invest in affordable housing development,” said Senator Hassan. “This bipartisan bill will empower state and local communities to create critical new housing units, which will help small businesses and families alike. I will keep working to pass this bill into law.”

Across the country, $8 billion of COVID-19 State and Local Fiscal Recovery Funds are set to go toward housing.  Under current law, the use of the Low-Income Housing Tax Credit (LIHTC) with State and Local Fiscal Recovery Funds is severely disincentivized.  Due to the structure of the tax credit, federal grants used to fill gaps in LIHTC-funded construction are almost always provided as long-term loans.  State and Local Fiscal Recovery Funds must be obligated by 2024 and spent by 2026 and therefore cannot be loaned.  The LIFELINE Act would solve this problem by allowing states and localities to loan State and Local Fiscal Recovery Funds to LIHTC projects.  

This bipartisan bill is part of Senator Hassan’s ongoing efforts to address housing challenges in New Hampshire. In March, the NH delegation announced that, following their calls, Granite State homeowners can apply for federal mortgage assistance. In addition, Senators Hassan and Blunt (R-MO) introduced a bipartisan bill to provide tax cuts to middle-class homeowners. The NH delegation also welcomed $9,467,458 in federal funding from the U.S. Department of Housing and Urban Development’s (HUD) Continuum of Care Program, which provides funding for nonprofits, states and local governments to quickly rehouse homeless individuals, families and youth, as well as individuals fleeing domestic violence, dating violence, sexual assault, and stalking.

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