Budget & Taxes (Tax Credits)

This bill transfers administration of the Low-Income Housing Tax Credit (LIHTC) program from the Department of Housing and Community Development (DHCD) to the District of Columbia Housing Finance Agency (DCHFA). It directly affects how DC allocates federal tax credits for affordable housing projects, which are critical for leveraging private investment in low-income housing. The key mechanism requires DCHFA - already managing similar housing finance tools - to now oversee the 9% LIHTC program, streamlining processes and preventing future credit losses like the $3.1 million forfeited in 2025. The legislation aims to maximize existing federal housing dollars by improving coordination across financing tools.

This bill (B 26-0532) allows District seniors aged 65+ who own their primary residence to transfer their existing property tax cap credit to a new home purchased within 12 months. It directly affects seniors moving to a new primary residence, preventing steep tax increases they currently face when selling their capped-property home. Key provisions include: (1) transferring the tax credit value percentage-for-percentage to the new home, and (2) permitting seniors to combine ownership shares across multiple family members to meet the 50% ownership requirement. This change aims to make housing transitions more affordable for seniors needing to downsize, relocate for health reasons, or move to safer, more accessible homes.

The Renter Tax Credit Expansion Amendment Act of 2025 creates a standalone tax credit for District of Columbia renters, separate from the existing homeowner credit. It ties the credit amount to local housing costs using Small Area Fair Market Rents (instead of the Consumer Price Index), expands eligibility to include unhoused individuals and those in temporary housing, and allows renters with credits over $1,200 to receive monthly payments. The bill sets income eligibility at 60% of the Area Median Income, directly benefiting low-income renters - particularly Black and Hispanic renters - who spend over 30% of their income on housing. This policy change aims to increase housing affordability and financial stability for District residents facing severe rent burdens.