Workforce Housing Tax Credit Act

The Workforce Housing Tax Credit Act creates a new federal tax credit to encourage the development and rehabilitation of affordable housing for middle-income families. This credit applies to buildings where at least 60% of units are rent-restricted and occupied by individuals earning 100% or less of the area median income, with at least 20% of those units specifically targeted for middle-income households. The bill establishes a 15-year credit period based on a percentage of the building's qualified basis, which is determined by factors such as the building's cost, location, and whether it is new or existing. To qualify, developers must enter into binding agreements with housing agencies that include long-term commitments to maintain affordable rents and prevent the displacement of tenants, while also adhering to specific financial feasibility and reporting requirements.