By Christina McDermott, Santa Barbara Independent

The Bipartisan 21st Century ROAD to Housing Act Paves Way for More Low-Income Housing Tax Credits, Makes It Easier to Build Manufactured Housing, and More

The biggest federal housing bill in decades became law earlier this July. The 21st Century ROAD (Renewing Opportunity in the American Dream) to Housing Act is a Frankenstein’s monster of more than 60 pieces of legislation introduced by federal lawmakers, outlining dozens of policy and regulatory changes aimed at making it easier to build affordable housing. It doesn’t come with dollars attached, but the act still offers more pathways for building and renting affordable units, including here on the South Coast.

Paving the Way for More Low-Income Housing Tax Credits 

Low-income housing tax credits have funded the majority of affordable housing projects built by both the City and County of Santa Barbara’s housing authorities in recent years. They aren’t new. Congress approved the program 40 years ago. Banks can reduce their tax liability by purchasing the credits. Essentially, by investing their money in affordable housing, the banks get a tax break.

But there’s a cap: Before the law passed, banks could put no more than 15 percent of their assets into low-income housing tax credits.

Matt Schwartz, president of the California Housing Partnership, a nonprofit that partners with affordable housing developers and local governments to provide technical assistance, said that raising the cap to 20 percent will most likely impact smaller banks, allowing them the chance to invest more.