Working Families Housing Tax Credit Act

This bill creates a new federal tax credit to help build or fix up rental homes for working families. To qualify, a project must reserve at least 20% of its apartments for lower‑income renters (earning 60% or less of the local median), and at least 40% for working‑family units at a mix of income levels. For those working‑family units, the average income level across the set must be at or below the local median; each unit can be set anywhere from 70% up to 180% of the local median. Rents in these units are capped so families pay no more than about 30% of the set income level. The credit is claimed over 15 years, and the homes must stay affordable for many years after that. Construction must also meet prevailing wage rules.

States award these credits each year using a public plan. Each state gets a set amount based on population, with a minimum, and extra credit is reserved for rural and exurban communities. States should prioritize projects that keep units affordable the longest, build where housing is scarce, serve a range of incomes around the local median, and locate near transit. States cannot require local political sign‑off to score projects, and must monitor sites for compliance and habitability. Landlords can’t refuse a tenant just because they use a Section 8 voucher.

• Who is affected
  • Renters earning up to the local median (and below), plus middle‑income “working families.”
  • Developers and builders who create or rehab rental housing (must pay prevailing wages).
  • Rural and exurban communities receive extra set‑aside.
• What changes
  • New tax credit helps finance apartments with rent caps tied to local incomes.
  • Mixed‑income set‑asides: at least 20% lower‑income and 40% working‑family units; average at/below local median.
  • Long‑term affordability and tenant protections, including acceptance of housing vouchers.
• When
  • Credit is earned over 15 years; affordability continues long after. States award credits annually.