Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman today joined in introducing legislation aimed at stimulating new affordable housing development in New Mexico, which in turn will help create hundreds of construction jobs across the state.

Under the Low-Income Housing Tax Credit program (LIHTC), affordable housing developments receive tax credits, which are used to attract private investment.  However, the actual annual amount of the credits fluctuates from month to month based, in part, on current interest rates.  This fluctuation makes LIHTC difficult to use and means that when market interest rates are low, the current-year value of the credit is reduced.

The bill Bingaman is cosponsoring would set a floor on these credits, which will eliminate the uncertainty and financial risk of the current "floating" system and would facilitate development of affordable housing around the country.

"The Low-Income Housing Tax Credit program has been instrumental in driving the construction and rehabilitation of affordable housing to help meet the needs of New Mexico's most vulnerable residents.  This is especially important in today's economic climate," Bingaman said.  "This bill will provide the program with some financial stability so it can continue to create housing and job opportunities in our state."

Bingaman is a strong supporter of the LIHTC program.  New Mexico received $8.6 million of LIHTC credit authority in 2009.  Between 1987 and 2009, New Mexico has received $80 million of credit authority over 1987-2009, which has helped support eight housing developments (792 units of housing).