In view of the evaporation of affordable homeownership options in the nation’s capital, the District of Columbia Council is considering a bill that would provide tax credits
to individuals or companies that invest in community development financial institutions (CDFIs) involved in affordable housing finance. Under this proposal, investors would be eligible to claim up to 33 percent of their investments as a credit against their local income taxes, unincorporated business franchise taxes or corporation franchise taxes. That exemption would be capped at the $1 million mark.
“Solving the affordable housing crisis is not something that will occur overnight and is not something that can be accomplished by any one entity or organization,” said council member David Grosso, the bill’s sponsor. “However, through this legislation, we will add another financing tool to the arsenal and partner with the private market to expand the amount of debt capital available for affordable housing projects.”
Another bill before the council proposed the conversion of underused office buildings into affordable housing developments.