WASHINGTON, DC – Today, the U.S. Senate adopted Senator Kit Bond’s bipartisan provision to provide much-needed affordable housing for low income and working families and create jobs to put people back to work now.

            “The reduction in available affordable housing has hit hard needy families already struggling to survive this economic crisis,” said Bond.  “Today’s amendment will make available much-need housing to these struggling families while creating jobs and putting people back to work now.”

            A bipartisan group of Senators, including Murray , Dodd, Reed of Rhode Island, Kohl, Voinovich, and Brownback joined Senator Bond in introducing this critical amendment to help provide needy families affordable housing.  Bond’s amendment provides $2 billion to fund low-income housing tax credit (LIHTC) projects that have been stalled by the financial credit crisis.  This amendment was accepted unanimously by a voice vote.

            Bond pointed out that the LIHTC program has had a strong track record for well over 20 years and has operated successfully in producing some 2 million housing units for low-income families.  On an annual basis, the program creates about 120,000 housing units and creates 180,000 new jobs.

            Despite the program’s success, the financial crisis has resulted in drastic cuts in investment to this program.  These funding cuts have endangered the production of much-needed affordable housing as well as the creation of jobs throughout the country.  Nationally, investments have dropped from around $9 billion in 2007 to about $4.5 billion in 2008.

            To address this funding gap, Bond’s bipartisan amendment provides $2 billion in direct equity grants to states.  Much of these funds will be directed towards tax credit deals that have already been approved by state credit agencies and have financing in place to proceed into construction except for the recent equity gap created by the credit crisis.  In other words, these funds would go to truly “shovel ready” deals already in the pipeline.  In addition, this amendment will create thousands of new jobs across the nation.

            The passage of Bond’s bipartisan amendment will have a real impact in Missouri .  In Missouri , about 703 affordable housing units approved by the Missouri Housing Development Commission have been stalled due to this equity gap.  For 2009, the state anticipates another 2,000 units being stalled.  Bond’s amendment will mean these more than 700 affordable housing unites will be saved.  In addition, some 3,000 new jobs in Missouri will be created.

            Bond has been a vocal advocate in fighting to make provisions that will help struggling families and create jobs now the cornerstone of any economic recovery bill passed by Congress.

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