Arrington Fights to End Illegal Immigrant Exploitation of Federal Housing Program

Washington, D.C. – House Budget Chairman Jodey Arrington (TX-19) introduced his LIHTC Security Act , legislation to prevent illegal immigrants from exploiting the Low-Income Housing Tax Credit (LIHTC) program, which provides nearly $15 billion annually in federal tax incentives to support affordable rental housing. The bill would establish citizenship and immigration-status eligibility requirements for tenants in qualifying low-income housing units and require states to enforce those standards or accept a 5% reduction in their annual housing tax credit allocation. “Securing the border and stopping illegal immigration are fundamentally about addressing the perverse incentives that encourage people to cut the line and break our laws,” said Chairman Jodey Arrington. “Every year, Washington provides nearly $15 billion through the Low-Income Housing Tax Credit (LIHTC) to support the development of affordable rental housing, with no requirement to verify tenants’ citizenship or legal status. That loophole allows illegal immigrants to exploit the program at the expense of low-income American families struggling to find affordable housing. Hardworking American taxpayers shouldn’t be forced to foot the bill for housing people who are in this country illegally. My LIHTC Security Act closes this loophole by establishing commonsense eligibility standards and holding states accountable for ensuring these tax credits benefit American citizens, not illegal immigrants.” “With the national debt having recently surpassed the $40 trillion mark, Washington must do everything it can to ensure that taxpayer-funded programs benefit only U.S. citizens and legal residents,” said Alexander Ciccone, the Policy and Government Affairs Manager at the National Taxpayers Union. “By setting clear eligibility standards for federally subsidized housing, Representative Arrington’s commonsense legislation is exactly the kind of good-government measure that promotes accountability for taxpayer dollars and helps restore public trust in government.” “Housing affordability is a top issue for Americans right now, and Congress needs to ensure it is doing its part to protect existing housing options, especially for young families,” said Terry Schilling, the President of the American Principles Project. “This bill ensures that only Americans who need the most help getting on their feet are eligible for American housing assistance. It's a no-brainer, and APP is proud to support it.” Background: The Low-Income Housing Tax Credit (LIHTC) program provides federal tax incentives to state housing authorities to help developers build affordable rental housing, costing taxpayers approximately $15 billion annually. There is no current federal requirement that tenants living in LIHTC-subsidized housing be U.S. citizens or legal residents, leaving the door open for illegal aliens to take advantage of federal subsidies meant to benefit low-income Americans. Chairman Arrington’s LIHTC Security Act would establish a requirement for tenants living in qualifying housing projects to be U.S. citizens or legal residents in order for housing developers to receive federal tax credits. If a state chooses not to comply, it will be penalized with a reduction of its housing tax credit allocation. ###