Action Alert:
Contact your member of Congress to urge support of Consensus Low Income Housing Tax Credit Proposals
The most successful affordable rental housing production program in U.S. history – the Low Income Housing Tax Credit (Housing Credit) program – has been adversely affected by the financial crisis. Housing Credit investment has dropped from about $9 billion in 2006 and 2007 to $5.5 billion in 2008, and absent Congressional action, will likely drop further in 2009.
Please contact your representatives’ and senators’ offices, especially those on the House Ways & Means and Senate Finance Committees, to urge them to support the consensus proposals described below in upcoming tax legislation. These proposals would stimulate and maintain Housing Credit investment while ensuring that desperately needed affordable housing continues to be built in the short term. Congress will soon take action to consider extending the expiring first-time homebuyer credit and other expiring tax provisions, and we need the support of as many House Ways & Means and Senate Finance Committee members as possible to ensure these proposals are included in that upcoming tax bill.
Why does Congress need to act?
- The lack of investment capital is preventing the development of affordable housing at a time when, as a result of the foreclosure crisis, need is greater than ever. Without any congressional action, as many as 60,000 new affordable apartments and 90,000 construction jobs may be lost annually.
Our consensus proposals offer a win-win solution for low-income families, state agencies, nonprofit and profit-motivated developers and private investors at minimal cost.
- First, Congress should extend the Housing Credit exchange program for one more year and allow states to exchange Housing Credits generated from tax-exempt bond financed housing.
- Second, to stimulate and restore long-term investment, Congress should increase the Housing Credit carryback to up to five years in two ways:
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- For existing housing investments, this proposal would ONLY apply to Housing Credits if investors reinvest the entire amount carried back into new Housing Credit investments.
- For new housing investments, this proposal would make the Housing Credit more competitive with other tax credits and attract investors concerned about long-term tax position by permitting future credits to be carried back up to five years.
- Third, broaden the investment base by permitting pass-through entities – LLCs and Subchapter S corporations – and closely held corporations to utilize the Housing Credit program as a means of attracting equity capital to rural areas of the country. This would diversify the investor base to include entities such as S-corps community banks.
What are the impacts of these proposals?
They would increase investment in the Housing Credit nationally by at least $5 billion more through 2011 than what the Housing Credit is projected to raise without legislation, leading to 123,000 more affordable apartments constructed or rehabilitated, 232,000 more jobs created or saved, $50 billion in additional local income and $8 billion in additional taxes and revenue to localities nationwide. Please click here to see state-specific fact sheets on the economic impacts of these proposals.
Supporting Organizations(LIST IN FORMATION)
A Community of Friends
ACTION Housing, Pennsylvania
ARC Foundation, Inc.
Affordable Housing Investors Council
Affordable Housing Tax Credit Coalition
Alabama Council for Affordable and Rural Housing
American Association for Homes and Services for the Aging
Bickerdike Redevelopment Corporation
CAS Financial Advisory Services
California Coalition for Rural Housing
California Council for Affordable Housing
California Housing Consortium
California Housing Partnership Corporation
Catholic Charities of New Orleans
Christian Church Homes
Citizens’ Housing and Planning Association (Massachusetts)
Center for American Progress Action Fund
Cleveland Housing Network
Coalition on Homelessness and Housing in Ohio
Community Capital Corporation (Colorado)
Community Affordable Housing Equity Corporation
Community Economics, Inc.
Community HousingWorks
Connecticut Housing Coalition
Corporation for Supportive Housing
Council for Affordable and Rural Housing
Crossroads Urban Center, Salt Lake City
Delaware Community Investment Corporation
Eden Housing
Enterprise Community Partners
Federation of Appalachian Housing Enterprises
Fordham Bedford Housing Corporation
Great Lakes Capital Fund
Habitat for Humanity – New York City
Homes for America
Homestead Capital
HOUSING ACTION Coalition-Rhode Island
Housing Advisory Group
Housing Alliance of Pennsylvania
Housing Development Consortium Seattle-King County
Housing Partnership Network
Housing Preservation Project, St. Paul
Illinois Housing Council
Institute for Responsible Housing Preservation
Jewish Community Housing for the Elderly
Laurin Associates
Little Tokyo Service Center
Living Cities
Low Income Housing Institute
Low Income Investment Fund
Maine Affordable Housing Coalition
Maryland Affordable Housing Coalition
Massachusetts Housing Investment Corporation
Mercy Housing Inc.
Midwest Housing Equity Group
Minnesota Housing Partnership
Mountain Plains Equity Group
National Affordable Housing Management Association
National Affordable Housing Preservation Associates, Inc.
National Affordable Housing Trust
National Alliance of Community Economic Development Associations
National Alliance to End Homelessness
National Apartment Association
National Association of Affordable Housing Lenders
National Association of Home Builders
National Association of State and Local Equity Funds
National Coalition for Asian Pacific American Community Development
National Housing Conference
National Housing Law Project
National Housing & Rehabilitation Association
National Housing Trust
National Leased Housing Association
National Low Income Housing Coalition
National Multi Housing Council
National NeighborWorks Association
National Policy and Advocacy Council on Homelessness
Network for Oregon Affordable Housing
New York Housing Conference
New York State Association for Affordable Housing
Non-Profit Housing Association of Northern California
North Carolina Housing Coalition
Novogradac & Company
Ohio Capital Corporation for Housing
PathStone
PATH Ventures
Providence Housing Development Corp.
REACH Community Development
Reznick Group
Rural Opportunities, Inc.
San Diego Housing Federation
Southern California Association of Non-Profit Housing
SRO Housing
Stewards of Affordable Housing for the Future
St. Louis Equity Fund
SUMMECH CDC
Tenderloin Neighborhood Development Corporation
Texas Affiliation of Affordable Housing Providers
The Community Builders, Inc.
Vermont Affordable Housing Coalition
Virginia Community Development Corporation
Volunteers of America
Please see the website for updates and materials: http://rentalhousingaction.org