Action Alert: Support Consensus Low Income Housing Tax Credit Proposals - October 13, 2009

 

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