In addition to funding the National Housing Trust Fund, H.R. 6677 would direct funding:
to the Section 8 program for both project-based and tenant-based assistance and to the Public Housing Capital Fund
expand the Low Income Housing Tax Credit and make it easier to use to serve extremely low-income families.
Mr. Ellison estimates that the savings from modification would be about $27 billion a year. The bill divides those savings as follows:
$15.4 billion a year to the National Housing Trust Fund,
$7.7 billion a year to the Section 8 program,
$2.5 billion to the Public Housing Capital Fund and
$1.4 billion to the Low Income Housing Tax Credit program.
The bill would also allow state agencies that administer the Low Income Housing Tax Credit to give up to a 150% basis boost for LIHTC apartments that are targeted to extremely low income households (those with incomes at or below 30% of area median income).
In a December 20, 2012 press release, NLIHC President and CEO Sheila Crowley said,
“We can end homelessness in the United States if we put enough money in the National Housing Trust Fund.” Further, she said, “gearing mortgage interest tax breaks more toward middle class and lower income homeowners will provide a tax benefit where it is needed most.”
The National Housing Trust Fund was established by Congress in 2008 but has yet to be funded. Its purpose is to reduce the shortage of rental homes that are affordable for the lowest income families.
The 112th Congress ended on January 3, 2013, and all bills not enacted at the time of adjournment are no longer active. Mr. Ellison is expected to reintroduce his bill in the 113th Congress.
As of January 1, 701 national, state and local organizations, including Monarch Housing Associates, have endorsed NLIHC’s proposal to reform the mortgage interest deduction and use the savings to fund the National Housing Trust Fund.