Mortgage Reduction Proposal Would Minimally Impact NJ
The United for Homes campaign proposal to fund the National Housing Trust Fund (NHTF) with revenue raised from changes to the mortgage interest deduction calls for reducing the size of a mortgage eligible for a tax break from $1 million to $500,000, and converting the deduction to a 15% non-refundable credit. Less than 4% of mortgages in the United States from 2009-2012 were over $500,000.
In New Jersey, only 6.2% of mortgages from 2009-2012 were over $500,000. There is currently a shortage of 188,974 affordable and available units in New Jersey for the lowest income renters. For every $5 billion allocated to the NHTF, New Jersey would get $168,600,000.
The National Low Income Housing Coalition now has state maps available so endorsers of the campaign can find out how many homeowners borrowed more than $500,000 in their state.