Expanded LIHTC Would Improve Communities, Increase Affordable Housing and Revitalize Economies
On November 23, 2016, Citylab reported that ”Terri Ludwig, president and CEO of Enterprise Community Partners, says that her organization began working with both the Democratic and Republican transition teams before the election on “immediate wins” that the next administration could pursue including preserving and expanding LIHTC.
She identifies the low income housing tax credit (a public–private tool that generates most new low-income housing in the U.S.)”
“I would hope [President-elect Trump’s] priorities would include housing,” Ludwig says. “More than one in four families who rent their homes are what we call housing insecure, paying half of their income toward housing costs.”
The ACTION Campaign, of which Monarch is a member, is circulating a sign-on letter urging the Trump administration and Congress to prioritize the Housing Credit as they consider reforms to the nation’s tax code and investments in the nation’s infrastructure.
The letter calls on the administration and Congress to:
- ensure that the Housing Credit and Housing Bonds are held up as positive examples of the power of the tax code to improve communities by ensuring their continued viability under tax reform, and
- expand and strengthen the Housing Credit to increase the availability of safe and affordable housing and revitalize local economies.
The outcomes of the November elections have increased the likelihood of legislation that could have a major impact on the Low-Income Housing Tax Credit (Housing Credit) in 2017.
In his acceptance speech, President-elect Donald Trump said that investing in America’s infrastructure will be a top priority for his administration, and the Housing Credit could be expanded in this context given its tangible and significant impacts for residents, communities and local economies.
Infrastructure legislation may move on its own or as part of broader tax reform legislation, which also poses risks to the Housing Credit and multifamily Housing Bonds. Tax reform will also be a top priority in 2017, and poses significant threats to the Housing Credit and tax-exempt multifamily Housing Bonds.
Both House Speaker Paul Ryan’s (R-Wis.-1) tax reform plan and President-elect Trump’s propose eliminating nearly all tax expenditures in order to lower corporate tax rates, and both were silent on whether the Housing Credit and Housing Bonds would be among the expenditures removed.