Rental housing affordability is an increasing challenge in every state and congressional district. Through tax reform legislation, Congress can make the tax code fairer for more families, reduce income inequality and racial inequity, and end homelessness and housing poverty once and for all.
The Common Sense Housing Investment Act calls for modest reforms to the mortgage interest deduction (MID), a $70 billion tax write-off that largely benefits America’s highest-income households, and reinvests the significant savings into providing affordable housing for people with the greatest needs.
The bill would boost funding for the Housing Trust Fund, the Low-Income Housing Tax Credit, public housing, and rental assistance solutions-without adding any costs to the federal government.
The reforms are simple and bipartisan.
First, the bill reduces the size of a mortgage eligible for the tax break from $1 million to the first $500,000-impacting fewer than 6% of homeowners.
Second, the bill converts the mortgage interest deduction into a tax credit. This would allow 15 million more low and moderate income homeowners who currently do not benefit from the mortgage interest deduction to get a much-needed tax break.
The United for Homes campaign – including more than 2,300 national, state, and local organizations including Monarch Housing and elected officials in all 435 congressional districts – strongly endorses H.R 948.
Families–and especially children–who live in a stable, affordable homes have better health and education outcomes, have greater access to economic opportunities, and benefit from stronger communities.
United for Homes urges reform of the mortgage interest deduction (MID)—a $70 billion a year tax write-off that largely benefits America’s highest income families—and a reinvestment of the savings in housing that serves families with the greatest, clearest, most pressing needs through solutions like the national Housing Trust Fund (HTF) and rental assistance programs.