Infrastructure Plan Prioritizes Increased Federal Funding for HOME, Housing Trust Fund, LIHTC and CDBG
The National Low Income Housing Coalition has reported that In response to President Trump’s infrastructure plan released in February, Senate Democrats have released the “Jobs & Infrastructure Plan for America’s Workers.”
The new plan proposes $1 trillion in total federal spending, compared to Mr. Trump’s $200 billion.
Unlike the President’s proposal, the Democrats’ infrastructure plan includes $62 billion for neighborhood revitalization, lead remediation, affordable housing, and disaster recovery.
The Democrat’s plan includes increased funding for:
- public housing capital investments,
- the HOME Investment Partnerships Program,
- the national Housing Trust Fund,
- the Low Income Housing Tax Credit,
- Choice Neighborhoods, and
- Community Development Block Grants.
More specifically, the plan makes the following recommendations to:
- Provide grants to States and local communities through the HOME Investment Partnerships Program and Housing Trust Fund to address their affordable housing production and repair priorities, such as: affordable housing for seniors, people with disabilities, and families; supportive housing for the homeless; and repairs that help seniors and persons with disabilities stay in their homes.
- Strengthen the Low-Income Housing Tax Credit (LIHTC), which provides tax incentives for private investment in the creation and preservation of affordable housing. The recently-enacted Republican tax cuts reduced the number of affordable homes that will be produced with LIHTC by an estimated 235,000 units over the next 10 years.
- The proposal also contains $25 billion to help communities rebuild following 2017’s disasters and build more resilient communities to reduce future devastation. The Senate Democrats propose several tax changes, including increasing top marginal tax rate for individuals to its previous 39.6% and the corporate tax rate to 25% (from 21%) to help finance the investment.
“Many local communities are plagued by homelessness, a lack of affordable housing, and an aging housing stock, and require the resources necessary to increase affordable housing, address blight, and improve the livability of their neighborhoods. Over the past decade, rising housing costs have left more families struggling to pay for rent and other necessities, let alone save for a down payment,” said the report.