Increased Affordable Housing Funding Critical to Preventing and Ending Homelessness
The Housing Credit is a federal tax credit that ensures the production and rehabilitation of affordable housing for low income households who rent. The Tax Cuts and Jobs Act of 2017 reduced the corporate tax rate from 35 to 21 percent “resulting in less overall production” of low income housing.
In San Francisco the Natalie Gubb Commons, a development of 95 complete apartments, was subsidized by a “market-rate developer next door,” city funds, and federal Low-Income Housing Tax Credits. Meanwhile, Congress was working towards a tax overhaul that would ultimately reduce the corporate tax rate, preventing projects like these from being created in the future.
Even with the use of all available funds and 95 one, two, or three-bedroom apartments, the Natalie Gubb Commons was incapable of meeting the needs of the 6,580 applicants in need of affordable housing.
Like most subsidized housing, the Natalie Gubb Commons was forced to resort to a lottery system in order to provide a fair way of accepting applications.
However, this “fair” method did not take into consideration, or prioritize, current housing situations, household income, and maximum affordability.
“Many who are poor enough to qualify for the building are too poor to cover the rent.” Although subsidized housing is meant to provide housing options for low income households, subsidized housing is still not an option for many families or individuals. The overwhelming amount of people attempting to find solutions to their housing/homelessness issues is reflective of the housing crisis in San Francisco and in the nation as a whole.
Despite using maximum resources, the Natalie Gubb Commons was incapable of providing relief to the many low-income residents in San Francisco in need of affordable housing. With tax cuts reducing the possibility of affordable housing like the Natalie Gubb Commons from being created or maintained in the future, homelessness is likely to increase exponentially in the near future.
“Enacting the Affordable Housing Credit Improvement Act, including the 50 percent increase in Housing Credit allocation authority, would make up for the lost production resulting from tax reform and further strengthen this already successful program.” The housing crisis needs more funds to provide more affordable housing, not for those funds to be taken away so that the few affordable housing options that exist or are created can be taken away.
Monarch Housing works to Expand and strengthen the Housing Credit to increase the availability of safe and affordable housing and revitalize local economies.
On July 25th, a Congressional Reception will be held at the Dirksen Senate Auditorium in Washington D.C. This event will allow New Jersey Residents who are working poor, below the poverty line and or impacted by homelessness to urge their elected officials in Washington to make No Cuts to Housing and remind them that pOportunity Starts at Home.