With Congress near to finishing the tax bill, many in affordable housing are focusing on the fate of the Low-Income Housing Tax Credit (LIHTC) and private activity bond financing. Seeing the LIHTC maintained as part of the tax code early in the proposals was a good sign, but the provision in the House bill to eliminate the bond financing and accompanying 4 percent LIHTC would devastate efforts to preserve and create affordable rental homes nationwide. As the House and Senate go to conference this week, their decisions about these provisions will have long-lasting effects on communities across the country.
Taken as a whole, this tax bill looks very far from a win for housing. At our Solutions for Affordable Housing convening last week, discussions examined many aspects of this tax bill. The risks to rental housing, decreased support for homeownership and elimination of the state and local tax deduction all could hit hard in different ways. For me, it is a stark reminder that our power as housers is far weaker when we are divided. Consistent, united advocacy around housing has the potential to make change where disparate or conflicting narrow advocacy does not.
Don’t forget the several other pressing issues on the legislative calendar for the end of the year. Congress has yet to finish FY 2018 appropriations, reauthorization and reform of flood insurance, pending appointments and potentially even a tax extenders bill, which may be the first step toward the technical corrections we know will be needed post-tax legislation. NHC will be watching all of it, weighing in and sharing information to help you understand the issues.
To help us help you defend affordable housing, please renew your NHC membership in 2018. If you haven’t received a reminder or have any questions, please reach out to me at ehandelman@nhc.org. We are looking forward to much work and great events in 2018, and the best way to participate in all of that is as an NHC member. We appreciate your support and look forward to working with you in 2018.