Statement by NAHRO CEO on the Tax Reform Bill
NAHRO is pleased that the tax reform bill passed by Congress maintains tools important to the creation and preservation of affordable housing and the economic development of towns and cities across the country. Private activity bonds, LIHTC, New Market Credits, and Historic Tax Credits all play critical roles when our members take on the hard task of improving their communities. NAHRO thanks the tax reform conference committee conferees who recognized the importance these programs play in addressing our nation’s severe affordable housing crisis.
But our work does not end today. We urge Congress to ensure that the new tax environment established by the tax reform legislation does not reduce the use of LIHTC. In particular, the 21 percent corporate tax rate and the base erosion anti-abuse tax that will be implemented as part of tax reform, respectively, will reduce the amount of equity available to Housing Credit properties and make Housing Credit investment less attractive to certain investors who have long participated in the Credit program. NAHRO looks forward to working alongside our industry partners to urge Congress to address both of these concerns in technical correction or other follow-on tax legislation in order to keep these programs whole.
As we look beyond this bill, it is also equally important that other important affordable housing and community development tools -- the public housing operating and capital funds, rental assistance, HOME, and CDBG -- all receive similar support. Like, LIHTC and the other tools above, these tools are also critical in sustaining public/private partnerships in urban and rural America.