NAHRO Releases Statement on Proposed House Tax Reform Bill
The National Association of Housing and Redevelopment Officials (NAHRO) is pleased that the Low-Income Housing Tax Credit (LIHTC), which is one of the most effective tools for creating new and critically needed affordable housing, has been preserved. As the tax reform legislation is perfected, we encourage Congress to consider the important LIHTC reforms found in S. 584 and H.R. 1661. NAHRO will also be working with its industry partners to determine the impact of the corporate tax rate reduction on the LIHTC.
NAHRO is deeply disappointed that three vital tools for the creation and preservation of affordable housing and strong communities have been repealed in the bill. Private Activity Bonds (PABs) are tax-exempt bonds issued by state and local governments to drive private investments in community development, housing (via Housing Bonds), infrastructure and educational projects. The bill would remove the tax exemption for PABs, including multifamily Housing Bonds, which help finance almost half of all the affordable homes produced and preserved by the LIHTC. This repeal of PABs would severely hinder LIHTC projects that provide safe, decent, and affordable housing for our nation’s growing share of low-income renter families, seniors, veterans, and people with disabilities. New Markets Tax Credits (NMTC) help localities build stronger neighborhoods by investing in housing, schools, and other vital projects, and are targeted at helping low-income communities. Since the NMTC’s inception, it has proven to be an effective tool for generating private sector investments for communities most in need. Historic Tax Credits also have a track record of stimulating economic growth while also preserving our valuable national architectural heritage.
NAHRO believes that these three important instruments for infrastructure creation and preservation should remain part of our economic development toolbox, and hopes that they will be restored in later versions of the bill.
Contact: Sylvia Gimenez