In response to a recent White House discussion meeting which called for bold action to tackle the nation’s ongoing housing troubles, Rep. Kathy Castor (D-FL) has sent a letter to President Obama proposing a number of recommendations that would significantly impact the development of affordable rental housing. Among the proposals recommended by Rep. Castor’s are:
- Extend the New Issue Bond Program (NIBP). Rep. Castor’s letter points out that NIBP has been particularly effective in Florida, assisting more than 375 multifamily rental units that would not have been completed without NIBP also while creating jobs.
- Save the project-based multifamily housing stock. The letter encourages providing acquisition and rehabilitation funds, in addition to local partnerships to preserve the project-based stock.
- Change 4% tax credit valuation to be consistent with changes made to the 9% tax credit. In 2008, HERA legislation made the 9% credit equal to the full 9% value. The 4% credit formula was never adjusted. Castor recommends extending the 9% adjustment (set to expire December 31, 2013) and adopting a similar formula for the 4% credit.
