National Housing and Rehabilitation Association has joined a national coalition comprised thus far of more than 50 other housing agencies and organizations in sending a letter to Congress urging the enactment of three proposals in upcoming Low Income Housing Tax Credit legislation to rekindle equity investment in the program.
The letter argues that “the recession and the financial crisis have drastically reduced investment in the Housing Credit program over the past 18 months” and estimates the current trend will result in 60,000 fewer affordable apartments being built and the loss of 90,000 jobs annually. It goes on to acknowledge the help to jumpstart the program provided by the HUD-administered Tax Credit Assistance Program (TCAP) included in the American Recovery and Reinvestment Act of 2009, but points out this program is a temporary fix that should not be viewed as a substitute for private investment.
The letter was proposed by the Center for American Progress Action Fund and Living Cities, and drafted by David Abromowitz, a NH&RA board member as well as a partner with the Boston-based law firm of Goulston and Storrs. “With the stimulus package, our industry spoke with diverse voices and did not get the desired results, ” Abromowitz says. “With one voice, we could be more effective.” The widespread coalition’s letter calls for the following legislative changes to encourage investment in affordable rental housing:
- Extend the Section 1602 tax credit Exchange Program to maintain the development pipeline in 2010 and modify it to include Four percent Housing Credits that accompany tax-exempt multifamily housing bonds;
- Stimulate and broaden the investor base by increasing the Housing Credit carryback period for up to five years on returns filed for the 2008-2010 tax years;
- Broaden the potential investor base by allowing some S Corporations, Limited Liability Companies and closely-held C Corporations to offset revenue with Housing Credit tax benefits that would otherwise be taxable when passed through to the owners of these businesses.
NH&RA will continue to work with our industry colleagues to promote the adoption of these proposals. We encourage our members to contact or meet with their local Congressional representatives and advocate this industry-wide initiative.
The list of coalition members follows:
Affordable Housing Investors Council
Affordable Housing Tax Credit Coalition
American Association for Homes and Services for the Aging
California Coalition for Rural Housing
California Housing Partnership Corporation
Citizens’ Housing and Planning Association
Center for American Progress Action Fund
Coalition on Homelessness and Housing in Ohio
Community Capital Corporation (Colorado)
Community Economics, Inc.
Community Housing Equity Corporation
Connecticut Housing Coalition
Council for Affordable and Rural Housing
Crossroads Urban Center, Salt Lake City
Delaware Community Investment Corporation
Enterprise Community Partners
Federation of Appalachian Housing Enterprises
Great Lakes Capital Fund
Homestead Capital
HOUSING ACTION Coalition-Rhode Island
Housing Advisory Group
Housing Alliance of Pennsylvania
Housing Partnership Network
Housing Preservation Project, St. Paul
Institute for Responsible Housing Preservation
Living Cities
Low Income Investment Fund
Maine Affordable Housing Coalition
Massachusetts Housing Investment Corporation
Mercy Housing Inc.
Midwest Housing Equity Group
Minnesota Housing Partnership
Mountain Plains Equity Group
National Affordable Housing Management Association
National Affordable Housing Preservation Associates, Inc.
National Affordable Housing Trust
National Alliance of Community Economic Development Associations
National Alliance to End Homelessness
National Apartment Association
National Association of Affordable Housing Lenders
National Association of Home Builders
National Association of State and Local Equity Funds
National Housing Conference
National Housing Law Project
National Housing & Rehabilitation Association
National Housing Trust
National Leased Housing Association
National Low Income Housing Coalition
National Multi Housing Council
National NeighborWorks Association
Network for Oregon Affordable Housing
Ohio Capital Corporation for Housing
Stewards of Affordable Housing for the Future
St. Louis Equity Fund
Vermont Affordable Housing Coalition
Virginia Community Development Corporation
Volunteers of America
For the complete content of the letter, click here.
