Congress Tag Archives

Congress Looks to Avoid Government Shutdown Jan. 19

While the prospect of a potential government shutdown has been common as of late (December saw two short-term continuing resolutions passed), the fear a shutdown may actually happen seems more likely this time around. Unlike tax reform, which was passed under budget reconciliation rules only requiring simple majorities and thus could be passed on a partisan basis in the Congress, a spending measure will likely require at least 60 votes in the Senate to overcome a potential veto, thus requiring support from at least some Senate Democrats.

One significant hurdle to passage concerns a lack of compromise over the Deferred Action for Childhood Arrivals (DACA) program, which the Trump Administration announced will no longer be honored after March 5 – resulting in the deportation of roughly 690,000 people. Democrats have floated withholding their votes on any stopgap funding measure that lacked language addressing the DACA issue.

Last night (January 16), the House of Representatives offered stopgap legislation which they believe includes enough perks to encourage Democratic support – including a six-year reauthorization of the Children’s Health Insurance Program.

Should a Government shutdown occur this Friday, the results would not be pretty: Politico recently estimated nearly 96% of HUD staff would be furloughed.

Novogradac & Company Provides Analysis of Jobs Lost Due to Affordable Housing Provisions in House Tax Reform Legislation

Novogradac & Company has expanded its recent analysis of the  currently drafted H.R. 1, the Tax Cuts and Jobs Act, which would reduce the future supply of affordable rental housing by nearly 1 million rental homes, a loss of as much as two-thirds current affordable rental housing production.

That significant reduction in housing production would also mean the loss of more than a million jobs and billions of dollars in business income and federal, state and local tax revenue across the United StatesClick here to view the full post on Novogradac & Companies website.

Here is how these losses would break down by state:

House Tax Reform Bill Eliminates HTC, NMTC; Eliminates Private Activity Bonds

The House Ways and Means Committee has released the full text of its Tax Cuts and Jobs Act. The Committee plans to begin markup on the proposed legislation on November 6, with plans for a House floor vote sometime in mid-November. Several changes within the code would drastically change the landscape of affordable housing and community development.

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Rep. DelBene Introduce Legislation Expanding LIHTC by 50 Percent

According to a press release issued on October 31, 2017 Congresswoman Suzan DelBene (WA-01) today led members of the Washington state delegation representing King County in introducing the Access to Affordable Housing Act to increase the Low Income Housing Tax Credit (LIHTC) by 50 percent.  At press time bill text was not yet available.

“Making sure that every American has a safe and affordable place to call home is a moral imperative that we must address,” DelBene said. “To help lift families out of poverty and expand access to affordable housing, we need to increase the Low Income Housing Tax Credit. Washington has seen it firsthand, housing options are not keeping pace with demand and my legislation would help ensure more families can find stable, affordable housing.”

Reps. Adam Smith (WA-09) and Pramila Jayapal (WA-07) are original cosponsors of DelBene’s bill – all of whom represent King County, where housing demand and costs have sky rocketed in recent years. In Washington state, nearly 400,000 households pay half their income in rent.

“A growing number of our community members are experiencing housing insecurity. We need to do more to address our affordable housing crisis,” said Smith. “Housing is critical component of economic mobility. I am proud to join my colleagues in introducing this legislation to strengthen and expand the Low Income Housing Tax Credit. This is a necessary step in building an equitable future and ensuring that families in Washington state and across the country have access to homes they can afford.”

“Seattle is facing a housing crisis and we need to employ every tool in our toolbox to expand our low-income housing stock. I am so proud to join my colleagues in Washington state as we introduce the Access to Affordable Housing Act and tackle the housing crisis head-on,” said Jayapal. “All of our neighbors, and everyone across the country, deserves access to a safe, affordable home and a greater sense of stability. By raising the Low Income Housing Tax Credit, we are not only increasing our state’s ability to build low income housing, we are opening doors to opportunity for people across our communities.”

The Access to Affordable Housing Act would increase the Low Income Housing Tax Credit (LIHTC) by 50 percent, which could result in as many as 400,000 more affordable housing units developed over 10 years.

DelBene serves on the House Ways and Means Committee, which has jurisdiction over tax issues. DelBene is also a cosponsor of the bipartisan Affordable Housing Credit Improvement Act, a comprehensive bill to strengthen the LIHTC by providing states flexibility and encouraging development in rural communities.

Action Campaign Urges Tax Writers to Include LIHTC Provisions in Tax Reform

NH&RA has joined other members of the Affordable Rental Housing ACTION Steering Committee in a letter to the Chairmen and Ranking Members of the Senate Committee on Finance and House Ways & Means Committees urging Congress to include the Affordable Housing Credit Improvement Act of 2017 (S. 548 / HR 1661) in tax reform legislation or any legislation responding to the recent hurricanes and other natural disasters.

Click here to view the 10-30-17 ACTION Letter to Tax Committee Leaders on Inclusion of HC in Tax Reform or Disaster Legislation

Love Funding CEO Pens Op-ED in Highlighting RAD Program

In an op-ed in The Hill, Mark Dellontem, president and CEO of Love Funding, highlights the success of the federal Rental Assistance Demonstration (RAD) program in utilizing targeted taxpayer dollars to stimulate private capital for renovations and produce wide-ranging benefits. The RAD program, which is a federal program that converts public housing authorities’ (PHAs) existing annual operating and capital subsidies into project-based rental contracts that can attract private capital, has facilitated rehabilitation and the conversion of nearly 62,000 public housing units to more stable financial footing. Another 125,000 units have been authorized for conversion and are working their way through the process. In addition, construction investments made through the RAD program reached $4 billion nationwide in May, an amount that would have taken PHAs 46 years to accumulate on their own. Dellontem urges Congress to continue supporting the RAD program and consider using it as a template for private-public partnerships in the federal government.

LIHTC Champion Rep. Tiberi Announces Departure from Congress

Representative Pat Tiberi (R-OH-12), the lead Republican sponsor on the House version of the Affordable Housing Credit Improvement Act (H.R. 1661) and a longtime champion of the Housing Credit, announced last week that he will leave Congress no later than January 31, 2018, nearly a year before his term ends. NH&RA thanks Rep. Tiberi for his longstanding leadership on affordable housing, and will work with Rep. Tiberi to identify a new lead House Republican champion for the Housing Credit.

Click here to learn more.

NPS Publishes 2016 Historic Tax Credit Economic Impact Report

The National Park Services has published its “Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2016.”  The report, which is produced by Rutgers University with assistance from the National Trust Community Investment Corporation—provides a quantitative analysis of the success of the federal historic tax credit (HTC).

Key findings show that fiscal year 2016 was a record-setting year for historic tax credit use. Activity increased by 32 percent over the last year—the greatest year-over-year increase in the program’s history. A banner year brings the cumulative totals of the credit’s economic impact since 1986 to 42,293 buildings rehabilitated, almost 2.5 million jobs created, and $29.8 billion in federal taxes generated. This last number is particularly significant because it confirms the HTC is a revenue generator for the U.S. Treasury (tax credits issued over this same period total $25.2 billion).

The release of this NPS report is incredibly timely. With pressure mounting for the Republican-controlled Congress to deliver a legislative victory ahead of the 2018 mid-term election season, comprehensive tax reform is now Washington’s top domestic policy objective. Republican leadership is determined to send a tax reform plan to the President before the end of the year. Without frequent and sustained advocacy from constituents over the next several weeks, the HTC is likely to join the many other business tax credits that simply do not make it back into a reformed tax code.

Click here to learn more.