The House tax bill passed yesterday by a vote of 227 – 205, with Rep. Reed, Rep. Tenney, Rep. Katko, and Rep. Collins voting for it in New York. The House tax reform bill eliminates Private Activity Bonds, critical to affordable housing financing.  All hope is not yet lost as the Senate bill, which was voted out of Committee on Thursday, retains Private Activity Bonds.  If the Senate bill passes, the differences in the two bills must be ironed out before the legislation is enacted so advocacy is still needed.

The elimination of housing bonds would severely impact the City and State’s affordable housing plans and many affordable housing developers will also pay a steep price as described in Crain’s today, With House Tax Plan, Affordable-Housing Developers Could Find Themselves Underwater. For developers like Signature Urban Properties and Monadnock, who are halfway through a 1,300-unit affordable housing and community revitalization project in the Bronx called Compass Residences, killing these bonds leaves a $100 million financing problem.

The Senate intends to vote on its tax legislation the week after Thanksgiving and Congress hopes that it will be able reconcile and pass its tax reform package by Christmas. Since the bill can advance without the votes of Democrats, it is important that we call on Republican members of Congress to protect housing bonds.

NYHC conference will continue to fight to protect housing bonds and raise awareness through the press.  Check out PAB press below:

Crain’s New York: With House tax plan, affordable-housing developers could find themselves underwater

WSJ: Affordable-Housing Production Under Threat in Tax Overhaul Proposals

Washington Post: House tax plan faces bipartisan backlash over repeal of development incentives

DailyNews: Another way the House tax bill hurts ordinary Americans

Huffington Post: A Provision Buried In The House Tax Bill Could Slow Affordable Housing Construction

New York Times: California Today: Tax Proposals Threaten Lower-Income Housing

The Hill:

We can – and should – reduce poverty through tax reform

Congressional tax reform must include an affordable housing fix

Housing groups: GOP tax plan could hurt hurricane rebuilding efforts

HousingWire:

Housing industry disappointed in House for passing tax reform bill

House passes sweeping tax reform, including slashing mortgage interest deduction

Curbed: The House tax reform bill just passed-here’s what it means for housing

American Banker: How tax reform could devastate the affordable housing market

Houston Chronicle: Tax reform bill would stifle affordable housing in Texas

Miami Herald: Tax plan may limit access to housing

ThinkProgress: Ben Carson’s public housing plan would be crippled if the GOP’s tax bill passes

Finger Lake Times: Federal tax plan threatens future of public housing

 

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