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:
New York Times: California Today: Tax Proposals Threaten Lower-Income 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
Finger Lake Times: Federal tax plan threatens future of public housing