From ACTION coalition partners, NAHMA has learned that Rep. Randy Hultgren (R-IL-14) is circulating a letter to House and Senate leadership opposing the proposed elimination of tax exempt private activity bonds in the House’s version of the Tax Cuts and Jobs Act (H.R. 1), focusing on the need for private activity bonds to support investments in our nation’s infrastructure. The letter also objects to the elimination of advanced refunding bonds in the House bill. “Private activity bonds finance exactly the sorts of public private partnerships of which we need more of, not less,” the letter states. “These bonds help finance housing for low- to moderate-income families that otherwise would not get built; toll roads and expressways, airports and seaports; hospitals and universities.”
Eliminating private activity bonds would have a devastating effect on affordable housing. Multifamily Housing Bonds, which are a type of private activity bond, provide critical financing to more than half of all Housing Credit developments annually by triggering the “4 percent” Housing Credit. Without multifamily Housing Bonds, this housing simply would not be built. See talking points on Housing Bonds.
According to Novogradac & Co., the proposed elimination of private activity bonds would result in a loss of roughly 788,000 to 881,000 affordable rental homes over the next decade. See how many affordable homes would be lost in your state. While the Senate version of the tax reform bill would retain private activity bonds, their inclusion in any final tax bill is incumbent on continued advocacy. In addition to advocating for the preservation of Housing Bonds, please urge Senators to adopt a proposal that would sustain Housing Credit investment in light of the lower corporate rate.
Urgent Outreach is Needed to House and Senate Republican Lawmakers to Protect Affordable Housing through the Tax Reform Process
Tax reform is rapidly progressing and remains a year-end goal for this Congress. Tax reform will likely pass on by party-line votes, which means the Republican-controlled Congress have enough votes from their members to move forward. At this time, outreach to Republican lawmakers is essential. If you are in a state with Republican Senators or Representatives, please reach out to their offices and share the importance the LIHTC in their State and Districts.
How to Find Your Congressional Representatives
U.S. House of Representatives: https://www.house.gov/representatives