Sign-on letter regarding specific provisions of the “Tax Cuts and Jobs Act”
December 8, 2017
We, the undersigned members of the National Community Reinvestment Coalition (NCRC), are writing to urge you to adopt specific provisions included the Senate version of the “Tax Cuts and Jobs Act.” Although we have concerns overall with both versions of this bill, the Senate provisions regarding private activity bonds, the Low-Income Housing Tax Credit (LIHTC), the New Markets Tax Credit, and the Historic Tax Credit are preferable and would continue critical tax subsidies for affordable rental housing, and community and economic development projects in underserved communities. When combined with an overall declining federal budget and the strict caps imposed on non-defense discretionary spending through the annual appropriations process, the shrinking tax subsidies included in tax reform raise even greater concerns about the state of investment in the nation’s underserved communities.
These bills include several provisions that would undermine incentives in the nation’s tax code for low- and moderate-income (LMI) families to become homeowners. Homeownership remains the best vehicle for LMI families and people of color to build wealth and enter the middle class. The House version of this legislation also repeals several provisions in the tax code that help finance the development of affordable rental housing as well as other community and economic development projects.
- On the Low-Income Housing Tax Credit and Private Activity Bonds: The House eliminates the tax exemption for private activity bonds, which are critical to the production and preservation of affordable housing across the country through the 4% LIHTC program. The Senate version modifies but retains LIHTC and preserves private activity bonds.
- On the New Markets Tax Credit and Historic Tax Credit: The House version eliminates both the New Markets Tax Credit program and the Historic Tax Credit. Both credits are designed to encourage investments in low-income communities in the nation’s urban core and rural areas that traditionally have had poor access to debt and equity capital. The Senate version maintains the 20% Historic Tax Credit.
We have grave concerns about both bills, the automatic spending cuts to key housing programs that could be triggered as a result of tax reform and the
overall declining support in both the federal budget and the nation’s tax code for investment in LMI communities. Nonetheless, we urge the conference reconciling the differing provisions between these two bills to adopt the more favorable provisions in the Senate version regarding private activity bonds, the Low-Income Housing Tax Credit, the New Markets Tax Credit, and the Historic Tax Credit.
National Community Reinvestment Coalition (NCRC)
Affordable Homeownership Foundation Inc.
Baltimore Neighborhoods Inc
Baptist Ministers Conference of Cinti. & Vicinity
Beechview Area Concerned Citizens
California Coalition for Rural Housing
California Reinvestment Coalition
CASA of Oregon
City of Dayton Human Relations Council
Community Housing Fund
Detroit Shoreway Community Development Organization
Financial Justice Coalition
First World Architects Studio
Friends of the African Union
Global Network CDC
Greater New Orleans Housing Alliance
H.O.P.E. Through Divine Intervention Inc
Hamilton County Community Reinvestment Group
Hazelwood Initiative, Inc.
Higher Self Lifestyle
HOPE of Evansville
Housing and Education
Housing Authority of the City of High Point
Housing Coalition Educators
The Institute of Minority Economic Development
L.A Keyz Financial Services
Metropolitan St. Louis Equal Housing and Opportunity Council
Multi-Cultural Development Center
National Association of American Veterans, Inc.
National Housing Counseling Agency
National Housing Institute
Neighborhood Housing Services of South Florida
Neighborhood Housing Services of Waterbury
PathStone Enterprise Center
The Pittsburgh Project
R Pace Tax Service
Rebuild Durham Inc
The Resurrection Project
Sacramento Housing Alliance
Scott County Housing Council
Universal Housing Solutions CDC
Uptown Partners of Pittsburgh
Urban Coalition of Appraisal Professionals
Vermont Slauson Economic Development Corporation
Wesley Community Center
White Wing Educational Community Development Inc.
Wisconsin Partnership for Housing Development
Working In Neighborhoods