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Now is a crucial moment for the future of affordable housing and support for vulnerable populations in our country.

As you know, last week the Senate passed their version of a tax bill. Since the Senate version differs from the House version passed in November, the next step is for a conference committee with delegates from both Chambers to meet and reconcile these differences. This presents a short window in which we can educate our legislators regarding the impact this will have on our communities.

MCAH opposes the Tax Cuts and Jobs Act for many reasons, and we encourage you to join us in contacting your members of congress and House conferee member Rep Sander Levin (D-MI-9) to voice your concerns. While we encourage you to ask them to oppose the bill in its entirety, there are two main asks that we will be communicating:

  • Make sure that Private Activity Bonds and New Markets Tax Credit remains in the final version
  • Remove the Senate repeal of the individual mandate for the ACA

While there are many troubling potential outcomes to this bill, the following are some of the most concerning as it relates to our work to end homelessness in Michigan:

  • REDUCES AFFORDABLE HOUSING AVAILABILITY
    • The House version repeals Private Activity Bonds (Housing Bonds which includes multifamily bonds) and the New Markets Tax Credit. If Housing Bonds are repealed, an estimated 800,000 affordable homes will not be built over the next ten years. Multifamily bonds, which are accompanied by 4% housing tax credits, account for over 50% of all Housing Credit (House version only; Senate version retains)
    • Lowers the corporate tax rate from 35% to 20%, which lowers the value of the Low Income Housing Tax Credit and reduces the amount of equity capital invested by around $2 billion annually. This could result in around 200,000 fewer units over ten years and overall lessen the value of the Housing Credit. (House and Senate versions)
  • PUTS FUTURE PROGRAMMING FOR VULNERABLE POPULATIONS AT RISK
  • ENDANGERS THE AFFORDABLE CARE ACT
    • The Senate version repeals the individual mandate of the Affordable Care Act, which could be the first step in the process to fully repeal the ACA and limit Medicaid enrollment to those experiencing homelessness. (Senate version)
  • DOESN’T DO ENOUGH TO PROTECT THE MIDDLE CLASS OR LOW-INCOME FAMILIES
    • Estimates regarding the impact of the individual tax cut suggest that the middle class may see a short term decrease in taxes paid but in the Senate bill, the individual tax cuts sunset in 2025 meaning that this is a short-term benefit. Low income families on the other hand will see little to no impact on their income. (Senate version)
    • The House version cuts the mortgage interest deduction in half to $500,000, but doesn’t include any mechanism for transferring savings into the Housing Trust Fund or other program to assist low-income families. The Senate bill maintained it at $1 million.

It is important that you contact your member of Congress, as well as the conferees who have been designated to reconcile the two versions of the bill.

The House conferees are:

  • Conference Chair: Ways and Means Chairman Kevin Brady (R-TX-8)
  • Devin Nunes (R-CA-22)
  • Peter Roskam (R-IL-6)
  • Diane Black (R-TN-6)
  • Kristi Noem (R-SD-at large)
  • Rob Bishop (R-UT-1)
  • Don Young (R-AK-at large)
  • Greg Walden (R-OR-2)
  • John Shimkus (R-IL-15)
  • Ways and Means Committee Ranking Member Richard Neal (D-MA-1)
  • Sander Levin (D-MI-9)
  • Lloyd Doggett (D-TX-35)
  • Raúl Grijalva (D-AZ-3)
  • Kathy Castor (D-FL-14)

The Senate conferees are:

  • Conference Chair: Finance Committee Chairman Orrin Hatch (R-UT)
  • Sen. Mike Enzi (R-WY)
  • Sen. Lisa Murkowski (R-AK)
  • Sen. John Cornyn (R-TX)
  • Sen. John Thune (R-SD)
  • Sen. Rob Portman (R-OH)
  • Sen. Tim Scott (R-SC)
  • Sen. Pat Toomey (R-PA)
  • Democratic conferees still to be appointed

For more information about the impact this could have on the future of affordable housing, please see:

 

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