HFA Call to Action to Restore Housing Bonds in House Tax Reform Bill Dear partners in affordable housing,
The just-released House Republican tax reform bill, the Tax Cuts and Jobs Act of 2017, H.R. 1, proposes to eliminate tax-exempt private activity bonds (PABs), including both multifamily and single-family Housing Bonds, for bonds issued after 2017. The bill contradicts all previous reports, from sources both in Congress and within the Administration, that suggested the bill would maintain tax-exempt PABs. The bill also repeals the related Mortgage Credit Certificate (MCC) program.
As partners working to strengthen affordable housing in Colorado we encourage you to immediately contact the Colorado Congressional delegation and ask them to communicate to Ways and Means Committee Chairman Kevin Brady (R-TX) and Ranking Member Richard Neal (D-MA) the need to restore tax-exempt private activity Housing Bonds in the tax reform bill, H.R. 1.
Immediate action is important, as we understand Chairman Brady will be putting together over the next couple of days a Chairman’s Amendment that he will put before the Committee at the outset of the Monday, November 6 mark-up, proposing a limited number of changes to the bill. Our goal is to restore Housing Bonds in that amendment. After the amendment is finalized, it will be difficult, if not impossible, for members to influence the bill.
Remind your delegation of the importance of the Housing Bond program to both your single-family and multifamily affordable housing efforts. Stress that single-family Housing Bonds provide essential support to the first-time homebuyer market by financing affordable mortgages for working families. Emphasize that multifamily Housing Bonds are responsible for nearly 50 percent of Housing Credit affordable rental housing production annually through the 4 Percent Housing Credit program, all of which would be lost if these Bonds are eliminated.
It is important that Colorado’s delegation hears from many concerned stakeholders about potential impacts to their districts.
Click here for a fact sheet about
private activity bonds.
Senator Michael Bennet (D-CO)
Senator Cory Gardner (R-CO)
Rep. Diana DeGette (D-1)
Rep. Jared Polis (D-2)
Rep. Scott Tipton (R-3)
Rep. Ken Buck (D-4)
Rep. Doug Lamborn (R-5)
Rep. Mike Coffman (D-6)
Rep. Ed Perlmutter (D-7)