Will Proposed Tax Credit Reductions Hurt Affordable Housing?
You won’t be surprised that on going cuts in the federal budget proposed by President Trump continue to punish our citizens who need and deserve support from their government. The affordable housing industry continues to be hammered from multiple angles in Washington DC.
One of the most recent examples is related to the push to reduce the IRS tax code and cut the corporate tax rate in half. This move will reduce federal income by billions of dollars and reduce investor interest in the tax credit program which is currently the primary funding tool for affordable housing. When banks corporate tax rate is reduced by 50% you can generally predict that participation in the tax credit housing program will likewise fall by half. This means that an historical annual investment of $14 billion could fall to $7 billion. In 2015, 110,000 units of affordable housing were produced in the country. If this number decreases by half, then America’s families could lose the production 55,000 units per year.
For CCH, these scary numbers translate to seniors without housing, seniors living in their kid’s basement, and seniors being pushed into homelessness.
The answer? The government at all levels – Federal, State, County, & City – must recommit themselves to supporting our country’s seniors. Without this core value and deep level of commitment, seniors, and indeed all of us, face some frightening days ahead.
We thank you for your continued support of our mission to provide affordable quality housing in caring communities. Your donations make it possible for us to pour our energy to helping more seniors find More Than a Home.
Don Stump, President/CEO
PS – We are hosting a major celebration in Oakland, CA. on September 23. We hope to have 250 people playing games and helping to raise funds for the CCH mission at a “Casino Royale Charity Event”. Want to come? Want to sponsor a senior to attend? Click here to visit our website for info and a way to donate!