Op-Ed Highlights Threats to Affordable Housing Production
A recent op-ed by The New York Times editorial board highlighted the significant threats to affordable housing production following the adoption of last year’s tax reform legislation. The Tax Cuts and Jobs Act reduced the top corporate tax rate from 35 to 21 percent, which has reduced pricing and subsequent production for the LIHTC, the nation’s primary tool for developing new affordable housing.
The op-ed cited analysis by Novogradac & Co. which estimated that, without congressional action, the new tax law will cut affordable housing by 235,000 units over the next 10 years and cost the country 260,000 jobs.
The editorial board noted that the Affordable Housing Credit Improvement Act (S. 548), bipartisan legislation in the Senate, would expand the Housing Credit by 50 percent, resulting in a sorely needed 400,000 additional affordable homes over the next decade.