Representative Ellison Introduces 'Common Sense Housing Investment Act'
Representative Keith Ellison (D-MN) recently reintroduced legislation to end homelessness and housing poverty through tax reform. The bill calls for reducing the mortgage interest deduction to a flat 15 percent tax credit for the first $500,000 of debt. The legislation would gradually phase-out the current deduction and direct the revenue generated into LIHTCs, Section 8 rental assistance, the Public Housing Capital Fund, and the Housing Trust Fund. The estimated generated revenues are $300 billion over 10 years.
The bill’s introduction complements Ellison’s recent Dear Colleague letter, which was signed by 34 members of Congress. The letter draws attention to the nation’s affordable housing crisis and urges the Ways and Means Committee to reinvest any savings from reforming the mortgage interest deduction or other homeownership benefits into rental housing programs that serve low-income families and individuals.