Proposed changes to the corporate tax rates have stymied funding for affordable housing, according to a California housing executive.
The Trump Administration has vowed to lower taxes for businesses, and this stance has caused a halt since December 2016 in the issuance of letters of intent from major investors in affordable housing. About 90% of affordable rental housing projects stem from the federal Low-Income Housing Tax Credit (LIHTC).
This program encourages the investment of private equity in the development of affordable rental housing for low-income households through tax incentives. With the uncertain impacts of tax reform, big banks are currently reluctant to commit to specific deals.
Some are calling on Congress to protect the LIHTC and increase the allocation of credits to prevent an affordable housing crisis from getting worse.
Related Stories
Codes and Standards | May 23, 2019
Austin creates innovative plan to boost affordable housing
Approach includes loosened zoning, incentives for higher density in lower-cost and mixed-income developments.
Codes and Standards | May 20, 2019
Effort launched to develop better process for zero-carbon retrofits in multifamily sector
Rocky Mountain Institute, Dept. of Energy, California Energy Commission join forces.
Codes and Standards | May 20, 2019
Property lenders shouldn’t invest for 30 years in most of Florida, expert warns
Climate ignorance driving some ‘insane’ deals.
Codes and Standards | May 17, 2019
NIMBYism is the biggest multifamily construction barrier
National Apartment Assn. report assesses reasons for difficulty in creating more apartments.
Codes and Standards | May 17, 2019
Dept. of Energy to award up to $33.5 million for advanced construction R&D
Focus is on techniques to reduce energy bills.
Codes and Standards | May 16, 2019
Mixed reviews on targeted tax break for San Francisco neighborhood
“Twitter tax break” may have worsened some of the area’s problems.
Codes and Standards | May 15, 2019
OSHA inspections to increase, says Secretary of Labor
Newly hired inspectors getting up to speed.
Codes and Standards | May 14, 2019
Database records more than 1,360 K-12 school shooting incidents since 1970
Naval Postgraduate School program maps locations nationwide.
Codes and Standards | May 13, 2019
In many cities, downtown housing comes with a hefty premium
Urban core living costs hundreds of thousands more in largest U.S. cities.
Codes and Standards | May 7, 2019
San Francisco plan would require largest commercial buildings to use 100% renewable electricity
First in the U.S. mandate would be phased in from 2022 to 2030.
