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 | Jun 29, 2018
Nearly half of nonresidential construction projects now delivered by design-build
‘Alternative’ method now mainstream for nonresidential, highway/street, and water/wastewater construction projects.
Codes and Standards | Jun 28, 2018
Modular construction may be key to relieving housing crunch
May be only way to meet needs as ranks of construction workers decline.
Codes and Standards | Jun 27, 2018
Thirty nine San Francisco high rises at risk of collapse in major earthquake
Vulnerable buildings have welded columns and beams.
Codes and Standards | Jun 26, 2018
Boston enacts new climate resiliency rules for buildings
New policy is likely a first in the nation.
Codes and Standards | Jun 25, 2018
Integrated Project Delivery guide offered by Pankow Foundation
An Action Guide for Leaders offers answers to critical IPD questions.
Codes and Standards | Jun 21, 2018
New app said to automate code compliance
Startup offers plug-in that scans 3D models.
Codes and Standards | Jun 20, 2018
Home values and local tax revenues at risk from high tide flooding, scientists group says
Analysis of property data identifies communities prone to frequent flooding.
Codes and Standards | Jun 19, 2018
Structural engineered wood products exempt from new EPA formaldehyde ruling
Exempt products include structural plywood, oriented strand board (OSB).
Codes and Standards | Jun 18, 2018
Seattle City Council repeals controversial new per-worker tax on large employers
Measure was aimed at raising $50 million for homeless services, affordable housing.
Codes and Standards | Jun 14, 2018
Hardscape from development makes ‘1,000-year’ flood in Maryland worse
Impermeable concrete made it easier for water to overwhelm drainage system.
