Action Alert: Ask Your Members of Congress to Sign On to Support Private Activity Bonds
Rep. Randy Hultgren (R-IL-14) is circulating a letter to House and Senate leadership opposing the proposed elimination of tax exempt private activity bonds in the House’s version of the Tax Cuts and Jobs Act (H.R. 1), focusing on the need for private activity bonds to support investments in our nation’s infrastructure. The letter also objects to the elimination of advanced refunding bonds in the House bill. “Private activity bonds finance exactly the sorts of public private partnerships of which we need more of, not less,” the letter states. “These bonds help finance housing for low- to moderate-income families that otherwise would not get built; toll roads and expressways, airports and seaports; hospitals and universities.”
The House passed its version of the “Tax Cuts and Jobs Act” by a vote of 227 – 205 last week, with all Democrats and 13 Republicans voting against it. While the bill retains the Low-Income Housing Tax Credit (Housing Credit), it would eliminate private activity bonds, which includes multifamily Housing Bonds, and would thus have a devastating impact on affordable housing production. Multifamily Housing Bonds, which are a type of private activity bond, provide critical financing to more than half of all Housing Credit developments annually by triggering the “4 percent” Housing Credit. Without multifamily Housing Bonds, this housing simply would not be built. See the ACTION Campaign’s talking points on Housing Bonds. According to Novogradac & Co., the proposed elimination of private activity bonds would result in a loss of roughly 788,000 to 881,000 affordable rental homes over the next decade. While the Senate version of the tax reform bill would retain private activity bonds, their inclusion in any final tax bill is incumbent on continued advocacy.
Rep. Hultgren will be adding Republican signatories from both the House and the Senate until noon on Monday, Nov. 27. Please urge your Republican Senators and Representatives to sign on by contacting Bill Hulse in Rep. Hultgren’s office.
If you have any questions, please contact Emily Cadik, Director, Public Policy, Enterprise Community Partners, at email@example.com or 202-403-8015.