Statement from Terri Ludwig, president & CEO of Enterprise Community Partners, on the “Tax Cuts and Jobs Act”
November 10, 2017 – A strong economy requires stable homes and thriving communities, and any pro-growth tax reform plan should support proven tools to provide these necessities – the Low-Income Housing Tax Credit (Housing Credit) and New Markets Tax Credit (NMTC). These programs work together to make well-designed homes affordable, support local economic development and connect residents to opportunity.
Enterprise thanks Senate Republican leadership for retaining both the Housing Credit and NMTC in its version of the “Tax Cuts and Jobs Act,” in addition to retaining multifamily Housing Bonds, which provide critical financing to more than half of Housing Credit developments.
Enterprise is deeply concerned, however, that while the House version of the bill retains the Housing Credit, it would have a catastrophic impact because it eliminates both Housing Bonds and the NMTC. This change would potentially reduce the future supply of affordable homes by nearly one million over the next decade – a two-thirds reduction in production – and severely hinder our ability to revitalize distressed communities. Considering demand for affordable homes already far exceeds supply, the gap is expected to grow and many struggling communities continue to fall farther behind, we simply cannot afford these setbacks.
As Congressional Republicans and the Administration work towards a compromise on tax reform legislation, we call on them to:
- Retain the Housing Credit and multifamily Housing Bonds to keep our affordable housing delivery system strong by ensuring that the Housing Credit continues to generate robust investment in light of other changes in tax reform, and
- Retain the New Markets Tax Credits, a proven incentive to bring opportunity to our nation’s most distressed communities.
These tools are essential to building an economy that works for everyone. They are indispensable in our nation’s tax code, making possible homes affordable to low-income families, veterans and seniors while strengthening communities and increasing opportunity in urban, suburban and rural communities nationwide.