With the release of the House Republicans tax reform proposal HR 1, the Tax Cuts and Jobs Act, on November 2, CLPHA and other affordable housing providers were jolted by the House proposal to eliminate the tax exemption for private activity bonds (PABs), including multifamily housing bonds (housing bonds), which are responsible for approximately half of Low Income Housing Tax Credit (housing credit) production annually. Consequently, CLPHA and other stakeholders mounted an aggressive effort to preserve and retain the tax exemption for PABs, Historic Tax Credits and New Markets Tax Credits in both the House and Senate.
One week later on November 9, the Senate majority released their tax reform proposal. While we are pleased the Senate proposal retains both housing bonds and housing credits, CLPHA and stakeholders such as the ACTION Campaign—whose Steering Committee CLPHA sits—will continue to educate and press Congress to preserve these important housing production instruments. CLPHA applauds and thanks its members who communicated the importance of these tax exemptions to Congress.
To underscore our position, CLPHA sent letters to the Senate Finance Committee and the House Ways and Means Committee, the respective tax-writing committees in Congress, whose chairmen and ranking members will probably serve as floor managers for their respective bills and conference committee leaders for any eventual, final legislation. CLPHA specifically asked Congress to:
CLPHA looks forward to continuing to work with Congress on these issues as they work their way through the tax reform process.