The House tax reform bill threats to drastically reduce the number of affordable housing units developed.
A recent study by the accounting firm Novogradac & Company estimates that the tax reform bill as proposed by the House of Representatives will result in a decrease in affordable housing production of 1 million units over ten years.
At risk is the 4 percent tax credit, one of two credits developers can use to build affordable housing (the 9 percent being the other). The 4 percent credit can be claimed if 50 percent or more of the project is financed using tax-exempt private-activity bonds. The House bill proposed to eliminate private-activity bonds, which would cause a large reduction in the production of low-income housing.
Jeff Andrews provides more coverage of the report in an article for Curbed.
Read the full story: Affordable Housing Advocates Say Trump Tax Reform Bill is 'Devastating'
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