November 15, 2017
A coalition led by the California Association of Realtors made a case against proposed U.S. Senate and House of Representatives tax reform bills via an open letter published across the state. The group of real estate agents, homebuilders and affordable housing advocates object to eliminating local property tax deductions, reducing the level of mortgage interest deductions, and doing away with private activity bonds, which are commonly used by local governments to finance roughly two-thirds of all affordable housing projects.
C.A.R.’s Steve White said, “If the goal of tax reform is to help middle-class taxpayers keep more of their hard-earned dollars, this proposal fails the test.”
The coalition says if the proposals are enacted, it will make it more difficult to buy a home in California, and hinder developers’ ability to finance new affordable housing projects. That’s because private activity bonds underwrite the 4% tax credits used by developers.
For comments, questions or concerns, please contact Dennis Kaiser