GOP Tax Plan: Bad News For Housing
By Borre Winckel, President & CEO
For Californians, the House GOP plan is bad news for new projects, for aspiring home owners and for keeping rental costs down. Unless changed, it shall exacerbate our already regulatory constrained, supply-starved housing markets. Affordable housing will be hit hard.
Plans call for a 50% cut in the maximum mortgage interest deduction on new loans dropping eligibility from $1 Million to $500,000. It would cap property tax deductions at $10,000, and do away with deductions for state and local income and sales taxes. Over here, a $500,000 mortgage buys you a fixer upper or an aquarium-sized condo for you and your small dog. How is that “middle-class” friendly?
(Continued from The Weekly)
The proposed restrictions on tax-exempt financing for low-income rental housing would also devastate affordable housing production. The plan would eliminate the tax exemption on private activity bonds, including multifamily Housing Bonds. Affordable housing builders depend on their access to the 4% Housing Credit market. We have enough trouble building affordable housing affordably!
As a member of the building industry you should pay close attention to this matter. It may affect your job and your cost of living. Call your Representative. Let them know this won’t work. Click here to find your representative.