CARH’S BROADCAST EMAIL – Legislative Update

December 7, 2017

In the section of yesterday’s Broadcast Email entitled “Tax Reform Nearing Final Stage of Legislative Process,” Senate Minority Leader Charles Schumer (NY) had yet to name the Democratic conferees to the tax reform legislation conference committee. Today, Senator Schumer announced those names. The full list of House and Senate conferees is as follows:

House of Representatives:

Republicans: Kevin Brady(TX-8) (Conference Chair and Chair of Ways and Means Committee), Devin Nunes (CA-22), Peter Roskam (IL-6), Diane Black (TN-6), Kristi Noem (SD-at large), Bob Bishop (UT-1), Don Young (AK-at large), Fred Upton (MI-6), and John Shimkus (IL-15). (Note, Rep. Walden who was on the list in yesterday’s email, has been replaced by Fred Upton.)

Democrats: Richard Neal (MA-1) (Ranking member of Ways and Means), Sander Levin (MI-9), Lloyd Doggett (TX-35), Raúl Grijalva (AZ-3), and Kathy Castor (FL-14).

Senate:

Republicans: Orrin Hatch (UT), Chairman of the Senate Finance Committee, Mike Enzi (WY), Lisa Murkowski (AK), John Cornyn (TX), John Thune (SD), Rob Portman (OH), Tim Scott (SC), and Pat Toomey (PA).

Democrats: Ron Wyden (OR), Bernie Sanders (I-VT), Patty Murray (WA), Maria Cantwell (WA), Debbie Stabenow (MI), Bob Menendez (NJ), and Tom Carper (DE).

REMINDER – Action Needed by CARH Members:

Both the House and Senate would lower the top corporate rate from 35 % to 20%. As CARH has noted in previous broadcast emails, both the House and Senate would retain the Housing Credit program. However, the reduction in the corporate rate will reduce the associated tax benefits and pricing associated with the housing credit program, and ultimately reduce the number of affordable housing transactions in both urban and rural areas. Furthermore, the House version would eliminate Private Activity Bonds (PABs) and the use of the 4% Housing Credit. The Senate’s version would retain PABs. It is crucial that the Senate’s provisions regarding PABs be agreed to by the conference committee. Even with PABs included in the final legislation, approximately 20% of the Housing Credits will be lost. View the National Summary chart from NAHB/Novogradac & Company LLP by clicking here and the State-by-State breakdown by clicking here.

It is important that all CARH members weigh in with your Representatives and Senators regarding PABs and the need for the Senate’s provisions to prevail in conference. If you live in a district/state or have affordable housing complexes located in a district/state where the Representative or Senator is a member of the conference committee, it is even more imperative that you take action. While the Senate conferees were named over the last two days,  informal discussions have  taken place between the House and Senate. Therefore, CARH members need to ready their message now!

To contact your Representatives click here and to contact your Senators click here.

We continue to urge CARH members to use social media (i.e., Twitter and Facebook). It is a very effective way to deliver your message. (The contact links also include links to your members of Congress social media pages.) For additional information, the A.C.T.I.O.N. coalition, which CARH serves on the steering committee, has prepared talking points on PABs. (The A Call To Invest in Our Neighborhoods (A.C.T.I.O.N.) Campaign is a national, grassroots coalition of over 2,100 national, state, and local organizations and businesses calling on Congress to protect, expand and strengthen the Low-Income Housing Tax Credit (Housing Credit)).

Feel free to use these talking points in your message. Whichever contact method you use, it is important that you make your message personal. Your message should be one that will show the impact of changes to your portfolio and to rural housing across the country. Specific examples are important especially when legislation is being considered that will negatively impact your business as well as the residents who live in your affordable apartment communities.

It unlikely that the conference committee would make any compensatory adjustments for the housing credit, which means efforts to make changes will be needed should there be a technical corrections bill during the 2^nd session of the 115^th Congress.

If you have any questions or comments, please contact CARH at 703-837-9001 or carh@carh.org.