Affordable Housing

The Potential Impact of Tax Reform on Affordable Housing

Share on Pinterest
Share with your friends










Submit

In recent weeks, the pendulum swing of the proposed GOP tax reform bill has bolstered uncertainty about the future state of our economy and how money will flow between municipalities, corporations, public and private institutions, and individuals across income levels. This monumental proposal comes at a pivotal time, as we embark on our 50th Anniversary year, and continue to reflect upon how to thoughtfully shape affordable housing in the years ahead.

Two versions of the tax overhaul bill have received approval from the House and the Senate, meaning that a comprehensive proposal that both Congressional bodies can agree upon is under negotiation. At this time, there are a number of tax measures under consideration that relate to the development and financing of low-income housing. Here’s a breakdown of a few items that we are tracking closely as the negotiations unfold:

  • Private Activity Bonds – otherwise known as PABs – are tax-exempt loans issued by city and state governments to private and nonprofit developers. These bonds can benefit the public by helping to fund hospitals, airports and affordable housing, but are in danger of being eliminated. According to Novogradac & Company, the repeal of PABs would result in the loss of more than 880,000 affordable rental homes over the next 10 years.

The exact nature of the new tax reform bill is largely undecided. Yet, regardless of what happens, we will continue to implement programs and seek opportunities to develop low-income housing for Greater Boston residents to ensure that we are fostering the cultivation of socioeconomically and culturally diverse communities through available means.

If you would like to sponsor IBA’s 50th Anniversary and support our programs, please contact Linnette Speel at lspeel@ibaboston.org or by calling (617) 535-1752. Full-year sponsorship exposure deadline is February 1, 2018. Partial Sponsorship exposure rolling through 2018.

Share on Pinterest
Share with your friends










Submit
Previous post

Happy Holidays: Mayor Walsh Attends Beloved Tradition

Next post

Ringing in the New Year with the Three Kings

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *