2018 Legislative and Regulatory Policy Priorities
KEY NACCED POLICY PRIORITIES
Preserve and Increase Funding for HUD Programs: The Department of Housing and Urban Development (HUD) programs such as Community Development Block Grants (CDBG), HOME Investment Partnerships (HOME), Homeless Housing Assistance and other programs play an important role in providing housing, community and economic development across the country. CDBG allows states and localities to meet a diverse range of needs for their communities, leveraging other sources of investment at a rate of more than three to one. The HOME program has used its $26 billion in funds to attract more than $117 billion in additional public and private resources to build and preserve nearly 1.2 million affordable homes since 1992. Furthermore, millions of Americans rely on Homeless Housing Assistance programs, many of whom are elderly or disabled. In 2018, NACCED will continue to protect and restore these funds while working with Congress and the Administration to increase program efficiency and flexibility.
Protect and Enhance Low Income Housing Tax Credits (Housing Credit)-Creating Affordable Housing, Strengthening the Economy and Creating Jobs Through Public-Private Partnerships: The Housing Credit is the most successful tool available for incentivizing private investment in the production and preservation of affordable housing. The Housing Credit is structured to allow investors in the private sector to provide equity capital in exchange for a credit against their tax liability. Since it was established in 1986, the Housing Credit has financed over 2.8 million homes for 6.5 million low-income families and generated $100 Billion in private investment in communities nationwide. Every year, the Housing Credit supports more than 90,000 affordable homes and nearly 100,000 jobs every year. In 2018, NACCED will urge Congress to adopt the provisions in the bi-partisan Affordable Housing Credit Improvement Act to preserve and strengthen the Housing Credit. NACCED supports the many important proposed improvements to the program, including expanding the program by 50 percent, setting a permanent 4 percent credit rate floor for acquisition and bond-financed projects, and introducing income averaging to reach a wider range of American families. Additionally, NACCED supports the preservation of private activity and municipal bonds that are vital to the Housing Credit, as they help finance approximately 50 percent of all Housing Credit production.
Preserve and Increase Economic Development Funding: Communities across the country rely on government programs such as the Community Development Financial Institutions Fund’s New Markets Tax Credit program and the Economic Development Administration’s Investing in Manufacturing Communities Partnership (IMCP), to develop important economic development projects. In 2017, there were many proposals from the Trump Administration and Congress to eliminate several of these important economic development tools. In 2018, NACCED will urge Congress to protect important economic development programs that generate the essential public-private partnerships necessary to stimulate investment in low- and moderate-income communities.