2019 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 $29.1 billion in funds to attract more than $126 billion in additional public and private resources to build and preserve nearly 1.25 million affordable homes since 1992. Furthermore, millions of Americans rely on Homeless Housing Assistance programs, many of whom are elderly or disabled. In 2019, NACCED will continue to work to protect and increase 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 3 million homes for 7.2 million low-income families. Additionally, the Housing Credit supports more than 90,000 affordable homes and nearly 100,000 jobs each year. In 2019, NACCED will urge Congress to preserve and strengthen the Housing Credit through enhancements such as expanding the program by 50 percent and by setting a permanent 4 percent credit rate floor for acquisition and bond-financed projects. Additionally, NACCED supports the preservation of tax-exempt private activity bonds (PABs) that are vital to the Housing Credit, as they help finance approximately 50 percent of all Housing Credit production.
Preserve and Enhance Economic Development Resources: Communities across the country rely on government programs such as the Community Development Financial Institutions Fund’s New Markets Tax Credit program and the CDBG Section 108 Loan Guarantee Program, to develop important economic development projects. Additionally, 2018 saw the rollout of Opportunity Zones, the first new community development tax incentive program enacted in decades. This new tool will help communities bring together public and private funds to create strong neighborhoods of opportunity. In 2019, 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. Furthermore, NACCED will continue efforts to work with Treasury to ensure that Opportunity Zones are successful in supporting healthy revitalization of distressed communities without displacing existing residents.