Rep. Randy Hultgren (R-IL-14) is circulating a letter to House and Senate leadership opposing the proposed elimination of tax exempt private activity bonds in the House’s version of the Tax Cuts and Jobs Act (H.R. 1), focusing on the need for private activity bonds to support investments in our nation’s infrastructure. The letter also objects to the elimination of advanced refunding bonds in the House bill. “Private activity bonds finance exactly the sorts of public private partnerships of which we need more of, not less,” the letter states. “These bonds help finance housing for low- to moderate-income families that otherwise would not get built; toll roads and expressways, airports and seaports; hospitals and universities.”
Rep. Hultgren will be adding Republican signatories from both the House and the Senate until noon on Monday, Nov. 27. Please urge your Republican Senators and Representatives to sign on by contacting Bill Hulse at bill.hulse in Rep. Hultgren’s office.
Eliminating private activity bonds would have a devastating effect on affordable housing. Multifamily Housing Bonds, which are a type of private activity bond, provide critical financing to more than half of all Housing Credit developments annually by triggering the “4 percent” Housing Credit. Without multifamily Housing Bonds, this housing simply would not be built. See our talking points on Housing Bonds.
According to Novogradac & Co., the proposed elimination of private activity bonds would result in a loss of roughly 788,000 to 881,000 affordable rental homes over the next decade. See how many affordable homes would be lost in your state. While the Senate version of the tax reform bill would retain private activity bonds, their inclusion in any final tax bill is incumbent on continued advocacy.
In addition to advocating for the preservation of Housing Bonds, we also continue to urge Senators to adopt a proposal that would sustain Housing Credit investment in light of the lower corporate rate. See our recent blog post on the latest developments in tax reform and advocacy needed, and visit our Advocacy Toolkit for more materials to assist in your outreach.
The Coalition still has postcards available in the “Federal Housing Credits Matter” campaign. If you or your staff would be willing to complete postcards in support of the private activity bonds and the Cantwell-Hatch Bill to expand Housing Credits, please contact Andrea Frymire.