Legislation re-introduced to overhaul the mortgage interest deduction to address affordable housing needs; and also expand LIHTC eligibility to homeless youth and veterans
Last week, Congressman Keith Ellison (D-MN) reintroduced the Common Sense Housing Investment Act (H.R. 948) to replace the Mortgage Interest Deduction with a 15% flat rate tax credit on interest paid on mortgages up to $500,000, extending its reach from 43 to 60 million homeowners. The bill lowers the deductible cap on allowable interest paid on a mortgage from $1 million to $500,000 while retaining the allowance for home equity lines of credit and second homes.
This bill would generate more than $200 billion in revenue over ten years, which would help address the national rental shortage. New revenue resulting from the bill would be invested in an expansion of LIHTC, Section 8 rental assistance, and the public housing capital fund, and would provide a source of permanent funding for the National Affordable Housing Trust Fund.
This week, Rep. Ellison also introduced legislation (H.R. 1145) to amend the Internal Revenue Code (IRC) to qualify homeless youth and veterans who are full-time students for purposes of the LIHTC. Rep. Ellison is also in the running to lead to Democratic National Committee.
Cabinet picks confirmed for the Dept. of Treasury, the White House Office of Management and Budget, and the Environmental Protection Agency
After delays for the OMB Director’s confirmation, Mick Mulvaney’s appointment was confirmed in the Senate this week by a narrow 51 – 49 margin. While serving as a Representative from South Carolina’s 5th district, Mulvaney developed a reputation as a fiscal conservative who has argued for entitlement cuts and deregulation. His views diverge from the President’s campaign promises to balance the budget without cutting Social Security, Medicare, and other programs.
Earlier in the week, the Senate also confirmed Steven Mnuchin as Treasury Secretary in a 53 to 47 vote. The Administration has praised the former mortgage banker’s financial acumen and entrusted him with overhauling the tax system, addressing the government’s debt ceiling, and rolling back federal regulations.
Today, the Senate also confirmed Scott Pruitt, 52-46, to lead the Environmental Protection Agency(EPA). Pruitt faced significant opposition from hundreds of EPA employees for his stances on environmental protection. He is expected to roll back a significant number of regulations on climate change implemented during the Obama Administration.
Congress discusses role of affordable housing on persistent, geographic poverty
This week, the House Ways and Means Subcommittee on Human Resources heard testimony on “the Geography of Poverty” and the role of government intervention and assistance. The witness list included: Elizabeth Kneebone, Metropolitan Policy Fellow, Brookings Institution; Mark Partridge, Professor, Swank Chair in Rural-Urban Policy, Dept. of Agricultural, Environmental, and Development Economics, Ohio State University; William Leavy, Executive Director, Greater West Town Project, Chicago, IL; and Tammy Slater, CEO, Goodwill Industries of Greater Nebraska.
In his opening statement, Human Resources Subcommittee Chairman Adrian Smith (R-NE) stated, “Our instinct might be to think rural Nebraska and urban Chicago are so vastly different they have nothing in common. But what we are charged to do in this subcommittee is to find ways for individuals and families to succeed, and those challenges are universal, even if they require different solutions … It’s important we realize and respect the differences between the constituencies we represent, as too often Congress proposes national, one-size-fits-all solutions when local flexibility is really what’s needed.”
In response to lawmakers’ questions about generational poverty in rural, underemployed districts, witnesses touted the importance of economic development and infrastructure investment, including affordable housing and transportation. “The distance between where jobs are located and where poor people can afford to live has grown, and we’ve seen the number of nearby jobs for poor residents fall across the country, in urban, suburban, and rural communities,” said Elizabeth Kneebone. To view the hearing, please click here.