Representative Keith Ellison Reintroduces the Common Sense Housing Investment Act
On March 15, 2013, Representative Keith Ellison reintroduced his Common Sense Housing Investment Act for the 113th Congress. He previously submitted this legislation in 2012 under the same name. The bill, numbered H.R. 1213, seeks to help middle class and working families stay in their homes and find affordable rental housing by replacing mortgage interest deductions with a mortgage interest credit equal to a 15 percent flat rate tax credit on mortgages up to $500,000. According to the Tax Policy Center, converting the mortgage interest deduction to a 15 percent credit will result in 60 million homeowners receiving the tax credit, up from 43 million.
For multifamily properties, the bill seeks to increase the state housing credit ceiling for the low-income housing tax credit (LIHTC) through the use of the mortgage interest savings. Currently, regulation stipulates that the credit ceiling applicable to any State for any calendar year shall be an amount equal to the sum of $1.75 multiplied by the State population; Ellison’s bill would increase this amount to $2.70. Inflation adjustments and the cost of living adjustment would be also amended. Furthermore, this bill would allow a deduction for interest and taxes on land owned or leased by cooperative housing corporations that is used for housing purposes.
The bill also proposes using the mortgage interest savings to improve affordable housing programs. Revenues from the mortgage interest savings left over from the increased LIHTCs would be divided among the Housing Trust Fund (receiving 60 percent), Section 8 Rental Assistance (receiving 30 percent), and the Public Housing Capital Fund (Receiving 10 percent).
H.R. 1213 has so far gained 8 co-sponsors and has been referred to the House Committee on Ways and Means, and in addition to the House Committee on Financial Services. Congressman Ellison said “The lack of affordable rental housing is one of the greatest economic challenges of our time. Millions of renters are unable to find affordable rental housing. Affordable housing is about more than just rent; it’s about ensuring that we maintain the ladder that makes America a land of opportunity.”
To read the text of H.R. 1213,
please click here.
Legislation Seeking to Repeal or Amend Sequestration
Several members of Congress have introduced legislation that would repeal and replace the across-the-board cuts in funding known as the sequester.
H.R. 2060 – This bill was introduced by Representative Chris Van Hollen (D-MD) on May 20th. H.R. 2060 would restore the 2013 budgetary resources sequestered on March 1 for the remainder of FY 2013. It includes controversial proposals favored by Democrats such as the “Buffet Rule”, which modifies the tax requirements of wealthy individuals. Also it reduces the tax deductions and modifies the accounting standards for domestic oil producing companies. The text of the legislation states that “Congress should replace the entire 10-year sequester established by the Budget Control Act of 2011 with a balanced approach that would increase revenues without increasing the tax burden on middle-income Americans, and decrease long-term spending while maintaining the Medicare guarantee, protecting Social Security and a strong social safety net, and making strategic investments in education, science, research, and critical infrastructure”.
H.R. 2177 – This bill, known as the Unemployment Restoration Act, was introduced by Representative Marcy Kaptur (D-OH) on May 23rd. It does not repeal the sequester; the bill instead amends the March 1 cuts by preserving federal unemployment payments made to states. This extension of unemployment payments would begin in FY 2014 and will last the entire lifespan of the sequester, which extends to FY 2021. Currently the bill has four co-sponsors and it has been referred to the House Committee on the Budget.
S. 1017 – Introduced by Colorado Senator Mark Udall (D) on May 22. Senator Udall has partnered up with Senator Susan Collins (R-ME) to find a bipartisan agreement to replace sequestration, and this bill continues their collaborative efforts. S. 1017 would allow federal agencies greater flexibility in how they implement the March 1 cuts to their budgets. Senator Udall has said he would prefer that Congress pass a comprehensive and balanced deficit-reduction plan to replace the sequester. S. 1017 would permit individual federal departments and agencies to propose how they each would more strategically implement the otherwise-arbitrary, automatic cuts. This bill has been referred to the Senate Committee on the Budget.
