On Friday, October 9, 2009, Ernst & Young published a study concerning Low Income Housing Tax Credit (Housing Credit) investment. The study was commissioned by Enterprise Community Partners, Inc. and Local Initiatives Support Corporation in order to better understand the Housing Credit investment market and to analyze investor responses to certain legislative proposals. AHTCC worked with Enterprise, LISC, the Affordable Housing Investors Council and Ernst & Young for several months to produce this report. AHTCC believes it was well worth the time and cost as the results strongly argue for the enactment of the 5 year carryback proposal.
The study confirmed that Housing Credit investment activity has fallen dramatically in the last two years but it demonstrates clearly that investment would increase significantly in the near term if the Congress were to enact legislation allowing a five year carryback of Housing Credits (instead of the current law one year carryback). This would amount to $5 billion more of investment nationally through 2011 (14% more this year, 49% more next year and 47% more in 2011). The five year carryback is one of the legislative proposals supported by AHTCC and over 100 national and regional housing organizations, together with proposals to extend and expand the Housing Credit exchange program and to allow certain S corporations and other pass-through entities to fully utilize the Housing Credit.
Without additional Housing Credit investment, there are likely to be 90,000 construction jobs lost and 60,000 fewer affordable rental homes produced nationwide. More Housing Credit investment means more jobs and more housing, thus stimulating economic activity significantly.
You are encouraged to provide this report to members of Congress with a personal message why it is important to you, their constituent. You can go to the website www.rentalhousingaction.organd find state specific information on jobs and amount of investment that would be generated by the implementation of our carryback proposal. You can attach that information along with the report and a personal message, as well as as much of the above message you would like to copy, and help us in our efforts to get the attention of Congress.
The all-consuming health care reform debate is coming to a head so this is an ideal time to bring the problems of the Housing Credit program to their attention. We are looking for a vehicle but there first needs to be the will of Congress! You may contact Coalition president Ronne Thielen (rthielen@centerline.com), Coalition legislative counsel Jim Miller (jfmiller@winston.com) or Coalition general counsel Rick Goldstein (rgoldstein@nixonpeabody.com) with questions concerning the survey or more information on the Coalition’s legislative priorities.