(from Memo to Members published by the National Low Income Housing Coalition) The beginning of President Barack Obama’s second term in office the week of January 21 marks a renewed opportunity for housing advocates to push for a solution to the absolute shortage of affordable housing that plagues our nation. National housing organizations are urging everyone to show the Administration and Members of Congress that the National Housing Trust Fund (NHTF) is a priority for you and your Congressional district by signing on to endorse our proposal to fund the NHTF through savings from reform of the mortgage interest deduction (MID).
The proposal would modify the MID by reducing the size of a mortgage eligible for a tax break to $500,000, and by converting the deduction to a 15-20% non-refundable tax credit. It would save the federal government between $20 billion and $40 billion a year while making this tax benefit more available to the middle and lower income families who need it. Homeowners would receive a 15-20% non-refundable credit for interest on mortgages up to $500,000. Interest on second homes and home equity loans would be eligible for credit under the $500,000 cap.
The proposal from the savings from MID reform be used to create a permanent dedicated source of revenue for the NHTF. The goal of the National Housing Trust Fund Campaign is to expand affordable housing options for extremely low income households by 3.5 million over ten years. This increase in available affordable housing could end homelessness in the United States.
To learn more about the proposal for a National Housing Trust Fund, visit www.housingtaxreform.org. To view a list of the 745 organizational endorsers of this proposal, visit http://bit.ly/UIc9Fv. To add your organization’s name to the list of those endorsing this NHTF funding proposal, visit http://bit.ly/R4CZWo.