SACRAMENTO, Calif. (AP) – California Democratic leaders are urging Congress not to eliminate programs that helped finance roughly two-thirds of the state’s recent affordable housing supply.
State Treasurer John Chiang writes in a letter to Congress that parts of the Republican tax overhaul plan would “decimate” a critical tool in helping the state address its housing shortage. The letter is also signed by Democratic legislative leaders, two lawmakers, and housing and construction representatives.
California lacks an estimated 1.5 million affordable rental units and costs are soaring.
The GOP tax plan eliminates a tax-exempt bond program and, without those bonds, developers can’t apply for certain low-income housing tax credits. The credits help developers finance their projects.
A spokesman for Republican U.S. House Majority Leader Kevin McCarthy did not immediately comment.
Copyright 2017 The Associated Press.