ACTION NEEDED: Tell Congress to Restore Private Activity Bonds & 4% Housing Credits!

Matt Schwartz President & CEO
I am writing you from Washington, D.C. to alert you that there is a time-sensitive effort today being led by Rep. Randy Hultgren (R-IL-14th), who is co-chair of Congressional Municipal Finance Caucus, to restore Private Activity Bonds in the House tax reform bill, H.R.1.  My October 27th blog described the damage that will be done to California if the Republican House tax reform proposal eliminates tax exempt private activity bonds (PABs) including multifamily housing bonds, thereby also eliminating California’s ability to use 4% Low Income Housing Tax Credits. In my November 8th blog, I noted that the elimination of PABs and therefore 4% Housing Credits would cost California $2.2 billion in federally catalyzed investments annually and lead to the loss of 20,000 affordable homes annually. Over a ten-year period assuming an average growth factor of 2.5%, this would mean the loss in California of:
  • 262,000 affordable homes
  • 296,000 jobs
  • $24.9 billion in local business income
  • $9.6 billion in federal, state and local tax revenues[1]
It is critical for CA Republicans to voice their support of Hultgren’s efforts to Leader McCarthy, Speaker Ryan and Chairman Brady.  We have a small chance that Brady will restore PABs in the manager’s amendment for House consideration of HR 1, but Californians need to weigh in nowby calling and emailing California Representatives who have access to Chairman Brady, starting with Majority Leader Kevin McCarthy:
The best way to let these Representatives know you care is to email and call them via the Capitol Switchboard (202-224-3121) with the following message:
“Please support Rep. Hultgren’s request to restore Private Activity Bonds and the federal 4% Housing Credit, which is creating more than 20,000 affordable homes in California annually and is far and away the most important tool we have to address our affordable housing crisis.”
This message will be given more weight if it comes from someone in the Representative’s district or with properties in the district. So, please think of anyone you know who lives and works in these districts and forward this request to them.
To maximize the effectiveness of your emails, I suggest you download the fact sheet documenting the benefits that the Housing Credit has delivered to each Representative’s districtby clicking here and selecting their names individually.
Please join me in taking 15 minutes to make this a priority today.
Thank you, 
Matt Schwartz
President & CEO


[1] Ten-year estimates are from Novogradac and Company, which in turn used NAHB formulas.