Affordable housing advocates oppose tax plan that would cut tax credit

Posted at 12:51 PM, Nov 27, 2017
and last updated 2017-11-27 16:07:05-05

SAN DIEGO (KGTV) - Some local leaders say if Republicans in Congress get their way with the tax reform plan, it will have a devastating effect on affordable housing.

The House proposal cuts a tax credit and bonds aimed at rewarding private companies for building low-cost housing. Affordable housing advocates say those cuts could cause big problems in cities like San Diego.

More than 10,000 affordable rental housing units have been built in the San Diego region since 1997 thanks to the 4 percent Low-Income Housing Tax Credit. With the credit, the units were built at market rate but renters are not charged market-rate prices.

If the credit were to go away, advocates say construction of affordable housing will be cut in half, which would only add to San Diego's homeless numbers.

Ricardo Flores with San Diego's Local Initiatives Support Corporation (LISC) said, "A lot of these units will just not be built. Ramifications for the public is they will see homeless on the street; that's how you'll know there is not enough housing in your community -- when you see people sleeping on the streets of your community."

Flores said he's frustrated that the House cut the credit out of their tax plan.

Local advocates are urging citizens to call their local, state and federal leaders to ask them to not take the tax credit away.

The Senate's tax plan does not include cutting the tax credit.