The Voice of Affordable Housing in Silicon Valley

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Save the 4% Affordable Housing Tax Credit from Federal Cuts

The tax reform bills being considered by Congress will have a disastrous impact on affordable housing in the Bay Area.  The proposal now under consideration threatens to eliminate the State’s ability to use 4% Low Income Housing Tax Credits (LIHTC) by eliminating tax-exempt private activity bonds.  Why is this important?  In Santa Clara County, an estimated 90% of all affordable housing has been created through the 4% LIHTC program.  As the County rolls out Measure A, the loss of this leveraging source would be catastrophic.  And, implementing Mayor Liccardo’s plan to create 10K new affordable units in the next five years will be near impossible.  It is critical that we push back against this proposal and take action TODAY while there is an opportunity to save the 4% credit.

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