Agenda Packets - 1986/11/03 - Laserfiche WebLink

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FL-5. Low- and Moderate -Income Nousin Federal housing policy must include continuation of low- and moderate -income housing subsldies and funding for new construction of affordable housing as well as assurance that new federal low-income housing tax credits will be available to encourage investment in such housing projects financed with tax-exempt bonds. Expiration of federal subsidies for low- and moderate -income unite, in combination with the withdrawal of federal tax preference items for investors in those properties, is likely to lead to substantial rent increases without a change in the emphasis of federal housing policy. Displacement of renters who will not be able to afford higher rents will threaten the availability of decent, affordable rental housing in many cities. The analysis of low- and moderate -income housing needs completed recently by the National Association of Housing and Redevelopment Offficfals (N.AHRO) underlines the need for reform of federal housing policy to respond to the increased need for affordable housing in cities. It is estimated, according to NANRO housing statistics, that one out of six households will require such housing subsidies within the next 15 years. Special emphasis must be placed on provision of rental assistance to individuals and families as well as on rehabilitation of single- and multi -family housing units. No sinr,'e approach is spfficient to deal with the wide range of housing needs throughout the nation. Therefore, it is imperative that a combination of federal programs and assistance be supported and that the current decline in the federal role in such housing assistance be reversed. The League urges Congress to provide incentives to owners of private low - and moderate -income housing units to retain that property for such tenants rather than to sell ur redevelop the site. In addition, Congress must extend Section 8 rental subsidies for another 15-year period to provide housing for city residents who are not able to afford unsubsldized rents. The provision of federal tax reform legislation placing multi -family housing bonds under the lowered state volume limits should be reversed. The use of the new federal low-income housing tax credit should be allowed for housing rehabilitation projects and those using federal housing subsidies and loans. There is also a continuing need for federal programs to stimulate constrdction of new affordable housing, to increase home ownership, and to rehabilitate public housing as well as to provide for special as housing needs, such as shelters for the homeless. -78-