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FL 1 Federal Tax Policy Modifications (cont'd) <br />The impact of federal tax reform on housing has seriously eroded the <br />ability of cities to continue to provide affordable housing for low - <br />and moderate -income residents. The low-income housing tax credit has <br />proved to be largely unworkable in providing needed multi-familybe <br />housing in many areas of the state. In the future, <br />cities wilincreasingly faced with housing shortages as long as such projects are <br />economically unfeasible and uncompetitive with other private investment <br />opportunities. <br />shifting federal tax liability to local property taxpayers is <br />iregnitable and an unreasonable imposition on cities' responsibility to <br />proposed new tax increases for FY'08, <br />deliver basic public services. <br />under consideration by congress, are a cause for concern. Such <br />proposals fail to recognize the legitimate role of cities in meeting <br />public needs at the local level in partnership with the federal <br />government. <br />As a result, cities are being increasingly forced to rely on a narrow <br />and more limited tax base to meet such federal tax obligations while at <br />the same time depending on local ,taxes to support services and programs <br />to meet residents' needs and also to comply with increasingly costly <br />federal mandates. <br />FL-2. Homelessness <br />The League continues to urge increased efforts in the area of housing <br />assistance and urges congress to promote and in-ist oi, the maintdnance <br />of low-income single and family housing, along with renewed 'ederal <br />support for rural housing programs to stem the migration of needy <br />families and poor to urban centers. <br />The League continues to support are policies to end discrimination <br />against the mentally disabled. Review of Section 504 of the Federal <br />Rehabilitation Act, also supported by the National League of C1.ties, <br />is an important part of that effort. Extension of SSI eligibility to <br />three months is also essential for the homeless in order to give them <br />care in Medicaid facilities. <br />- 66 - <br />