The CALIFORNIA ASSOCIATION OF REALTORS®(C.A.R.), together with members of California's home building and housing community, including the California Building Industry Association and the California Housing Consortium, this week are running ads and petitioning President Trump and the California Congressional Delegation to protect tax incentives for housing.
Representatives of the three groups appeared at a kick off event Tuesday in Sacramento at the Sheraton as full-page advertisements were published in major California daily and national newspapers, including the Los Angeles Times, The Orange County Register, The San Diego Union-Tribune, The Fresno Bee, The Modesto Bee, The Sacramento Bee, Bakersfield Californian, The Wall Street Journal and Politico that call attention to the plan's numerous disincentives to home ownership.
"Tax reform shouldn't hurt Californians, but this proposal does, in a big way," said C.A.R. President Steve White. "This plan eliminates important incentives that help first-time home buyers and existing home owners by capping the mortgage interest deduction and limiting property tax deductibility as well as capital gains exemptions. From the Oregon border south to San Diego, working Californians take a beating."
The California Building Industry Association called on Congress to preserve property tax deductions and maintain the existing mortgage interest deduction of up to $1 million. "When the average home in California costs two-and-a-half times the national average, now is not the time to limit incentives to home ownership. Housing is a major stimulus to the economy, a tremendous job generator, and an essential component for lifting people out of poverty for first-time home buyers and minorities and middle-class families," said Amy Glad, interim chief executive officer.
The House tax reform plan also includes the elimination of public activity bonds (PABs), undercutting housing credits that California has successfully used for decades to build affordable homes for low-and moderate-income families, seniors and veterans. Under the tax plan, California would lose $2.2 billion annually, leading to the loss of 20,000 affordable homes each year.
"Private activity bonds (PABs) are responsible for financing two-thirds of all affordable housing built in the state and make it possible for single mothers, seniors and veterans to have safe, affordable homes," said Marina Wiant, policy director for California Housing Consortium, a non-partisan advocate for the production and preservation of housing affordable to low- and-moderate-income Californians. "Instead of eliminating this successful program, the GOP should be wholeheartedly supporting and expanding the successful partnership of private sector resources, market forces and state-level administration."
