Senator’s Urge IRS to be more flexible on Low Income Tax Credits
June 26, 2008
This may be a little bit esoteric for some you this evening, but this is a very important topic and part of my particular advocacy. The Internal Revenue Service (IRS) has for some time been interpeting the rules applying to the way low income tax credits are used as to severly restrict their effectivenss in getting housing built. This is critically important to the many Americans who would qualify to live in this housing if it were only made available.
To construct a new apartment building cost somewhere in the neighborhood of $350,000 an apartment, including the property acquisition costs. It is impossible without government subsidizing the construction and operation of these units that they will get built. They just don’t pencil out when the people who qualify for the low income units can only afford $450 a month for a one bedroom apartment. (Note: I live in Southern California where a one bedroom aprtment in a marginal area goes for $900 a month if you can find one)
The article on the Southern California Assocation of Non-Profit Housing Developers (SCANPH) can be found here: (http://www.scanph.org/node/552) and full text of the Senator’s Letter is Here: (http://www.scanph.org/files/Final%20Occupational%20Letter.pdf)
So please write you Congressional representitives, both in the Hous and Senate to get them on board on this issue. Because you never know where life will take you and the housing you build or save today may someday be you own!
As always I thank you for your time and interest. Please take the time to Digg, Stumble Upon or add to the other social network of your choice to help me spread the word about these issues. Please forward any questions or suggestions to: askthefm@gmail.com
Entry Filed under: Planning. Tags: Low Income Housing, Low Income housing Tax Credit, Tax Credit Buildings.
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