2004 Adopted Resolutions
72nd Annual Meeting
Boston

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SUPPORTING PRESERVATION OF AFFORDABLE HOUSING

     WHEREAS, the availability of affordable housing in our nation’s cities is a major concern of our mayors and citizens; and

     WHEREAS, there is a shortage of housing that is affordable and available to low- and moderate-income households; and

     WHEREAS, three in ten renter households pay more than 30% of their incomes for housing, and for extremely low-income households this number rises to eight in ten; and

     WHEREAS, many private assisted housing units have affordability commitments that have expired or will soon expire and can therefore be expected to convert to market-rate housing unless there is federal support for transactions that preserve affordability; and

     WHEREAS, affordable properties are aging and face increasing costs for major repair and rehabilitation and could potentially be lost due to deterioration without government intervention; and

     WHEREAS, despite the significant costs associated with repair and maintenance, affordable housing preservation is typically far more cost efficient than the creation of new affordable housing stock; and

     WHEREAS, tax penalties incurred at the sale of subsidized properties in order to recapture tax benefits received by the owner  - commonly referred to as “exit taxes” - often act as a significant disincentive for the transfer and preservation of federally subsidized housing units; and

     WHEREAS, the Internal Revenue Code prohibits the use of low-income housing tax credits to assist buildings that have received assistance through the Section 8 Moderate Rehabilitation Program, and consequently restricts the resources available to preserve many affordable housing units;

     NOW, THEREFORE, BE IT RESOLVED, that the U.S. Conference of Mayors generally supports efforts to preserve affordable housing units, and recognizes preservation as an important component of efforts to address the current shortage of affordable housing in our cities; and

     BE IT FURTHER RESOLVED, that the U.S. Conference of Mayors supports the passage of a federal policy, such as the one proposed in H.R. 3485, which would provide exit tax relief to owners of federally-assisted properties who sell these properties to purchasers who agree to keep them affordable; and

     BE IT FURTHER RESOLVED, that the U.S. Conference of Mayors supports the repeal of the low-income housing tax credit disqualification for buildings that have received assistance through the Section 8 Moderate Rehabilitation program, as proposed in H.R. 4289.