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.
©2004 U.S. Conference of Mayors 